Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38818 | |
Entity Registrant Name | CarLotz, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-2456129 | |
Entity Address, Address Line One | 3301 W. Moore Street | |
Entity Address, City or Town | Richmond | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23230 | |
City Area Code | 804 | |
Local Phone Number | 510-0744 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 119,703,273 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001759008 | |
Common Class A | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | LOTZ | |
Security Exchange Name | NASDAQ | |
Redeemable warrants, exercisable for Class A common stock at an exercise price of $11.50 per shar | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Redeemable warrants, exercisable for Class A common stock at an exercise price of $11.50 per share | |
Trading Symbol | LOTZW | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 84,809 | $ 75,029 |
Restricted cash | 4,049 | 4,336 |
Marketable securities – at fair value | 28,125 | 116,589 |
Accounts receivable, net | 4,786 | 8,206 |
Inventories | 13,062 | 40,985 |
Other current assets | 4,349 | 4,705 |
Operating and finance lease assets, property, and equipment held for sale | 20,860 | 0 |
Total Current Assets | 160,040 | 249,850 |
Marketable securities – at fair value | 760 | 1,941 |
Property and equipment, net | 7,118 | 22,628 |
Capitalized website and internal-use software costs, net | 12,725 | 13,716 |
Operating lease assets | 22,092 | |
Finance lease assets | 4,459 | |
Lease vehicles, net | 2,869 | 1,596 |
Other assets | 474 | 558 |
Total Assets | 210,537 | 290,289 |
Current Liabilities: | ||
Current portion of finance lease liabilities | 116 | 509 |
Floor plan notes payable | 5,433 | 27,815 |
Accounts payable | 2,236 | 6,352 |
Accrued expenses | 11,215 | 14,428 |
Current portion of operating lease liabilities | 4,600 | |
Other current liabilities | 593 | 754 |
Operating and finance lease liabilities associated with assets held for sale | 22,294 | 0 |
Total Current Liabilities | 46,487 | 49,858 |
Finance lease liabilities, less current portion | 6,083 | 12,206 |
Operating leases, less current portion | 22,384 | |
Earnout shares liability | 722 | 7,679 |
Other liabilities | 417 | 744 |
Total Liabilities | 76,768 | 76,778 |
Commitments and Contingencies (Note 15) | 0 | 0 |
Stockholders’ Equity (Deficit): | ||
Common stock, $0.0001 par value; 500,000,000 authorized shares, 114,879,689 and 113,996,401 shares issued and outstanding at September 30, 2022 and December 31, 2021 | 11 | 11 |
Additional paid-in capital | 291,827 | 287,509 |
Accumulated deficit | (157,956) | (73,916) |
Accumulated other comprehensive loss | (113) | (93) |
Total Stockholders’ Equity (Deficit) | 133,769 | 213,511 |
Total Liabilities and Stockholders’ Equity (Deficit) | 210,537 | 290,289 |
Merger warrants liability | ||
Current Liabilities: | ||
Merger warrants liability | $ 675 | $ 6,291 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued shares (in shares) | 114,879,689 | 114,879,689 |
Common stock, outstanding shares (in shares) | 113,996,401 | 113,996,401 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Lease income, net | $ 245 | $ 129 | $ 528 | $ 334 |
Total Revenues | 50,838 | 68,041 | 190,343 | 175,421 |
Cost of sales (exclusive of depreciation) | 51,429 | 66,017 | 187,375 | 167,207 |
Gross Profit | (591) | 2,024 | 2,968 | 8,214 |
Operating Expenses: | ||||
Selling, general and administrative | 19,334 | 24,780 | 74,017 | 63,039 |
Stock-based compensation expense | 1,409 | 3,447 | 4,234 | 49,114 |
Depreciation and amortization expense | 2,025 | 1,214 | 6,173 | 1,692 |
Management fee expense – related party | 0 | 0 | 0 | 2 |
Impairment expense | 420 | 0 | 1,143 | 0 |
Restructuring expenses | 1,885 | 0 | 12,616 | 0 |
Total Operating Expenses | 25,073 | 29,441 | 98,183 | 113,847 |
Loss from Operations | (25,664) | (27,417) | (95,215) | (105,633) |
Interest expense | 302 | 650 | 1,512 | 1,009 |
Other Income, net | ||||
Change in fair value of Merger warrants liability | 803 | 12,111 | 5,616 | 24,794 |
Change in fair value of earnout shares | 341 | 12,565 | 6,957 | 56,621 |
Other income (expense) | 523 | (85) | 113 | (476) |
Total Other Income, net | 1,667 | 24,591 | 12,686 | 80,939 |
Loss Before Income Tax Expense | (24,299) | (3,476) | (84,041) | (25,703) |
Income tax expense | 0 | 0 | 0 | 0 |
Net Loss | $ (24,299) | $ (3,476) | $ (84,041) | $ (25,703) |
Net Loss per Share, basic (in dollars per share) | $ (0.21) | $ (0.03) | $ (0.74) | $ (0.23) |
Net Loss per Share, diluted (in dollars per share) | $ (0.21) | $ (0.03) | $ (0.74) | $ (0.23) |
Weighted-average Shares used in Computing Net Loss per Share, basic (in shares) | 114,705,449 | 113,707,013 | 114,334,960 | 109,447,939 |
Weighted-average Shares used in Computing Net Loss per Share, diluted (in shares) | 114,705,449 | 113,707,013 | 114,334,960 | 109,447,939 |
Retail vehicle sales | ||||
Revenues: | ||||
Revenue | $ 32,545 | $ 56,284 | $ 142,344 | $ 150,897 |
Gross Profit | 404 | (300) | (1,714) | 3,755 |
Wholesale vehicle sales | ||||
Revenues: | ||||
Revenue | 16,357 | 8,989 | 38,880 | 18,217 |
Gross Profit | (2,931) | (444) | (4,437) | (1,848) |
Finance and insurance, net | ||||
Revenues: | ||||
Revenue | $ 1,691 | $ 2,639 | $ 8,591 | $ 5,973 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (24,299) | $ (3,476) | $ (84,041) | $ (25,703) |
Other Comprehensive (Loss), net of tax: | ||||
Unrealized gains (losses) on marketable securities arising during the period | 38 | (40) | (6) | (110) |
Tax effect | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on marketable securities arising during the period, net of tax | 38 | (40) | (6) | (110) |
Reclassification adjustment for realized gains | (8) | 0 | (14) | (5) |
Tax effect | 0 | 0 | 0 | 0 |
Reclassification adjustment for realized gains, net of tax | (8) | 0 | (14) | (5) |
Other Comprehensive Income (Loss), net of tax | 30 | (40) | (20) | (115) |
Total Comprehensive (Loss) | $ (24,269) | $ (3,516) | $ (84,061) | $ (25,818) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Total | Previously Reported | Revision of Prior Period, Adjustment | Common Stock | Common Stock Previously Reported | Common Stock Revision of Prior Period, Adjustment | Additional Paid-in Capital | Additional Paid-in Capital Previously Reported | Additional Paid-in Capital Revision of Prior Period, Adjustment | Accumulated Deficit | Accumulated Deficit Previously Reported | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Previously Reported | Accumulated Other Comprehensive (Loss) Income Revision of Prior Period, Adjustment |
Beginning balance (in shares) at Dec. 31, 2020 | 0 | 2,034,751 | (2,034,751) | |||||||||||
Beginning balance at Dec. 31, 2020 | $ 0 | $ 17,560 | $ (17,560) | |||||||||||
Ending balance (in shares) at Mar. 31, 2021 | 0 | |||||||||||||
Ending balance at Mar. 31, 2021 | $ 0 | |||||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 58,621,042 | 37,881,435 | 20,739,607 | |||||||||||
Beginning balance at Dec. 31, 2020 | (13,237) | $ (30,797) | $ 17,560 | $ 6 | $ 4 | $ 2 | $ 20,779 | $ 3,221 | $ 17,558 | $ (34,037) | $ (34,037) | $ 15 | $ 15 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net loss | (15,022) | (15,022) | ||||||||||||
Other comprehensive income, net of tax | (131) | (131) | ||||||||||||
Cashless/ exercise of options (in shares) | 54,717 | |||||||||||||
Stock-based compensation | 41,963 | 41,963 | ||||||||||||
Accrued dividends on redeemable convertible preferred stock | (19) | (19) | ||||||||||||
PIPE issuance (in shares) | 12,500,000 | |||||||||||||
PIPE issuance | 125,000 | $ 1 | 124,999 | |||||||||||
Merger financing (in shares) | 38,194,390 | |||||||||||||
Merger financing | 309,999 | $ 4 | 309,995 | |||||||||||
Consideration to existing shareholders of Former CarLotz, net of accrued dividends | (62,693) | (62,693) | ||||||||||||
Transaction costs and advisory fees | (47,579) | (47,579) | ||||||||||||
Settlement of redeemable convertible preferred stock tranche obligation | 2,832 | 2,832 | ||||||||||||
Cash consideration paid to Former Carlotz optionholders | (2,465) | (2,465) | ||||||||||||
Earnout liability | (74,284) | (74,284) | ||||||||||||
Merger warrants liability | (39,025) | (39,025) | ||||||||||||
KAR/AFC warrant exercise (in shares) | 3,546,984 | |||||||||||||
KAR/AFC note payable conversion | 3,625 | 3,625 | ||||||||||||
KAR/AFC warrant exercise (in shares) | 752,927 | |||||||||||||
KAR/AFC warrant exercise | 144 | 144 | ||||||||||||
Ending balance (in shares) at Mar. 31, 2021 | 113,670,060 | |||||||||||||
Ending balance at Mar. 31, 2021 | $ 229,108 | $ 11 | 278,272 | (49,059) | (116) | |||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 0 | 2,034,751 | (2,034,751) | |||||||||||
Beginning balance at Dec. 31, 2020 | $ 0 | $ 17,560 | $ (17,560) | |||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 0 | |||||||||||||
Ending balance at Sep. 30, 2021 | $ 0 | |||||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 58,621,042 | 37,881,435 | 20,739,607 | |||||||||||
Beginning balance at Dec. 31, 2020 | (13,237) | $ (30,797) | $ 17,560 | $ 6 | $ 4 | $ 2 | 20,779 | $ 3,221 | $ 17,558 | (34,037) | $ (34,037) | 15 | $ 15 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net loss | (25,703) | |||||||||||||
Other comprehensive income, net of tax | (115) | |||||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 113,707,013 | |||||||||||||
Ending balance at Sep. 30, 2021 | $ 225,594 | $ 11 | 285,423 | (59,740) | (100) | |||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 0 | |||||||||||||
Beginning balance at Mar. 31, 2021 | $ 0 | |||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 0 | |||||||||||||
Ending balance at Jun. 30, 2021 | $ 0 | |||||||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 113,670,060 | |||||||||||||
Beginning balance at Mar. 31, 2021 | 229,108 | $ 11 | 278,272 | (49,059) | (116) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net loss | (7,205) | (7,205) | ||||||||||||
Other comprehensive income, net of tax | 56 | 56 | ||||||||||||
Stock-based compensation | 3,704 | 3,704 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 113,670,060 | |||||||||||||
Ending balance at Jun. 30, 2021 | $ 225,663 | $ 11 | 281,976 | (56,264) | (60) | |||||||||
Ending balance (in shares) at Sep. 30, 2021 | 0 | |||||||||||||
Ending balance at Sep. 30, 2021 | $ 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net loss | (3,476) | (3,476) | ||||||||||||
Other comprehensive income, net of tax | (40) | (40) | ||||||||||||
Stock-based compensation | 3,447 | 3,447 | ||||||||||||
Stock-based compensation (in shares) | 0 | |||||||||||||
Issuance of common stock to settle vested restricted stock units (in shares) | 36,953 | |||||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 113,707,013 | |||||||||||||
Ending balance at Sep. 30, 2021 | $ 225,594 | $ 11 | 285,423 | (59,740) | (100) | |||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 0 | |||||||||||||
Beginning balance at Dec. 31, 2021 | $ 0 | |||||||||||||
Ending balance (in shares) at Mar. 31, 2022 | 0 | |||||||||||||
Ending balance at Mar. 31, 2022 | $ 0 | |||||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 113,996,401 | 113,996,401 | ||||||||||||
Beginning balance at Dec. 31, 2021 | $ 213,511 | $ 11 | 287,509 | (73,916) | (93) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net loss | (24,836) | (24,836) | ||||||||||||
Other comprehensive income, net of tax | (73) | (73) | ||||||||||||
Cashless/ exercise of options (in shares) | 44,424 | |||||||||||||
Stock-based compensation | 1,684 | 1,684 | ||||||||||||
Issuance of common stock to settle vested restricted stock units (in shares) | 70,971 | |||||||||||||
Issuance of common stock to settle vested restricted stock units | (2) | (2) | ||||||||||||
Ending balance (in shares) at Mar. 31, 2022 | 114,111,796 | |||||||||||||
Ending balance at Mar. 31, 2022 | $ 190,284 | $ 11 | 289,191 | (98,752) | (166) | |||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 0 | |||||||||||||
Beginning balance at Dec. 31, 2021 | $ 0 | |||||||||||||
Ending balance (in shares) at Sep. 30, 2022 | 0 | |||||||||||||
Ending balance at Sep. 30, 2022 | $ 0 | |||||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 113,996,401 | 113,996,401 | ||||||||||||
Beginning balance at Dec. 31, 2021 | $ 213,511 | $ 11 | 287,509 | (73,916) | (93) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net loss | (84,041) | |||||||||||||
Other comprehensive income, net of tax | $ (20) | |||||||||||||
Ending balance (in shares) at Sep. 30, 2022 | 113,996,401 | 114,879,689 | ||||||||||||
Ending balance at Sep. 30, 2022 | $ 133,769 | $ 11 | 291,827 | (157,956) | (113) | |||||||||
Beginning balance (in shares) at Mar. 31, 2022 | 0 | |||||||||||||
Beginning balance at Mar. 31, 2022 | $ 0 | |||||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 0 | |||||||||||||
Ending balance at Jun. 30, 2022 | $ 0 | |||||||||||||
Beginning balance (in shares) at Mar. 31, 2022 | 114,111,796 | |||||||||||||
Beginning balance at Mar. 31, 2022 | 190,284 | $ 11 | 289,191 | (98,752) | (166) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net loss | (34,905) | (34,905) | ||||||||||||
Other comprehensive income, net of tax | $ 23 | 23 | ||||||||||||
Cashless/ exercise of options (in shares) | 104,818 | |||||||||||||
Cashless/exercise of options | $ 66 | 66 | ||||||||||||
Stock-based compensation | 1,141 | 1,141 | ||||||||||||
Issuance of common stock to settle vested restricted stock units (in shares) | 263,048 | |||||||||||||
Issuance of common stock to settle vested restricted stock units | 0 | 0 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 114,479,662 | |||||||||||||
Ending balance at Jun. 30, 2022 | $ 156,609 | $ 11 | 290,398 | (133,657) | (143) | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | 0 | |||||||||||||
Ending balance at Sep. 30, 2022 | $ 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net loss | (24,299) | (24,299) | ||||||||||||
Other comprehensive income, net of tax | $ 30 | 30 | ||||||||||||
Cashless/ exercise of options (in shares) | 81,541 | 26,435 | ||||||||||||
Cashless/exercise of options | $ 20 | 20 | ||||||||||||
Stock-based compensation | 1,409 | 1,409 | ||||||||||||
Issuance of common stock to settle vested restricted stock units (in shares) | 292,051 | |||||||||||||
Issuance of common stock to settle vested restricted stock units | $ 0 | 0 | ||||||||||||
Ending balance (in shares) at Sep. 30, 2022 | 113,996,401 | 114,879,689 | ||||||||||||
Ending balance at Sep. 30, 2022 | $ 133,769 | $ 11 | $ 291,827 | $ (157,956) | $ (113) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (84,041) | $ (25,703) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization – property, equipment, ROU assets and capitalized software | 8,532 | 1,623 |
Impairment expense | 1,143 | 0 |
Non-cash restructuring expenses | 10,387 | 0 |
Gain on lease assignment | (236) | 0 |
Amortization and accretion - marketable securities | 752 | 1,712 |
Depreciation – lease vehicles | 360 | 69 |
Provision for doubtful accounts | 656 | 85 |
Stock-based compensation expense | 4,234 | 49,114 |
Change in fair value of Merger warrants liability | (5,616) | (24,794) |
Change in fair value of earnout shares | (6,957) | (56,621) |
Unpaid interest expense on capital lease obligations | 0 | 199 |
Change in Operating Assets and Liabilities: | ||
Accounts receivable | 2,764 | (4,786) |
Inventories | 27,923 | (46,774) |
Other current assets | 356 | (8,414) |
Other assets | 84 | (4,267) |
Accounts payable | (4,116) | 3,541 |
Accrued expenses | (2,237) | 5,441 |
Accrued expenses – related party | 0 | (229) |
Other current liabilities | (161) | 382 |
Other liabilities | (327) | (753) |
Net Cash Used in Operating Activities | (46,500) | (110,175) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (5,642) | (6,766) |
Capitalized website and internal-use software costs | (2,958) | (11,511) |
Purchase of marketable securities | (63,858) | (359,381) |
Proceeds from sales of marketable securities | 152,758 | 212,823 |
Purchase of lease vehicles | (1,633) | (939) |
Net Cash Provided by (Used in) Investing Activities | 78,667 | (165,774) |
Cash Flows from Financing Activities | ||
Payments made on finance leases | (376) | (51) |
Advance from holder of marketable securities | 0 | 4,722 |
Repayment of advance from marketable securities | 0 | (4,722) |
PIPE issuance | 0 | 125,000 |
Merger financing | 0 | 309,999 |
Payment made on accrued dividends | 0 | (4,853) |
Payments to existing shareholders of Former CarLotz | 0 | (62,693) |
Transaction costs and advisory fees | 0 | (47,579) |
Payments made on cash considerations associated with stock options | 0 | (2,465) |
Repayment of Paycheck Protection Program loan | 0 | (1,749) |
Payments made on note payable | 0 | (3,000) |
Payments on floor plan notes payable | (102,592) | (109,034) |
Borrowings on floor plan notes payable | 80,211 | 127,279 |
Employee stock option exercise | 91 | 0 |
Payments made for tax on equity award transactions | (8) | 0 |
Net Cash (Used in) Provided by Financing Activities | (22,674) | 330,854 |
Net Change in Cash and Cash Equivalents Including Restricted Cash | 9,493 | 54,905 |
Cash and cash equivalents and restricted cash, beginning | 79,365 | 2,813 |
Cash and cash equivalents and restricted cash, ending | 88,858 | 57,718 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for interest | 1,589 | 1,000 |
Supplementary Schedule of Non-cash Investing and Financing Activities: | ||
Transfer from lease vehicles to inventory | 0 | 166 |
KAR/AFC exercise of stock warrants | 0 | (144) |
KAR/AFC conversion of notes payable | 0 | (3,625) |
Convertible redeemable preferred stock tranche obligation expiration | 0 | (2,832) |
Capitalized website and internal use software costs accrued | 0 | (1,898) |
Purchases of property under capital lease obligation | $ (247) | $ (7,651) |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Defined Terms Unless otherwise indicated or unless the context otherwise requires, the following terms used herein shall have the following meanings: • references to “CarLotz,” “we,” “us,” “our” and the “Company” are to CarLotz, Inc. and its consolidated subsidiaries; • references to “Acamar Partners” refer to the Company for periods prior to the consummation of the Merger referred to below; • references to “Acamar Sponsor” are to Acamar Partners Sponsor I LLC; and • references to the “Merger” are to the merger pursuant to that certain Agreement and Plan of Merger, dated as of October 21, 2020 (as amended by Amendment No. 1, dated December 16, 2020, the “Merger Agreement”), by and among CarLotz, Inc. (f/k/a Acamar Partners Acquisition Corp.) (the “Company”), Acamar Partners Sub, Inc., a wholly owned subsidiary of CarLotz, Inc. (“Merger Sub”), and CarLotz Group, Inc. (f/k/a CarLotz, Inc.) (“Former CarLotz”), pursuant to which Merger Sub merged with and into Former CarLotz, with Former CarLotz surviving as the surviving company and as a wholly owned subsidiary of the Company. The Company is a used vehicle consignment and Retail Remarketing TM company based in Richmond, Virginia. The Company operates an innovative and one-of-a-kind consumer and commercial used vehicle consignment and sales business model, with an online marketplace and 11 retail hub locations throughout the United States, including in Alabama, California, Colorado, Florida, Illinois, North Carolina, and Virginia. Subsidiaries are consolidated when the parent is deemed to have control over the subsidiaries’ operations. Subsidiary Operations CarLotz, Inc. owns 100% of CarLotz Group, Inc. (a Delaware corporation), which owns 100% of CarLotz, Inc. (an Illinois corporation), CarLotz Nevada, LLC (a Delaware LLC), CarLotz California, LLC (a California LLC), CarLotz Logistics, LLC (a Delaware LLC), Orange Grove Fleet Solutions, LLC (a Virginia LLC), Orange Peel Protection Reinsurance Co. Ltd. (a Turks and Caicos Islands, British West Indies company) and Orange Peel LLC (a Virginia LLC), which owns 100% of Orange Peel Reinsurance, Ltd. (a Turks and Caicos Islands, British West Indies company). Basis of Presentation On January 21, 2021 (the “Closing Date”), the Company consummated the merger pursuant to that certain Agreement and Plan of Merger, dated as of October 21, 2020, by and among the Company, Merger Sub and Former CarLotz, as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated December 16, 2020, by and among the Company, Merger Sub and Former CarLotz (See Note 3 “Merger” for further discussion). Pursuant to the terms of the Merger Agreement, a business combination between the Company and Former CarLotz was effected through the merger of Merger Sub with and into Former CarLotz with Former CarLotz continuing as the surviving company. Notwithstanding the legal form of the Merger pursuant to the Merger Agreement, the Merger is accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Under this method of accounting, CarLotz is treated as the acquired company and Former CarLotz is treated as the acquiror for financial statement reporting and accounting purposes. As a result of Former CarLotz being the accounting acquirer, the financial reports filed with the U.S. Securities and Exchange Commission (“SEC”) by the Company subsequent to the Merger are prepared “as if” Former CarLotz is the predecessor and legal successor to the Company. The historical operations of Former CarLotz are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Former CarLotz prior to the Merger, (ii) the combined results of the Company and Former CarLotz following the Merger on January 21, 2021, (iii) the assets and liabilities of Former CarLotz at their historical cost and (iv) the Company’s equity structure for all periods presented. The recapitalization of the number of shares of common stock attributable to the purchase of Former CarLotz in connection with the Merger is reflected retroactively to the earliest period presented and will be utilized for calculating earnings per share in all prior periods presented. No step-up basis of intangible assets or goodwill was recorded in the Merger transaction consistent with the treatment of the transaction as a reverse recapitalization of Former CarLotz. In connection with the Merger, Acamar Partners Acquisition Corp. changed its name to CarLotz, Inc. The Company’s common stock is now listed on The Nasdaq Global Market under the symbol “LOTZ” and warrants to purchase the common stock at an exercise price of $11.50 per share are listed on The Nasdaq Global Market under the symbol “LOTZW”. Prior to the Merger, the Company neither engaged in any operations nor generated any revenue. Until the Merger, based on the Company’s business activities, it was a “shell company” as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The accompanying interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and applicable rules and regulations of the SEC regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted pursuant to such rules and regulations. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, except for those related to recent accounting pronouncements adopted in the current fiscal year. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in management’s opinion, include all adjustments, which consist of only normal recurring adjustments, necessary for the fair statement of the Company’s condensed consolidated balance sheet as of September 30, 2022 and its results of operations for the three and nine months ended September 30, 2022 and 2021. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results expected for the current fiscal year or any other future periods. Restructuring On June 21, 2022, we announced the closure of retail operations at 11 hub locations and determined not to commence retail operations at 3 unopened hub locations with executed lease agreements. The costs associated with the hub closures are classified as restructuring expenses. See Note 21 — Restructuring Charges, Asset Impairment, and Assets Held For Sale for further detail. Shift Merger On August 9, 2022, the Company entered into the Agreement and Plan of Merger (the “Shift Merger Agreement”) with Shift Technologies, Inc., a Delaware corporation (“Shift”), and Shift Remarketing Operations, Inc., a Delaware corporation and direct wholly owned subsidiary of Shift (“Shift Merger Sub”), pursuant to which, among other things and subject to the terms and conditions contained therein, Shift Merger Sub will be merged with and into CarLotz, with CarLotz continuing as the surviving corporation and as a wholly owned subsidiary of Shift (the “Shift Merger”). The Shift Merger is expected to close in the fourth quarter of 2022, subject to Shift and Company stockholder approval and other customary and regulatory approvals. Certain transaction expenses (“Shift Merger expenses”) such as financial advisory, legal, accounting costs and associated fees and expenses that will be paid at the close of the Shift Merger are expensed as incurred and included in Accrued Expenses (see Note 12 — Accrued Expenses for further detail). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting PoliciesFor a detailed discussion about the Company’s significant accounting policies and for further information on accounting updates adopted in the prior year, see Note 2 to the audited consolidated financial statements. During the nine months ended September 30, 2022, there were no significant revisions to the Company’s significant accounting policies, other than those indicated herein related to the adoption of Leases Topic 842. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Following the closing of the Merger, Former CarLotz equity holders at the effective time of the Merger will have the contingent right to receive, in the aggregate, up to 7,500,000 shares of common stock if, from the closing of the Merger until the fifth anniversary thereof, the reported closing trading price of the common stock exceeds certain thresholds. Estimating the change in fair value of the earnout liability for the earnout shares that could be earned by Former CarLotz equity holders at the effective time of the Merger requires determining both the fair value valuation model to use and inputs to the valuation model. The fair value of the earnout shares was estimated by utilizing a Monte-Carlo simulation model, which is a commonly used valuation model for this type of transaction. Inputs that have a significant effect on the earnout shares valuation include the expected volatility, starting stock price, expected term, risk-free interest rate and the earnout hurdles. See Note 6 — Fair Value of Financial Instruments. Warrants that were issued by Acamar Partners (Merger warrants) and continue to exist following the closing of the Merger are accounted for as freestanding financial instruments. These warrants are classified as liabilities on the Company’s condensed consolidated balance sheets and are recorded at their estimated fair value. The estimated fair value of the warrants is determined by using the market value in an active trading market. See Note 6 — Fair Value of Financial Instruments. Beginning in the first quarter of 2020, the World Health Organization declared the outbreak and spread of the COVID-19 virus a pandemic. The COVID-19 pandemic and global macroeconomic and geopolitical conditions continue to disrupt supply chains and impact production and sales across a wide range of industries. The full economic impact of the pandemic and global conditions has not been determined, including the impact on the Company’s suppliers, customers and credit markets. Due to the evolving and uncertain nature of COVID-19 and global macroeconomic and geopolitical conditions, it is reasonably possible that it could materially impact the Company’s estimates, particularly those noted above that require consideration of forecasted financial information, in the near to medium term. The ultimate impact will depend on numerous evolving factors that the Company may not be able to accurately predict, including the duration and extent of the pandemic, the impact of federal, state, local and foreign governmental actions, consumer behavior in response to the pandemic and other economic and operational conditions the Company may face. Restricted Cash As of September 30, 2022 and December 31, 2021, restricted cash included approximately $4,049 and $4,336, respectively. The restricted cash is legally and contractually restricted as collateral for lines of credit, including floorplan, and for the payment of claims on the reinsurance companies. Advertising Costs The Company expenses advertising costs as they are incurred. Advertising costs are included in selling, general and administrative expenses on the accompanying condensed consolidated statements of operations. Advertising expenses were approximately $6,237 and $13,674 for the nine months ended September 30, 2022 and 2021, respectively. Concentration of Credit Risk Concentrations of credit risk with respect to accounts receivables are limited due to the large diversity and number of customers comprising the Company’s retail customer base. Assets and Liabilities Held For Sale As a result of the announced hub closures on June 21, 2022, the ROU and finance lease assets and liabilities associated with hub locations where the Company has or intends to assign the lease to a third-party or terminate the lease agreement (as opposed to subleasing to a third-party) are classified as held for sale. The fixed assets associated with all closed hub locations, to the extent they are not impaired, are also classified as held for sale. Revenues The Company recognizes revenue upon transfer of control of goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Control passes to the retail and wholesale vehicle sales customer when the title is delivered to the customer, who then assumes control of the vehicle. Retail Vehicle Sales We sell used vehicles to our retail customers through our hubs in various cities. The transaction price for used vehicles is a fixed amount as set forth in the customer contract. Customers frequently trade-in their existing vehicle to apply toward the transaction price of a used vehicle. Trade-in vehicles represent noncash consideration which we measure at estimated fair value of the vehicle received on trade. We satisfy our performance obligation and recognize revenue for used vehicle sales at a point in time when the title to the vehicle passes to the customer, at which point the customer controls the vehicle. We provide a 12-month/12,000-mile limited warranty on most retail vehicle sales. The limited warranty is not treated as a separate performance obligation given the nature of the limited warranty is to provide assurance as to the quality of the vehicle being sold. The revenue recognized by CarLotz includes the agreed upon transaction price, including any service fees. Revenue excludes any sales taxes, title and registration fees, and other government fees that are collected from customers. We receive payment for used vehicle sales directly from the customer at the time of sale or from third-party financial institutions within a short period of time following the sale if the customer obtains financing. Our exchange policy allows customers to initiate an exchange during the first seven days or 400 miles after delivery, whichever comes first. If the vehicle is returned, the sale and associated revenue recognition is reversed, and the vehicle is treated as a purchase of inventory. See the remainder of the Company’s revenue accounting policy related to wholesale, finance and insurance, and other revenue in the Form 10-K for the year ended December 31, 2021 filed on March 15, 2022. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard affected all entities that lease assets and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of less than one year) as of the date on which the lessor makes the underlying asset available to the lessee. For lessors, accounting for leases is substantially the same as in prior periods. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, to clarify how to apply certain aspects of the new leases standard. ASU 2016-02, as subsequently amended for various technical issues, was effective for emerging growth companies following private company adoption dates in fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, and early adoption was permitted. We adopted ASC 842 for the year beginning January 1, 2022 using the modified retrospective transition approach applied at the beginning of the period of adoption, which did not result in a cumulative-effect adjustment to retained earnings. Comparative periods presented in the financial statements continue to be presented in accordance with ASC 840. As permitted under the standard, we have elected the package of practical expedients for the transition to ASC 842, under which we did not reassess our prior conclusions regarding lease identification, lease classification, or initial direct costs for contracts existing as of the transition date. We have also elected to apply the following practical expedients for contracts existing as of the transition date and all new contracts after our adoption of ASC 842: 1) recognizing lease expense on a straight-line basis over the lease term for leases with a term of 12 months or less and not recognizing them on the balance sheet and 2) accounting for lease and non-lease components for all asset classes as a combined single unit of account. We have not elected the practical expedient related to all land easements nor the hindsight practical expedient. The adoption of ASC 842 resulted in the recognition of $50.5 million of operating lease assets, which included an adjustment for deferred rent, and $52.6 million of operating lease liabilities on our opening consolidated balance sheet. We have implemented new business processes, accounting policies, systems and internal controls as part of adopting the new standard. See Note 14 for additional information on leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13, as subsequently amended for various technical issues, is effective for emerging growth companies following private company adoption dates for fiscal years beginning after December 15, 2022 and for interim periods within those fiscal years. The Company is currently evaluating the impact of this standard to its financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for emerging growth companies following private company adoption dates in fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, with early adoption permitted, including adoption in an interim period. The Company is currently evaluating the impact of this standard on its financial statements. |
Merger
Merger | 9 Months Ended |
Sep. 30, 2022 | |
Reverse Recapitalization [Abstract] | |
Merger | Merger On the Closing Date, the Company consummated the merger pursuant to that certain Agreement and Plan of Merger, dated as of October 21, 2020, by and among the Company, Merger Sub and Former CarLotz, as amended by Amendment No. 1, dated December 16, 2020, by and among the Company, Merger Sub and Former CarLotz. Pursuant to the terms of the Merger Agreement, a business combination between the Company and Former CarLotz was effected through the merger of Merger Sub with and into Former CarLotz with Former CarLotz surviving as the surviving company. The Merger was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, Acamar Partners was treated as the “acquired” company for financial reporting purposes (See Note 1 — Description of the Business). Accordingly, for accounting purposes, the Merger was treated as the equivalent of Former CarLotz issuing stock for the net assets of Acamar Partners, accompanied by a recapitalization. Prior to the Merger, Former CarLotz and Acamar Partners filed separate standalone federal, state and local income tax returns. As a result of the Merger, structured as a reverse acquisition for tax purposes, Acamar Partners was renamed CarLotz, Inc. and became the parent of the consolidated filing group, with Former CarLotz as a subsidiary. Recapitalization Cash - Acamar Partners’ trust and cash $ 309,999 Cash - PIPE 125,000 Less: consideration delivered to existing stockholders of Former CarLotz (62,693) Less: consideration to pay accrued dividends (4,853) Less: transaction costs and advisory fees paid (47,579) Less: payments on cash considerations associated with stock options (2,465) Net contributions from Merger and PIPE financing 317,409 Liabilities relieved: preferred stock obligation 2,832 Liabilities relieved: KAR/AFC note payable 3,625 Liabilities relieved: historic warrant liability 144 Less: earnout shares liability (74,285) Less: Merger warrants liability (39,024) Merger warrants The following is an analysis of the warrants to purchase shares of the Company’s stock deemed acquired as part of the Merger and outstanding during the nine months ended September 30, 2022. There has been no change in outstanding stock warrants since the Merger. September 30, 2022 Stock warrants outstanding - Public 10,185,774 Stock warrants outstanding - Private 6,074,310 Stock warrants cancelled — Stock warrants exercised — Stock warrants outstanding 16,260,084 Earnout Shares Former CarLotz equity holders at the closing of the Merger are entitled to receive up to an additional 6,945,732 earnout shares. The earnout shares will be issued to the beneficiaries if certain targets are met in the post-acquisition period. The earnouts for the earnout shares are subject to an earnout period, which is defined as the date 60 months following the consummation of the Merger. The Merger closed on January 21, 2021, and the earnout period expires January 21, 2026. The earnout shares will be issued if any of the following conditions are achieved following January 21, 2021: i. If at any time during the 60 months following the Closing Date (the first business day following the end of such period, the “Forfeiture Date”), the closing trading price of the common stock is greater than $12.50 over any 20 trading days within any 30 trading day period (the “First Threshold”), the Company will issue 50% of the earnout shares. ii. If at any time prior to the Forfeiture Date, the closing trading price of the common stock is greater than $15.00 over any 20 trading days within any 30 trading day period (the “Second Threshold”), the Company will issue 50% of the earnout shares. iii. If either the First Threshold or the Second Threshold is not met on or before the Forfeiture Date, any unissued earnout shares are forfeited. All unissued earnout shares will be issued if there is a change of control of the Company that will result in the holders of the common stock receiving a per share price equal to or in excess of $10.00 (as equitably adjusted for stock splits, stock dividends, special cash dividends, reorganizations, combinations, recapitalizations and similar transactions affecting the common stock) prior to the Forfeiture Date. Before the contingency is met, the earnout shares will be classified as a liability under the FASB’s Accounting Standards Codification (“ASC”) Topic 815, so changes in the fair value of the earnout shares in future periods will be recognized in the condensed consolidated statement of operations. The estimated fair value of the liability is determined by using a Monte-Carlo simulation model. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The significant majority of the Company’s revenue is derived from contracts with customers related to the sales of vehicles. In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. The Company has determined that these categories depict how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. The tables below include disaggregated revenue under ASC 606 ( Revenue from Contracts with Customers ): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Vehicle Sales Fleet Management Total Vehicle Sales Fleet Management Total Retail vehicle sales $ 32,545 $ — $ 32,545 $ 142,344 $ — $ 142,344 Wholesale vehicle sales 16,357 — 16,357 38,880 — 38,880 Finance and insurance, net $ 1,691 $ — $ 1,691 8,591 — 8,591 Lease income, net — 245 245 — 528 528 Total Revenues $ 50,593 $ 245 $ 50,838 $ 189,815 $ 528 $ 190,343 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Vehicle Sales Fleet Management Total Vehicle Sales Fleet Management Total Retail vehicle sales $ 56,284 $ — $ 56,284 $ 150,897 $ — $ 150,897 Wholesale vehicle sales 8,989 — 8,989 18,217 — 18,217 Finance and insurance, net $ 2,639 $ — $ 2,639 5,973 — 5,973 Lease income, net — 129 129 — 334 334 Total Revenues $ 67,912 $ 129 $ 68,041 $ 175,087 $ 334 $ 175,421 The following table summarizes revenues and cost of sales for retail and wholesale vehicle sales for the periods ended: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Retail vehicles: Retail vehicle sales $ 32,545 $ 56,284 $ 142,344 $ 150,897 Retail vehicle cost of sales 32,141 56,584 144,058 147,142 Gross Profit – Retail Vehicles $ 404 $ (300) $ (1,714) $ 3,755 Wholesale vehicles: Wholesale vehicle sales $ 16,357 $ 8,989 $ 38,880 $ 18,217 Wholesale vehicle cost of sales 19,288 9,433 43,317 20,065 Gross Profit – Wholesale Vehicles $ (2,931) $ (444) $ (4,437) $ (1,848) Retail Vehicle Sales The Company sells used vehicles to retail customers through its retail hub locations. The transaction price for used vehicles is a fixed amount as set forth in the customer contract, and the revenue recognized by the Company is inclusive of the agreed upon transaction price and any service fees. Customers frequently trade-in their existing vehicle to apply toward the transaction price of a used vehicle. Trade-in vehicles represent noncash consideration, which the Company measures at estimated fair value of the vehicle received on the trade. The Company satisfies its performance obligation and recognizes revenue for used vehicle sales at a point in time when the title to the vehicle passes to the customer, at which point the customer controls the vehicle. The 12-month/12,000-mile limited warranty included in most retail vehicle sales is not treated as a separate performance obligation given the nature of the limited warranty is to provide assurance as to the quality of the vehicle being sold. The Company receives payment for used vehicle sales directly from the customer at the time of sale or from third-party financial institutions within a short period of time following the sale if the customer obtains financing. The Company’s exchange/return policy allows customers to initiate an exchange/return of a vehicle during the first seven days or 400 miles after delivery, whichever comes first. An exchange/return reserve is immaterial based on the Company’s historical activity. Wholesale Vehicle Sales Vehicles that do not meet the Company’s standards for retail vehicle sales, vehicles that did not sell through the retail channel within a reasonable period of time and vehicles that the Company determines offer greater financial benefit through the wholesale channel are sold through various wholesale methods. The Company satisfies its performance obligation and recognizes revenue for wholesale vehicle sales when the vehicle is sold at auction or directly to a wholesaler and title to the vehicle passes to the next owner. Additionally, the Company sold or will sell vehicles that were at the closed hub locations through the wholesale channel that may not have been sold through the wholesale channel if the hubs had remained open. Finance and Insurance, net The Company provides customers with options for financing, insurance and extended warranties. Certain warranties are serviced by a company owned by a major stockholder. All other services are provided by third-party vendors, and the Company has agreements with each of these vendors giving the Company the right to offer such services. When a customer selects a service from these third-party vendors, the Company earns a commission based on the actual price paid or financed. The Company concluded that it is an agent for these transactions because it does not control the products before they are transferred to the customer. Accordingly, the Company recognizes finance and insurance revenue at the point in time when the customer enters into the contract. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities The following table summarizes amortized cost, gross unrealized gains and losses and fair values of the Company’s investments in fixed maturity debt securities as of September 30, 2022 and December 31, 2021: September 30, 2022 Amortized Cost/ Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ — $ — $ — $ — Corporate bonds 16,228 1 (64) 16,165 Municipal bonds 3,517 5 (15) 3,507 Commercial paper 8,375 — — 8,375 Foreign governments 417 69 (109) 377 Total Fixed Maturity Debt Securities $ 28,537 $ 75 $ (188) $ 28,424 December 31, 2021 Amortized Cost/ Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ — $ — $ — $ — Corporate bonds 57,460 — (72) 57,388 Municipal bonds 28,325 5 (10) 28,320 Commercial paper 19,989 — — 19,989 Foreign governments 12,291 2 (18) 12,275 Total Fixed Maturity Debt Securities $ 118,065 $ 7 $ (100) $ 117,972 The amortized cost and fair value of the Company’s fixed maturity debt securities as of September 30, 2022 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due in one year or less $ 27,706 $ 27,664 Due after one year through five years 666 624 Due after five years through ten years 165 136 Total $ 28,537 $ 28,424 The following tables summarize the Company’s gross unrealized losses in fixed maturity securities as of September 30, 2022 and December 31, 2021: September 30, 2022 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 16,030 $ (47) $ 133 $ (16) $ 16,163 $ (63) Municipal bonds 3,379 (3) 128 (12) 3,507 (15) Commercial paper 8,376 0 — — 8,376 0 Foreign governments 183 (78) 88 (32) 271 (110) Total Fixed Maturity Debt Securities $ 27,968 $ (128) $ 349 $ (60) $ 28,317 $ (188) December 31, 2021 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 56,902 $ (69) $ 376 $ (3) $ 57,278 $ (72) Municipal bonds $ 19,945 $ (7) $ 340 $ (3) $ 20,285 $ (10) Foreign governments $ 12,152 $ (18) $ — $ — $ 12,152 $ (18) Total Fixed Maturity Debt Securities $ 88,999 $ (94) $ 716 $ (6) $ 89,715 $ (100) Unrealized losses shown in the tables above are believed to be temporary. Fair value of investments in fixed maturity debt securities change and are based primarily on market rates. As of September 30, 2022, the Company’s fixed maturity portfolio had 13 securities with gross unrealized losses totaling $(60) that had been in loss positions in excess of 12 months and 21 securities with gross unrealized losses totaling $(128) that had been in loss positions less than 12 months. No single issuer had a gross unrealized loss position greater than $(43), or 69.3% of its amortized cost. As of December 31, 2021, the Company’s fixed maturity portfolio had 23 securities with gross unrealized losses totaling $(6) that had been in loss positions in excess of 12 months and 106 securities with gross unrealized losses totaling $(94) that had been in loss positions less than 12 months. No single issuer had a gross unrealized loss position greater than $12 (actual), or 0.4% of its amortized cost. The following tables summarize cost and fair values of the Company’s investments in equity securities as of September 30, 2022 and December 31, 2021: September 30, 2022 Cost Fair Value Equity securities $ 425 $ 461 December 31, 2021 Cost Fair Value Equity securities $ 432 $ 558 Proceeds from sales and maturities, gross realized gains, gross realized losses and net realized gains (losses) from sales and maturities of fixed maturity securities for the nine months ended September 30, 2022 and 2021 consisted of the following: September 30, 2022 Proceeds Gross Realized Gains Gross Realized Losses Net Realized Gain Fixed maturity debt securities $ 152,753 $ 14 $ — $ 14 Equity securities 5 — — — Total Marketable Securities $ 152,758 $ 14 $ — $ 14 September 30, 2021 Proceeds Gross Realized Gains Gross Realized Losses Net Realized Gain Fixed maturity debt securities $ 212,822 $ 7 $ (2) $ 5 Equity securities 1 — — — Total Marketable Securities $ 212,823 $ 7 $ (2) $ 5 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Items Measured at Fair Value on a Recurring Basis As of September 30, 2022 and December 31, 2021, the Company held certain assets and liabilities that were required to be measured at fair value on a recurring basis. The following tables are summaries of fair value measurements and hierarchy level as of: September 30, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds $ — $ — $ — $ — Equity securities 461 — — 461 Fixed maturity debt securities, including cash equivalents — 60,034 — 60,034 Total Assets $ 461 $ 60,034 $ — $ 60,495 Liabilities: Merger warrants liability 423 252 — 675 Earnout shares liability — — 722 722 Total Liabilities $ 423 $ 252 $ 722 $ 1,397 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ — $ — $ — $ — Equity securities 558 — — 558 Fixed maturity debt securities — 135,346 — 135,346 Total Assets $ 558 $ 135,346 $ — $ 135,904 Liabilities: Merger warrants liability $ 3,941 $ 2,350 $ — $ 6,291 Earnout shares liability — — 7,679 7,679 Total Liabilities $ 3,941 $ 2,350 $ 7,679 $ 13,970 Money market funds consist of highly liquid investments with original maturities of three months or less and classified in restricted cash in the accompanying condensed consolidated balance sheets. The Company recognizes transfers between the levels as of the actual date of the event or change in circumstances that caused the transfer. There were no transfers between the levels during the nine months ended September 30, 2022 and 2021. The following tables set forth a summary of changes in the estimated fair value of the Company’s Level 3 redeemable convertible preferred stock tranche obligation, historic warrants liability and earnout shares for the nine months ended September 30, 2022 and 2021: January 1, Issuances Settlements Change in fair value September 30, Earnout shares 7,679 — — (6,957) 722 Total $ 7,679 $ — $ — $ (6,957) $ 722 January 1, Issuances Settlements Change in fair value September 30, Redeemable convertible preferred stock tranche obligation $ 2,832 $ — $ (2,832) $ — $ — Historic warrants liability 144 — (144) — — Earnout shares — 74,284 — (56,621) 17,663 Total $ 2,976 $ 74,284 $ (2,976) $ (56,621) $ 17,663 The fair value of the earnout shares was estimated by using a model based on previous Monte-Carlo simulation models. The inputs into the Monte-Carlo pricing model included significant unobservable inputs. The table below summarizes the significant observable inputs used when valuing the earnout shares as of: September 30, 2022 September 30, 2021 Expected volatility 120.00 % 80.00 % Starting stock price $0.30 $3.81 Expected term (in years) 3.3 years 4.30 years Risk-free interest rate 4.25 % 0.79 % Earnout hurdle $12.50-$15.00 $12.50-$15.00 Fair Value of Financial Instruments Not Measured at Fair Value on a Recurring Basis The carrying amounts of restricted cash, accounts receivable and accounts payable approximate fair value because their respective maturities are less than three months. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net The following table summarizes accounts receivable as of: September 30, December 31, Contracts in transit $ 3,974 $ 7,540 Trade 962 386 Finance commission 193 284 Other 614 296 Total 5,743 8,506 Allowance for doubtful accounts (957) (300) Total Accounts Receivable, net $ 4,786 $ 8,206 |
Inventory and Floor Plan Notes
Inventory and Floor Plan Notes Payable | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory and Floor Plan Notes Payable | Inventory and Floor Plan Notes Payable The following table summarizes inventory as of: September 30, December 31, Used vehicles $ 13,062 $ 40,739 Parts — 246 Total $ 13,062 $ 40,985 Beginning March 10, 2021, the Company entered into a $30,000 floor plan credit facility, which was expanded to $40,000 in the second quarter of 2021, with Ally Financial to finance the acquisition of used vehicle inventory. Concurrently, proceeds from the agreement were used to settle outstanding debt obligations on the Company’s preexisting floor plan facility with AFC. Borrowings under the Ally Financial facility accrue interest at a variable rate based on the most recent prime rate plus 2.50% per annum. The prime rate as of September 30, 2022 was 6.25%. Effective as of October 1, 2022, the maximum available credit line under the floor plan credit facility was reduced from $40,000 to $25,000. Floor plan notes payable are generally due upon the sale of the related used vehicle inventory. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The following table summarizes property and equipment as of: September 30, December 31, Capital lease assets — 12,566 Leasehold improvements 4,880 4,628 Furniture, fixtures and equipment 4,964 7,993 Corporate vehicles 74 158 Total property and equipment 9,918 25,345 Less: accumulated depreciation (2,800) (2,609) Less: impairment — (108) Property and Equipment, net $ 7,118 $ 22,628 Depreciation expense for property and equipment was approximately $1,776 and $761 for the nine months ended September 30, 2022 and 2021, respectively. As a result of the hub closures on June 21, 2022, we classified $7,497 and $1,228 of gross property and equipment and accumulated depreciation, respectively, associated with property and equipment at the closed hub locations as held-for-sale. See Note 21 — Restructuring Charges, Asset Impairment, and Assets Held For Sale for further information regarding the property and equipment at the closed hub locations. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The following table summarizes other assets as of: September 30, December 31, Other Current Assets: Lease receivable, net $ 20 $ 29 Deferred acquisition costs 26 46 Prepaid expenses 4,131 3,664 Interest receivable 172 966 Total Other Current Assets $ 4,349 $ 4,705 Other Assets: Lease receivable, net $ 16 $ 16 Deferred acquisition costs 26 35 Security deposits 432 507 Total Other Assets $ 474 $ 558 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The following table summarizes long-term debt as of: September 30, December 31, Capital lease obligation $ — $ 12,715 Finance lease liabilities $ 6,199 $ — 6,199 12,715 Current portion of long-term debt — (509) Current portion of finance lease liabilities (116) — Long-term Debt $ 6,083 $ 12,206 Promissory Note Concurrently with the closing of the Merger on January 21, 2021, the promissory note was extinguished through a cash payment of $3,000. Convertible Notes Payable As of December 31, 2020, the Company had a convertible note balance of $3,500. The note accrued interest at 6.00% on a 365-day basis and the outstanding interest payable as of December 31, 2020 was approximately $212. Concurrently with the closing of the Merger on January 21, 2021, the historic warrants and the note were converted to a fixed number of shares pursuant to a conversion agreement with AFC. The convertible notes were extinguished by issuing AFC 347,992 shares of Former CarLotz common stock and the warrants were exercised into 73,869 shares of Former CarLotz common stock. There are no historic warrants outstanding subsequent to the exercise. Payroll Protection Program Loan In April 2020, the Company received a Paycheck Protection Program (“PPP”) loan, a new loan program under the Small Business Administration’s 7(a) program providing loans to qualifying businesses, totaling approximately $1,749. As of December 31, 2020, the Company had an outstanding PPP loan balance of $1,749, which was extinguished concurrently with the closing of the Merger. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses The following table summarizes accrued expenses as of: September 30, December 31, License and title fees $ 535 $ 903 Payroll and bonuses 2,303 2,047 Deferred rent — 1,636 Technology 1,504 1,127 Inventory 839 2,542 Shift Merger 3,044 — Other 2,990 6,173 Total Accrued Expenses $ 11,215 $ 14,428 |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities The following table summarizes other liabilities as of: September 30, December 31, Other Current Liabilities Unearned insurance premiums $ 593 $ 754 Other Liabilities Unearned insurance premiums 298 622 Other long-term liabilities 119 122 Other Liabilities $ 417 $ 744 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases its operating facilities from various third parties under non-cancelable operating and finance leases. The leases require various monthly rental payments ranging from approximately $3 to $70, with various ending dates through September 2036. The initial term for real property leases is typically 5 to 15 years. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. We include options to renew (or terminate) in our lease term, and as part of our right-of-use ("ROU") assets and lease liabilities, when it is reasonably certain that we will exercise that option. ROU assets and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. The leases are triple net, whereby the Company is liable for taxes, insurance and repairs. These amounts are generally considered to be variable and are not included in the measurement of the ROU asset and lease liability. Most of these leases have escalating rent payments, which are being expensed on a straight-line basis and are included in operating lease amounts on the balance sheet. The Company also leases vehicles from a third party under noncancelable operating leases and leases these same vehicles to end customers with similar lease terms, with the exception of the interest rate. The leases require various monthly rental payments from the Company ranging from $229 to $2,356 (actual) with various ending dates through March 2027. The initial term for vehicle leases is typically 36 to 72 months. Most leases do not include an option to renew. The lease payments are generally fixed throughout the term and any variable lease payments (non-recurring maintenance, taxes, registration) are not included in the measurement of the ROU asset and lease liability. As most of our leases do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. We have elected the practical expedient on not separating lease components from non-lease components. All leases with a term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The components of lease expense were as follows: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Operating lease cost (1) $ 2,343 $ 7,080 Finance lease cost: Depreciation of lease assets 95 621 Interest on lease liabilities 283 856 Total finance lease cost 378 1,477 Total lease cost 2,721 8,557 (1) Includes short-term leases and variable lease costs, which are immaterial. Supplemental balance sheet information related to leases was as follows: Classification As of September 30, 2022 Assets: Operating lease assets Operating lease assets 22,092 Operating and finance lease assets, property, and equipment held for sale 15,906 Finance lease assets Finance lease assets 4,459 Operating and finance lease assets, property, and equipment held for sale 4,668 Total lease assets 47,125 Liabilities: Current: Operating leases Current portion of operating lease liabilities 4,600 Operating and finance lease liabilities associated with assets held for sale 17,123 Finance leases Current portion of finance lease liabilities 116 Operating and finance lease liabilities associated with assets held for sale 5,171 Long-term: Operating leases, less current portion 22,384 Finance leases, less current portion 6,083 Total lease liabilities 55,477 (1) Finance lease assets are recorded net of accumulated depreciation of $846 as of September 30, 2022. (2) Operating lease assets are recorded net of impairment of $420 and $1,020 in the three and nine months ended September 30, 2022, respectively, due to a change in the physical condition of a right-of-use asset. Lease term and discount rate information related to leases was as follows: Lease Term and Discount Rate As of September 30, 2022 Weighted Average Remaining Lease Term (in years) Operating leases 7.69 years Finance leases 11.34 years Weighted Average Discount Rate Operating leases 5.90 % Finance leases 9.99 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 6,991 Operating cash flows from finance leases 621 Financing cash flows from finance leases 376 Lease assets obtained in exchange for lease obligation Operating leases 49,183 Finance leases 247 Maturities of lease liabilities were as follows: As of September 30, 2022 Operating Leases (1) Finance Leases (1) Fiscal 2022, remaining 2,174 382 Fiscal 2023 8,572 1,539 Fiscal 2024 7,797 1,561 Fiscal 2025 7,050 1,583 Fiscal 2026 5,969 1,625 Thereafter 23,835 13,447 Total lease payments 55,397 20,137 Less: interest (11,290) (8,767) Present value of lease liabilities 44,107 11,370 (1) There are no legally binding minimum lease payments for leases signed but not yet commenced excluded from the table. As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 and under the previous lease accounting standard, the following is a table of facility lease commitments due for the next five years, and thereafter, as of December 31, 2021: Total Per Year Total Capital Leases 2022 $ 6,788 $ 1,643 2023 6,931 1,669 2024 6,657 1,695 2025 6,832 1,721 2026 5,884 1,766 Thereafter 23,715 14,322 Total $ 56,807 $ 22,816 Less: amount representing interest (10,101) Present value of minimum lease payments 12,715 Less: current obligation (509) Long-term obligations under capital lease $ 12,206 The following is a schedule of the approximate future minimum lease payments due to third parties and the related expected future receipts related to these lease vehicles as of December 31, 2021: Payments Due to Third-Parties Future Receipts 2022 $ 1,435 $ 1,721 2023 1,017 1,205 2024 605 716 2025 180 216 2026 55 69 Total 3,292 3,927 |
Leases | Leases The Company leases its operating facilities from various third parties under non-cancelable operating and finance leases. The leases require various monthly rental payments ranging from approximately $3 to $70, with various ending dates through September 2036. The initial term for real property leases is typically 5 to 15 years. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. We include options to renew (or terminate) in our lease term, and as part of our right-of-use ("ROU") assets and lease liabilities, when it is reasonably certain that we will exercise that option. ROU assets and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. The leases are triple net, whereby the Company is liable for taxes, insurance and repairs. These amounts are generally considered to be variable and are not included in the measurement of the ROU asset and lease liability. Most of these leases have escalating rent payments, which are being expensed on a straight-line basis and are included in operating lease amounts on the balance sheet. The Company also leases vehicles from a third party under noncancelable operating leases and leases these same vehicles to end customers with similar lease terms, with the exception of the interest rate. The leases require various monthly rental payments from the Company ranging from $229 to $2,356 (actual) with various ending dates through March 2027. The initial term for vehicle leases is typically 36 to 72 months. Most leases do not include an option to renew. The lease payments are generally fixed throughout the term and any variable lease payments (non-recurring maintenance, taxes, registration) are not included in the measurement of the ROU asset and lease liability. As most of our leases do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. We have elected the practical expedient on not separating lease components from non-lease components. All leases with a term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The components of lease expense were as follows: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Operating lease cost (1) $ 2,343 $ 7,080 Finance lease cost: Depreciation of lease assets 95 621 Interest on lease liabilities 283 856 Total finance lease cost 378 1,477 Total lease cost 2,721 8,557 (1) Includes short-term leases and variable lease costs, which are immaterial. Supplemental balance sheet information related to leases was as follows: Classification As of September 30, 2022 Assets: Operating lease assets Operating lease assets 22,092 Operating and finance lease assets, property, and equipment held for sale 15,906 Finance lease assets Finance lease assets 4,459 Operating and finance lease assets, property, and equipment held for sale 4,668 Total lease assets 47,125 Liabilities: Current: Operating leases Current portion of operating lease liabilities 4,600 Operating and finance lease liabilities associated with assets held for sale 17,123 Finance leases Current portion of finance lease liabilities 116 Operating and finance lease liabilities associated with assets held for sale 5,171 Long-term: Operating leases, less current portion 22,384 Finance leases, less current portion 6,083 Total lease liabilities 55,477 (1) Finance lease assets are recorded net of accumulated depreciation of $846 as of September 30, 2022. (2) Operating lease assets are recorded net of impairment of $420 and $1,020 in the three and nine months ended September 30, 2022, respectively, due to a change in the physical condition of a right-of-use asset. Lease term and discount rate information related to leases was as follows: Lease Term and Discount Rate As of September 30, 2022 Weighted Average Remaining Lease Term (in years) Operating leases 7.69 years Finance leases 11.34 years Weighted Average Discount Rate Operating leases 5.90 % Finance leases 9.99 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 6,991 Operating cash flows from finance leases 621 Financing cash flows from finance leases 376 Lease assets obtained in exchange for lease obligation Operating leases 49,183 Finance leases 247 Maturities of lease liabilities were as follows: As of September 30, 2022 Operating Leases (1) Finance Leases (1) Fiscal 2022, remaining 2,174 382 Fiscal 2023 8,572 1,539 Fiscal 2024 7,797 1,561 Fiscal 2025 7,050 1,583 Fiscal 2026 5,969 1,625 Thereafter 23,835 13,447 Total lease payments 55,397 20,137 Less: interest (11,290) (8,767) Present value of lease liabilities 44,107 11,370 (1) There are no legally binding minimum lease payments for leases signed but not yet commenced excluded from the table. As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 and under the previous lease accounting standard, the following is a table of facility lease commitments due for the next five years, and thereafter, as of December 31, 2021: Total Per Year Total Capital Leases 2022 $ 6,788 $ 1,643 2023 6,931 1,669 2024 6,657 1,695 2025 6,832 1,721 2026 5,884 1,766 Thereafter 23,715 14,322 Total $ 56,807 $ 22,816 Less: amount representing interest (10,101) Present value of minimum lease payments 12,715 Less: current obligation (509) Long-term obligations under capital lease $ 12,206 The following is a schedule of the approximate future minimum lease payments due to third parties and the related expected future receipts related to these lease vehicles as of December 31, 2021: Payments Due to Third-Parties Future Receipts 2022 $ 1,435 $ 1,721 2023 1,017 1,205 2024 605 716 2025 180 216 2026 55 69 Total 3,292 3,927 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company’s facilities are subject to federal, state and local provisions regulating the discharge of materials into the environment. Compliance with these provisions has not had, nor does the Company expect such compliance to have, any material effect upon the capital expenditures, net income, financial condition or competitive position of the Company. Management believes that its current practices and procedures for the control and disposition of such materials comply with the applicable federal and state requirements. Legal Matters Federal Securities Litigation On July 8, 2021, purported CarLotz stockholder Daniel Erdman, individually and on behalf of others similarly situated, filed a putative class action complaint in the United States District Court for the Southern District of New York, alleging that CarLotz and certain of its current and former executive officers made various false and misleading statements or omissions about the Company’s business, operations, financial performance and prospects in