Filed Pursuant to Rule 424(b)(3)
Registration No. 333-258146
PROSPECTUS SUPPLEMENT NO. 7
(To Prospectus Dated August 6, 2021)
ELECTRIC LAST MILE SOLUTIONS, INC.
118,684,445 Shares of Common Stock
Warrants to Purchase 247,082 Shares of Common Stock
This Prospectus Supplement No. 7 is being filed to update and supplement the information contained in the prospectus dated August 6, 2021 (as supplemented or amended from time to time, the “Prospectus”) with the information contained in the Company’s Quarterly Report on Form 10-Q, which was filed with the SEC on November 12, 2021 (the “Quarterly Report”). Accordingly, the Company has attached the Quarterly Report to this Prospectus Supplement No. 7. Capitalized terms not defined in this Prospectus Supplement No. 7 have the definitions ascribed to them in the Prospectus.
The Prospectus, as previously supplemented by Prospectus Supplement No’s 1 through 6 and as further supplemented by this Prospectus Supplement No. 7, relates to the resale by certain Selling Securityholders named in the Prospectus from time to time of up to 110,351,152 shares of our common stock, par value $0.0001 per share, and warrants to purchase up to 247,082 shares of our common stock, consisting of:
• up to 6,250,000 Founder Shares issued in a private placement to the Sponsor;
• up to 205,416 Private Placement Warrants issued in a private placement to the Sponsor;
• up to 41,666 Private Placement Warrants issued in a private placement to the IPO underwriter;
• up to 247,082 shares of common stock issuable upon exercise of the Private Placement Warrants;
• up to 741,250 shares of common stock that were a constituent part of the Private Placement Units;
• up to 82,360,597 shares of common stock issued or issuable to the stockholders of Electric Last Mile, Inc. (the “ELM stockholders”) as merger consideration pursuant to the Merger Agreement, which includes Earnout Shares and shares of Adjustment Escrow Stock that may be issued to the ELM stockholders;
• up to 13,000,000 shares of common stock issued in a private placement that closed immediately prior to the closing of the Business Combination;
• up to 2,752,223 shares of common stock issued to the holders of convertible promissory notes previously issued by Electric Last Mile, Inc. upon automatic conversion of such notes in connection with the closing of the Business Combination; and
• up to 5,000,000 shares of common stock issued to SF Motors, Inc. d/b/a SERES in accordance with the SERES Asset Purchase Agreement upon the closing of the Business Combination.
In addition, the Prospectus, as previously supplemented by Prospectus Supplement No’s 1 through 6 and as further supplemented by this Prospectus Supplement No. 7, relates to the issuance by us of (i) up to 8,333,293 shares of common stock that are issuable upon the exercise of the Public Warrants, which were previously registered, and (ii) up to 247,082 shares of common stock that are issuable upon the exercise of the Private Placement Warrants.
This Prospectus Supplement No. 7 updates and supplements the information in the Prospectus and is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This Prospectus Supplement No. 7 should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this Prospectus Supplement No. 7, you should rely on the information in this Prospectus Supplement No. 7.
Our common stock and Public Warrants are listed on The Nasdaq Global Select Market under the symbols “ELMS” and “ELMSW”, respectively. On November 11, 2021, the last reported sales price of our common stock was $8.99 per share and the last reported sales price of our Public Warrants was $1.97 per Public Warrant.
Investing in our securities involves a high degree of risk. You should review carefully the risks and uncertainties described under the heading “Risk Factors” beginning on page 7 of the Prospectus, as well as those risk factors contained in any amendments or supplements to the Prospectus, including this Prospectus Supplement No. 7 and the Quarterly Report, and the documents included or incorporated by reference herein or therein.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities that may be offered under the Prospectus and this Prospectus Supplement No. 7 or passed upon the adequacy or accuracy of the Prospectus or this Prospectus Supplement No. 7. Any representation to the contrary is a criminal offense.
The date of this Prospectus Supplement No. 7 is November 12, 2021.
