QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(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 | |||||||||
☐ Large accelerated filer | ☐ Accelerated filer | ||||
☒ |
Page | ||||||||
Condensed Consolidated Balance Sheets (unaudited) | ||||||||
21 | ||||||||
Successor | Predecessor | |||||||||||||||||||
September 30, 2021 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||
ASSETS | (Unaudited) | |||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||||||||||
Restricted cash | ||||||||||||||||||||
Accounts receivable | ||||||||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||||||||
Inventories | ||||||||||||||||||||
Total current assets | ||||||||||||||||||||
Property, plant and equipment, net | ||||||||||||||||||||
Intangibles and other assets, net | ||||||||||||||||||||
TOTAL ASSETS | $ | $ | $ | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | $ | $ | |||||||||||||||||
Accrued expenses | ||||||||||||||||||||
Current portion of land contract and promissory note | ||||||||||||||||||||
Total current liabilities | ||||||||||||||||||||
Convertible promissory notes | ||||||||||||||||||||
Land contract and promissory note obligations, net of current portion | ||||||||||||||||||||
Warrant liabilities | ||||||||||||||||||||
Pension benefit obligation | ||||||||||||||||||||
Other long-term liabilities | ||||||||||||||||||||
Total liabilities | ||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||
Predecessor parent's net investment | ||||||||||||||||||||
Preferred stock, $ | ||||||||||||||||||||
Common stock, $ | ||||||||||||||||||||
Additional paid-in capital | ||||||||||||||||||||
Accumulated deficit | ( | ( | ||||||||||||||||||
Total shareholders' equity (deficit) | ( | |||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | $ | $ |
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 | $ | $ | $ | ||||||||||||||
COST OF REVENUE | |||||||||||||||||
Gross margin | |||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||
Research and development expense | |||||||||||||||||
General and administrative expense | |||||||||||||||||
Total operating expenses | |||||||||||||||||
LOSS FROM OPERATIONS | ( | ( | |||||||||||||||
Interest expense | ( | ||||||||||||||||
Gain on change in fair value of warrant liabilities | |||||||||||||||||
Other income (expense), net | ( | ||||||||||||||||
LOSS BEFORE INCOME TAXES | ( | ( | |||||||||||||||
Income tax benefit | |||||||||||||||||
NET LOSS AND COMPREHENSIVE LOSS | $ | ( | $ | $ | ( | ||||||||||||
LOSS PER SHARE: | |||||||||||||||||
Basic and diluted loss per share | $ | ( | $ | ||||||||||||||
Basic and diluted weighted shares outstanding |
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 | $ | $ | $ | $ | |||||||||||||||||||
COST OF REVENUE | |||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||
Research and development expense | |||||||||||||||||||||||
General and administrative expense | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
LOSS FROM OPERATIONS | ( | ( | ( | ||||||||||||||||||||
Interest expense | ( | ||||||||||||||||||||||
Gain on change in fair value of warrant liabilities | |||||||||||||||||||||||
Other income (expense), net | ( | ( | |||||||||||||||||||||
LOSS BEFORE INCOME TAXES | ( | ( | ( | ||||||||||||||||||||
Income tax benefit | |||||||||||||||||||||||
NET LOSS AND COMPREHENSIVE LOSS | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
LOSS PER SHARE: | |||||||||||||||||||||||
Basic and diluted loss per share | $ | ( | $ | ||||||||||||||||||||
Basic and diluted weighted shares outstanding |
(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 | — | — | |||||||||||||||||||||||||||
Retroactive application of recapitalization | — | — | — | — | |||||||||||||||||||||||||
Balances - September 30, 2020 | $ | ||||||||||||||||||||||||||||
Balances - December 31, 2020 | ( | ( | |||||||||||||||||||||||||||
Retroactive application of recapitalization | ( | ||||||||||||||||||||||||||||
Balances - December 31, 2020 - Recasted | ( | ( | |||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Balances - March 31, 2021 | ( | ( | |||||||||||||||||||||||||||
Repurchase of common stock from related party - Note 19 | ( | ( | ( | — | ( | ||||||||||||||||||||||||
Reverse recapitalization - Note 3 | — | ||||||||||||||||||||||||||||
Conversion of ELM Convertible Notes - Note 11 | — | — | |||||||||||||||||||||||||||
