Description of Organization and Business Operations | 1. Description of Organization and Business Operations Organization and General Hyliion Holdings Corp. (the "Company") was initially incorporated in Delaware on November 7, 2018 under the name "Tortoise Acquisition Corp." The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the "Initial Business Combination"). The Company is an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As of September 30, 2020, the Company had not commenced any operations. All activity for the period from November 7, 2018 (date of inception) to September 30, 2020 related to the Company's formation and the initial public offering (the "Initial Public Offering") described below, and since the closing of the Initial Public Offering, the identification and evaluation of prospective acquisition targets for the Initial Business Combination and ongoing administrative and compliance matters. The Company did not generate any operating revenues prior to completion of its Initial Business Combination. The Company generated non-operating income in the form of interest income earned on investments from the net proceeds derived from the Initial Public Offering through the completion of the Initial Business Combination. The Company has selected December 31st as its fiscal year end. On October 1, 2020 (the "Closing Date"), the Company consummated the merger (the "Closing") pursuant to that certain Business Combination Agreement and Plan of Reorganization, dated June 18, 2020 (the "Business Combination Agreement"), by and among the Company, SHLL Merger Sub Inc., a wholly owned subsidiary of the Company incorporated in the State of Delaware ("Merger Sub"), and Hyliion Inc., a Delaware corporation ("Legacy Hyliion"). Pursuant to the terms of the Business Combination Agreement, a business combination between the Company and Legacy Hyliion was effected through the merger of Merger Sub with and into Legacy Hyliion, with Legacy Hyliion surviving as the surviving company and as a wholly owned subsidiary of the Company (the "Merger" and, collectively with the other transactions described in the Business Combination Agreement, the "Business Combination"). On the Closing Date, the Company changed its name from Tortoise Acquisition Corp. to Hyliion Holdings Corp. At the effective time of the Merger (the "Effective Time"), each share of common stock of Legacy Hyliion (the "Legacy Hyliion Common Stock") was converted into and exchanged for 1.45720232 shares (the "Exchange Ratio") of the Company's Class A Common Stock, par value $0.0001 per share ("Class A Common Stock"). Pursuant to the Amended and Restated Certificate of Incorporation of the Company, each share of Class B Common Stock, par value $0.0001 per share (the "Class B Common Stock"), converted into one share of Class A Common Stock, par value $0.0001 per share (the "Class A Common Stock"), at the Closing. After the Closing and following the effectiveness of the Second Amended and Restated Certificate of Incorporation (the "Second A&R Charter") of the Company, each share of Class A Common Stock was automatically reclassified, redesignated and changed into one validly issued, fully paid and non-assessable share of common stock, par value $0.0001 per share (the "Common Stock"), without any further action by the Company or any stockholder thereof. Sponsor and Initial Public Offering The Company's sponsor was Tortoise Sponsor LLC, a Delaware limited liability company (the "Sponsor"). As described in Note 3, on March 4, 2019, the Company consummated the Initial Public Offering of 23,300,917 of its units (the "Units"), including 800,917 Units that were issued pursuant to the underwriters' partial exercise of their over-allotment option, generating gross proceeds of approximately $233.0 million. Each Unit consisted of one share of Class A Common Stock, and one-half of one redeemable warrant (each, a "Warrant" and, collectively, the "Warrants"). As described in Note 4, on March 4, 2019, simultaneously with the closing of the Initial Public Offering, TortoiseEcofin Borrower LLC, a Delaware limited liability company and an affiliate of the Sponsor (f/k/a " Tortoise Borrower LLC Tortoise Borrower The Company financed its Initial Business Combination with proceeds from the Initial Public Offering, the Private Placement, the private placement of forward purchase securities (described in Note 5), and from additional issuances, if any, of the Company's capital stock, debt or a combination of the foregoing. Trust Account Upon the closing of the Initial Public Offering and the Private Placement, approximately $233.0 million was placed in a trust account (the "Trust Account"), with Continental Stock Transfer & Trust Company acting as trustee. The proceeds held in the Trust Account were invested only in U.S. government securities with a maturity of 180 days or less or in money market funds that meet certain conditions under Rule 2a-7 under the Investment Company Act of 1940, as amended, which invest only in direct U.S. government treasury obligations. Funds remained in the Trust Account until the earlier of (i) the consummation of the Initial Business Combination or (ii) the distribution of the Trust Account proceeds as described below. The remaining proceeds outside the Trust Account were able to be used to pay for business, legal and accounting due diligence on prospective acquisitions and general and administrative expenses. On September 30, 2020, the investments were converted to cash and cash equivalents held in the trust prior to the Closing. The Company's amended and restated certificate of incorporation that was in effect at September 30, 2020 provided that, except for the withdrawal of interest to pay franchise and income taxes, none of the funds held in the Trust Account (including the interest earned on the funds in the Trust Account) would be released from the Trust Account until the earlier of: (i) the completion of the Initial Business Combination; (ii) the redemption of any shares of Class A Common Stock included in the Units sold in the Initial Public Offering (the "Public Shares") that have been properly tendered in connection