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the quarterly period ended September 30, 2021 | |||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 84-2308711 | |||||||
(State or other jurisdiction of | (I.R.S. Employer | |||||||
incorporation or organization) | Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
Common stock, par value $0.0001 per share | ELMS | The Nasdaq Stock Market LLC | |||||||||
Warrants, each whole warrant exercisable for one share of common stock, each at an exercise price of $11.50 per share | ELMSW | The Nasdaq Stock Market LLC |
☐ Large accelerated filer | ☐ Accelerated filer | ||||
☒ Smaller reporting company | |||||
☒ Non-accelerated filer | ☒ Emerging growth company |
Page | ||||||||
Condensed Consolidated Balance Sheets (unaudited) | ||||||||
21 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share data)
Successor | Predecessor | |||||||||||||||||||
September 30, 2021 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||
ASSETS | (Unaudited) | |||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 143,154 | $ | 25,205 | $ | — | ||||||||||||||
Restricted cash | 27,750 | — | — | |||||||||||||||||
Accounts receivable | 136 | — | — | |||||||||||||||||
Prepaid expenses and other current assets | 8,503 | — | 42 | |||||||||||||||||
Inventories | 7,579 | — | — | |||||||||||||||||
Total current assets | 187,122 | 25,205 | 42 | |||||||||||||||||
Property, plant and equipment, net | 192,736 | — | 131,908 | |||||||||||||||||
Intangibles and other assets, net | 6,124 | 38 | — | |||||||||||||||||
TOTAL ASSETS | $ | 385,982 | $ | 25,243 | $ | 131,950 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 7,757 | $ | 1,345 | $ | 178 | ||||||||||||||
Accrued expenses | 10,386 | 5,532 | 1,233 | |||||||||||||||||
Current portion of land contract and promissory note | 54,286 | — | — | |||||||||||||||||
Total current liabilities | 72,429 | 6,877 | 1,411 | |||||||||||||||||
Convertible promissory notes | — | 25,094 | — | |||||||||||||||||
Land contract and promissory note obligations, net of current portion | 29,800 | — | — | |||||||||||||||||
Warrant liabilities | 14,243 | — | — | |||||||||||||||||
Pension benefit obligation | 90 | — | 109 | |||||||||||||||||
Other long-term liabilities | 451 | — | — | |||||||||||||||||
Total liabilities | 117,013 | 31,971 | 1,520 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||
Predecessor parent's net investment | — | — | 130,430 | |||||||||||||||||
Preferred stock, $0.0001 par value; 100 million shares authorized; none issued or outstanding. | — | — | — | |||||||||||||||||
Common stock, $0.0001 par value; 1 billion shares authorized; 124,027,012 issued and 118,777,012 outstanding at September 30, 2021 and 82,117,288 issued and outstanding at December 31, 2020. | 12 | 8 | — | |||||||||||||||||
Additional paid-in capital | 306,578 | 992 | — | |||||||||||||||||
Accumulated deficit | (37,621) | (7,728) | — | |||||||||||||||||
Total shareholders' equity (deficit) | 268,969 | (6,728) | 130,430 | |||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 385,982 | $ | 25,243 | $ | 131,950 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share data)
Successor | Predecessor | ||||||||||||||||
Three Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | Three Months Ended September 30, 2020 | |||||||||||||||
REVENUE | $ | 136 | $ | — | $ | — | |||||||||||
COST OF REVENUE | 134 | — | — | ||||||||||||||
Gross margin | 2 | — | — | ||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||
Research and development expense | 5,642 | — | — | ||||||||||||||
General and administrative expense | 16,699 | — | 1,916 | ||||||||||||||
Total operating expenses | 22,341 | — | 1,916 | ||||||||||||||
LOSS FROM OPERATIONS | (22,339) | — | (1,916) | ||||||||||||||
Interest expense | (656) | — | — | ||||||||||||||
Gain on change in fair value of warrant liabilities | 5,204 | — | — | ||||||||||||||
Other income (expense), net | 12 | — | (26) | ||||||||||||||
LOSS BEFORE INCOME TAXES | (17,779) | — | (1,942) | ||||||||||||||
Income tax benefit | — | — | — | ||||||||||||||
NET LOSS AND COMPREHENSIVE LOSS | $ | (17,779) | $ | — | $ | (1,942) | |||||||||||
LOSS PER SHARE: | |||||||||||||||||
Basic and diluted loss per share | $ | (0.15) | $ | — | |||||||||||||
