| Financial Assets And Financial Liabilities | 13. FINANCIAL ASSETS AND FINANCIAL LIABILITIES The following table shows the carrying amounts and fair values of financial assets, including their levels in the fair value hierarchy. Financial assets A breakdown of financial assets at 31 December is as follows:
A. Current and non-current
31 December 2021 31 December 2020
(In Euros) Non-current Current Non-current Current
Customer sales and services — 22,527,376 — 7,872,189
Other receivables — 6,922 — 516,834
Loans to employees — 2,222 — 119,538
Loans granted to Joint Venture — 685,048 — —
Receivables from Joint Venture — 535,268 — 475,565
Trade and other financial receivables — 23,756,836 — 8,984,126
Loans granted to Joint Venture 565,873 — 474,174 —
Guarantee deposit 733,446 — 390,598 —
Non-current 1,299,319 — 864,772 —
Guarantee deposit — 482,113 — 118,945
Financial investments — 57,191,545 — 239,379
Other current financial assets — 57,673,658 — 358,324
Cash and cash equivalents — 113,865,299 — 22,338,021
Total 1,299,319 195,295,793 864,772 31,680,471
Trade and other financial receivables are mainly amounts due from customers for goods sold or services performed in the ordinary course of business. They are due for settlement in the short term (less than 1 year) and therefore all are classified as current. Trade and other financial receivables are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing components, when they are recognized at fair value. The Group holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method. The carrying amounts of the customer sales and services include receivables which are subject to a factoring arrangement. Under this arrangement, the Group has transferred the relevant receivables to the factor in exchange for cash and is prevented from selling or pledging the receivables. However, the Group has retained late payment and credit risk. The Group therefore continues to recognize the transferred assets in their entirety in its statement of financial position. The amount repayable under the factoring agreement is presented as secured borrowing. The Group considers that the held to collect business model remains appropriate for these receivables and hence continues to measure them at amortized cost. The incorporation of new operating companies (Wallbox Italy S.r.l.; Wallbox Netherlands, B.V; and Wallbox Oy) as part of the Group resulted in an increase in customer sales and services. In addition, the growth of the Wallbox brand globally, as well as the creation of new products, has led to an increase in the sales of products and income from services invoiced during 2021. The Group applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables and contract assets. To measure expected credit losses on a collective basis, trade receivables and contract assets are grouped based on similar credit risk and aging. The contract assets have similar risk characteristics to the trade receivables for similar types of contracts. The expected loss rates are based on the Group’s historical credit losses experienced over the three-year period prior to the period end. At 31 December 2021, other current financial assets include financial investments such as investment funds in financial institutions amounting to Euros 56,930,049 (no amount at 31 December 2020). These financial investments are deposits managed by financial institutions in investment funds to obtain profitability. The Group has considered their classification as current assets because it expects to liquidate these investments in the following 12 months. During 2021, sales were made to the joint venture for an amount of Euros 535,268 (Euros 475,565 for the year 2020), which was outstanding at the reporting date and was reported as trade and other financial receivables. The guarantee deposit corresponds mainly to leased buildings, whose non-current The joint venture also received a loan of Euros 1,250,921, of which Euros 685,048 are recorded as current loans granted to Joint Venture and Euros 565,873 are recorded as non-current non-current
B. Expected credit loss assessment for corporate customers at 31 December 2021, 2020 and 2019.
31 December 2021
(In Euros) Weighted-average Gross carrying Loss allowance
Key account 3.38 % 14,189,513 479,911
Mid Market 2.98 % 4,519,084 134,513
Other 1.02 % 3,818,779 38,865
22,527,376 653,289
31 December 2020
(In Euros) Weighted-average Gross carrying Loss allowance
Key account 0.25 % 1,772,617 4,371
Mid Market 1.75 % 3,201,190 56,133
Other 3.95 % 2,898,382 114,087
7,872,189 174,591
31 December 2019
(In Euros) Weighted-average Gross carrying Loss allowance
Key account 0.25 % 1,509,392 3,722
Mid Market 1.75 % 1,396,951 24,496
Other 1.65 % 753,629 12,697
3,659,972 40,915
The Group has also contracted credit insurance policies to cover this risk for certain customers. Operating expenses accrued for the use of these policies amounted to Euro s in and Euros at December .