with a stockholder vote seeking to amend the Company's amended and restated certificate of incorporation to affect the substance or timing of its obligation to redeem 100% of such Public Shares if it has not consummated an Initial Business Combination within 24 months from the closing of the Initial Public Offering (the "Combination Period"); and (iii) the redemption of 100% of the Public Shares if the Company is unable to complete an Initial Business Combination within the Combination Period. The proceeds deposited in the Trust Account could become subject to the claims of the Company's creditors, if any, which could have priority over the claims of the Company's public stockholders. The Company filed the Second A&R Charter on October 1, 2020 upon completion of the Business Combination, which was the Initial Business Combination. Initial Business Combination The Company's management had broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering, although substantially all of the net proceeds of the Initial Public Offering were applied toward consummating the Business Combination. The New York Stock Exchange (the "NYSE") rules require that the Initial Business Combination occur with one or more target businesses that together have a fair market value of at least 80% of the assets held in the Trust Account (excluding the deferred underwriting discounts and commissions and taxes payable on the interest earned on the Trust Account) at the time of the agreement to enter into the Initial Business Combination. There Company successfully effected the Initial Business Combination on October 1, 2020. The Company sought stockholder approval of the Business Combination, which was completed following approval of a majority of the outstanding shares of Class A Common Stock voting in favor. Stockholders had the right to redeem such holder's Public Shares for an amount in cash equal to such holder's pro rata share of the aggregate amount on deposit in the Trust Account as of two business days prior to the consummation of the Initial Business Combination, including interest not previously released to the Company to pay its franchise and income taxes. As a result, the Public Shares were recorded as temporary equity upon the completion of the Initial Public Offering, in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 480, " Distinguishing Liabilities from Equity Business Combination On June 18, 2020, the Company, Merger Sub and Legacy Hyliion, entered into the Business Combination Agreement, pursuant to which Merger Sub merged with and into Legacy Hyliion, with Legacy Hyliion surviving the Merger as a wholly owned subsidiary of the Company. Hyliion designs, develops and sells electrified powertrain solutions that can be installed on Class 8 trucks from most major commercial vehicle original equipment manufacturers. Hyliion's headquarters are located in Cedar Park, Texas. At the closing of the proposed Merger, 100,000,000 shares of the Company's Class A Common Stock were issued to the securityholders of Legacy Hyllion (the "Historical Rollover Stockholders") in the Business Combination in exchange for all outstanding shares of Legacy Hyliion Common Stock, or reserved for issuance in respect of stock options of New Hyliion issued in exchange for outstanding pre-merger Legacy Hyliion options. Concurrent with closing of the Merger, an investor purchased from the Company 1,750,000 Units (the "Forward Purchase Units"), consisting of 1,750,000 shares of the Company's Class A Common Stock (the "Forward Purchase Shares") and warrants to purchase 875,000 shares of the Company's Class A Common Stock (the "Forward Purchase Warrants"), for an aggregate purchase price of $17,500,000, pursuant to a forward purchase agreement. Additionally, other investors purchased from the Company 30,750,000 shares of the Company's Class A Common Stock, for an aggregate purchase price of $307,500,000. The Closing occurred on October 1, 2020 following the satisfaction or waiver of all of the closing conditions. Stockholder Support Agreement Contemporaneously with the execution of the Business Combination Agreement, on June 18, 2020, the Company entered into the Stockholder Support Agreement (the "Stockholder Support Agreement") pursuant to which certain of the Hyliion stockholders agreed to vote all of their shares of Hyliion common stock and Hyliion preferred stock in favor of the approval and adoption of the business combination and the Business Combination Agreement. Additionally, such Hyliion stockholders agreed not to (a) sell, assign, transfer (including by operation of law), pledge, dispose of, permit to exist any material lien with respect to or otherwise encumber any of their shares of Hyliion common stock and Hyliion preferred stock (or enter into any arrangement with respect thereto), subject to certain exceptions, or (b) deposit any of their shares of Hyliion common stock and Hyliion preferred stock into a voting trust or enter into any voting arrangement that is inconsistent with the Stockholder Support Agreement. A&R Registration Rights Agreement In connection with the Closing, the Company entered into an amended and restated registration rights agreement (the "A&R Registration Rights Agreement") with the Sponsor, Tortoise Borrower and certain of the Historical Rollover Stockholders (collectively, the "Holders"), pursuant to which the Holders are entitled to registration rights. Pursuant to the A&R Registration Rights Agreement, the Company filed with the SEC (at its sole cost and expense) a registration statement registering the resale of certain of the Holders' securities of the Company (collectively, the "Registrable Securities"), and the Company agreed to use its reasonable best efforts to have such registration statement declared effective by the SEC as soon as reasonably practicable after the filing thereof. Certain of the Holders were granted demand underwritten offering registration rights and all of the Holders were granted piggyback registration rights. The A&R Registration Rights Agreement will terminate upon the earlier of (a) ten years following the Closing or (b) the date as of which the Holders