Issuance of shares for SERES Asset Purchase - Note 4 | — | ||||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Balances - June 30, 2021 | ( | ||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Balances - September 30, 2021 | $ | $ | $ | ( | $ |
(in thousands) | Predecessor Parent's Net Investment | |||||||
Balances - December 31, 2019 | $ | |||||||
Net loss | ( | |||||||
Share based compensation | ||||||||
Change in Predecessor parent's net investment | ||||||||
Balances - March 31, 2020 | ||||||||
Net loss | ( | |||||||
Share based compensation | ||||||||
Change in Predecessor parent's net investment | ||||||||
Balances —June 30, 2020 | ||||||||
Net loss | ( | |||||||
Share based compensation | ||||||||
Change in Predecessor parent's net investment | ||||||||
Balances —September 30, 2020 | $ | |||||||
Balances - December 31, 2020 | $ | |||||||
Net loss | ( | |||||||
Share based compensation | ||||||||
Change in Predecessor parent's net investment | ||||||||
Balances - March 31, 2021 | ||||||||
Net loss | ( | |||||||
Share based compensation | ||||||||
Change in Predecessor parent's net investment | ||||||||
Balances —June 25, 2021 | $ |
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 | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||
Adjustment to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||||
Noncash interest expense | ||||||||||||||||||||||||||
Gain on change in fair value of warrant liabilities | ( | |||||||||||||||||||||||||
Depreciation and amortization expense | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Defined benefit pension expense, net of (funding) | ( | |||||||||||||||||||||||||
Share based compensation | ||||||||||||||||||||||||||
Loss on disposal of equipment | ||||||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||
Accounts receivable | ( | |||||||||||||||||||||||||
Prepaid expenses and other current assets | ( | ( | ||||||||||||||||||||||||
Inventories | ( | |||||||||||||||||||||||||
Accounts payable | ( | |||||||||||||||||||||||||
Accrued expenses | ( | |||||||||||||||||||||||||
Net cash used in operating activities | ( | ( | ( | |||||||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||||
SERES Asset Purchase | ( | |||||||||||||||||||||||||
Capital expenditures | ( | ( | ||||||||||||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||||
Change in Predecessor parent's net investment | ||||||||||||||||||||||||||
Successor paid in capital | ||||||||||||||||||||||||||
Repurchase of common stock from related party | ( | |||||||||||||||||||||||||
Proceeds from reverse recapitalization, net of transaction costs | ||||||||||||||||||||||||||
Payments on land contract and promissory note obligations | ( | |||||||||||||||||||||||||
Net cash provided by financing activities | ||||||||||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | ||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash —Beginning of period | ||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash —End of period | $ | $ | $ | $ | ||||||||||||||||||||||
Reconciliation to condensed consolidated balance sheet: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | |||||||||||||||||||||||||
Restricted cash | ||||||||||||||||||||||||||
Total cash, cash equivalents and restricted cash | $ |
Increase (Decrease) | |||||||||||
Forum cash and cash equivalents(a) | $ | ||||||||||
Less redemptions of Class A common stock units(b) | ( | ||||||||||
PIPE investment proceeds(c) | |||||||||||
Less cash paid to underwriters and other transaction costs(d) | ( | ||||||||||
Net change in cash and cash equivalent and restricted cash as a result of recapitalization | |||||||||||
Prepaid expenses and other current assets(e) | |||||||||||
Accounts payable and other (a) | ( | ||||||||||
Warrant liabilities(a) | ( | ||||||||||
Change in net assets as a result of recapitalization | $ |
Number of Shares | |||||||||||
Forum Class A and Class B common shares outstanding prior to business combination(a) | |||||||||||
Less redemptions of Class A common shares(b) | ( | ||||||||||
Common shares issued to PIPE investors(c) | |||||||||||
Common shares issued to ELM shareholders(f) | |||||||||||
Common shares outstanding immediately after the Business Combination(g) | |||||||||||
Common shares issued upon conversion of ELM Convertible Notes(h) | |||||||||||
Common shares issued as part of SERES Asset Purchase(i) | |||||||||||