Basic and diluted weighted shares outstanding | 118,777,012 | 821,173 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share data)
Successor | Predecessor | ||||||||||||||||||||||
Nine Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | ||||||||||||||||||||
REVENUE | $ | 136 | $ | — | $ | — | $ | — | |||||||||||||||
COST OF REVENUE | 134 | — | — | — | |||||||||||||||||||
Gross margin | 2 | — | — | — | |||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||
Research and development expense | 8,381 | — | — | — | |||||||||||||||||||
General and administrative expense | 24,553 | — | 1,619 | 6,040 | |||||||||||||||||||
Total operating expenses | 32,934 | — | 1,619 | 6,040 | |||||||||||||||||||
LOSS FROM OPERATIONS | (32,932) | — | (1,619) | (6,040) | |||||||||||||||||||
Interest expense | (3,126) | — | — | — | |||||||||||||||||||
Gain on change in fair value of warrant liabilities | 6,149 | — | — | — | |||||||||||||||||||
Other income (expense), net | 16 | — | (2) | (27) | |||||||||||||||||||
LOSS BEFORE INCOME TAXES | (29,893) | — | (1,621) | (6,067) | |||||||||||||||||||
Income tax benefit | — | — | — | — | |||||||||||||||||||
NET LOSS AND COMPREHENSIVE LOSS | $ | (29,893) | $ | — | $ | (1,621) | $ | (6,067) | |||||||||||||||
LOSS PER SHARE: | |||||||||||||||||||||||
Basic and diluted loss per share | $ | (0.31) | $ | — | |||||||||||||||||||
Basic and diluted weighted shares outstanding | 95,153,979 | 821,173 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT) (UNAUDITED)
(in thousands, except share data) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Shareholders' Equity (Deficit) | |||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
Balances - August 20, 2020 | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Initial funding | 1,000 | — | 10 | — | 10 | ||||||||||||||||||||||||
Retroactive application of recapitalization | 820,173 | — | — | — | — | ||||||||||||||||||||||||
Balances - September 30, 2020 | 821,173 | — | $ | 10 | — | 10 | |||||||||||||||||||||||
Balances - December 31, 2020 | 100,000 | — | 1,000 | (7,728) | (6,728) | ||||||||||||||||||||||||
Retroactive application of recapitalization | 82,017,288 | 8 | (8) | — | — | ||||||||||||||||||||||||
Balances - December 31, 2020 - Recasted | 82,117,288 | 8 | 992 | (7,728) | (6,728) | ||||||||||||||||||||||||
Net loss | — | — | — | (3,528) | (3,528) | ||||||||||||||||||||||||
Balances - March 31, 2021 | 82,117,288 | 8 | 992 | (11,256) | (10,256) | ||||||||||||||||||||||||
Repurchase of common stock from related party - Note 19 | (5,006,691) | (1) | (60) | — | (61) | ||||||||||||||||||||||||
Reverse recapitalization - Note 3 | 33,914,192 | 4 | 223,064 | — | 223,068 | ||||||||||||||||||||||||
Conversion of ELM Convertible Notes - Note 11 | 2,752,223 | — | 27,522 | — | 27,522 | ||||||||||||||||||||||||
Issuance of shares for SERES Asset Purchase - Note 4 | 5,000,000 | 1 | 49,949 | — | 49,950 | ||||||||||||||||||||||||
Net loss | — | — | — | (8,586) | (8,586) | ||||||||||||||||||||||||
Balances - June 30, 2021 | 118,777,012 | 12 | 301,467 | (19,842) | 281,637 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 5,111 | — | 5,111 | ||||||||||||||||||||||||
Net loss | — | — | — | (17,779) | (17,779) | ||||||||||||||||||||||||
Balances - September 30, 2021 | 118,777,012 | $ | 12 | $ | 306,578 | $ | (37,621) | $ | 268,969 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT) (UNAUDITED)
(in thousands) | Predecessor Parent's Net Investment | |||||||
Balances - December 31, 2019 | $ | 130,906 | ||||||
Net loss | (2,351) | |||||||
Share based compensation | 28 | |||||||
Change in Predecessor parent's net investment | 2,083 | |||||||
Balances - March 31, 2020 | 130,666 | |||||||
Net loss | (1,774) | |||||||
Share based compensation | 28 | |||||||
Change in Predecessor parent's net investment | 1,872 | |||||||
Balances —June 30, 2020 | 130,792 | |||||||
Net loss | (1,942) | |||||||
Share based compensation | 19 | |||||||
Change in Predecessor parent's net investment | 1,827 | |||||||
Balances —September 30, 2020 | $ | 130,696 | ||||||
Balances - December 31, 2020 | $ | 130,430 | ||||||
Net loss | (890) | |||||||
Share based compensation | 13 | |||||||
Change in Predecessor parent's net investment | 1,199 | |||||||
Balances - March 31, 2021 | 130,752 | |||||||