cease to hold any Registrable Securities. Lock-Up Agreement In connection with the Closing, certain existing Hyliion investors agreed, subject to certain exceptions, not to (a) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act and the rules and regulations of the SEC promulgated thereunder, any shares of Class A Common Stock held by them immediately after the Effective Time, or issuable upon the exercise of options to purchase shares of Class A Common Stock held by them immediately after the Effective Time, or securities convertible into or exercisable or exchangeable for Class A Common Stock held by them immediately after the Effective Time, (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of such shares of Class A Common Stock or securities convertible into or exercisable or exchangeable for Class A Common Stock, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise or (c) publicly announce any intention to effect any transaction specified in clause (a) or (b) until 180 days after the closing date. Thereafter until two years after the closing date, subject to certain exceptions, Thomas Healy also agreed not to transfer more than 10% of the number of shares of Class A Common Stock held by him immediately after the Effective Time, or issuable upon the exercise of options to purchase shares of Class A Common Stock held by him immediately after the Effective Time. Second Amended and Restated Charter Pursuant to the terms of the Business Combination Agreement, upon the Closing, the Company amended and restated its certificate of incorporation to, among other things, (a) increase the number of authorized shares of Class A Common Stock from 200,000,000 shares to 250,000,000 shares, (b) reclassify the Company's board of directors, (c) eliminate certain provisions in the certificate of incorporation relating to an Initial Business Combination that are no longer applicable following the Closing, (d) change the post-combination company's name to "Hyliion Holdings Corp." and (e) make certain other changes that the Company's board of directors deems appropriate for a public operating company. Following the effectiveness of the Second A&R Charter, each share of Class A Common Stock was automatically reclassified, redesignated and changed into one validly issued, fully paid and non-assessable share of common stock. Subscription Agreements In connection with the execution of the Business Combination Agreement, on June 18, 2020, the Company entered into separate subscription agreements (collectively, the "Subscription Agreements") with a number of investors (each a "Subscriber"), pursuant to which the Subscribers agreed to purchase, and the Company agreed to sell to the Subscribers, an aggregate 30,750,000 shares of Class A Common Stock issued in the PIPE Financing ("PIPE Shares"), for a purchase price of $10.00 per share and an aggregate purchase price of $307,500,000 million in the private offering o certain investors in connection with the Business Combination ("PIPE Financing"). The Company agreed to give certain customary registration rights to the Subscribers with respect to the PIPE Shares pursuant to the Subscription Agreements. Pursuant to the registration rights granted to the Subscribers in connection with the Subscription Agreements, the Company filed a registration statement registering for resale under the Securities Act all of the PIPE Shares acquired by the Subscribers, and agreed to use commercially reasonable efforts to have such registration statement declared effective as soon as practicable after the filing thereof, but no later than the earlier of (a) the 60th day following the Closing and (b) the tenth business day after the date it is notified by the SEC that such registration statement will not be reviewed or will not be subject to further review. The closing of the sale of the PIPE Shares pursuant to the Subscription Agreements occurred immediately prior to the Closing. The purpose of the PIPE Financing was to raise additional capital for use by the post-combination company following the Closing. Stockholders Rights Agreement On June 18, 2020, Vincent T. Cubbage, Stephen Pang, certain stockholders of Hyliion and the Company entered into the Stockholder Rights Agreement (the "Stockholders Rights Agreement"), pursuant to which the Company agreed to take all necessary action so that immediately after the Effective Time, the board of directors, including its committees, is comprised of the individuals set forth in the Business Combination Agreement. Pursuant to the Stockholders Rights Agreement, the Surviving Corporation also took all necessary action to cause its board of directors to nominate and recommend for election at its annual meeting of stockholders in 2021 Vincent T. Cubbage and Thomas Healy. The stockholders party to the Stockholders Rights Agreement agreed to vote in favor of Messrs. Cubbage and Healy at the annual meeting of stockholders in 2021. Amendment to IPO Forward Purchase Agreement On June 18, 2020, Atlas Point Energy Infrastructure Fund, LLC ("Atlas Point Fund"), the Company and Sponsor entered into the First Amendment to Amended and Restated Forward Purchase Agreement, which amends the IPO Forward Purchase Agreement (the "FPA Amendment"). Pursuant to the FPA Amendment, Atlas Point Fund purchased 1,750,000 units ("Forward Purchase Units"), consisting of 1,750,000 shares of Class A Common Stock and warrants ("Forward Purchase Warrants") to purchase 875,000 shares of Class A Common Stock, for an aggregate purchase price of $17,500,000. The shares of Class A Common Stock purchased as part of the Forward Purchase Units were identical to the shares of Class A Common Stock included in the units sold in the Initial Public Offering, except the shares comprising the Forward Purchase Units are subject to transfer restrictions and certain registration rights. Each whole Forward Purchase Warrant is exercisable to purchase one share of Common Stock at $11.50 per share. The Forward Purchase Warrants will have the same terms as the public warrants, except that the Forward Purchase Warrants are subject to transfer restrictions and certain registration rights. |