Common shares outstanding after the Business Combination and SERES Asset Purchase |
Description | Land Contract Obligation | Promissory Note | Total Payments | |||||||||||||||||
Total principal payments under Land Contract and Promissory Note | $ | $ | $ | |||||||||||||||||
Less payments at closing | ( | ( | ( | |||||||||||||||||
Remaining principal payments at closing | $ | $ | $ |
Purchase Price | |||||||||||
Fair value of Land Contract obligation and Promissory Note(a) | $ | ||||||||||
Cash payment at closing(b) | |||||||||||
Upfront license fee and other(c) | |||||||||||
Stock issuance(d) | |||||||||||
Total | $ |
Assets Identified | Relative Fair Value Allocation | ||||||||||
Land | $ | ||||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Site improvements | |||||||||||
Leasehold improvements | |||||||||||
Intellectual property and technology license intangible asset | |||||||||||
Other assets | |||||||||||
Fair value of pension obligation | ( | ||||||||||
Total | $ |
Nine Months Ended September 30, 2021 | |||||
Capital expenditures included in accounts payable | $ | ||||
Noncash investing intangible and other assets included in other long-term liabilities | |||||
Noncash financing conversion of ELM Convertible Notes | |||||
Noncash investing SERES Asset Purchase in accounts payable | |||||
Noncash investing SERES Asset Purchase assumption of pension obligation | |||||
Noncash financing and investing SERES Asset Purchase issuance of Promissory Note | |||||
Noncash financing and investing SERES Asset Purchase issuance of Land Contract obligation | |||||
Noncash financing and investing SERES Asset Purchase issuance of common stock |
Years | |||||
Buildings | |||||
Machinery and equipment | |||||
Vehicles | |||||
Computer hardware | |||||
Furniture and fixtures | |||||
Site improvements | |||||
Leasehold improvements |
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 | $ | $ | ||||||||||||
Machinery and equipment | ||||||||||||||
Total construction in progress | ||||||||||||||
Buildings | ||||||||||||||
Land | ||||||||||||||
Site Improvements | ||||||||||||||
Leasehold improvements | ||||||||||||||
Machinery and equipment | ||||||||||||||
Computer hardware | ||||||||||||||
Furniture and fixtures | ||||||||||||||
Vehicles | ||||||||||||||
Subtotal | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Net property, plant and equipment | $ | $ |
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 | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
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 | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Successor | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
IP license intangible | $ | $ | |||||||||
Favorable lease intangible | |||||||||||
Computer software and website development costs | |||||||||||
Subtotal | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Intangible assets, net | |||||||||||
Service contract asset, net | |||||||||||
Intangible and other assets, net | $ | $ |
Description | Land Contract Obligation | Promissory Note | Total Payments | |||||||||||||||||
$ | $ | $ | ||||||||||||||||||
Total principal payments under Land Contract and Promissory Note | $ | $ | $ | |||||||||||||||||
Fair value at inception | $ | $ | $ |
Land Contract Obligation | Promissory Note | Total Carrying Value | ||||||||||||||||||
Carrying value as of September 30, 2021 | $ | $ | $ | |||||||||||||||||
Less current portion due in next 12 months | ( | ( | ( | |||||||||||||||||
Noncurrent | $ | $ | $ |
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 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | |||||||||||||||||||||||||||||||||||
Net periodic costs | $ | $ | $ | $ | $ | $ |
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) | $ | $ | $ |
Union 401(k) | ||||||||||||||||||||
Defined contribution plan expense | $ | $ | $ |
Number of shares | Weighted average grant date fair value | Aggregate fair value | |||||||||||||||
Unvested as of December 31, 2020 | |||||||||||||||||
Granted | $ | ||||||||||||||||
Vested | |||||||||||||||||
Forfeited/Cancelled | |||||||||||||||||
Unvested as of September 30, 2021 |
Number of shares | Weighted average grant date fair value | Aggregate fair value | |||||||||||||||
Unvested as of December 31, 2020 | |||||||||||||||||
Granted | $ | ||||||||||||||||
Vested | |||||||||||||||||
Forfeited/Cancelled | |||||||||||||||||