Net loss | (731) | |||||||
Share based compensation | 12 | |||||||
Change in Predecessor parent's net investment | 790 | |||||||
Balances —June 25, 2021 | $ | 130,823 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)
Successor | Predecessor | |||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||||||||||||
Net loss | $ | (29,893) | $ | — | $ | (1,621) | $ | (6,067) | ||||||||||||||||||
Adjustment to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||||
Noncash interest expense | 2,470 | — | — | — | ||||||||||||||||||||||
Gain on change in fair value of warrant liabilities | (6,149) | — | — | — | ||||||||||||||||||||||
Depreciation and amortization expense | 1,229 | — | 23 | 35 | ||||||||||||||||||||||
Other | 72 | — | — | — | ||||||||||||||||||||||
Defined benefit pension expense, net of (funding) | (23) | — | 17 | 64 | ||||||||||||||||||||||
Share based compensation | 5,111 | — | 25 | 75 | ||||||||||||||||||||||
Loss on disposal of equipment | — | — | — | 69 | ||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||
Accounts receivable | (136) | — | — | — | ||||||||||||||||||||||
Prepaid expenses and other current assets | (8,000) | — | 35 | (54) | ||||||||||||||||||||||
Inventories | (7,579) | — | — | — | ||||||||||||||||||||||
Accounts payable | 845 | — | (150) | 85 | ||||||||||||||||||||||
Accrued expenses | 4,611 | — | (318) | 34 | ||||||||||||||||||||||
Net cash used in operating activities | (37,442) | — | (1,989) | (5,759) | ||||||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||||
SERES Asset Purchase | (30,187) | — | — | — | ||||||||||||||||||||||
Capital expenditures | (1,988) | — | — | (23) | ||||||||||||||||||||||
Net cash used in investing activities | (32,175) | — | — | (23) | ||||||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||||
Change in Predecessor parent's net investment | — | — | 1,989 | 5,782 | ||||||||||||||||||||||
Successor paid in capital | — | 10 | — | — | ||||||||||||||||||||||
Repurchase of common stock from related party | (61) | — | — | — | ||||||||||||||||||||||
Proceeds from reverse recapitalization, net of transaction costs | 243,769 | — | — | — | ||||||||||||||||||||||
Payments on land contract and promissory note obligations | (28,392) | — | — | — | ||||||||||||||||||||||
Net cash provided by financing activities | 215,316 | 10 | 1,989 | 5,782 | ||||||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 145,699 | 10 | — | — | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash —Beginning of period | 25,205 | — | — | — | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash —End of period | $ | 170,904 | $ | 10 | $ | — | $ | — | ||||||||||||||||||
Reconciliation to condensed consolidated balance sheet: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 143,154 | ||||||||||||||||||||||||
Restricted cash | 27,750 | |||||||||||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 170,904 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Increase (Decrease) | |||||||||||
Forum cash and cash equivalents(a) | $ | 250,258 | |||||||||
Less redemptions of Class A common stock units(b) | (110,772) | ||||||||||
PIPE investment proceeds(c) | 130,000 | ||||||||||
Less cash paid to underwriters and other transaction costs(d) | (25,717) | ||||||||||
Net change in cash and cash equivalent and restricted cash as a result of recapitalization | 243,769 | ||||||||||
Prepaid expenses and other current assets(e) | 17 | ||||||||||
Accounts payable and other (a) | (326) | ||||||||||
Warrant liabilities(a) | (20,392) | ||||||||||
Change in net assets as a result of recapitalization | $ | 223,068 |
Number of Shares | |||||||||||
Forum Class A and Class B common shares outstanding prior to business combination(a) | 31,991,250 | ||||||||||
Less redemptions of Class A common shares(b) | (11,077,058) | ||||||||||
Common shares issued to PIPE investors(c) | 13,000,000 | ||||||||||
Common shares issued to ELM shareholders(f) | 77,110,597 | ||||||||||
Common shares outstanding immediately after the Business Combination(g) | 111,024,789 | ||||||||||
Common shares issued upon conversion of ELM Convertible Notes(h) | 2,752,223 | ||||||||||
Common shares issued as part of SERES Asset Purchase(i) | 5,000,000 | ||||||||||