violation of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5, promulgated thereunder. See Daniel Erdman v. CarLotz, Inc., et al., 21-cv-5906 (S.D.N.Y.) The action is stated to be brought on behalf of purchasers of the securities of Acamar Partners Acquisition Corp. and CarLotz during the period from December 30, 2020 to May 25, 2021. The action seeks to recover unspecified compensatory damages allegedly caused by the defendants’ purported violations of the federal securities laws, plus interest and costs and expenses. On July 20, 2021, purported CarLotz stockholder Michael Widuck, individually and on behalf of others similarly situated, filed a putative class action complaint in the United States District Court for the Southern District of New York, alleging that CarLotz and certain of its current and former executive officers made various false and misleading statements or omissions about the Company’s business, operations, financial performance and prospects in violation of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5, promulgated thereunder. See Michael Widuck v. CarLotz, Inc., et al., 21-cv-6191 (S.D.N.Y.). The action is stated to be brought on behalf of purchasers of the securities of Acamar Partners Acquisition Corp. and CarLotz during the period from December 30, 2020 to May 25, 2021. The action seeks to recover unspecified compensatory damages allegedly caused by the defendants’ purported violations of the federal securities laws, plus interest and costs and expenses. On August 5, 2021, purported CarLotz stockholder Michael Turk, individually and on behalf of others similarly situated, filed a putative class action complaint in the United States District Court for the Southern District of New York, alleging that CarLotz and certain of its current and former executive officers made various false and misleading statements or omissions about the Company’s business, operations, financial performance and prospects in violation of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5, promulgated thereunder. See Michael Turk v. CarLotz, Inc., et al., 21-cv-6627 (S.D.N.Y.) The action is stated to be brought on behalf of purchasers of the securities of Acamar Partners Acquisition Corp. and CarLotz during the period from December 30, 2020 to May 25, 2021. The action seeks to recover unspecified compensatory damages allegedly caused by the defendants’ purported violations of the federal securities laws, plus interest and costs and expenses. The above three cases were consolidated by the Court on August 31, 2021 under In re CarLotz, Inc. Sec. Litig., 21-cv-05906 (S.D.N.Y.). On October 15, 2021, the Court appointed David Berger lead plaintiff and Kahn Swick & Foti, LLC lead counsel for the putative class. On December 14, 2021, Lead Plaintiff Berger and Additional Plaintiff Craig Bailey filed an Amended Complaint against CarLotz, various current and former directors and officers of CarLotz, Acamar, various directors of Acamar, Acamar Partners Sponsor I LLC, and Acamar Partners Sub, Inc., purporting to assert claims on behalf of purchasers of Acamar and CarLotz securities during the period from October 22, 2020 through May 25, 2021. The Amended Complaint alleges that the defendants made various false and misleading statements or omissions about CarLotz’ business, operations, financial performance and prospects in violation of Sections 10(b), 14(a) and 20(a) of the Exchange Act; and Sections 11, 12(a)(2) and 15 of the Securities Act. The Amended Complaint sought a declaration that it is a proper class action pursuant to Fed. R. Civ. P. 23, as well as unspecified compensatory damages allegedly caused by the defendants’ purported violations of the federal securities laws, plus interest and costs and expenses, and any further relief that the Court may deem proper. On February 17, 2022, Plaintiffs filed a Letter Motion for Leave to File Second Amended Complaint, citing the need “to resolve certain factual and legal issues bearing on the viability of certain of plaintiffs’ claims and named defendants.” On February 18, 2022, the Court granted Plaintiffs’ letter motion for leave to file a Second Amended Complaint and ordered that the Second Amended Complaint be filed by March 4, 2022. On March 4, 2022, Lead Plaintiff Berger and Additional Plaintiff Bailey filed a Second Amended Complaint against CarLotz, various current and former directors and officers of CarLotz, Acamar, various directors of Acamar, and Acamar Partners Sponsor I LLC, purporting to assert claims on behalf of purchasers of Acamar and CarLotz securities during the period from October 22, 2020 through May 25, 2021. The Second Amended Complaint alleges that the defendants made various false and misleading statements or omissions about CarLotz’ business, operations, financial performance and prospects in violation of Sections 10(b) and 20(a) of the Exchange Act; and Sections 11, 12(a)(2) and 15 of the Securities Act. The Second Amended Complaint seeks a declaration that it is a proper class action pursuant to Fed. R. Civ. P. 23, as well as unspecified compensatory damages allegedly caused by the defendants’ purported violations of the federal securities laws, plus interest and costs and expenses, and any further relief that the Court may deem proper. On June 21, 2022, Defendants moved to dismiss the Second Amended Complaint. On August 22, 2022, Lead Plaintiff Berger and Additional Plaintiff Bailey filed a memorandum of law in opposition to Defendants’ motion to dismiss. On October 20, 2022, Defendants filed a reply memorandum of law in further support of their motion to dismiss. Delaware Stockholder Derivative Litigation On September 21, 2021, purported CarLotz stockholder W. Kenmore Cardoza, trustee of the W. Kenmore & Joyce M. Cardoza Revocable Trust, filed a derivative suit purportedly on behalf of CarLotz in the United States District Court for the District of Delaware against certain current and former officers and directors of CarLotz. See Cardoza v. Mitchell, et al., 21-cv-1332 (D. Del.). The complaint, which principally concerns the same alleged misstatements or omissions at issue in In re CarLotz, Inc. Sec. Litig., asserts derivative claims for alleged violations of Sections 10(b) and 21D of the Exchange Act, breach of fiduciary duty and waste. The action seeks to recover unspecified compensatory damages on behalf of the Company, an award of costs and expenses, and other relief. On April 1, 2022, Plaintiff filed an amended complaint asserting derivative claims for alleged violations of Sections 10(b), 14(a), and 21D of the Exchange Act, breach of fiduciary duty, waste, and unjust enrichment. On March 31, 2022, purported CarLotz stockholder Mohammad Osman filed a derivative suit purportedly on behalf of CarLotz in the United States District Court for the District of Delaware against certain current and former officers and directors of CarLotz. See Osman v. Bor, et al., 22-cv-0431 (D. Del.). The complaint, which principally concerns the same alleged misstatements or omissions at issue in In re CarLotz, Inc. Sec. Litig., asserts derivative claims for alleged violations of Sections 10(b), 20(a), and 21D of the Exchange Act, breach of fiduciary duty and unjust enrichment. The action seeks to recover unspecified compensatory damages on behalf of the Company, an award of costs and expenses, and other relief. On June 16, 2022, the Court issued an order consolidating the Cardoza and Osman actions under the caption In re CarLotz, Inc. S’holder Deriv. Litig., 21-cv-1332, and appointing co-lead counsel. On July 13, 2022, the Court so-ordered the parties’ stipulation, staying the consolidated action pending the resolution of Defendants’ motion to dismiss the Second Amended Complaint in In re CarLotz, Inc. Sec. Litig. New York Stockholder Derivative Litigation On October 20, 2021, purported CarLotz stockholder Julian Cha filed a derivative suit purportedly on behalf of CarLotz in the United States District Court for the Southern District of New York against certain current and former officers and directors of CarLotz. See Julian Cha v. David R. Mitchell, et al., 21-cv-8623 (S.D.N.Y.). The complaint, which principally concerns the same alleged misstatements or omissions at issue in In re CarLotz, Inc. Sec. Litig., asserts derivative claims for alleged violations of Sections 10(b), 14(a), and 21D of the Exchange Act, breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste. The action seeks to recover unspecified compensatory damages on behalf of the Company, an award of costs and expenses and other relief. On October 27, 2021, purported CarLotz stockholder Mark Habib filed a derivative suit purportedly on behalf of CarLotz in the United States District Court for the Southern District of New York against certain current and former officers and directors of CarLotz. See Mark Habib v. David R. Mitchell, et al., 21-cv-8786 (S.D.N.Y.). The complaint, which principally concerns the same alleged misstatements or omissions at issue in In re CarLotz, Inc. Sec. Litig., asserts derivative claims for alleged violations of Sections 10(b), 14(a), and 21D of the Exchange Act and breach of fiduciary duty. The action seeks to recover unspecified compensatory damages on behalf of the Company, an award of costs and expenses and other relief. On November 15, 2021, the Court issued an order¸ inter alia, consolidating Cha and Habib under In re CarLotz, Inc. Deriv. Litig., 21-cv-8623 and appointing co-lead counsel. On February 15, 2022, the Court so-ordered the parties’ stipulation, staying the consolidated action pending the resolution of Defendants’ motion to dismiss the Second Amended Complaint in In re CarLotz, Inc. Sec. Litig. Shift Merger Disclosure Litigation On November 4, 2022, two actions were filed in the Court of Chancery of the State of Delaware and the United States District Court for the Southern District of New York in connection with the transaction contemplated by the Shift Merger Agreement: Sholom D. Keller v. Carlotz, Inc., et al. , C.A. 2022-1006 (Del. Ch.); and Derek Dorrien v. Carlotz, Inc., et al ., 22-cv-9463 (S.D.N.Y.) (together, the “Shift Merger Disclosure Actions”). The Shift Merger Disclosure Actions, which name CarLotz and the members of its board of directors as defendants, allege that the Shift Merger Registration Statement is materially misleading, assert claims for breach of fiduciary duties and violations of Section 14(a) and 20(a) of the Securities Exchange Act of 1934, and seek, among other relief, a preliminary and permanent injunction, rescission, and/or damages, as well as an award of attorneys’ fees and costs. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred StockUnpaid cumulative distributions were approximately $4,800 as of December 31, 2020, and the Series A Preferred Stock had a liquidation preference of $37,114 as of December 31, 2020. Upon liquidation of Former CarLotz, proceeds in excess of the Series A Preferred Stock would have been shared pro rata among all stockholders based on the number of shares. The unpaid cumulative distributions are included as Accrued expenses — related party on the accompanying condensed consolidated balance sheets. As a result of the Merger, the Company settled Former CarLotz’ redeemable convertible preferred stock and redeemable convertible preferred stock tranche obligation with carrying values of $17,560 and $2,832, respectively, as of December 31, 2020. |
Stock-Based Compensation Plan
Stock-Based Compensation Plan | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plan | Stock-Based Compensation Plan Stock Option Plans The Company has four stock incentive plans, the “2011 Stock Option Plan,” the “2017 Stock Option Plan,” the “2020 Incentive Award Plan,” and the “Inducement Plan” to promote the long-term growth and profitability of the Company. The plans do this by providing senior management and other employees with incentive to improve stockholder value and contribute to the growth and financial success of the Company by granting equity instruments to these stakeholders. Share-based compensation expense was recorded for the nine months ended September 30, 2022 and 2021 of approximately $4,234 and $49,114, respectively. The Company estimates the fair value of stock options using the Black-Scholes pricing model. The Black-Scholes pricing model requires the use of subjective inputs such as stock price volatility. Changes in the inputs can materially affect the fair value estimates and ultimately the amount of stock-based compensation expense that is recognized. 2011 Stock Option Plan A summary of activity for the nine months ended September 30, 2022 and 2021 for the 2011 Stock Option Plan is as follows: Number of Weighted Average Exercise Price Balance (December 31, 2021) 1,260,328 $0.56 Granted — — Exercised (339,251) 0.37 Forfeited (281,574) 0.64 Expired (639,503) 0.64 Balance (September 30, 2022) — — Vested (as of September 30, 2022) — $— Number of Weighted Average Exercise Price Balance (December 31, 2020) 1,571,205 $0.59 Granted — — Exercised (56,059) 0.24 Forfeited — — Balance (September 30, 2021) 1,515,146 0.58 Vested (as of September 30, 2021) 1,515,146 $0.58 There are no options outstanding as of September 30, 2022 related to the 2011 Stock Option Plan. 2017 Stock Option Plan The terms of the 2017 Stock Option Plan provide for vesting upon certain market and performance conditions, including achieving certain triggering events, including specified levels of return on investment upon a sale of the Company. Because the 2017 Stock Option Plan has a market-based vesting condition, an open-form valuation model was used to value the options. All stock options related to the 2017 Stock Option Plan have an exercise price of $0.92 per share. All stock options related to the 2017 Stock Option Plan expire 10 years after the grant date, which ranges from March 2028 to August 2030. A summary of activity for the nine months ended September 30, 2022 and 2021 for the 2017 Stock Option Plan is as follows: Number of Units Weighted Averaged Exercise Price Balance (December 31, 2021) 3,936,176 $ 0.92 Granted — — Exercised (6,371) $ 0.92 Forfeited (329,002) 0.92 Balance (September 30, 2022) 3,600,803 $ 0.92 Vested (as of September 30, 2022) 3,340,901 $ 0.92 Number of Units Weighted Averaged Exercise Price Balance (December 31, 2020) 3,961,658 $ 0.92 Granted — — Forfeited — — Balance (September 30, 2021) 3,961,658 $ 0.92 The 2017 options vest upon a change of control. Although the Merger did not meet the definition of a change of control, the Company modified the awards in connection with the Merger such that all vesting conditions were waived for 3,538,672 of the options. This modification impacted eight employees and resulted in $38,800 of share-based compensation on the modification date. The remaining options were also modified but will vest over a service period of four years and impacted 16 employees. At the time of modification, these options resulted in $186 of cash consideration and $4,500 of share based compensation that will be recognized over the service period of four years. For the nine months ended September 30, 2022, $627 of share-based compensation was recognized. The following summarizes certain information about stock options vested and expected to vest as of September 30, 2022 related to the 2017 Stock Option Plan: Number of Stock Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Outstanding 3,600,803 6.77 years $0.92 Exercisable 3,340,901 6.69 years $0.92 The aggregate intrinsic value for options outstanding and options exercisable as of September 30, 2022 was $0.00. The inputs used for the 2017 Stock Option Plan were as follows: Balance (Expected volatility) 80.00 % Expected dividend yield — % Expected term (in years) 3.6 - 4.8 years Risk-free interest rate 0.32% - 0.45% 2020 Incentive Award Plan The options associated with the 2020 Incentive Award Plan vest over a service period of three Number of Units Weighted Averaged Exercise Price Balance (December 31, 2021) 1,469,297 $ 11.12 Granted 1,573,361 $ 1.68 Forfeited (1,556,569) $ 6.25 Expired (230,847) $ 11.35 Balance (September 30, 2022) 1,255,242 $ 6.50 Exercisable 161,103 $ 11.14 Number of Units Weighted Averaged Exercise Price Balance (December 31, 2020) — $ — Granted 1,463,242 11.16 Forfeited (1,723) 10.14 Balance (September 30, 2021) 1,461,519 $ 11.16 The grant date fair value of the options granted in the nine months ended September 30, 2022 was $1.17. For the nine months ended September 30, 2022, $1,178 of share based compensation was recognized. As of September 30, 2022, there was approximately $3,258 of total unrecognized compensation cost related to unvested options related to the 2020 Stock Incentive Award Plan. The following summarizes certain information about stock options vested and expected to vest as of September 30, 2022 related to the 2020 Stock Option Plan: Number of Stock Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Outstanding 1,255,242 8.89 years $6.50 Exercisable 161,103 8.33 years $11.14 The aggregate intrinsic value for options outstanding and options exercisable as of September 30, 2022 was $0.00. The inputs used for the 2020 Incentive Award Plan options were as follows for the nine months ended September 30, 2022: Balance (Expected volatility) 80% Expected dividend yield — % Expected term (in years) 6 years Risk-free interest rate 2.20 % The restricted shares associated with the 2020 Incentive Award Plan vest over a service period. A summary of activity for the nine months ended September 30, 2022 for the restricted shares associated with the 2020 Incentive Award Plan is as follows: Balance (Number of Units Weighted Average Grant Date Fair Value Balance (December 31, 2021) 597,739 $ 5.57 Granted 3,010,005 $ 1.04 Forfeited (1,203,785) $ 3.63 Vested (as of September 30, 2022) (250,105) $ 5.67 Balance (September 30, 2022) 2,153,854 $ 1.05 The grant date fair value of the restricted shares granted in the nine months ended September 30, 2022 was $1.68. For the nine months ended September 30, 2022, $1,093 of share based compensation cost was recognized. As of September 30, 2022, there was approximately $367 of unrecognized compensation cost that vests over a service period of four years, approximately $686 of unrecognized compensation cost that vests over a service period of three years, and $632 of unrecognized compensation cost that vests over a service period of one Earnout Restricted Stock Units Former CarLotz option holders as of the effective time of the Merger received 640,421 earnout restricted stock units (Earnout RSUs). The Earnout RSUs vest if certain targets are met in the post-Merger period. The earnouts for the Earnout RSUs are subject to an earnout period, which is defined as the date 60 months following the consummation of the Merger. The Merger closed on January 21, 2021, and the earnout period expires January 21, 2026. Earnout RSUs will vest if any of the following conditions are achieved following January 21, 2021: i. If at any time during the 60 months following the Closing Date (the first business day following the end of such period, the “Forfeiture Date”), the closing trading price of the common stock is greater than $12.50 over any 20 trading days within any 30 trading day period (the “First Threshold”), 50% of the Earnout RSUs will vest. ii. If at any time prior to the Forfeiture Date, the closing trading price of the common stock is greater than $15.00 over any 20 trading days within any 30 trading day period (the “Second Threshold”), 50% of the Earnout RSUs will vest. iii. If either the First Threshold or the Second Threshold is not met on or before the Forfeiture Date, any unvested Earnout RSUs are forfeited. All unvested Earnout RSUs will vest if there is a change of control of the Company that will result in the holders of the common stock receiving a per share price equal to or in excess of $10.00 (as equitably adjusted for stock splits, stock dividends, special cash dividends, reorganizations, combinations, recapitalizations and similar transactions affecting the common stock) prior to the Forfeiture Date. The estimated fair value of the liability is determined by using a Monte-Carlo simulation model, which incorporates various assumptions, including expected stock price volatility, contractual term, dividend yield and stock price at grant date. The Company estimates the volatility of common stock on the date of grant based on the weighted-average historical stock price volatility of comparable publicly-traded companies. A summary of activity for the nine months ended September 30, 2022 and 2021 for the RSUs is as follows: Number of Units Weighted Average grant date fair value Balance (December 31, 2021) 621,200 $ 10.70 Granted — — Forfeited (468,861) 10.70 Balance (September 30, 2022) 152,339 $ 10.70 Number of Units Weighted Average grant date fair value Balance (December 31, 2020) — $ — Granted 640,421 10.70 Forfeited — — Balance (September 30, 2021) 640,421 $ 10.70 During the three months ended September 30, 2022, the Company recognized no stock-based compensation cost related to the RSUs. As of September 30, 2022, there was no additional unrecognized compensation cost related to the Earnout RSUs. Inducement Plan The options associated with the Inducement Plan vest over a service period of four years. A summary of activity for the nine months ended September 30, 2022 for the options associated with the Inducement Plan is as follows: Number of Units Weighted Averaged Exercise Price Balance (December 31, 2021) — $ — Granted 569,677 $ 0.61 Forfeited — $ — Balance (September 30, 2022) 569,677 $ 0.61 Exercisable — $ — The grant date fair value of the options granted in the three months ended September 30, 2022 was $0.45. For the nine months ended September 30, 2022, $24 of share based compensation was recognized. As of September 30, 2022, there was approximately $231 of total unrecognized compensation cost related to unvested options related to the Inducement Plan. The following summarizes certain information about stock options vested and expected to vest as of September 30, 2022 related to the Inducement Plan: Number of Stock Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Outstanding 569,677 9.63 years $0.61 Exercisable — — $— The aggregate intrinsic value for options outstanding and options exercisable as of September 30, 2022 was $0.00. The inputs used for the Inducement Incentive Award Plan options were as follows for the three months ended September 30, 2022: Balance (Expected volatility) 85 % Expected dividend yield — % Expected term (in years) 6.25 years Risk-free interest rate 2.86 % The restricted shares associated with the Inducement Plan vest over various service periods. A summary of activity for the nine months ended September 30, 2022 for the restricted shares associated with the Inducement