C. Financial assets by class and category
31 December 2021
(In Euros) Financial assets Financial assets Financial assets Total
Customer sales and services 22,527,376 — — 22,527,376
Other receivables 6,922 — — 6,922
Loans to employees 2,222 — — 2,222
Loans granted to Joint Venture 685,048 — — 685,048
Receivables from Joint Venture 535,268 — — 535,268
Trade and other financial receivables 23,756,836 — — 23,756,836
Loans granted to Joint Venture 565,873 — — 565,873
Guarantee deposit 733,446 — — 733,446
Non-current 1,299,319 — — 1,299,319
Guarantee deposit 482,113 — — 482,113
Financial investments 129,861 56,851,733 209,951 57,191,545
Other current financial assets 611,974 56,851,733 209,951 57,673,658
Cash and cash equivalents 113,865,299 — — 113,865,299
Total 139,533,428 56,851,733 209,951 196,595,112
31 December 2020
(In Euros) Financial assets Financial assets Financial assets Total
Customer sales and services 7,872,189 — — 7,872,189
Other receivables 516,834 — — 516,834
Loans to employees 119,538 — — 119,538
Receivables from Joint Venture 475,565 — — 475,565
Trade and other financial receivables 8,984,126 — — 8,984,126
Loans granted to Joint Venture 474,174 — — 474,174
Guarantee deposit 390,598 — — 390,598
Non-current 864,772 — — 864,772
Guarantee deposit 118,945 — — 118,945
Financial investments — — 239,379 239,379
Other current financial assets 118,945 — 239,379 358,324
Cash and cash equivalents 22,338,021 — — 22,338,021
Total 32,305,864 — 239,379 32,545,243
Financial assets measured at FVOCI correspond to investments in hedge funds whose quotation is considered level 1 for fair value purposes. In 2021, the Group has acquired financial investments as investment funds in financial institutions which have been valued at FVTPL. These financial assets are also considered level 1 for fair value purposes. The rest of the financial assets (both current and non-current) Financial liabilities
A. Loans and borrowings
31 December 2021 31 December 2020
(In Euros) Non- Current Non- Current
Loans and borrowings 17,577,451 33,768,839 9,744,462 12,627,970
Derivative warrant liabilities — 83,251,712 — —
Convertible bonds — — 26,145,982 —
Lease liabilities (see note 9) 18,172,444 1,537,312 3,433,236 684,105
Put option liability (see note 6) 3,776,438 — 6,338,520 —
Total 39,526,333 118,557,863 45,662,200 13,312,075
Financial liabilities are measured at their amortized cost, which does not differ from their fair value (it is considered that the interest rates applicable to all of them still represent market spreads), except for the derivative warrant liabilities and the put option liability (Note 6) which are measured at FVTPL. Convertible bonds were also measured at fair value until their conversion into ordinary shares (Note 16). Loans and borrowings Details of loans and borrowings at 31 December 2021 and 2020 are as follows:
(In Euros) 31 December 2021
Company Currency Effective interest rate Less than 1 to 3 years Over 3 years Total
Bank loans
Fixed rate loan EUR 1.55% - 3.85% 13,739,369 1,584,438 485,363 15,809,170
Floating rate loan EUR Euribor + 1.35 - 19,514,084 781,712 — 20,295,796
Covenant Loan EUR 1.85% 88,603 316,608 574,700 979,911
Covenant Loan EUR 7.70% 360,471 4,171,231 8,825,079 13,356,781
Total 33,702,527 6,853,989 9,885,142 50,441,658
Borrowings
Fixed rate loan EUR 0% 66,312 97,624 740,696 904,632
Total 66,312 97,624 740,696 904,632
Total 33,768,839 6,951,613 10,625,838 51,346,290
(In Euros) 31 December 2020
Company Currency Effective interest rate Less than 1 to 3 years Over 3 years Total
Bank loans
Fixed rate loan EUR 1.55% - 5,106,730 2,083,369 972,577 8,162,676
Fixed rate loan NOK 4.00% 631 — — 631
Fixed rate loan USD 0.00% 95,719 — — 95,719
Floating rate loan EUR Euribor + 1.35% - 7,124,890 3,812,736 1,543,485 12,481,111