Common shares outstanding after the Business Combination and SERES Asset Purchase | 118,777,012 |
Description | Land Contract Obligation | Promissory Note | Total Payments | |||||||||||||||||
Total principal payments under Land Contract and Promissory Note | $ | 90,000 | $ | 55,000 | $ | 145,000 | ||||||||||||||
Less payments at closing | (18,621) | (11,379) | (30,000) | |||||||||||||||||
Remaining principal payments at closing | $ | 71,379 | $ | 43,621 | $ | 115,000 |
Purchase Price | |||||||||||
Fair value of Land Contract obligation and Promissory Note(a) | $ | 112,436 | |||||||||
Cash payment at closing(b) | 30,187 | ||||||||||
Upfront license fee and other(c) | 5,012 | ||||||||||
Stock issuance(d) | 49,950 | ||||||||||
Total | $ | 197,585 |
Assets Identified | Relative Fair Value Allocation | ||||||||||
Land | $ | 1,859 | |||||||||
Buildings | 113,893 | ||||||||||
Machinery and equipment | 72,602 | ||||||||||
Site improvements | 1,202 | ||||||||||
Leasehold improvements | 1,894 | ||||||||||
Intellectual property and technology license intangible asset | 5,948 | ||||||||||
Other assets | 300 | ||||||||||
Fair value of pension obligation | (113) | ||||||||||
Total | $ | 197,585 |
Nine Months Ended September 30, 2021 | |||||
Capital expenditures included in accounts payable | $ | 377 | |||
Noncash investing intangible and other assets included in other long-term liabilities | 2 | ||||
Noncash financing conversion of ELM Convertible Notes | 27,522 | ||||
Noncash investing SERES Asset Purchase in accounts payable | 5,012 | ||||
Noncash investing SERES Asset Purchase assumption of pension obligation | 113 | ||||
Noncash financing and investing SERES Asset Purchase issuance of Promissory Note | 42,824 | ||||
Noncash financing and investing SERES Asset Purchase issuance of Land Contract obligation | 69,612 | ||||
Noncash financing and investing SERES Asset Purchase issuance of common stock | 49,950 |
Years | |||||
Buildings | 39 | ||||
Machinery and equipment | 7* | ||||
Vehicles | 5 | ||||
Computer hardware | 3 | ||||
Furniture and fixtures | 3 | ||||
Site improvements | 15 | ||||
Leasehold improvements | 3-10 |
Level 1: | Quoted prices in active markets for identical assets or liabilities | |||||||
Level 2: | Observable inputs other than Level 1 prices, for similar assets or liabilities that are directly or indirectly observable in the marketplace. | |||||||
Level 3: | Unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. |
Successor | Predecessor | |||||||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||
Construction in progress: | ||||||||||||||
Buildings | $ | — | $ | 83,445 | ||||||||||
Machinery and equipment | 71,220 | 47,000 | ||||||||||||
Total construction in progress | 71,220 | 130,445 | ||||||||||||
Buildings | 113,893 | — | ||||||||||||
Land | 1,859 | 1,243 | ||||||||||||
Site Improvements | 1,203 | — | ||||||||||||
Leasehold improvements | 1,906 | — | ||||||||||||
Machinery and equipment | 2,345 | 247 | ||||||||||||
Computer hardware | 339 | — | ||||||||||||
Furniture and fixtures | 201 | 37 | ||||||||||||
Vehicles | 188 | 42 | ||||||||||||
Subtotal | 193,154 | 132,014 | ||||||||||||
Accumulated depreciation | (418) | (106) | ||||||||||||
Net property, plant and equipment | $ | 192,736 | $ | 131,908 |
Successor | Predecessor | |||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | Three Months Ended September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||
$ | 384 | $ | 418 | $ | — | $ | 12 | $ | 23 | $ | 35 |
Successor | Predecessor | |||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | Three Months Ended September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||
$ | 85 | $ | 208 | $ | — | $ | 18 | $ | 35 | $ | 54 |
Successor | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
IP license intangible | $ | 5,948 | $ | — | |||||||
Favorable lease intangible | 151 | — | |||||||||
Computer software and website development costs | 96 | 39 | |||||||||
Subtotal | 6,195 | 39 | |||||||||
Accumulated amortization | (813) | (1) | |||||||||
Intangible assets, net | 5,382 | 38 | |||||||||
Service contract asset, net | 742 | — | |||||||||
Intangible and other assets, net | $ | 6,124 | $ | 38 |
Description | Land Contract Obligation | Promissory Note | Total Payments | |||||||||||||||||