Unvested as of September 30, 2021 |
Research and development expense | $ | |||||||
General and administrative expense | ||||||||
Total | $ |
Predecessor | |||||||||||||||||
Three Months Ended September 30, 2020 | For the period from January 1, 2021 through June 25, 2021 | Nine Months Ended September 30, 2020 | |||||||||||||||
$ | $ | $ |
Description | Level | September 30, 2021 | December 31, 2020 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents - Money Market Funds | 1 | $ | $ | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Warrant Liabilities - Public Warrants | 1 | $ | $ | |||||||||||||||||
Warrant Liabilities - Private Placement Warrants | 2 | $ | $ |
Description | Level | September 30, 2021 | December 31, 2020 | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
SERES Land Contract Obligation and Promissory Note | 3 | $ | $ | |||||||||||||||||
ELM Convertible Notes | 3 | $ | $ |
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 | $ | $ | $ | |||||||||||||||||
Sokon SAP license allocations | $ | $ | $ | |||||||||||||||||
Defined contribution plan expense | $ | $ | $ | |||||||||||||||||
Defined benefit plan expense | $ | $ | $ | |||||||||||||||||
Share based compensation expense | $ | $ | $ |
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 |
Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 124,027,012 | 82,117,288 |
Common stock outstanding (in shares) | 118,777,012 | 82,117,288 |
Nature of Business |
9 Months Ended |
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Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS Electric Last Mile Solutions, Inc. (the “Company”) is a commercial electric vehicle solutions company founded for the purpose of designing, engineering, manufacturing and customizing electric “last mile” delivery and utility vehicles. Our core mission is to transform the last mile commercial delivery business by meeting the needs and value considerations of customers who operate in the last mile segment. Business Combination The Company was originally incorporated in the State of Delaware as Forum Merger III Corporation (“Forum”) on June 25, 2019 as a special purpose acquisition company. On June 25, 2021 (the “Closing Date”), Forum consummated the previously announced transactions contemplated by that certain Agreement and Plan of Merger, dated December 10, 2020, by and among Forum, ELMS Merger Corp., a Delaware corporation and then a wholly owned subsidiary of Forum (“Merger Sub”), Electric Last Mile, Inc., a Delaware corporation (“ELM”), and Jason Luo, in his capacity as the initial shareholder representative to ELM, as amended on May 7, 2021 by Amendment No. 1 to the Agreement and Plan of Merger (as amended, the “Merger Agreement”). Pursuant to the Merger Agreement, on June 25, 2021, Merger Sub merged with and into ELM, with ELM surviving the merger in accordance with the Delaware General Corporation Law as a wholly owned subsidiary of the Company (this transaction and the other transactions contemplated by the Merger Agreement, collectively, the “Business Combination”). In connection with the closing of the Business Combination on June 25, 2021, Forum changed its name from “Forum Merger III Corporation” to “Electric Last Mile Solutions, Inc.” and the Company’s common stock and warrants began trading on The Nasdaq Stock Market under the trading symbols “ELMS” and “ELMSW,” respectively. Acquisition of EVAP Operations On June 25, 2021, in connection with the completion of the Business Combination, ELM completed its acquisition of the Mishawaka, Indiana manufacturing facility (the “ELMS Facility”), which comprises the Electric Vehicle Assembly Plant Operations (“EVAP Operations”). EVAP Operations was a wholly owned component of SF Motors, Inc. (d/b/a SERES) (“SERES”) primarily consisting of the ELMS Facility retooled to manufacture electric passenger vehicles. This acquisition is also referred to as the “SERES Asset Purchase” in this report. Concurrently with the acquisition of EVAP Operations, ELM also entered into agreements for the ability to use certain intellectual property of SERES, procure the supply of inventory from Chongqing Sokon Motor (Group) Imp. & Exp. Co., Ltd. (“Sokon”), an affiliate of SERES, and other arrangements consisting of know-how to manufacture electric commercial vehicles for the North American region and to operate the EVAP Operations on a standalone basis.