Plan is as follows: Balance (Number of Units Weighted Average Grant Date Fair Value Balance (December 31, 2021) — $ — Granted 5,619,822 $ 0.61 Forfeited — $ — Vested (as of September 30, 2022) (376,416) $ 0.61 Balance (September 30, 2022) 5,243,406 $ 0.61 The grant date fair value of the restricted shares granted in the nine months ended September 30, 2022 was $0.61. For the nine months ended September 30, 2022, $978 of share based compensation cost was recognized. As of September 30, 2022, there was approximately $1,644 of unrecognized compensation cost that vests over a service period of four years, approximately $371 of unrecognized compensation cost that vests over a service period of three years, approximately $391 of unrecognized compensation cost that vests over a service period of two years, and $30 of unrecognized compensation cost that vests over a service period of one year related to unvested restricted shares related to the Inducement Plan. Newly hired Executives received 5,100,000 performance stock units (Inducement PSUs) in the three months ended June 30, 2022. The Inducement PSUs vest if certain targets are met in their service period. The grant date was May 16, 2022 and the vest start date for the awards aligned with the Executives’ start dates. The performance period expires in April 2032. Inducement PSUs will vest, subject to the Executives’ continued employment through the applicable vesting date as follows: i. One-third of the shares will vest on the first day the Company’s stock achieves a twenty (20) trading-day volume weighted average price of $4.00 (the threshold price); ii. One-third of the shares will vest on the first day the Company’s stock achieves a twenty (20) trading-day volume weighted average price of $8.00 (the target price); iii. and one-third of the shares will vest on the first day the Company’s stock achieves a twenty (20) trading-day volume weighted average price of $12.00 (the target price); The estimated fair value of the awards is determined by using a Monte-Carlo simulation model, which incorporates various assumptions, including expected stock price volatility, contractual term, dividend yield and stock price at grant date. The Company estimates the volatility of common stock on the date of grant based on the weighted-average historical stock price volatility of comparable publicly-traded companies. A summary of activity for the nine months ended September 30, 2022 for the PSUs is as follows: Number of Units Weighted Average grant date fair value Balance (December 31, 2021) — $ — Granted 5,100,000 0.55 Forfeited — — Balance (September 30, 2022) 5,100,000 $ 0.55 During the nine months ended September 30, 2022, the Company recognized $334 stock-based compensation cost related to the PSUs. As of September 30, 2022, there was $2,480 additional unrecognized compensation cost related to the Inducement PSUs. The inputs used to value the Inducement PSUs were as follows at May 16, 2022: Expected volatility 105.00 % Starting stock price $ 0.61 Expected term (in years) 10 years Risk-free interest rate 2.88 % Earnout hurdle $4.00-$8.00-$12.00 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the nine months ended September 30, 2022, the Company recorded no income tax benefits for the net operating losses incurred in the period due to its uncertainty of realizing a benefit from those items. All of the Company’s operating losses since inception have been generated in the United States. The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. Management has considered the Company’s history of cumulative net losses incurred since inception through September 30, 2022 and has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Management reevaluates the positive and negative evidence at each reporting period. As of September 30, 2022 and December 31, 2021, no facts or circumstances arose that affected the Company’s determination as to the full valuation allowance established against the net deferred tax assets. Accordingly, a full valuation allowance has been established against the net deferred tax assets as of September 30, 2022 and December 31, 2021. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net Loss $ (24,299) $ (3,476) $ (84,041) $ (25,703) Denominator: Weighted average common shares outstanding, basic and diluted 114,705,449 113,707,013 114,334,960 109,447,939 Net Loss per Share Attributable to Common Stockholders, basic and diluted $ (0.21) $ (0.03) $ (0.74) $ (0.23) The following table summarizes the outstanding potentially dilutive securities that were excluded from the computation of diluted net loss per share attributable to common stockholders because the impact of including them would have been antidilutive for the three and nine months ended September 30, 2022 and 2021: 2022 2021 Public warrants 10,185,774 10,185,774 Private warrants 6,074,310 6,074,310 Earnout RSUs 152,339 640,421 Earnout shares 6,945,732 6,945,732 Stock options outstanding to purchase shares of common stock 5,425,722 6,903,318 Unvested RSUs 7,397,260 639,324 Unvested PSUs 5,100,000 — Total 41,281,137 31,388,879 |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations The suppliers that accounted for 10% or more of the Company’s vehicle purchases are presented as follows: Total purchases from vendor to total vehicle purchases for the three months ended September 30, Total purchases from vendor to total vehicle purchases for the nine months ended September 30, Vendor 2022 2021 2022 2021 Vendor A 15% —% 17% 27% Vendor B —% —% —% 13% Vendor A is a corporate vehicle sourcing partner. Typically, we purchase the vehicles from our corporate vehicle sourcing partners at the time of sale to a retail customer. For the periods ended September 30, 2022 and 2021, no retail or wholesale customers accounted for more than 10% of the Company’s revenue. |
Restructuring Charges, Asset Im
Restructuring Charges, Asset Impairment, and Assets Held For Sale | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges, Asset Impairment, and Assets Held For Sale | Restructuring Charges, Asset Impairment, and Assets Held For SaleOn June 21, 2022, the Company announced the closure of 11 hub locations and made the decision to not commence retail sales operations at 3 other locations with executed leases. The closures were part of a review of the business, with cash preservation and future profitable growth as key determining factors. Retail sales operations were ceased at these locations, with all hub closing activities completed by July 8, 2022. The Company has or intends to assign or sub-lease the lease contracts associated with the 11 closed and three unopened hub locations and has classified the assets and liabilities associated with the hub locations that we believe are assignable as of September 30, 2022 as held for sale. The assets and liabilities associated with certain hub locations that we believe we are likely to sublease as of September 30, 2022 are not classified as held for sale. In addition, the Company evaluated the recoverability of amounts associated with lease assets and long lived assets at the held for sale locations. The fair values of the lease assets and property and equipment were determined based on estimated future discounted cash flows for such assets using market participant assumptions, including data on the ability to sub-lease the properties. The charge for inventory reserves represents inventory that will be disposed of through the wholesale channel following the hub closures and is the difference between the estimated wholesale value and inventory cost. In conjunction with the hub closures, the Company recorded the following charges in the three and nine months ended September 30, 2022: Three months ended September 30, 2022 Nine months ended September 30, 2022 Inventory losses associated with restructuring $ — $ 1,010 Operating lease asset impairment 323 2,871 Finance lease asset impairment 70 1,441 Property and equipment impairment 138 5,970 Loss on sale of assets related to closed hubs 25 25 Labor and other costs incurred closing hubs 292 757 Gain on lease assignment (236) (236) Occupancy 1,127 1,127 Severance 66 581 Contract termination costs 80 80 Total 1,885 13,626 The $1,010 charge for inventory reserves was recorded in cost of sales in the Company’s consolidated statement of operations. The other $12,616 charges were recorded in Restructuring expenses in the Company’s consolidated statement of operations. The total costs recorded in the three and nine months ended September 30, 2022 represent the total amount that can be reasonably estimated to be incurred in connection with the restructuring. We cannot conclude how long it will take to sublease or assign each lease, so we cannot reasonably estimate other future costs associated with the restructuring. The carrying amount and major classes of assets and liabilities classified as held for sale are: As of September 30, 2022 Operating lease assets $ 15,906 Finance lease assets $ 4,668 Property and equipment $ 286 Total $ 20,860 Operating lease liabilities $ 17,123 Finance lease liabilities $ 5,171 Total $ 22,294 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In August 2022, the Company announced the Shift Merger. Since the execution of the Shift Merger Agreement, the Company has sourced vehicles from Shift, a related party. The amount of vehicles purchased by the Company from Shift was $1,753 for the three months ended September 30, 2022. The amount due to Shift was $0 as of September 30, 2022. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In preparing these condensed consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through November 8, 2022, the date the financial statements were available to be issued. Lease assignment In October 2022, the Company assigned the lease of an unopened hub location to a third-party, assigned the lease of a closed hub location to a third-party, and subleased the lease of a closed hub location to a third-party. The Company remains secondarily liable for the lease obligation pursuant to a guarantee for one of the assigned leases and remains primarily liable for the lease obligation for the subleased lease. On November 1, 2022, the Company terminated the lease of a closed hub location. Ally Facility Effective as of October 1, 2022, the maximum available credit line under the floor plan credit facility with Ally Financial was reduced from $40 million to $25 million. On October 5, 2022, the Company entered into a Credit Balance Agreement (the “RBCA”) with Ally Financial, with respect to the floor plan credit facility. The RBCA replaces the prior financial covenant under the floor plan credit facility that required the Company to maintain at least 10% of the maximum available credit line in cash and cash equivalents and at least 10% of the maximum available credit line on deposit with Ally Bank with a minimum requirement of $4 million, so long as the amount borrowed under the floor plan credit facility remains under $20 million, with such minimum amount to be increased to $5 million if the amount borrowed under the floor plan credit facility at any time exceeds $20 million. RSU conversion In October 2022, 4,823,584 unvested RSUs previously issued to three executives from the Inducement Plan were converted to restricted stock awards and became common shares outstanding. No other terms were modified upon conversion. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in management’s opinion, include all adjustments, which consist of only normal recurring adjustments, necessary for the fair statement of the Company’s condensed consolidated balance sheet as of September 30, 2022 and its results of operations for the three and nine months ended September 30, 2022 and 2021. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results expected for the current fiscal year or any other future periods. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. |
Restricted Cash | Restricted Cash As of September 30, 2022 and December 31, 2021, restricted cash included approximately $4,049 and $4,336, respectively. The restricted cash is legally and contractually restricted as collateral for lines of credit, including floorplan, and for the payment of claims on the reinsurance companies. |
Advertising Cost | Advertising CostsThe Company expenses advertising costs as they are incurred. Advertising costs are included in selling, general and administrative expenses on the accompanying condensed consolidated statements of operations. |
Concentration of Credit Risk | Concentration of Credit Risk Concentrations of credit risk with respect to accounts receivables are limited due to the large diversity and number of customers comprising the Company’s retail customer base. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held For Sale As a result of the announced hub closures on June 21, 2022, the ROU and finance lease assets and liabilities associated with hub locations where the Company has or intends to assign the lease to a third-party or terminate the lease agreement (as |
Revenues | Revenues The Company recognizes revenue upon transfer of control of goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Control passes to the retail and wholesale vehicle sales customer when the title is delivered to the customer, who then assumes control of the vehicle. Retail Vehicle Sales We sell used vehicles to our retail customers through our hubs in various cities. The transaction price for used vehicles is a fixed amount as set forth in the customer contract. Customers frequently trade-in their existing vehicle to apply toward the transaction price of a used vehicle. Trade-in vehicles represent noncash consideration which we measure at estimated fair value of the vehicle received on trade. We satisfy our performance obligation and recognize revenue for used vehicle sales at a point in time when the title to the vehicle passes to the customer, at which point the customer controls the vehicle. We provide a 12-month/12,000-mile limited warranty on most retail vehicle sales. The limited warranty is not treated as a separate performance obligation given the nature of the limited warranty is to provide assurance as to the quality of the vehicle being sold. The revenue recognized by CarLotz includes the agreed upon transaction price, including any service fees. Revenue excludes any sales taxes, title and registration fees, and other government fees that are collected from customers. We receive payment for used vehicle sales directly from the customer at the time of sale or from third-party financial institutions within a short period of time following the sale if the customer obtains financing. Our exchange policy allows customers to initiate an exchange during the first seven days or 400 miles after delivery, whichever comes first. If the vehicle is returned, the sale and associated revenue recognition is reversed, and the vehicle is treated as a purchase of inventory. See the remainder of the Company’s revenue accounting policy related to wholesale, finance and insurance, and other revenue in the Form 10-K for the year ended December 31, 2021 filed on March 15, 2022. Wholesale Vehicle Sales Vehicles that do not meet the Company’s standards for retail vehicle sales, vehicles that did not sell through the retail channel within a reasonable period of time and vehicles that the Company determines offer greater financial benefit through the wholesale channel are sold through various wholesale methods. The Company satisfies its performance obligation and recognizes revenue for wholesale vehicle sales when the vehicle is sold at auction or directly to a wholesaler and title to the vehicle passes to the next owner. Additionally, the Company sold or will sell vehicles that were at the closed hub locations through the wholesale channel that may not have been sold through the wholesale channel if the hubs had remained open. Finance and Insurance, net The Company provides customers with options for financing, insurance and extended warranties. Certain warranties are serviced by a company owned by a major stockholder. All other services are provided by third-party vendors, and the Company has agreements with each of these vendors giving the Company the right to offer such services. When a customer selects a service from these third-party vendors, the Company earns a commission based on the actual price paid or financed. The Company concluded that it is an agent for these transactions because it does not control the products before they are transferred to the customer. Accordingly, the Company recognizes finance and insurance revenue at the point in time when the customer enters into the contract. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard affected all entities that lease assets and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of less than one year) as of the date on which the lessor makes the underlying asset available to the lessee. For lessors, accounting for leases is substantially the same as in prior periods. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, to clarify how to apply certain aspects of the new leases standard. ASU 2016-02, as subsequently amended for various technical issues, was effective for emerging growth companies following private company adoption dates in fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, and early adoption was permitted. We adopted ASC 842 for the year beginning January 1, 2022 using the modified retrospective transition approach applied at the beginning of the period of adoption, which did not result in a cumulative-effect adjustment to retained earnings. Comparative periods presented in the financial statements continue to be presented in accordance with ASC 840. As permitted under the standard, we have elected the package of practical expedients for the transition to ASC 842, under which we did not reassess our prior conclusions regarding lease identification, lease classification, or initial direct costs for contracts existing as of the transition date. We have also elected to apply the following practical expedients for contracts existing as of the transition date and all new contracts after our adoption of ASC 842: 1) recognizing lease expense on a straight-line basis over the lease term for leases with a term of 12 months or less and not recognizing them on the balance sheet and 2) accounting for lease and non-lease components for all asset classes as a combined single unit of account. We have not elected the practical expedient related to all land easements nor the hindsight practical expedient. The adoption of ASC 842 resulted in the recognition of $50.5 million of operating lease assets, which included an adjustment for deferred rent, and $52.6 million of operating lease liabilities on our opening consolidated balance sheet. We have implemented new business processes, accounting policies, systems and internal controls as part of adopting the new standard. See Note 14 for additional information on leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13, as subsequently amended for various technical issues, is effective for emerging growth companies following private company adoption dates for fiscal years beginning after December 15, 2022 and for interim periods within those fiscal years. The Company is currently evaluating the impact of this standard to its financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for emerging growth companies following private company adoption dates in fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, with early adoption permitted, including adoption in an interim period. The Company is currently evaluating the impact of this standard on its financial statements. |
Merger (Tables)
Merger (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Reverse Recapitalization [Abstract] | |
Schedule of Reverse Recapitalization | Recapitalization Cash - Acamar Partners’ trust and cash $ 309,999 Cash - PIPE 125,000 Less: consideration delivered to existing stockholders of Former CarLotz (62,693) Less: consideration to pay accrued dividends (4,853) Less: transaction costs and advisory fees paid (47,579) Less: payments on cash considerations associated with stock options (2,465) Net contributions from Merger and PIPE financing 317,409 Liabilities relieved: preferred stock obligation 2,832 Liabilities relieved: KAR/AFC note payable 3,625 Liabilities relieved: historic warrant liability 144 Less: earnout shares liability (74,285) Less: Merger warrants liability (39,024) |
Analysis of the Merger Warrants to Purchase Shares of the Company's Stock Acquired as Part of the Merger | The following is an analysis of the warrants to purchase shares of the Company’s stock deemed acquired as part of the Merger and outstanding during the nine months ended September 30, 2022. There has been no change in outstanding stock warrants since the Merger. September 30, 2022 Stock warrants outstanding - Public 10,185,774 Stock warrants outstanding - Private 6,074,310 Stock warrants cancelled — Stock warrants exercised — Stock warrants outstanding 16,260,084 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The tables below include disaggregated revenue under ASC 606 ( Revenue from Contracts with Customers ): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Vehicle Sales Fleet Management Total Vehicle Sales Fleet Management Total Retail vehicle sales $ 32,545 $ — $ 32,545 $ 142,344 $ — $ 142,344 Wholesale vehicle sales 16,357 — 16,357 38,880 — 38,880 Finance and insurance, net $ 1,691 $ — $ 1,691 8,591 — 8,591 Lease income, net — 245 245 — 528 528 Total Revenues $ 50,593 $ 245 $ 50,838 $ 189,815 $ 528 $ 190,343 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Vehicle Sales Fleet Management Total Vehicle Sales Fleet Management Total Retail vehicle sales $ 56,284 $ — $ 56,284 $ 150,897 $ — $ 150,897 Wholesale vehicle sales 8,989 — 8,989 18,217 — 18,217 Finance and insurance, net $ 2,639 $ — $ 2,639 5,973 — 5,973 Lease income, net — 129 129 — 334 334 Total Revenues $ 67,912 $ 129 $ 68,041 $ 175,087 $ 334 $ 175,421 |