19 Consecutive equal monthly installments through April 30, 2023 | $ | 3,103 | $ | 1,420 | $ | 4,523 | ||||||||||||||
Total principal payments under Land Contract and Promissory Note | $ | 58,965 | $ | 26,987 | $ | 85,952 | ||||||||||||||
Fair value at inception | $ | 69,612 | $ | 42,824 | $ | 112,436 |
Land Contract Obligation | Promissory Note | Total Carrying Value | ||||||||||||||||||
Carrying value as of September 30, 2021 | $ | 57,658 | $ | 26,428 | $ | 84,086 | ||||||||||||||
Less current portion due in next 12 months | (37,242) | (17,044) | (54,286) | |||||||||||||||||
Noncurrent | $ | 20,416 | $ | 9,384 | $ | 29,800 |
Successor | Predecessor | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | Three Months Ended September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||
Service cost | $ | 8 | $ | 9 | $ | — | $ | 12 | $ | 16 | $ | 37 | |||||||||||||||||||||||
Interest cost | 1 | 1 | — | — | 2 | 1 | |||||||||||||||||||||||||||||
Expected return on plan assets | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Net periodic costs | $ | 9 | $ | 10 | $ | — | $ | 12 | $ | 18 | $ | 38 |
Three Months Ended September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | ||||||||||||||||||
Non-union 401(k) | $ | 1 | $ | 22 | $ | 29 |
Union 401(k) | 1 | 2 | 5 | |||||||||||||||||
Defined contribution plan expense | $ | 2 | $ | 24 | $ | 34 |
Number of shares | Weighted average grant date fair value | Aggregate fair value | |||||||||||||||
Unvested as of December 31, 2020 | — | ||||||||||||||||
Granted | 16,435,250 | 4.43 | $ | 68,635 | |||||||||||||
Vested | — | ||||||||||||||||
Forfeited/Cancelled | — | ||||||||||||||||
Unvested as of September 30, 2021 | 16,435,250 | 4.43 |
Number of shares | Weighted average grant date fair value | Aggregate fair value | |||||||||||||||
Unvested as of December 31, 2020 | — | ||||||||||||||||
Granted | 2,287,250 | 7.96 | $ | 18,210 | |||||||||||||
Vested | — | ||||||||||||||||
Forfeited/Cancelled | — | ||||||||||||||||
Unvested as of September 30, 2021 | 2,287,250 | 7.96 |
Research and development expense | $ | 472 | ||||||
General and administrative expense | 4,639 | |||||||
Total | $ | 5,111 |
Predecessor | |||||||||||||||||
Three Months Ended September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | |||||||||||||||
$ | 19 | $ | 25 | $ | 75 |
Description | Level | September 30, 2021 | December 31, 2020 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents - Money Market Funds | 1 | $ | 139,014 | $ | 20,000 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Warrant Liabilities - Public Warrants | 1 | $ | 13,938 | $ | — | |||||||||||||||
Warrant Liabilities - Private Placement Warrants | 2 | $ | 305 | $ | — |
Description | Level | September 30, 2021 | December 31, 2020 | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
SERES Land Contract Obligation and Promissory Note | 3 | $ | 84,086 | $ | — | |||||||||||||||
ELM Convertible Notes | 3 | $ | — | $ | 25,411 |
Three Months Ended September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | ||||||||||||||||||
Corporate allocations | $ | 789 | $ | 143 | $ | 2,039 | ||||||||||||||
Sokon SAP license allocations | $ | 11 | $ | 21 | $ | 33 | ||||||||||||||
Defined contribution plan expense | $ | 1 | $ | 24 | $ | 34 | ||||||||||||||
Defined benefit plan expense | $ | 13 | $ | 17 | $ | 38 | ||||||||||||||
Share based compensation expense | $ | 78 | $ | 25 | $ | 134 |
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
In thousands | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | Three Months Ended September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||||||||||||||||||||||
REVENUE | $ | 136 | $ | 136 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
COST OF REVENUE | 134 | 134 | — | — | — | — | ||||||||||||||||||||||||||||||||
Gross margin | 2 | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||||||||||||||||||
Research and development expense | 5,642 | 8,381 | — | — | — | — | ||||||||||||||||||||||||||||||||
General and administrative expense | 16,699 | 24,553 | — | 1,916 | 1,619 | 6,040 | ||||||||||||||||||||||||||||||||
Total operating expenses | 22,341 | 32,934 | — | 1,916 | 1,619 | 6,040 | ||||||||||||||||||||||||||||||||
LOSS FROM OPERATIONS | (22,339) | (32,932) | — | (1,916) | (1,619) | (6,040) | ||||||||||||||||||||||||||||||||