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Basis of Presentation |
9 Months Ended |
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Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION These unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and accounting principles generally accepted in the United States (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Accordingly, the unaudited condensed consolidated financial statements should be read in connection with the Company’s audited financial statements and related notes as of and for the year ended December 31, 2020 included in the definitive proxy statement filed on June 9, 2021. The accompanying condensed consolidated financial statements are unaudited; however, in the opinion of management, they include all normal and recurring adjustments necessary to fairly state the Company’s unaudited condensed consolidated financial statements for the periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year or any other periods. The Company’s condensed consolidated financial statements and certain note presentations for the periods prior to June 25, 2021 are presented in two distinct periods to indicate the application of a different basis of accounting between EVAP Operations (the “Predecessor”) and ELM (the “Successor”). The Predecessor reporting period represents the presentation of EVAP Operations up to the date of its acquisition by ELM on June 25, 2021. As such, the financial statement activity of EVAP Operations for the nine months ended September 30, 2021 consist of activity through the date of acquisition by ELM and as such, there is no financial statement activity for the three months ended September 30, 2021. The Successor reporting period represents operations of ELM for the applicable periods subsequent to its inception on August 20, 2020. The accompanying financial statements of the Company include a black line division which indicates that the Predecessor and Successor reporting entities shown are not comparable. The Successor reporting period overlaps the Predecessor reporting period for the period from August 20, 2020 through June 25, 2021 during which time ELM was formed to raise capital including through the completion of the Business Combination. The Business Combination was accounted for as a reverse recapitalization, with the Company treated as the “acquired” company for financial reporting purposes based on ELM security holders having a majority of the voting power of the Company, ELM having the authority to appoint the majority of the directors on the board of directors, and senior management of ELM comprising all of the senior management of the Company. Accordingly, for accounting purposes, the financial statements of the Company represent a continuation of the financial statements of ELM, with the acquisition being treated as the equivalent of ELM issuing stock for the net assets of the Company, accompanied by a recapitalization. As a result of ELM being the accounting acquirer, all historical financial information presented in the consolidated financial statements for the Successor periods represents the accounts of ELM. For historical periods prior to the Business Combination, common stock, additional paid-in capital, shares and net loss per common share have been recasted to reflect the exchange ratio established in the Business Combination. The full impact of the COVID-19 pandemic continues to evolve as of the date of these financial statements. Management is actively monitoring the situation and its impact on the Company’s business, operations, financial condition and results of operations. Since our formation, the Company continues to increase employment levels of personnel to support the operations that, as of the date of these financial statements, have been largely administrative in nature and have focused on vehicle engineering, procuring suppliers, and preparing for necessary capital expenditures in the ELMS Facility. Due to the travel restrictions imposed globally, the Company's ability to collaborate with its suppliers, many of whom are international, has been impacted. The Company continues to monitor for new developments related to the COVID-19 pandemic, which are unpredictable. Future COVID-19 developments could result in additional impacts on the Company's business, operations, financial condition, and results of operations. Predecessor The Predecessor condensed financial statements have been prepared on a carve-out basis and are derived from the accounting records of SERES using the historical results of operations and historical basis of assets and liabilities of the EVAP Operations. The Predecessor financial statements include all expenses, assets and liabilities determined to be directly attributable to EVAP Operations as well as an allocation of general corporate expenses of SERES. The direct expenses include participation in SERES employee benefit and share based compensation plans for employees dedicated to EVAP Operations. The allocation of general corporate expense are based on expenses for certain functions located at the SERES Santa Clara, California and Auburn Hills, Michigan locations, such as corporate executives, finance, human resources, information technology, legal affairs, office operations, project management office, and supply chain as well as other general overhead costs. Corporate expense allocations have been determined on a basis that EVAP Operations considered to be a reasonable reflection of the utilization of services provided or the benefit received by EVAP Operations during the periods presented. However, these allocations are not based on arms’ length transactions and it is impractical for management to estimate costs that would be reflective if EVAP Operations were operating on a standalone basis. Until June 25, 2021, EVAP Operations was a component owned by SERES, which did not constitute a separate legal entity, and had no treasury functions or bank accounts. All transactions between SERES and EVAP Operations have been included as related party transactions and considered to be effectively settled at the time the transaction was recorded. The total net effect of the settlement of these transactions is reflected within Predecessor parent’s net investment in the Predecessor balance sheet and as a financing activity in the Predecessor statement of cash flows.