Revenue from External Customers by Products and Services | The following table summarizes revenues and cost of sales for retail and wholesale vehicle sales for the periods ended: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Retail vehicles: Retail vehicle sales $ 32,545 $ 56,284 $ 142,344 $ 150,897 Retail vehicle cost of sales 32,141 56,584 144,058 147,142 Gross Profit – Retail Vehicles $ 404 $ (300) $ (1,714) $ 3,755 Wholesale vehicles: Wholesale vehicle sales $ 16,357 $ 8,989 $ 38,880 $ 18,217 Wholesale vehicle cost of sales 19,288 9,433 43,317 20,065 Gross Profit – Wholesale Vehicles $ (2,931) $ (444) $ (4,437) $ (1,848) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The following table summarizes amortized cost, gross unrealized gains and losses and fair values of the Company’s investments in fixed maturity debt securities as of September 30, 2022 and December 31, 2021: September 30, 2022 Amortized Cost/ Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ — $ — $ — $ — Corporate bonds 16,228 1 (64) 16,165 Municipal bonds 3,517 5 (15) 3,507 Commercial paper 8,375 — — 8,375 Foreign governments 417 69 (109) 377 Total Fixed Maturity Debt Securities $ 28,537 $ 75 $ (188) $ 28,424 December 31, 2021 Amortized Cost/ Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ — $ — $ — $ — Corporate bonds 57,460 — (72) 57,388 Municipal bonds 28,325 5 (10) 28,320 Commercial paper 19,989 — — 19,989 Foreign governments 12,291 2 (18) 12,275 Total Fixed Maturity Debt Securities $ 118,065 $ 7 $ (100) $ 117,972 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of the Company’s fixed maturity debt securities as of September 30, 2022 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due in one year or less $ 27,706 $ 27,664 Due after one year through five years 666 624 Due after five years through ten years 165 136 Total $ 28,537 $ 28,424 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following tables summarize the Company’s gross unrealized losses in fixed maturity securities as of September 30, 2022 and December 31, 2021: September 30, 2022 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 16,030 $ (47) $ 133 $ (16) $ 16,163 $ (63) Municipal bonds 3,379 (3) 128 (12) 3,507 (15) Commercial paper 8,376 0 — — 8,376 0 Foreign governments 183 (78) 88 (32) 271 (110) Total Fixed Maturity Debt Securities $ 27,968 $ (128) $ 349 $ (60) $ 28,317 $ (188) December 31, 2021 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 56,902 $ (69) $ 376 $ (3) $ 57,278 $ (72) Municipal bonds $ 19,945 $ (7) $ 340 $ (3) $ 20,285 $ (10) Foreign governments $ 12,152 $ (18) $ — $ — $ 12,152 $ (18) Total Fixed Maturity Debt Securities $ 88,999 $ (94) $ 716 $ (6) $ 89,715 $ (100) |
Summary of Cost and Estimated Fair Values of Equity Securities | The following tables summarize cost and fair values of the Company’s investments in equity securities as of September 30, 2022 and December 31, 2021: September 30, 2022 Cost Fair Value Equity securities $ 425 $ 461 December 31, 2021 Cost Fair Value Equity securities $ 432 $ 558 |
Gain (Loss) on Securities | Proceeds from sales and maturities, gross realized gains, gross realized losses and net realized gains (losses) from sales and maturities of fixed maturity securities for the nine months ended September 30, 2022 and 2021 consisted of the following: September 30, 2022 Proceeds Gross Realized Gains Gross Realized Losses Net Realized Gain Fixed maturity debt securities $ 152,753 $ 14 $ — $ 14 Equity securities 5 — — — Total Marketable Securities $ 152,758 $ 14 $ — $ 14 September 30, 2021 Proceeds Gross Realized Gains Gross Realized Losses Net Realized Gain Fixed maturity debt securities $ 212,822 $ 7 $ (2) $ 5 Equity securities 1 — — — Total Marketable Securities $ 212,823 $ 7 $ (2) $ 5 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables are summaries of fair value measurements and hierarchy level as of: September 30, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds $ — $ — $ — $ — Equity securities 461 — — 461 Fixed maturity debt securities, including cash equivalents — 60,034 — 60,034 Total Assets $ 461 $ 60,034 $ — $ 60,495 Liabilities: Merger warrants liability 423 252 — 675 Earnout shares liability — — 722 722 Total Liabilities $ 423 $ 252 $ 722 $ 1,397 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ — $ — $ — $ — Equity securities 558 — — 558 Fixed maturity debt securities — 135,346 — 135,346 Total Assets $ 558 $ 135,346 $ — $ 135,904 Liabilities: Merger warrants liability $ 3,941 $ 2,350 $ — $ 6,291 Earnout shares liability — — 7,679 7,679 Total Liabilities $ 3,941 $ 2,350 $ 7,679 $ 13,970 |
Schedule of Reconciliation of the Redeemable Convertible Preferred Stock and Warrant Liability | The following tables set forth a summary of changes in the estimated fair value of the Company’s Level 3 redeemable convertible preferred stock tranche obligation, historic warrants liability and earnout shares for the nine months ended September 30, 2022 and 2021: January 1, Issuances Settlements Change in fair value September 30, Earnout shares 7,679 — — (6,957) 722 Total $ 7,679 $ — $ — $ (6,957) $ 722 January 1, Issuances Settlements Change in fair value September 30, Redeemable convertible preferred stock tranche obligation $ 2,832 $ — $ (2,832) $ — $ — Historic warrants liability 144 — (144) — — Earnout shares — 74,284 — (56,621) 17,663 Total $ 2,976 $ 74,284 $ (2,976) $ (56,621) $ 17,663 |
Schedule of Significant Inputs Used | The table below summarizes the significant observable inputs used when valuing the earnout shares as of: September 30, 2022 September 30, 2021 Expected volatility 120.00 % 80.00 % Starting stock price $0.30 $3.81 Expected term (in years) 3.3 years 4.30 years Risk-free interest rate 4.25 % 0.79 % Earnout hurdle $12.50-$15.00 $12.50-$15.00 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
Summary of Accounts Receivable | The following table summarizes accounts receivable as of: September 30, December 31, Contracts in transit $ 3,974 $ 7,540 Trade 962 386 Finance commission 193 284 Other 614 296 Total 5,743 8,506 Allowance for doubtful accounts (957) (300) Total Accounts Receivable, net $ 4,786 $ 8,206 |
Inventory and Floor Plan Note_2
Inventory and Floor Plan Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table summarizes inventory as of: September 30, December 31, Used vehicles $ 13,062 $ 40,739 Parts — 246 Total $ 13,062 $ 40,985 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | The following table summarizes property and equipment as of: September 30, December 31, Capital lease assets — 12,566 Leasehold improvements 4,880 4,628 Furniture, fixtures and equipment 4,964 7,993 Corporate vehicles 74 158 Total property and equipment 9,918 25,345 Less: accumulated depreciation (2,800) (2,609) Less: impairment — (108) Property and Equipment, net $ 7,118 $ 22,628 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following table summarizes other assets as of: September 30, December 31, Other Current Assets: Lease receivable, net $ 20 $ 29 Deferred acquisition costs 26 46 Prepaid expenses 4,131 3,664 Interest receivable 172 966 Total Other Current Assets $ 4,349 $ 4,705 Other Assets: Lease receivable, net $ 16 $ 16 Deferred acquisition costs 26 35 Security deposits 432 507 Total Other Assets $ 474 $ 558 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes long-term debt as of: September 30, December 31, Capital lease obligation $ — $ 12,715 Finance lease liabilities $ 6,199 $ — 6,199 12,715 Current portion of long-term debt — (509) Current portion of finance lease liabilities (116) — Long-term Debt $ 6,083 $ 12,206 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The following table summarizes accrued expenses as of: September 30, December 31, License and title fees $ 535 $ 903 Payroll and bonuses 2,303 2,047 Deferred rent — 1,636 Technology 1,504 1,127 Inventory 839 2,542 Shift Merger 3,044 — Other 2,990 6,173 Total Accrued Expenses $ 11,215 $ 14,428 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | The following table summarizes other liabilities as of: September 30, December 31, Other Current Liabilities Unearned insurance premiums $ 593 $ 754 Other Liabilities Unearned insurance premiums 298 622 Other long-term liabilities 119 122 Other Liabilities $ 417 $ 744 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Operating lease cost (1) $ 2,343 $ 7,080 Finance lease cost: Depreciation of lease assets 95 621 Interest on lease liabilities 283 856 Total finance lease cost 378 1,477 Total lease cost 2,721 8,557 (1) Includes short-term leases and variable lease costs, which are immaterial. |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Classification As of September 30, 2022 Assets: Operating lease assets Operating lease assets 22,092 Operating and finance lease assets, property, and equipment held for sale 15,906 Finance lease assets Finance lease assets 4,459 Operating and finance lease assets, property, and equipment held for sale 4,668 Total lease assets 47,125 Liabilities: Current: Operating leases Current portion of operating lease liabilities 4,600 Operating and finance lease liabilities associated with assets held for sale 17,123 Finance leases Current portion of finance lease liabilities 116 Operating and finance lease liabilities associated with assets held for sale 5,171 Long-term: Operating leases, less current portion 22,384 Finance leases, less current portion 6,083 Total lease liabilities 55,477 (1) Finance lease assets are recorded net of accumulated depreciation of $846 as of September 30, 2022. (2) Operating lease assets are recorded net of impairment of $420 and $1,020 in the three and nine months ended September 30, 2022, respectively, due to a change in the physical condition of a right-of-use asset. |
Lease Terms and Discount Rate | Lease term and discount rate information related to leases was as follows: Lease Term and Discount Rate As of September 30, 2022 Weighted Average Remaining Lease Term (in years) Operating leases 7.69 years Finance leases 11.34 years Weighted Average Discount Rate Operating leases 5.90 % Finance leases 9.99 % |
Lessee, Lease, Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 6,991 Operating cash flows from finance leases 621 Financing cash flows from finance leases 376 Lease assets obtained in exchange for lease obligation Operating leases 49,183 Finance leases 247 |
Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows: As of September 30, 2022 Operating Leases (1) Finance Leases (1) Fiscal 2022, remaining 2,174 382 Fiscal 2023 8,572 1,539 Fiscal 2024 7,797 1,561 Fiscal 2025 7,050 1,583 Fiscal 2026 5,969 1,625 Thereafter 23,835 13,447 Total lease payments 55,397 20,137 Less: interest (11,290) (8,767) Present value of lease liabilities 44,107 11,370 (1) There are no legally binding minimum lease payments for leases signed but not yet commenced excluded from the table. |
Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows: As of September 30, 2022 Operating Leases (1) Finance Leases (1) Fiscal 2022, remaining 2,174 382 Fiscal 2023 8,572 1,539 Fiscal 2024 7,797 1,561 Fiscal 2025 7,050 1,583 Fiscal 2026 5,969 1,625 Thereafter 23,835 13,447 Total lease payments 55,397 20,137 Less: interest (11,290) (8,767) Present value of lease liabilities 44,107 11,370 (1) There are no legally binding minimum lease payments for leases signed but not yet commenced excluded from the table. |
Schedule of Future Minimum Lease Comments Under Previous Lease Accounting Standard | As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 and under the previous lease accounting standard, the following is a table of facility lease commitments due for the next five years, and thereafter, as of December 31, 2021: Total Per Year Total Capital Leases 2022 $ 6,788 $ 1,643 2023 6,931 1,669 2024 6,657 1,695 2025 6,832 1,721 2026 5,884 1,766 Thereafter 23,715 14,322 Total $ 56,807 $ 22,816 Less: amount representing interest (10,101) Present value of minimum lease payments 12,715 Less: current obligation (509) Long-term obligations under capital lease $ 12,206 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following is a schedule of the approximate future minimum lease payments due to third parties and the related expected future receipts related to these lease vehicles as of December 31, 2021: Payments Due to Third-Parties Future Receipts 2022 $ 1,435 $ 1,721 2023 1,017 1,205 2024 605 716 2025 180 216 2026 55 69 Total 3,292 3,927 |
Stock-Based Compensation Plan (
Stock-Based Compensation Plan (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Plan Activity | A summary of activity for the nine months ended September 30, 2022 and 2021 for the 2011 Stock Option Plan is as follows: Number of Weighted Average Exercise Price Balance (December 31, 2021) 1,260,328 $0.56 Granted — — Exercised (339,251) 0.37 Forfeited (281,574) 0.64 Expired (639,503) 0.64 Balance (September 30, 2022) — — Vested (as of September 30, 2022) — $— Number of Weighted Average Exercise Price Balance (December 31, 2020) 1,571,205 $0.59 Granted — — Exercised (56,059) 0.24 Forfeited — — Balance (September 30, 2021) 1,515,146 0.58 Vested (as of September 30, 2021) 1,515,146 $0.58 A summary of activity for the nine months ended September 30, 2022 and 2021 for the 2017 Stock Option Plan is as follows: Number of Units Weighted Averaged Exercise Price Balance (December 31, 2021) 3,936,176 $ 0.92 Granted — — Exercised (6,371) $ 0.92 Forfeited (329,002) 0.92 Balance (September 30, 2022) 3,600,803 $ 0.92 Vested (as of September 30, 2022) 3,340,901 $ 0.92 Number of Units Weighted Averaged Exercise Price Balance (December 31, 2020) 3,961,658 $ 0.92 Granted — — Forfeited — — Balance (September 30, 2021) 3,961,658 $ 0.92 Number of Units Weighted Averaged Exercise Price Balance (December 31, 2021) 1,469,297 $ 11.12 Granted 1,573,361 $ 1.68 Forfeited (1,556,569) $ 6.25 Expired (230,847) $ 11.35 Balance (September 30, 2022) 1,255,242 $ 6.50 Exercisable 161,103 $ 11.14 Number of Units Weighted Averaged Exercise Price Balance (December 31, 2020) — $ — Granted 1,463,242 11.16 Forfeited (1,723) 10.14 Balance (September 30, 2021) 1,461,519 $ 11.16 The options associated with the Inducement Plan vest over a service period of four years. A summary of activity for the nine months ended September 30, 2022 for the options associated with the Inducement Plan is as follows: Number of Units Weighted Averaged Exercise Price Balance (December 31, 2021) — $ — Granted 569,677 $ 0.61 Forfeited — $ — Balance (September 30, 2022) 569,677 $ 0.61 Exercisable — $ — |
Summary of Options Vested and Expected to Vest | The following summarizes certain information about stock options vested and expected to vest as of September 30, 2022 related to the 2017 Stock Option Plan: Number of Stock Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Outstanding 3,600,803 6.77 years $0.92 Exercisable 3,340,901 6.69 years $0.92 The following summarizes certain information about stock options vested and expected to vest as of September 30, 2022 related to the 2020 Stock Option Plan: Number of Stock Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Outstanding 1,255,242 8.89 years $6.50 Exercisable 161,103 8.33 years $11.14 The following summarizes certain information about stock options vested and expected to vest as of September 30, 2022 related to the Inducement Plan: Number of Stock Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Outstanding 569,677 9.63 years $0.61 Exercisable — — $— |
Schedule of Inputs Used | The inputs used for the 2017 Stock Option Plan were as follows: Balance (Expected volatility) 80.00 % Expected dividend yield — % Expected term (in years) 3.6 - 4.8 years Risk-free interest rate 0.32% - 0.45% The inputs used for the 2020 Incentive Award Plan options were as follows for the nine months ended September 30, 2022: Balance (Expected volatility) 80% Expected dividend yield — % Expected term (in years) 6 years Risk-free interest rate 2.20 % The inputs used for the Inducement Incentive Award Plan options were as follows for the three months ended September 30, 2022: Balance (Expected volatility) 85 % Expected dividend yield — % Expected term (in years) 6.25 years Risk-free interest rate 2.86 % The inputs used to value the Inducement PSUs were as follows at May 16, 2022: Expected volatility 105.00 % Starting stock price $ 0.61 Expected term (in years) 10 years Risk-free interest rate 2.88 % Earnout hurdle $4.00-$8.00-$12.00 |
Summary of Restricted Stock Unit Activity | A summary of activity for the nine months ended September 30, 2022 for the restricted shares associated with the 2020 Incentive Award Plan is as follows: Balance (Number of Units Weighted Average Grant Date Fair Value Balance (December 31, 2021) 597,739 $ 5.57 Granted 3,010,005 $ 1.04 Forfeited (1,203,785) $ 3.63 Vested (as of September 30, 2022) (250,105) $ 5.67 Balance (September 30, 2022) 2,153,854 $ 1.05 A summary of activity for the nine months ended September 30, 2022 and 2021 for the RSUs is as follows: Number of Units Weighted Average grant date fair value Balance (December 31, 2021) 621,200 $ 10.70 Granted — — Forfeited (468,861) 10.70 Balance (September 30, 2022) 152,339 $ 10.70 Number of Units Weighted Average grant date fair value Balance (December 31, 2020) — $ — Granted 640,421 10.70 Forfeited — — Balance (September 30, 2021) 640,421 $ 10.70 The restricted shares associated with the Inducement Plan vest over various service periods. A summary of activity for the nine months ended September 30, 2022 for the restricted shares associated with the Inducement Plan is as follows: Balance (Number of Units Weighted Average Grant Date Fair Value Balance (December 31, 2021) — $ — Granted 5,619,822 $ 0.61 Forfeited — $ — Vested (as of September 30, 2022) (376,416) $ 0.61 Balance (September 30, 2022) 5,243,406 $ 0.61 |
Share-Based Payment Arrangement, Performance Shares, Activity | A summary of activity for the nine months ended September 30, 2022 for the PSUs is as follows: Number of Units Weighted Average grant date fair value Balance (December 31, 2021) — $ — Granted 5,100,000 0.55 Forfeited — — Balance (September 30, 2022) 5,100,000 $ 0.55 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net Loss $ (24,299) $ (3,476) $ (84,041) $ (25,703) Denominator: Weighted average common shares outstanding, basic and diluted 114,705,449 113,707,013 114,334,960 109,447,939 Net Loss per Share Attributable to Common Stockholders, basic and diluted $ (0.21) $ (0.03) $ (0.74) $ (0.23) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the outstanding potentially dilutive securities that were excluded from the computation of diluted net loss per share attributable to common stockholders because the impact of including them would have been antidilutive for the three and nine months ended September 30, 2022 and 2021: 2022 2021 Public warrants 10,185,774 10,185,774 Private warrants 6,074,310 6,074,310 Earnout RSUs 152,339 640,421 Earnout shares 6,945,732 6,945,732 Stock options outstanding to purchase shares of common stock 5,425,722 6,903,318 Unvested RSUs 7,397,260 639,324 Unvested PSUs 5,100,000 — Total 41,281,137 31,388,879 |
Concentrations (Tables)
Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedules of Supplier Risk Concentration | The suppliers that accounted for 10% or more of the Company’s vehicle purchases are presented as follows: Total purchases from vendor to total vehicle purchases for the three months ended September 30, Total purchases from vendor to total vehicle purchases for the nine months ended September 30, Vendor 2022 2021 2022 2021 Vendor A 15% —% 17% 27% Vendor B —% —% —% 13% |
Restructuring Charges, Asset _2
Restructuring Charges, Asset Impairment, and Assets Held For Sale (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | In conjunction with the hub closures, the Company recorded the following charges in the three and nine months ended September 30, 2022: Three months ended September 30, 2022 Nine months ended September 30, 2022 Inventory losses associated with restructuring $ — $ 1,010 Operating lease asset impairment 323 2,871 Finance lease asset impairment 70 1,441 Property and equipment impairment 138 5,970 Loss on sale of assets related to closed hubs 25 25 Labor and other costs incurred closing hubs 292 757 Gain on lease assignment (236) (236) Occupancy 1,127 1,127 Severance 66 581 Contract termination costs 80 80 Total 1,885 13,626 |
Carrying Amount and Major Classes of Assets and Liabilities Classified as Held for Sale | The carrying amount and major classes of assets and liabilities classified as held for sale are: As of September 30, 2022 Operating lease assets $ 15,906 Finance lease assets $ 4,668 Property and equipment $ 286 Total $ 20,860 Operating lease liabilities $ 17,123 Finance lease liabilities $ 5,171 Total $ 22,294 |
Description of Business (Detail
Description of Business (Details) | 9 Months Ended | |
Sep. 30, 2022 retailHub $ / shares | Jun. 21, 2022 hubLocation | |
Noncontrolling Interest [Line Items] | ||
Number of retail hub locations | retailHub | 11 | |
Exercise price of warrants (in shares) | $ / shares | $ 11.50 | |
Number of announced location closures | 11 | |
Unopened hub locations with executed lease agreements | 3 | |
CarLotz Group, Inc | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 100% | |
Orange Grove Fleet Solutions, LLC | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 100% | |
Orange Peel Reinsurance, Ltd. | Orange Peel LLC | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended | ||||
Jan. 21, 2021 shares | Sep. 30, 2022 USD ($) mi | Sep. 30, 2021 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Earnout shares (up to) (in shares) | shares | 6,945,732 | ||||
Restricted cash | $ 4,049 | $ 4,336 | |||
Advertising expense | 6,237 | $ 13,674 | |||
Operating lease assets | 22,092 | ||||
Operating lease liability | $ 44,107 | ||||
Customer vehicle limited warranty, period | 12 months | ||||
Customer vehicle limited warranty, miles | mi | 12,000 | ||||
Customer vehicle exchange policy, after delivery, period | 7 days | ||||
Customer vehicle exchange policy, after delivery, miles | mi | 400 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Operating lease assets | $ 50,500 | ||||
Operating lease liability | $ 52,600 | ||||
Common Stock | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Earnout shares (up to) (in shares) | shares | 7,500,000 |
Merger - Schedule of Reverse Re
Merger - Schedule of Reverse Recapitalization (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jan. 21, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reverse Recapitalization [Abstract] | |||
Cash - Acamar Partners’ trust and cash | $ 309,999 | ||
Cash - PIPE | 125,000 | $ 0 | $ 125,000 |
Less: consideration delivered to existing stockholders of Former CarLotz | (62,693) | 0 | (62,693) |
Less: consideration to pay accrued dividends | (4,853) | ||
Less: transaction costs and advisory fees paid | (47,579) | $ 0 | $ (47,579) |
Less: payments on cash considerations associated with stock options | (2,465) | ||
Net contributions from Merger and PIPE financing | 317,409 | ||
Liabilities relieved: preferred stock obligation | 2,832 | ||
Liabilities relieved: KAR/AFC note payable | 3,625 | ||
Liabilities relieved: historic warrant liability | 144 | ||
Less: earnout shares liability | (74,285) | ||
Less: Merger warrants liability | $ (39,024) |
Merger - Merger Warrants (Detai
Merger - Merger Warrants (Details) | Sep. 30, 2022 shares |
Class of Warrant or Right [Line Items] | |
Stock warrants outstanding (in shares) | 16,260,084 |
Public Stock Warrants | |
Class of Warrant or Right [Line Items] | |
Stock warrants outstanding (in shares) | 10,185,774 |