Covenant Loan EUR Euribor + 4% 300,000 600,000 300,000 1,200,000
Total 12,627,970 6,496,105 2,816,062 21,940,137
Borrowings
Fixed rate loan EUR 0.00% - — 150,407 281,888 432,295
Total — 150,407 281,888 432,295
Total 12,627,970 6,646,512 3,097,950 22,372,432
Bank loans At 31 December 2021, the Group had credit lines of Euros (Euros at 31 December 2020), of which a total of Euros have been drawn down (Euros at 31 December 2020). Interest expenses from bank loans amounted to Euros at 31 December 2021 (Euros at 31 December 2020) (See Note 22). At 31 December 2021, accrued interest payable totals Euros (Euros at 31 December 2020). The group has loans which imply the compliance of certain conditions. On 31 December 2021, the Group received a waiver from Banco Santander to comply with the covenants for financial year 2021 as included in the loan agreement entered into on 21 April 2021. As such, management believes that the covenant loan can be presented as non-current Borrowings Loans and borrowings include borrowings which correspond mainly to a loan from one of the Company’s shareholders amounting to Euros 48,400 at 31 December 2020. In 2021 this loan was paid to the shareholder, which subsequently sold its interest to another Group shareholder. Part of the balance was offset by various capital increases totaling Euros in 2020 . At 31 December 2021, credit accounts with shareholders amount to Euros (Euros at 31 December 2020), and a loan from a Government entity (CDTI) totals Euros ( at 31 December 2020). Interest expenses for borrowings amounted to Euros 2,864 at 31 December 2021 (Euros 7,578 at 31 December 2020) (See Note 22). Details of the maturities, by year, of the principals and interest of the loans and borrowings at 31 December are as follows:
(In Euros) 31 Dec 2021 31 Dec 2020
2021 — 12,829,118
2022 34,826,436 2,004,894
2023 3,220,015 4,853,426
2024 5,499,469 1,561,206
2025 4,170,302 1,405,304
2026 3,870,419 —
More than five years 3,570,630 245,279
Total 55,157,271 22,899,227
B. Derivative warrant liabilities As mentioned in Note 6 part o f Public Warrants and Private Warrants issued by Kensington have been assumed by Wallbox. At 31 December 2021, the Group had 5,705,972 Public Warrants and 8,933,333 Private Warrants outstanding, after some warrant holders had Public Warrants entitle the holder to convert each warrant into one Class A ordinary share of Wallbox of Euros par value at an exercise price of USD . Private Warrants, on a cash-less basis, entitle their holder to convert the warrants into a number of Wallbox Class A ordinary share of euros par value equal to the product of the number of warrants to convert multiplied by the quotient obtained by dividing the excess of ‘Sponsor’s Fair Market Value’ over the exercise price of USD between the Sponsor’s Fair Market Value’. The Sponsor Fair Market Value shall mean the average last reported sale price of the ordinary shares for the ten ( ) trading days ending on the third trading day prior to the date on which notice of exercise of the Private Warrant. Until warrant holders acquire the ordinary shares upon exercise of such warrants, they will have no voting or economic rights. The warrants will expire on , five years after the Transaction, or earlier upon redemption or liquidation in accordance with their terms. As there are no elements in the warrant agreements that give Wallbox the possibility to prevent the warrant owners to convert their warrants within 12 months Wallbox has classified the derivative warrant liabilities as current liability. Fair value measurements The financial liability for the derivative warrants is accounted for at fair value through profit or loss. The Private Warrants have been measured at fair value using a Monte Carlo