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Reverse Recapitalization |
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Reverse Recapitalization [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVERSE RECAPITALIZATION | REVERSE RECAPITALIZATION As discussed in Note 1, on the Closing Date, Forum consummated the transaction contemplated by the Merger Agreement. Upon consummation of the Merger Agreement, the Merger Sub was merged with and into ELM and the separate corporate existence of Merger Sub ceased and ELM continued as the surviving entity becoming a wholly owned subsidiary of the Company. The Business Combination was accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded, with the net assets of Forum consolidated with ELM at historical cost. For accounting purposes, the financial statements of the Company represent a continuation of ELM, with the transaction treated as the equivalent of ELM issuing stock for the net assets of Forum accompanied by a recapitalization. Operations prior to the Business Combination are those of ELM with the exception of the shares and par value of equity recast to reflect the exchange ratio on the Closing Date, adjusted on a retroactive basis. A summary of the impact of the reverse recapitalization on the cash, cash equivalents and restricted cash, change in net assets and the change in common shares is included in the tables below. The net change in cash and cash equivalents and net assets from the reverse capitalization was as follows (in thousands):
The change in number of share outstanding as a result of the reverse recapitalization is summarized as follows:
(a)These assets and liabilities represent the reported balances and outstanding shares of Forum as of the Closing Date immediately prior to the consummation of the Business Combination. The Forum common shares consisted of all Class A redeemable and nonredeemable common shares and Class B common shares outstanding prior to the Business Combination. (b)As of the Closing Date, 11,077,058 Class A common shares included in the units issued in Forum's initial public offering were redeemed resulting in the payment of $110.8 million from the trust to the holders of the redeemed shares. (c)In connection with the Business Combination, Forum entered into subscription agreements with certain investors (the “PIPE Investors”), pursuant to which it issued 13,000,000 shares of common stock at $10.00 per share (the “PIPE Shares”) for an aggregate purchase price of $130 million (the “PIPE Financing”), which closed simultaneously with the consummation of the Business Combination. (d)In connection with the Business Combination, the Company incurred $26.1 million of transaction costs, consisting of underwriting, legal and other professional fees, of which $25.7 million was recorded in additional paid-in capital as a reduction of proceeds and the remaining amount was expensed immediately. (e)The prepaid and other current assets represent a related party receivable of $17 thousand recorded on Forum's balance sheet as of the Closing Date immediately prior to the consummation of the Business Combination. (f)The Company issued 77,110,597 common shares in exchange for 93,903 ELM common shares resulting in an exchange ratio of 821.17. This exchange ratio was applied to ELM's common shares at par, additional paid-in capital as well as the calculation of weighted average shares outstanding and loss per common share. The total shares issued equals the recasted shares outstanding at December 31, 2020 of 82,117,288, net of the recasted shares repurchased from a related party immediately prior to the Business Combination of 5,006,691. (g)Upon completion of the Business Combination the Company’s Class B common stock, par value $0.0001 per share (“Class B common stock”), converted into the Company’s Class A common stock, par value $0.0001 per share (“Class A common stock”), and then all Class A common stock was reclassified as common stock. There was also an increase in the authorized capital stock from 111,000,000 shares, consisting of 100,000,000 shares of Class A common stock, 10,000,000 shares of Class B common stock and 1,000,000 shares of preferred stock, par value $0.0001 per share (“preferred stock”), to 1,100,000,000 shares, consisting of 1,000,000,000 shares of common stock, and 100,000,000 shares of preferred stock creating an additional 890,000,000 shares of common stock and 99,000,000 shares of preferred stock. (h)On December 10, 2020, ELM issued convertible promissory notes (“ELM Convertible Notes”) to certain investors in an aggregate principal amount of $25 million. The Company entered into a joinder to the ELM Convertible Notes with the holders thereof, pursuant to which the outstanding principal of $25 million plus accrued interest converted at the Closing Date into shares of common stock, at a conversion price per share equal to the product of (i) the price per share paid by the