Private Stock Warrants | |
Class of Warrant or Right [Line Items] | |
Stock warrants outstanding (in shares) | 6,074,310 |
Merger - Narrative (Details)
Merger - Narrative (Details) | Jan. 21, 2021 tradingDay $ / shares shares |
Reverse Recapitalization [Line Items] | |
Earnout shares (up to) (in shares) | shares | 6,945,732 |
Earnout shares, earnout period | 60 months |
Derivative Instrument, Period One | |
Reverse Recapitalization [Line Items] | |
Earnout shares, earnout period | 60 months |
Earnout shares, earnout period, stock price trigger (in usd per share) | $ / shares | $ 12.50 |
Earnout shares, earnout period, threshold trading days | 20 |
Earnout shares, earnout period, threshold trading day period | 30 |
Earnout shares, earnout period, release of shares, percentage | 50% |
Derivative Instrument, Period Two | |
Reverse Recapitalization [Line Items] | |
Earnout shares, earnout period, stock price trigger (in usd per share) | $ / shares | $ 15 |
Earnout shares, earnout period, threshold trading days | 20 |
Earnout shares, earnout period, threshold trading day period | 30 |
Earnout shares, earnout period, release of shares, percentage | 50% |
Derivative Instrument, Period Three | |
Reverse Recapitalization [Line Items] | |
Earnout shares, earnout period, stock price trigger (in usd per share) | $ / shares | $ 10 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Lease income, net | $ 245 | $ 129 | $ 528 | $ 334 |
Total Revenues | 50,838 | 68,041 | 190,343 | 175,421 |
Retail vehicle sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 32,545 | 56,284 | 142,344 | 150,897 |
Wholesale vehicle sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 16,357 | 8,989 | 38,880 | 18,217 |
Finance and insurance, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,691 | 2,639 | 8,591 | 5,973 |
Vehicle Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 50,593 | $ 67,912 | $ 189,815 | $ 175,087 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenues and Cost of Sale by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Gross Profit | $ (591) | $ 2,024 | $ 2,968 | $ 8,214 |
Retail vehicle sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 32,545 | 56,284 | 142,344 | 150,897 |
Vehicle cost of sales | 32,141 | 56,584 | 144,058 | 147,142 |
Gross Profit | 404 | (300) | (1,714) | 3,755 |
Wholesale vehicle sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 16,357 | 8,989 | 38,880 | 18,217 |
Vehicle cost of sales | 19,288 | 9,433 | 43,317 | 20,065 |
Gross Profit | $ (2,931) | $ (444) | $ (4,437) | $ (1,848) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 mi | |
Revenue from Contract with Customer [Abstract] | |
Customer vehicle limited warranty, miles | 12,000 |
Customer vehicle limited warranty, period | 12 months |
Customer vehicle exchange policy, after delivery, period | 7 days |
Customer vehicle exchange policy, after delivery, miles | 400 |
Marketable Securities - Summary
Marketable Securities - Summary of Amortized Cost, Gross Unrealized Gains and Losses and Estimated Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost/ Cost Basis | $ 28,537 | $ 118,065 |
Gross Unrealized Gains | 75 | 7 |
Gross Unrealized Losses | (188) | (100) |
Fair Value | 28,424 | 117,972 |
U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost/ Cost Basis | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 0 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost/ Cost Basis | 16,228 | 57,460 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (64) | (72) |
Fair Value | 16,165 | 57,388 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost/ Cost Basis | 3,517 | 28,325 |
Gross Unrealized Gains | 5 | 5 |
Gross Unrealized Losses | (15) | (10) |
Fair Value | 3,507 | 28,320 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost/ Cost Basis | 8,375 | 19,989 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 8,375 | 19,989 |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost/ Cost Basis | 417 | 12,291 |
Gross Unrealized Gains | 69 | 2 |
Gross Unrealized Losses | (109) | (18) |
Fair Value | $ 377 | $ 12,275 |
Marketable Securities - Amortiz
Marketable Securities - Amortized Cost and Fair Value of Fixed Maturity Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 27,706 | |
Due after one year through five years | 666 | |
Due after five years through ten years | 165 | |
Amortized Cost/ Cost Basis | 28,537 | $ 118,065 |
Fair Value | ||
Due in one year or less | 27,664 | |
Due after one year through five years | 624 | |
Due after five years through ten years | 136 | |
Fair Value | $ 28,424 | $ 117,972 |
Marketable Securities - Gross U
Marketable Securities - Gross Unrealized Losses in Fixed Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less Than 12 Months | $ 27,968 | $ 88,999 |
12 Months or More | 349 | 716 |
Total | 28,317 | 89,715 |
Unrealized Losses | ||
Less Than 12 Months | (128) | (94) |
12 Months or More | (60) | (6) |
Total | (188) | (100) |
Corporate bonds | ||
Fair Value | ||
Less Than 12 Months | 16,030 | 56,902 |
12 Months or More | 133 | 376 |
Total | 16,163 | 57,278 |
Unrealized Losses | ||
Less Than 12 Months | (47) | (69) |
12 Months or More | (16) | (3) |
Total | (63) | (72) |
Municipal bonds | ||
Fair Value | ||
Less Than 12 Months | 3,379 | 19,945 |
12 Months or More | 128 | 340 |
Total | 3,507 | 20,285 |
Unrealized Losses | ||
Less Than 12 Months | (3) | (7) |
12 Months or More | (12) | (3) |
Total | (15) | (10) |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 8,376 | |
12 Months or More | 0 | |
Total | 8,376 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or More | 0 | |
Total | 0 | |
Foreign governments | ||
Fair Value | ||
Less Than 12 Months | 183 | 12,152 |
12 Months or More | 88 | 0 |
Total | 271 | 12,152 |
Unrealized Losses | ||
Less Than 12 Months | (78) | (18) |
12 Months or More | (32) | 0 |
Total | $ (110) | $ (18) |
Marketable Securities - Narrati
Marketable Securities - Narrative (Details) $ in Thousands | Sep. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities, unrealized losses 12 months or longer | security | 13 | 23 |
Unrealized losses , 12 months or longer | $ (60) | $ (6) |
Number of securities, unrealized losses, less than 12 months | security | 21 | 106 |
Unrealized losses less than 12 months | $ (128) | $ (94) |
Gross unrealized loss position greater than | $ (43) | $ (12) |
Amortized cost, percentage | 69.30% | 0.40% |
Marketable Securities - Equity
Marketable Securities - Equity Securities Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Equity securities, cost | $ 425 | $ 432 |
Equity securities | $ 461 | $ 558 |
Marketable Securities - Proceed
Marketable Securities - Proceeds from Sale of Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Fixed maturity debt securities | $ 152,753 | $ 212,822 |
Proceeds from equity securities | 5 | 1 |
Proceeds from sales of marketable securities | 152,758 | 212,823 |
Fixed maturity debt securities, gross realized gains | 14 | 7 |
Equity securities, gross realized gains | 0 | 0 |
Total marketable securities, gross realized gains | 14 | 7 |
Fix maturity debt securities, gross realized losses | 0 | (2) |
Equity securities, gross realized losses | 0 | 0 |
Total marketable securities, gross realized losses | 0 | (2) |
Fixed maturity debt securities, net realized losses | 14 | 5 |
Equity securities, net realized losses | 0 | 0 |
Total marketable securities, net realized losses | $ 14 | $ 5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Equity securities | $ 461 | $ 558 |
Fixed maturity debt securities, including cash equivalents | 28,424 | 117,972 |
Fair Value, Recurring | ||
Assets: | ||
Money market funds | 0 | 0 |
Equity securities | 461 | 558 |
Fixed maturity debt securities, including cash equivalents | 60,034 | 135,346 |
Total Assets | 60,495 | 135,904 |
Liabilities: | ||
Merger warrants liability | 6,291 | |
Total Liabilities | 1,397 | 13,970 |
Fair Value, Recurring | Merger warrants liability | ||
Liabilities: | ||
Merger warrants liability | 675 | |
Fair Value, Recurring | Earnout shares liability | ||
Liabilities: | ||
Earnout shares liability | 722 | 7,679 |
Fair Value, Recurring | Level 1 | ||
Assets: | ||
Money market funds | 0 | 0 |
Equity securities | 461 | 558 |
Fixed maturity debt securities, including cash equivalents | 0 | 0 |
Total Assets | 461 | 558 |
Liabilities: | ||
Merger warrants liability | 3,941 | |
Total Liabilities | 423 | 3,941 |
Fair Value, Recurring | Level 1 | Merger warrants liability | ||
Liabilities: | ||
Merger warrants liability | 423 | |
Fair Value, Recurring | Level 1 | Earnout shares liability | ||
Liabilities: | ||
Earnout shares liability | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Money market funds | 0 | 0 |
Equity securities | 0 | 0 |
Fixed maturity debt securities, including cash equivalents | 60,034 | 135,346 |
Total Assets | 60,034 | 135,346 |
Liabilities: | ||
Merger warrants liability | 2,350 | |
Total Liabilities | 252 | 2,350 |
Fair Value, Recurring | Level 2 | Merger warrants liability | ||
Liabilities: | ||
Merger warrants liability | 252 | |
Fair Value, Recurring | Level 2 | Earnout shares liability | ||
Liabilities: | ||
Earnout shares liability | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Money market funds | 0 | 0 |
Equity securities | 0 | 0 |
Fixed maturity debt securities, including cash equivalents | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Merger warrants liability | 0 | |
Total Liabilities | 722 | 7,679 |
Fair Value, Recurring | Level 3 | Merger warrants liability | ||
Liabilities: | ||
Merger warrants liability | 0 | |
Fair Value, Recurring | Level 3 | Earnout shares liability | ||
Liabilities: | ||
Earnout shares liability | $ 722 | $ 7,679 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Reconciliation of Redeemable Convertible Preferred Stock and Warrant Liability (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 7,679 | $ 2,976 |
Issuances | 0 | 74,284 |
Settlements | 0 | (2,976) |
Change in fair value | (6,957) | (56,621) |
Ending Balance | 722 | 17,663 |
Redeemable convertible preferred stock tranche obligation | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 2,832 | |
Issuances | 0 | |
Settlements | (2,832) | |
Change in fair value | 0 | |
Ending Balance | 0 | |
Historic warrants | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 144 | |
Issuances | 0 | |
Settlements | (144) | |
Change in fair value | 0 | |
Ending Balance | 0 | |
Earnout shares | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 7,679 | 0 |
Issuances | 0 | 74,284 |
Settlements | 0 | 0 |
Change in fair value | (6,957) | (56,621) |
Ending Balance | $ 722 | $ 17,663 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Significant Inputs Used Valuing Earnout Shares (Details) | 9 Months Ended | |
Sep. 30, 2022 $ / shares | Sep. 30, 2021 $ / shares | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected term (in years) | 3 years 3 months 18 days | 4 years 3 months 18 days |
Risk-free interest rate | 4.25% | 0.79% |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 1.2000 | 0.8000 |
Starting stock price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Starting stock price (in dollars per share) | $ 0.30 | $ 3.81 |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Earnout hurdle (in dollars per share) | 12.50 | 12.50 |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Earnout hurdle (in dollars per share) | $ 15 | $ 15 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Narrative (Details) - Floor Plan Credit Facility - Revolving Credit Facility - Ally Financial - Line of Credit - USD ($) $ in Thousands | Oct. 01, 2022 | Sep. 30, 2022 | Jun. 30, 2021 | Mar. 10, 2021 |
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 40,000 | $ 40,000 | $ 30,000 | |
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 25,000 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 5,743 | $ 8,506 |
Allowance for doubtful accounts | (957) | (300) |
Total Accounts Receivable, net | 4,786 | 8,206 |
Contracts in transit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 3,974 | 7,540 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 962 | 386 |
Finance commission | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 193 | 284 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 614 | $ 296 |
Inventory and Floor Plan_Notes
Inventory and Floor Plan Notes Payable - Inventory Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Used vehicles | $ 13,062 | $ 40,739 |
Parts | 0 | 246 |
Total | $ 13,062 | $ 40,985 |
Inventory and Floor Plan_Note_2
Inventory and Floor Plan Notes Payable - Narrative (Details) - USD ($) $ in Thousands | Mar. 10, 2021 | Oct. 01, 2022 | Sep. 30, 2022 | Jun. 30, 2021 |
Prime Rate | ||||
Inventory [Line Items] | ||||
Interest rate | 6.25% | |||
Floor Plan Credit Facility | Revolving Credit Facility | Line of Credit | Ally Financial | ||||
Inventory [Line Items] | ||||
Floor plan credit facility | $ 30,000 | $ 40,000 | $ 40,000 | |
Floor Plan Credit Facility | Revolving Credit Facility | Line of Credit | Ally Financial | Subsequent Event | ||||
Inventory [Line Items] | ||||
Floor plan credit facility | $ 25,000 | |||
Floor Plan Credit Facility | Revolving Credit Facility | Line of Credit | Ally Financial | Prime Rate | ||||
Inventory [Line Items] | ||||
Basis spread on variable rate | 2.50% |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of PP&E (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Capital lease assets | $ 12,566 | |
Property, plant and equipment, gross | $ 9,918 | 25,345 |
Less: accumulated depreciation | (2,800) | (2,609) |
Less: impairment | 0 | (108) |
Property and Equipment, net | 7,118 | 22,628 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,880 | 4,628 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,964 | 7,993 |
Corporate vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 74 | $ 158 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 21, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 1,776 | $ 761 | |
Discontinued Operations, Held-for-sale | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 7,497 | ||
Accumulated depreciation | $ 1,228 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Current Assets: | ||
Lease receivable, net | $ 20 | $ 29 |
Deferred acquisition costs | 26 | 46 |
Prepaid expenses | 4,131 | 3,664 |
Interest receivable | 172 | 966 |
Total Other Current Assets | 4,349 | 4,705 |
Other Assets: | ||
Lease receivable, net | 16 | 16 |
Deferred acquisition costs | 26 | 35 |
Security deposits | 432 | 507 |
Total Other Assets | $ 474 | $ 558 |
Long-term Debt - Summary of Deb
Long-term Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Capital lease obligation | $ 0 | $ 12,715 |
Finance lease liabilities | 6,199 | |
Total | 6,199 | 12,715 |
Current portion of long-term debt | 0 | (509) |
Current portion of finance lease liabilities | (116) | |
Long-term Debt | $ 6,083 | $ 12,206 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 21, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Apr. 20, 2020 | |
Debt Instrument [Line Items] | ||||
KAR/AFC note payable conversion (in shares) | 347,992 | |||
Warrant exercised into shares (in shares) | 73,869 | |||
Convertible notes payable | ||||
Debt Instrument [Line Items] | ||||
Payment of debt | $ 3,000 | |||
Long-term debt, gross | $ 3,500 | |||
Interest rate | 6% | |||
Interest rate, basis term | 365 days | |||
Interest payable | $ 212 | |||
Paycheck Protection Program loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,749 | $ 1,749 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
License and title fees | $ 535 | $ 903 |
Payroll and bonuses | 2,303 | 2,047 |
Deferred rent | 0 | 1,636 |
Technology | 1,504 | 1,127 |
Inventory | 839 | 2,542 |
Shift Merger | 3,044 | 0 |
Other | 2,990 | 6,173 |
Total Accrued Expenses | $ 11,215 | $ 14,428 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Current Liabilities | ||
Unearned insurance premiums | $ 593 | $ 754 |
Other Liabilities | ||
Unearned insurance premiums | 298 | 622 |
Other long-term liabilities | 119 | 122 |
Other liabilities | $ 417 | $ 744 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) leaseGuaranteed position | |
Lessee, Lease, Description [Line Items] | |
Lease obligations of closed locations, guaranteed | leaseGuaranteed | 1 |
Total lease payments | $ 20,137 |
Payment Guarantee | |
Lessee, Lease, Description [Line Items] | |
Total lease payments | 1,695 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Monthly rental payments | $ 3 |
Lease terms | 5 years |
Lease, number of renewal options | position | 1 |
Lease renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Monthly rental payments | $ 70 |
Lease terms | 15 years |
Lease renewal term | 5 years |
Vehicles | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 36 months |
Monthly operating lease rental payments | $ 229 |
Vehicles | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 72 months |
Monthly operating lease rental payments | $ 2,356 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,343 | $ 7,080 |
Finance lease cost: | ||
Depreciation of lease assets | 95 | 621 |
Interest on lease liabilities | 283 | 856 |
Total finance lease cost | 378 | 1,477 |
Total lease cost | $ 2,721 | $ 8,557 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets: | |||
Operating lease assets | $ 22,092 | $ 22,092 | |
Operating and finance lease assets, property, and equipment held for sale | 15,906 | 15,906 | |
Finance lease assets | 4,459 | 4,459 | |
Operating and finance lease assets, property, and equipment held for sale | 4,668 | 4,668 | |
Total lease assets | 47,125 | 47,125 | |
Current: | |||
Operating leases | 4,600 | 4,600 | |
Operating and finance lease liabilities associated with assets held for sale | 17,123 | 17,123 | |
Finance leases | 116 | 116 | $ 509 |
Operating and finance lease liabilities associated with assets held for sale | 5,171 | 5,171 | |
Long-term: | |||
Operating leases, less current portion | 22,384 | 22,384 | |
Finance leases, less current portion | 6,083 | 6,083 | |
Total lease liabilities | 55,477 | 55,477 | |
Finance lease, accumulated amortization | 846 | 846 | |
Operating lease asset impairment | $ 420 | $ 1,020 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Sep. 30, 2022 |
Weighted Average Remaining Lease Term (in years) | |
Operating leases | 7 years 8 months 8 days |
Finance leases | 11 years 4 months 2 days |
Weighted Average Discount Rate | |
Operating leases | 5.90% |
Finance leases | 9.99% |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 6,991 | |
Operating cash flows from finance leases | 621 | |
Financing cash flows from finance leases | 376 | $ 51 |
Lease assets obtained in exchange for lease obligation | ||
Operating leases | 49,183 | |
Finance leases | $ 247 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Fiscal 2022, remaining | $ 2,174 |
Fiscal 2023 | 8,572 |
Fiscal 2024 | 7,797 |
Fiscal 2025 | 7,050 |
Fiscal 2026 | 5,969 |
Thereafter | 23,835 |
Total | 55,397 |
Less: interest | (11,290) |
Present value of lease liabilities | 44,107 |
Finance Lease, Liability, Payment, Due [Abstract] | |
Fiscal 2022, remaining | 382 |
Fiscal 2023 | 1,539 |
Fiscal 2024 | 1,561 |
Fiscal 2025 | 1,583 |
Fiscal 2026 | 1,625 |
Thereafter | 13,447 |
Total lease payments | 20,137 |
Less: interest | (8,767) |
Present value of lease liabilities | $ 11,370 |
Leases - Schedule of Future Mat
Leases - Schedule of Future Maturities of Lease Liabilities Under Previous Lease Accounting Standard (Details) $ in Thousands | Dec. 31, 2021 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | $ 6,788 |
2023 | 6,931 |
2024 | 6,657 |
2025 | 6,832 |
2026 | 5,884 |
Thereafter | 23,715 |
Total | 56,807 |
Total Capital Leases | |
2022 | 1,643 |
2022 | 1,669 |
2023 | 1,695 |
2024 | 1,721 |
2025 | 1,766 |
Thereafter | 14,322 |
Total | 22,816 |
Less: amount representing interest | (10,101) |
Present value of minimum lease payments | 12,715 |
Less: current obligation | (509) |
Long-term obligations under capital lease | $ 12,206 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments and Receipts for Lease Vehicles (Details) $ in Thousands | Dec. 31, 2021 USD ($) |
Payments Due to Third-Parties | |
2022 | $ 6,788 |
2023 | 6,931 |
2024 | 6,657 |
2025 | 6,832 |
2026 | 5,884 |
Total | 56,807 |
Assets Leased to Others | |
Payments Due to Third-Parties | |
2022 | 1,435 |
2023 | 1,017 |
2024 | 605 |
2025 | 180 |
2026 | 55 |
Total | 3,292 |
Future Receipts | |
2022 | 1,721 |
2023 | 1,205 |
2024 | 716 |
2025 | 216 |
2026 | 69 |
Total | $ 3,927 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Aug. 31, 2021 claim |
In re CarLotz, Inc. Securities Litigation, Case No. 1:21-cv-05906-RA | |
Loss Contingencies [Line Items] | |
Number of cases consolidated | 3 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Temporary Equity [Line Items] | ||||||||
Redeemable convertible preferred stock | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Previously Reported | ||||||||
Temporary Equity [Line Items] | ||||||||
Redeemable convertible preferred stock | 17,560 | |||||||
Redeemable Convertible Preferred Stock | ||||||||
Temporary Equity [Line Items] | ||||||||
Unpaid cumulative distributions included in accrued expenses-related party | 4,800 | |||||||
Liquidation preference | 37,114 | |||||||
Redeemable convertible preferred stock tranche obligation | 2,832 | |||||||
Redeemable Convertible Preferred Stock | Previously Reported | ||||||||
Temporary Equity [Line Items] | ||||||||
Redeemable convertible preferred stock | $ 17,560 |
Stock-Based Compensation Plan -
Stock-Based Compensation Plan - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||||
Jan. 21, 2021 USD ($) tradingDay position employee $ / shares shares | Sep. 30, 2022 USD ($) stockIncentivePlan $ / shares shares | Jun. 30, 2022 tradingDay $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) stockIncentivePlan $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of stock incentive plans | stockIncentivePlan | 4 | 4 | ||||||
Stock-based compensation expense | $ | $ 1,409,000 | $ 3,447,000 | $ 4,234,000 | $ 49,114,000 | ||||
Earnout shares, earnout period | 60 months | |||||||
Derivative Instrument, Period One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Earnout shares, earnout period | 60 months | |||||||
Earnout shares, earnout period, stock price trigger (in usd per share) | $ / shares | $ 12.50 | |||||||
Earnout shares, earnout period, threshold trading days | tradingDay | 20 | |||||||
Earnout shares, earnout period, threshold trading day period | tradingDay | 30 | |||||||
Earnout shares, earnout period, release of shares, percentage | 50% | |||||||
Derivative Instrument, Period Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Earnout shares, earnout period, stock price trigger (in usd per share) | $ / shares | $ 15 | |||||||
Earnout shares, earnout period, threshold trading days | tradingDay | 20 | |||||||