Interest expense | (656) | (3,126) | — | — | — | — | ||||||||||||||||||||||||||||||||
Gain on change in fair value of warrant liabilities | 5,204 | 6,149 | — | — | — | — | ||||||||||||||||||||||||||||||||
Other income (expense), net | 12 | 16 | — | (26) | (2) | (27) | ||||||||||||||||||||||||||||||||
LOSS BEFORE INCOME TAXES | (17,779) | (29,893) | — | (1,942) | (1,621) | (6,067) | ||||||||||||||||||||||||||||||||
Income tax benefit | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
NET LOSS AND COMPREHENSIVE LOSS | $ | (17,779) | $ | (29,893) | $ | — | $ | (1,942) | $ | (1,621) | $ | (6,067) | ||||||||||||||||||||||||||
Basic and diluted loss per share | $ | (0.15) | $ | (0.31) | $ | — | ||||||||||||||||||||||||||||||||
Successor | |||||||||||||||||
Three Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | Increase (Decrease) | |||||||||||||||
Unaudited | Unaudited | $ Change | |||||||||||||||
REVENUE | $ | 136 | $ | — | 136 | ||||||||||||
COST OF REVENUE | 134 | — | 134 | ||||||||||||||
Gross margin | 2 | — | 2 | ||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||
Research and development expense | 5,642 | — | 5,642 | ||||||||||||||
General and administrative expense | 16,699 | — | 16,699 | ||||||||||||||
Total operating expenses | 22,341 | — | 22,341 | ||||||||||||||
LOSS FROM OPERATIONS | (22,339) | — | (22,339) | ||||||||||||||
Interest expense | (656) | — | (656) | ||||||||||||||
Gain on change in fair value of warrant liabilities | 5,204 | — | 5,204 | ||||||||||||||
Other income (expense), net | 12 | — | 12 | ||||||||||||||
LOSS BEFORE INCOME TAXES | (17,779) | — | (17,779) | ||||||||||||||
Income tax benefit | — | — | — | ||||||||||||||
NET LOSS AND COMPREHENSIVE LOSS | $ | (17,779) | $ | — | $ | (17,779) | |||||||||||
Basic and diluted loss per share | $ | (0.15) | $ | — | $ | (0.15) |
Successor | |||||||||||||||||
Nine Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | Increase (Decrease) | |||||||||||||||
Unaudited | Unaudited | $ Change | |||||||||||||||
REVENUE | $ | 136 | $ | — | 136 | ||||||||||||
COST OF REVENUE | 134 | ||||||||||||||||
Gross margin | 2 | ||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||
Research and development expense | 8,381 | — | 8,381 | ||||||||||||||
General and administrative expense | 24,553 | — | 24,553 | ||||||||||||||
Total operating expenses | 32,934 | — | 32,934 | ||||||||||||||
LOSS FROM OPERATIONS | (32,932) | — | (32,932) | ||||||||||||||
Interest expense | (3,126) | — | (3,126) | ||||||||||||||
Gain on change in fair value of warrant liabilities | 6,149 | — | 6,149 | ||||||||||||||
Other income (expense), net | 16 | — | 16 | ||||||||||||||
LOSS BEFORE INCOME TAXES | (29,893) | — | (29,893) | ||||||||||||||
Income tax benefit | — | — | — | ||||||||||||||
NET LOSS AND COMPREHENSIVE LOSS | $ | (29,893) | $ | — | $ | (29,893) | |||||||||||
Basic and diluted loss per share | $ | (0.31) |
Predecessor | |||||
Three Months Ended September 30, 2020 | |||||
Unaudited | |||||
REVENUE | $ | — | |||
COST OF REVENUE | — | ||||
Gross margin | — | ||||
OPERATING EXPENSES: | |||||
Research and development expense | — | ||||
General and administrative expense | 1,916 | ||||
Total operating expenses | 1,916 | ||||
LOSS FROM OPERATIONS | (1,916) | ||||
Other income (expense), net | (26) | ||||
LOSS BEFORE INCOME TAXES | (1,942) | ||||
Income tax benefit | — | ||||
NET LOSS AND COMPREHENSIVE LOSS | $ | (1,942) |
Predecessor | ||||||||||||||||||||||||||
For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | Increase (Decrease) | ||||||||||||||||||||||||
Unaudited | Unaudited | $ Change | % Change | |||||||||||||||||||||||
REVENUE | $ | — | $ | — | $ | — | — | % | ||||||||||||||||||
COST OF REVENUE | — | — | % | |||||||||||||||||||||||
Gross margin | — | — | — | — | % | |||||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||||||
General and administrative expense | 1,619 | 6,040 | (4,421) | (73) | % | |||||||||||||||||||||
Total operating expenses | 1,619 | 6,040 | (4,421) | (73) | % | |||||||||||||||||||||
LOSS FROM OPERATIONS | (1,619) | (6,040) | 4,421 | (73) | % | |||||||||||||||||||||
Other income (expense), net | (2) | (27) | 25 | (94) | % | |||||||||||||||||||||