simulation (Level 3). The Public Warrants are listed and have been measured at fair value using the quoted price (Level 1). The fair value of the Pub lic Warrants increased from USD 1.14 per warrant as of the Transaction date (1 October 2021) from USD per warrant as of the Transaction date to USD per warrant at 31 December 2021. Consequently, for the year ended 31 December 2021, the Group has recognized a charge of Euros in profit or loss, which has been presented as a change in the fair value of derivative warrant liabilities under net finance expenses (see Note 22). Inherent in a Monte Carlo simulation are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Group estimates the volatility of its common stock warrants based on implied volatility from the Company’s traded warrants and from historical volatility of selected peer company’s common stock that matches the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates will remain at zero. Movement in the derivative warrant liabilities for the year ended 31 December 2021 is summarized as follows:
Public Warrant Private Warrant Total
Number of Euros Number of Euros Number of Euros
At 30 September 2021 — — — — — —
Issuance of Public and Private Warrants on Transaction date 5,750,000 5,674,622 8,933,333 8,816,224 14,683,333 14,490,846
Public Warrants exercised on 23 November 2021 (43,028 ) (188,262 ) — — (43,028 ) (188,262 )
Public Warrants exercised on 21 December 2021 (1,000 ) (4,375 ) — — (1,000 ) (4,375 )
Change in fair value of derivative warrant liabilities — 19,404,153 — 49,549,350 — 68,953,503
At 31 December 2021 5,705,972 24,886,138 8,933,333 58,365,574 14,639,305 83,251,712
C. Convertible bonds These corresponded mainly to the bonds convertible into shares issued during 2020 for an amount of Euros , most of which were held by shareholders. As per the analysis of the Group, these notes were considered a compound financial instrument (they had an equity component and a financial liability component), but the value of the equity component at issuance was estimated as nil (and it would not be remeasured in the future). Therefore, the value was only assigned to the financial liability. In January 2021 convertible bonds with the same features and maturity date as mentioned above were issued for an amount of Euros . These loans bore interest at the rate of % and had a maximum maturity date of (this conferred the possibility of converting them prior to that date in case of any liquidity event). Furthermore , in April 2021, the Company successfully closed the issuance of a new convertible note of Euros 27,550,000, with an interest rate of 5% and a maximum maturity date at 30 September 2022 (this conferred the possibility of converting them prior to that date in case of any liquidity event). Wallbox measured this hybrid contract at FVTPL amounting to Eu r os 25,490,981, before capital increase of 16 September 2021 mentioned on the following paragraph (see Notes 1 On 16 September 2021, convertible bonds and the convertible note were converted, including part of the accrued interest, for Euro s . As a consequence, Class A ordinary shares with a par value of Euros each were issued, leading to increases in share capital and share premium amounting to Euros and Euros , respectively (see Note 16). At 31 December 2021, accrued interest payable (net of applicable withholdings) amounted to Euros (Euros at 31 December 2020), as part of this interest was not converted ). Reconciliation of movements of liabilities to cash flows arising from financing activities
(In Euros) Loans and Derivative Lease Convertible Total
Balance at 1 January 2021 22,372,432 — 4,117,341 26,145,982 52,635,755
Proceeds from loans 204,677,218 — — — 204,677,218
Proceeds from borrowings 124,470 — — — 124,470