Earnout shares, earnout period, threshold trading day period | tradingDay | 30 | |||||||
Earnout shares, earnout period, release of shares, percentage | 50% | |||||||
Derivative Instrument, Period Three | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Earnout shares, earnout period, stock price trigger (in usd per share) | $ / shares | $ 10 | |||||||
Earnout RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | 0 | |||||||
Granted (in usd per share) | $ / shares | $ 0 | $ 10.70 | ||||||
Stock units received (in shares) | shares | 640,421 | 0 | 640,421 | |||||
Unrecognized compensation costs related to RSUs | $ | $ 0 | $ 0 | ||||||
2011 Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 4,234,000 | $ 49,114,000 | ||||||
Options outstanding, number of stock options (in shares) | shares | 0 | 1,515,146 | 0 | 1,515,146 | 1,260,328 | 1,571,205 | ||
Options outstanding exercise price (in usd per share) | $ / shares | $ 0 | $ 0.58 | $ 0 | $ 0.58 | $ 0.56 | $ 0.59 | ||
2017 Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options outstanding, number of stock options (in shares) | shares | 3,600,803 | 3,961,658 | 3,600,803 | 3,961,658 | 3,936,176 | 3,961,658 | ||
Options outstanding exercise price (in usd per share) | $ / shares | $ 0.92 | $ 0.92 | $ 0.92 | $ 0.92 | $ 0.92 | $ 0.92 | ||
Stock options, expiration period | 10 years | |||||||
Award vesting conditions waived for options (in shares) | shares | 3,538,672 | |||||||
Award vesting period | 4 years | |||||||
Options outstanding, intrinsic value (in usd per share) | $ / shares | 0 | $ 0 | ||||||
Options exercisable, intrinsic value (in usd per share) | $ / shares | $ 0 | $ 0 | ||||||
2017 Stock Option Plan | Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Modification, number of employees impacted | employee | 8 | |||||||
Share-based compensation on modification | $ | $ 38,800,000 | |||||||
Award vesting period | 4 years | |||||||
2017 Stock Option Plan | Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 627,000 | |||||||
Modification, number of employees impacted | position | 16 | |||||||
Plan modification, options, cash consideration | $ | $ 186,000 | |||||||
Plan modification, options, compensation recognized | $ | $ 4,500,000 | |||||||
2020 Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 1,178,000 | |||||||
Options outstanding, number of stock options (in shares) | shares | 1,255,242 | 1,461,519 | 1,255,242 | 1,461,519 | 1,469,297 | 0 | ||
Options outstanding exercise price (in usd per share) | $ / shares | $ 6.50 | $ 11.16 | $ 6.50 | $ 11.16 | $ 11.12 | $ 0 | ||
Options outstanding, intrinsic value (in usd per share) | $ / shares | 0 | 0 | ||||||
Options exercisable, intrinsic value (in usd per share) | $ / shares | $ 0 | $ 0 | ||||||
Unrecognized compensation cost related to unvested option | $ | $ 3,258,000 | $ 3,258,000 | ||||||
2020 Stock Option Plan | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant date fair value (in usd per share) | $ / shares | $ 1.17 | |||||||
2020 Stock Option Plan | Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
2020 Stock Option Plan | Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
2020 Stock Option Plan | Tranche Three | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 1 year | |||||||
2020 Stock Incentive Award Plan | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
2020 Stock Incentive Award Plan | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
2020 Stock Incentive Award Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 1,093,000 | |||||||
Granted (in usd per share) | $ / shares | $ 1.04 | |||||||
Stock units received (in shares) | shares | 3,010,005 | |||||||
2020 Stock Incentive Award Plan | Restricted Stock Units | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in usd per share) | $ / shares | $ 1.68 | |||||||
2020 Stock Incentive Award Plan | Tranche One | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to unvested option | $ | 367,000 | $ 367,000 | ||||||
2020 Stock Incentive Award Plan | Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to unvested option | $ | 686,000 | 686,000 | ||||||
2020 Stock Incentive Award Plan | Tranche Three | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to unvested option | $ | $ 632,000 | 632,000 | ||||||
Inducement Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 24,000 | |||||||
Options outstanding, number of stock options (in shares) | shares | 569,677 | 569,677 | 0 | |||||
Options outstanding exercise price (in usd per share) | $ / shares | $ 0.61 | $ 0.61 | $ 0 | |||||
Award vesting period | 4 years | |||||||
Options outstanding, intrinsic value (in usd per share) | $ / shares | 0 | $ 0 | ||||||
Options exercisable, intrinsic value (in usd per share) | $ / shares | 0 | $ 0 | ||||||
Grant date fair value (in usd per share) | $ / shares | $ 0.45 | |||||||
Unrecognized compensation cost related to unvested option | $ | $ 231,000 | $ 231,000 | ||||||
Inducement Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 978,000 | |||||||
Granted (in usd per share) | $ / shares | $ 0.61 | |||||||
Stock units received (in shares) | shares | 5,619,822 | |||||||
Inducement Plan | Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 334,000 | |||||||
Unrecognized compensation cost related to unvested option | $ | 2,480,000 | $ 2,480,000 | ||||||
Granted (in usd per share) | $ / shares | $ 0.55 | |||||||
Stock units received (in shares) | shares | 5,100,000 | 5,100,000 | ||||||
Inducement Plan | Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
Inducement Plan | Tranche One | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to unvested option | $ | 1,644,000 | $ 1,644,000 | ||||||
Inducement Plan | Tranche One | Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights, percentage | 33% | |||||||
Award vesting, stock achievement, trading days | tradingDay | 20 | |||||||
Award vesting, stock price threshold price (in usd per share) | $ / shares | $ 4 | |||||||
Inducement Plan | Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Inducement Plan | Tranche Two | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to unvested option | $ | 371,000 | $ 371,000 | ||||||
Inducement Plan | Tranche Two | Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights, percentage | 33% | |||||||
Award vesting, stock achievement, trading days | tradingDay | 20 | |||||||
Award vesting, weighted average stock target price (in usd per share) | $ / shares | $ 8 | |||||||
Inducement Plan | Tranche Three | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 2 years | |||||||
Inducement Plan | Tranche Three | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to unvested option | $ | 391,000 | $ 391,000 | ||||||
Inducement Plan | Tranche Three | Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights, percentage | 33% | |||||||
Award vesting, stock achievement, trading days | tradingDay | 20 | |||||||
Award vesting, weighted average stock target price (in usd per share) | $ / shares | $ 12 | |||||||
Inducement Plan | Tranche Four | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 1 year | |||||||
Inducement Plan | Tranche Four | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to unvested option | $ | $ 30,000 | $ 30,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plan - Summary of 2011, 2017, 2020 and Inducement Stock Option Plan Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Number of Stock Options | ||||
Exercised (in shares) | (81,541) | (104,818) | ||
2011 Stock Option Plan | ||||
Number of Stock Options | ||||
Beginning Balance (in shares) | 1,260,328 | 1,571,205 | ||
Granted (in shares) | 0 | 0 | ||
Exercised (in shares) | (339,251) | (56,059) | ||
Forfeited (in shares) | (281,574) | 0 | ||
Expired (in shares) | (639,503) | |||
Ending Balance (in shares) | 0 | 0 | 1,515,146 | |
Vested (in shares) | 0 | 0 | 1,515,146 | |
Weighted Average Exercise Price | ||||
Beginning Balance (in usd per share) | $ 0.56 | $ 0.59 | ||
Granted (in usd per share) | 0 | 0 | ||
Exercised (in usd per share) | 0.37 | 0.24 | ||
Forfeited (in usd per share) | 0.64 | 0 | ||
Expired (in usd per share) | 0.64 | |||
Ending Balance (in usd per share) | $ 0 | 0 | 0.58 | |
Vested (in usd per share) | $ 0 | $ 0 | $ 0.58 | |
2017 Stock Option Plan | ||||
Number of Stock Options | ||||
Beginning Balance (in shares) | 3,936,176 | 3,961,658 | ||
Granted (in shares) | 0 | 0 | ||
Exercised (in shares) | (6,371) | |||
Forfeited (in shares) | (329,002) | 0 | ||
Ending Balance (in shares) | 3,600,803 | 3,600,803 | 3,961,658 | |
Vested (in shares) | 3,340,901 | 3,340,901 | ||
Exercisable (in shares) | 3,340,901 | 3,340,901 | ||
Weighted Average Exercise Price | ||||
Beginning Balance (in usd per share) | $ 0.92 | $ 0.92 | ||
Granted (in usd per share) | 0 | 0 | ||
Exercised (in usd per share) | 0.92 | |||
Forfeited (in usd per share) | 0.92 | 0 | ||
Ending Balance (in usd per share) | $ 0.92 | 0.92 | $ 0.92 | |
Vested (in usd per share) | 0.92 | 0.92 | ||
Exercisable (in usd per share) | $ 0.92 | $ 0.92 | ||
2020 Stock Option Plan | ||||
Number of Stock Options | ||||
Beginning Balance (in shares) | 1,469,297 | 0 | ||
Granted (in shares) | 1,573,361 | 1,463,242 | ||
Forfeited (in shares) | (1,556,569) | (1,723) | ||
Expired (in shares) | (230,847) | |||
Ending Balance (in shares) | 1,255,242 | 1,255,242 | 1,461,519 | |
Exercisable (in shares) | 161,103 | 161,103 | ||
Weighted Average Exercise Price | ||||
Beginning Balance (in usd per share) | $ 11.12 | $ 0 | ||
Granted (in usd per share) | 1.68 | 11.16 | ||
Forfeited (in usd per share) | 6.25 | 10.14 | ||
Expired (in usd per share) | 11.35 | |||
Ending Balance (in usd per share) | $ 6.50 | 6.50 | $ 11.16 | |
Exercisable (in usd per share) | $ 11.14 | $ 11.14 | ||
Inducement Plan | ||||
Number of Stock Options | ||||
Beginning Balance (in shares) | 0 | |||
Granted (in shares) | 569,677 | |||
Forfeited (in shares) | 0 | |||
Ending Balance (in shares) | 569,677 | 569,677 | ||
Exercisable (in shares) | 0 | 0 | ||
Weighted Average Exercise Price | ||||
Beginning Balance (in usd per share) | $ 0 | |||
Granted (in usd per share) | 0.61 | |||
Forfeited (in usd per share) | 0 | |||
Ending Balance (in usd per share) | $ 0.61 | 0.61 | ||
Exercisable (in usd per share) | $ 0 | $ 0 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plan - Summary of Stock Options Vested and Expected to Vest (Details) - $ / shares | 9 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
2017 Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||
Options outstanding, number of stock options (in shares) | 3,600,803 | 3,936,176 | 3,961,658 | 3,961,658 |
Options exercisable, number of stock options (in shares) | 3,340,901 | |||
Options outstanding, weighted average remaining contractual life (in years) | 6 years 9 months 7 days | |||
Options exercisable, weighted average remaining contractual life (in years) | 6 years 8 months 8 days | |||
Options outstanding exercise price (in usd per share) | $ 0.92 | $ 0.92 | $ 0.92 | $ 0.92 |
Options exercisable, weighted average exercise price (in usd per share) | $ 0.92 | |||
2020 Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||
Options outstanding, number of stock options (in shares) | 1,255,242 | 1,469,297 | 1,461,519 | 0 |
Options exercisable, number of stock options (in shares) | 161,103 | |||
Options outstanding, weighted average remaining contractual life (in years) | 8 years 10 months 20 days | |||
Options exercisable, weighted average remaining contractual life (in years) | 8 years 3 months 29 days | |||
Options outstanding exercise price (in usd per share) | $ 6.50 | $ 11.12 | $ 11.16 | $ 0 |
Options exercisable, weighted average exercise price (in usd per share) | $ 11.14 | |||
Inducement Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||
Options outstanding, number of stock options (in shares) | 569,677 | 0 | ||
Options exercisable, number of stock options (in shares) | 0 | |||
Options outstanding, weighted average remaining contractual life (in years) | 9 years 7 months 17 days | |||
Options outstanding exercise price (in usd per share) | $ 0.61 | $ 0 | ||
Options exercisable, weighted average exercise price (in usd per share) | $ 0 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plan - Inputs Used (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |
May 16, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
2017 Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 80% | ||
Expected dividend yield | 0% | ||
Risk free interest rate, minimum | 0.32% | ||
Risk free interest rate, maximum | 0.45% | ||
2017 Stock Option Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 3 years 7 months 6 days | ||
2017 Stock Option Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 9 months 18 days | ||
2020 Stock Incentive Award Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0% | ||
Expected term (in years) | 6 years | ||
Risk-free interest rate | 2.20% | ||
2020 Stock Incentive Award Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 80% | ||
Inducement Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 85% | ||
Expected dividend yield | 0% | ||
Expected term (in years) | 6 years 3 months | ||
Risk-free interest rate | 2.86% | ||
Inducement Plan | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 105% | ||
Starting stock price (in dollars per share) | $ 0.61 | ||
Expected term (in years) | 10 years | ||
Risk-free interest rate | 2.88% | ||
Inducement Plan | Performance Shares | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Earnout hurdle (in dollars per share) | $ 4 | ||
Inducement Plan | Performance Shares | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Earnout hurdle (in dollars per share) | 8 | ||
Inducement Plan | Performance Shares | Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Earnout hurdle (in dollars per share) | $ 12 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plan - Restricted Stock Units and Performance Share Units Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jan. 21, 2021 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Stock Units | 2020 Stock Incentive Award Plan | ||||
Number of Units | ||||
Beginning Balance (in shares) | 597,739 | |||
Granted (in shares) | 3,010,005 | |||
Forfeited (in shares) | (1,203,785) | |||
Vested (in shares) | (250,105) | |||
Ending Balance (in shares) | 2,153,854 | |||
Weighted Average grant date fair value | ||||
Beginning Balance (in usd per share) | $ 5.57 | |||
Granted (in usd per share) | 1.04 | |||
Forfeited (in usd per share) | 3.63 | |||
Vested (in usd per share) | 5.67 | |||
Ending Balance (in usd per share) | $ 1.05 | |||
Restricted Stock Units | Inducement Plan | ||||
Number of Units | ||||
Beginning Balance (in shares) | 0 | |||
Granted (in shares) | 5,619,822 | |||
Forfeited (in shares) | 0 | |||
Vested (in shares) | (376,416) | |||
Ending Balance (in shares) | 5,243,406 | |||
Weighted Average grant date fair value | ||||
Beginning Balance (in usd per share) | $ 0 | |||
Granted (in usd per share) | 0.61 | |||
Forfeited (in usd per share) | 0 | |||
Vested (in usd per share) | 0.61 | |||
Ending Balance (in usd per share) | $ 0.61 | |||
Earnout RSUs | ||||
Number of Units | ||||
Beginning Balance (in shares) | 621,200 | 0 | ||
Granted (in shares) | 640,421 | 0 | 640,421 | |
Forfeited (in shares) | (468,861) | 0 | ||
Ending Balance (in shares) | 152,339 | 640,421 | ||
Weighted Average grant date fair value | ||||
Beginning Balance (in usd per share) | $ 10.70 | $ 0 | ||
Granted (in usd per share) | 0 | 10.70 | ||
Forfeited (in usd per share) | 10.70 | 0 | ||
Ending Balance (in usd per share) | $ 10.70 | $ 10.70 | ||
Performance Shares | Inducement Plan | ||||
Number of Units | ||||
Beginning Balance (in shares) | 0 | |||
Granted (in shares) | 5,100,000 | 5,100,000 | ||
Forfeited (in shares) | 0 | |||
Ending Balance (in shares) | 5,100,000 | |||
Weighted Average grant date fair value | ||||
Beginning Balance (in usd per share) | $ 0 | |||
Granted (in usd per share) | 0.55 | |||
Forfeited (in usd per share) | 0 | |||
Ending Balance (in usd per share) | $ 0.55 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||||||
Net loss | $ (24,299) | $ (34,905) | $ (24,836) | $ (3,476) | $ (7,205) | $ (15,022) | $ (84,041) | $ (25,703) |
Denominator: | ||||||||
Weighted average common shares outstanding, basic (in shares) | 114,705,449 | 113,707,013 | 114,334,960 | 109,447,939 | ||||
Weighted average common shares outstanding, diluted (in shares) | 114,705,449 | 113,707,013 | 114,334,960 | 109,447,939 | ||||
Net Loss per Share Attributable to Common Stockholders, basic (in dollars per share) | $ (0.21) | $ (0.03) | $ (0.23) | |||||
Net Loss per Share Attributable to Common Stockholders, diluted (in dollars per share) | $ (0.21) | $ (0.03) | $ (0.23) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities Excluded From Earnings Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 41,281,137 | 31,388,879 |
Public warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 10,185,774 | 10,185,774 |
Private warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,074,310 | 6,074,310 |
Earnout RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 152,339 | 640,421 |
Earnout shares liability | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,945,732 | 6,945,732 |
Stock options outstanding to purchase shares of common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,425,722 | 6,903,318 |
Unvested RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,397,260 | 639,324 |
Unvested PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,100,000 | 0 |
Concentrations (Details)
Concentrations (Details) - Supplier Concentration Risk - Cost of Goods and Service Benchmark | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Vendor A | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 15% | 0% | 17% | 27% |
Vendor B | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 0% | 0% | 0% | 13% |
Restructuring Charges, Asset _3
Restructuring Charges, Asset Impairment, and Assets Held For Sale - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 21, 2022 hubLocation position | |
Restructuring Cost and Reserve [Line Items] | |||||
Number of announced location closures | 11 | ||||
Locations with executed leases and no retail sales operations | position | 3 | ||||
Number of unopened locations | 3 | ||||
Restructuring expenses | $ | $ 1,885 | $ 0 | $ 12,616 | $ 0 | |
Cost of Sales | Inventory losses associated with restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ | $ 0 | $ 1,010 | |||
Discontinued Operations, Held-for-sale | Hub Locations | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of announced location closures | 11 |
Restructuring Charges, Asset _4
Restructuring Charges, Asset Impairment, and Assets Held For Sale - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 1,885 | $ 0 | $ 12,616 | $ 0 |
Total | 1,885 | 13,626 | ||
Inventory losses associated with restructuring | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 0 | 1,010 | ||
Operating lease asset impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 323 | 2,871 | ||
Finance lease asset impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 70 | 1,441 | ||
Property and equipment impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 138 | 5,970 | ||
Loss on sale of assets related to closed hubs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 25 | 25 | ||
Labor and other costs incurred closing hubs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 292 | 757 | ||
Gain On Lease Assignment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | (236) | (236) | ||
Occupancy | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 1,127 | 1,127 | ||
Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 66 | 581 | ||
Contract termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 80 | $ 80 |
Restructuring Charges, Asset _5
Restructuring Charges, Asset Impairment, and Assets Held For Sale - Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 21, 2022 | Dec. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating lease assets | $ 15,906 | ||
Finance lease assets | 4,668 | ||
Total | 20,860 | $ 0 | |
Total | 22,294 | $ 0 | |
Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property and equipment | $ 7,497 | ||
Discontinued Operations, Held-for-sale | Hub Locations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating lease assets | 15,906 | ||
Finance lease assets | 4,668 | ||
Property and equipment | 286 | ||
Total | 20,860 | ||
Operating lease liabilities | 17,123 | ||
Finance lease liabilities | 5,171 | ||
Total | $ 22,294 |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity - Vehicle Purchases $ in Thousands | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Related Party Transaction [Line Items] | |
Related party transaction amount | $ 1,753 |
Due to related party | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Oct. 05, 2022 USD ($) | Oct. 31, 2022 employee shares | Sep. 30, 2022 USD ($) shares | Oct. 01, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 10, 2021 USD ($) | |
Restricted Stock Units | Inducement Plan | ||||||
Subsequent Event [Line Items] | ||||||
Unvested previously issued (in shares) | shares | 5,619,822 | |||||
Revolving Credit Facility | Floor Plan Credit Facility | Ally Financial | Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Maximum borrowing capacity | $ 40,000 | $ 40,000 | $ 30,000 | |||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Debt covenant , increase to minimum cash and cash equivalents deposit required amount, if amounts borrowed under credit facility exceed specified amount | $ 5,000 | |||||
Subsequent Event | Restricted Stock Units | Inducement Plan | ||||||
Subsequent Event [Line Items] | ||||||
Unvested previously issued (in shares) | shares | 4,823,584 | |||||
Modification, number of employees impacted | employee | 3 | |||||
Subsequent Event | Revolving Credit Facility | Floor Plan Credit Facility | Ally Financial | Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Maximum borrowing capacity | $ 25,000 | |||||
Subsequent Event | Revolving Credit Facility | Credit Balance Agreement | Ally Financial | Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Debt covenant, required to maintain the maximum available credit line in cash and cash equivalents, percentage (at least) | 10% | |||||
Debt covenant, required to maintain the maximum available credit line in cash and cash equivalents on deposit with lender percentage (at least) | 0.10 | |||||
Debt covenant, required to maintain the maximum available credit line in cash and cash equivalents on deposit with lender, minimum amount | $ 4,000 | |||||
Debt covenant, required to maintain the maximum available credit line in cash and cash equivalents on deposit with lender borrowing outstanding maximum amount | 20,000 | |||||
Debt covenant, increase to minimum deposit required, if borrowing outstanding under credit facility exceeds amount | $ 20,000 |