LOSS BEFORE INCOME TAXES | (1,621) | (6,067) | 4,446 | (73) | % | |||||||||||||||||||||
Income tax benefit | — | — | — | — | % | |||||||||||||||||||||
NET LOSS AND COMPREHENSIVE LOSS | $ | (1,621) | $ | (6,067) | $ | 4,446 | (73) | % |
Successor | ||||||||
Net cash provided by (used in) | Nine Months Ended September 30, 2021 | For the period from August 20, 2020 through September 30, 2020 | ||||||
(Unaudited) | (Unaudited) | |||||||
Operating activities | $ | (37,442) | $ | — | ||||
Investing activities | (32,175) | — | ||||||
Financing activities | 215,316 | 10 | ||||||
Net change in cash | $ | 145,699 | $ | 10 |
Nine Months Ended September 30, 2021 | ||||||||
Capital expenditures included in accounts payable | $ | 377 | ||||||
Noncash investing intangible and other assets included in other long-term liabilities | $ | 2 | ||||||
Noncash financing conversion of ELM Convertible Notes | $ | 27,522 | ||||||
Noncash investing SERES Asset Purchase in accounts payable | $ | 5,012 | ||||||
Noncash investing SERES Asset Purchase assumption of pension obligation | $ | 113 | ||||||
Noncash financing and investing SERES Asset Purchase issuance of Promissory Note | $ | 42,824 | ||||||
Noncash financing and investing SERES Asset Purchase issuance of Land Contract obligation | $ | 69,612 | ||||||
Noncash financing and investing SERES Asset Purchase issuance of common stock | $ | 49,950 |
Predecessor | |||||||||||
Net cash provided by (used in) | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | |||||||||
(Unaudited) | (Unaudited) | ||||||||||
Operating activities | $ | (1,989) | $ | (5,759) | |||||||
Investing activities | — | (23) | |||||||||
Financing activities | $ | 1,989 | $ | 5,782 | |||||||
Net change in cash | $ | — | $ | — |
Description | Land Contract Obligation | Promissory Note | Total Payments | |||||||||||||||||
19 Consecutive equal monthly installments through April 30, 2023 | 3,103 | 1,420 | 4,523 | |||||||||||||||||
Total principal payments under Land Contract and Promissory Note | $ | 58,965 | $ | 26,987 | $ | 85,952 | ||||||||||||||
Fair value at inception | $ | 69,612 | $ | 42,824 | $ | 112,436 |
Land Contract Obligation | Promissory Note | Total Carrying Value | ||||||||||||||||||
Carrying value as of September 30, 2021 | $ | 57,658 | $ | 26,428 | $ | 84,086 | ||||||||||||||
Less current portion due in next 12 months | (37,242) | (17,044) | (54,286) | |||||||||||||||||
Noncurrent portion due after 1 year | $ | 20,416 | $ | 9,384 | $ | 29,800 |
Payment Due by Period | ||||||||||||||||||||||||||||||||
As of September 30, 2021 | Total | Less than 1 year | 1 - 3 Years | 4 - 5 Years | More than 5 Years | |||||||||||||||||||||||||||
Promissory Note | $ | 27,028 | $ | 17,044 | $ | 9,984 | $ | — | $ | — | ||||||||||||||||||||||
Land Contract obligation | 58,966 | 37,242 | 21,724 | — | — | |||||||||||||||||||||||||||
Cloud computing service contract | 643 | 206 | 291 | 146 | — | |||||||||||||||||||||||||||
Operating lease - parking lot | 2,082 | 72 | 144 | 143 | 1,723 | |||||||||||||||||||||||||||
Operating lease - office building | 612 | 274 | 338 | — | — | |||||||||||||||||||||||||||
Total | $ | 89,331 | $ | 54,838 | $ | 32,481 | $ | 289 | $ | 1,723 |
Exhibit No. | Exhibit Description | |||||||
10.1†† | Form of Restricted Stock Unit Award Agreement (Time- and Performance-Vesting) (incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K (File No. 001-39457), filed with the SEC on September 3, 2021). |
10.2** | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | Firm Order Agreement, effective as of September 21, 2021, by and between Electric Last Mile, Inc. and Randy Marion Isuzu, LLC dba Randy Marion ELMS (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-39457), filed with the SEC on September 27, 2021). | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | Inline XBRL Instance Document - The XBRL Instance Document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL Document | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Electric Last Mile Solutions, Inc. | ||||||||||||||
Date: | November 12, 2021 | By: | /s/ James Taylor | |||||||||||
James Taylor | ||||||||||||||
Chief Executive Officer | ||||||||||||||
Date: | November 12, 2021 | By: | /s/ Robert Song | |||||||||||
Robert Song | ||||||||||||||
Chief Financial Officer |