Proceeds from warrants (Public and Private) — — — — —
Proceeds from convertible bonds — — — 34,550,000 34,550,000
Principal paid on lease liabilities — — (828,036 ) — (828,036 )
Interest paid on lease liabilities — — (631,362 ) — (631,362 )
Repayments of loans (176,323,519 ) — — — (176,323,519 )
Repayments of borrowings (87,342 ) — — — (87,342 )
Interest and bank fees paid (3,046,838 ) — — — (3,046,838 )
Interest paid on convertible bonds — — — (996,767 ) (996,767 )
Other payments (296,863 ) — — — (296,863 )
Total changes from financing cash flows 25,047,126 — (1,459,398 ) 33,553,233 57,140,961
The effect of changes in foreign exchange rates — — (2,407 ) — (2,407 )
Issuance of Public and Private
Warrants on Transaction date — 14,490,846 — — 14,490,846
Public Warrants exercised — (192,637 ) — — (192,637 )
Change in fair value of derivative warrant liabilities — 68,953,503 — — 68,953,503
Valuation of convertible bonds — — — 25,490,981 25,490,981
Conversion of convertible bonds and convertible note — — — (87,105,347 ) (87,105,347 )
New leases — — 16,422,858 — 16,422,858
Interest accrual 470,177 — — (470,177 ) —
Governmental loan to re c 364,847 — — — 364,847
Capital Increases — — — — —
Interest and bank fees expenses 3,091,708 — 631,362 2,385,328 6,108,398
Total liability-related other changes 3,926,732 83,251,712 17,054,220 (59,699,215 ) 44,533,449
Balance at 31 December 2021 51,346,290 83,251,712 19,709,756 — 154,307,758
(In Euros) Loans and Derivative Lease liabilities Convertible Total
Balance at 1 January 2020 11,776,279 — 4,012,759 — 15,789,038
Proceeds from loans and borrowings 37,013,246 — — — 37,013,246
Proceeds from convertible bonds — — — 25,880,000 25,880,000
Principal paid on lease liabilities — — (467,207 ) — (467,207 )
Interest paid on lease liabilities — — (106,837 ) — (106,837 )
Repayments of loans and borrowings (26,119,269 ) — — — (26,119,269 )
Interest paid (461,687 ) — — — (461,687 )
Other payments (5,942 ) — — — (5,942 )
Total changes from financing cash flows 10,426,348 — (574,044 ) 25,880,000 35,732,304
The effect of changes in foreign exchange rates — — (5,871 ) — (5,871 )
New leases — — 577,660 — 577,660
Capital Increases (364,233 ) — — — (364,233 )
Interest expenses 534,038 — 106,837 265,982 906,857
Total liability-related other changes 169,805 — 684,497 265,982 1,120,284
Balance at 31 December 2020 22,372,432 — 4,117,341 26,145,982 52,635,755
(In Euros) Loans and Warrants Leases Convertible Total
Balance at 1 January 2019 5,012,897 — 785,672 — 5,798,569
Proceeds from loans and borrowing 20,497,221 — — — 20,497,221
Proceeds from shareholders loan 1,000,000 — — — 1,000,000
Principal paid on lease liabilities — — (263,058 ) — (263,058 )
Interest paid on lease liabilities — — (38,495 ) — (38,495 )
Repayments of loans and borrowin g (13,903,050 ) — — — (13,903,050 )
Interest paid (192,312 ) — — — (192,312 )
Other payments (2,032 ) — — — (2,032 )
Total changes from financing cash flows 7,399,827 — (301,553 ) — 7,098,274
New leases — — 3,490,145 — 3,490,145
Capital increases (837,367 — — — (837,367 )
Interest expenses 200,922 — 38,495 — 239,417
Total liability-related other changes (636,445 ) — 3,528,640 — 2,892,195
Balance at 31 December 2019 11,776,279 — 4,012,759 — 15,789,038
Trade and other payables Details of trade and other payables at 31 December 2021 and 2020 are as follows:
(In Euros) 31 Dec 2021 31 Dec 2020
Suppliers 40,573,427 8,126,332
Various payables 351,000 —
Personnel (salaries payable) 3,255,208 554,906
Customer advances 110,889 218,199
Total 44,290,524 8,899,437
Trade and other payables are unsecured and are usually paid in less than 12 months upon recognition. The carrying amounts of trade and other payables are considered equal to their fair values, due to their short-term nature. |