PIPE Investors in the PIPE Investment (i.e. $10.00) multiplied by (ii) 0.90909. Upon the consummation of the Business Combination, ELM accelerated the accretion of the notes to their redemption value resulting in total interest expense for the ELM Convertible Notes of $2.4 million for the nine months ended September 30, 2021, . (i)As part of the SERES Asset Purchase, ELM was obligated to deliver 5 million shares of the Company's common stock to SERES. This was part of the purchase consideration delivered to SERES with a fair value $49.9 million on the Closing Date. Therefore, it has not been disclosed as part of the reverse recapitalization, but as part of the SERES Asset Purchase (see Note 4 for additional information). On the Closing Date, the Company placed 250,000 shares of common stock into an escrow account (the “Adjustment Escrow Stock”) to secure any downward post-closing purchase price adjustment. Subsequent to September 30, 2021, all of those shares of common stock are to be released to the ELM shareholders who received shares as merger consideration (the "ELM shareholders") in accordance with the adjustment mechanisms set forth in the Merger Agreement. Earnout Shares Following the closing of the Business Combination, the ELM shareholders have a contingent right to receive, in the aggregate, up to 5,000,000 shares of common stock (the "Earnout Shares") if, during the 36-month period (“Earnout Period”) after the Closing Date, the closing price of the common stock for any 20 trading days in any 30 consecutive day trading period exceeds certain thresholds. The first issuance of 2,500,000 Earnout Shares will occur if the closing price equals or exceeds $14.00 on any 20 trading days in any 30-consecutive day trading period. The second issuance of 2,500,000 Earnout Shares will occur if the closing price equals or exceeds $16.00 on any 20 trading days in any 30-consecutive day trading period. Subject to the terms and conditions set forth in the Merger Agreement, if a qualifying change in control (as defined in the Merger Agreement) occurs during the Earnout Period, all Earnout Shares not previously released will be released to the ELM shareholders. Any Earnout Shares not released prior to the expiration of the Earnout Period will be forfeited and cancelled. No Earnout Shares have been issued. The Company has determined the Earnout Shares meet the criteria for equity classification under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 815-40. Upon attainment of the share price targets described above, the Earnout Shares delivered to the ELM shareholders will be recorded in equity as shares are issued, with the appropriate allocation to common stock at par and additional paid-in capital. Since all Earnout Shares have determined to be classified as equity, there is no remeasurement unless reclassification is required.
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Seres Asset Purchase |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SERES ASSET PURCHASE | SERES ASSET PURCHASE On June 25, 2021, the Company’s wholly-owned subsidiary, ELM, closed on the purchase of certain real property located at 12900 McKinley Highway, Mishawaka, Indiana, including the improvements thereon and the tangible personal property, pursuant to an agreement of purchase and sale, dated April 9, 2021, between ELM and SERES (the "SERES Asset Purchase Agreement"). The aggregate cash consideration for the SERES Asset Purchase was $145 million, plus the assumption of a pension obligation. The SERES Asset Purchase Agreement also required the delivery of 5,000,000 shares of the Company's common stock to SERES, which has been considered part of the asset purchase consideration as the shares are not in settlement of a preexisting relationship. The consideration of $145 million to be paid pursuant to the land contract and promissory note entered into in connection with the SERES Asset Purchase Agreement on the Closing Date (the "Land Contract" and the "Promissory Note", respectively) is summarized as follows (in thousands):
SERES also subleased the parking lot at the ELMS Facility to ELM. The sublease rent matches the head lease with annual payments of $72 thousand due August 1st each year. SERES shall convey fee simple title and assign its leasehold interest in the parking lot to ELM upon the full payment of the purchase price by the Company pursuant to the SERES Asset Purchase Agreement, the Promissory Note and the Land Contract. On April 9, 2021, SERES and ELM renegotiated and entered into an exclusive IP license agreement pursuant to which SERES granted ELM a license to make, import, use, and offer commercial vehicle product models EC35 and D51 in North America for a royalty payable fee of $5 million plus $100 per vehicle sold for the first 100,000 vehicles. The following table summarizes the purchase price consideration (in thousands):
(a)Represents the fair value of the future payments under the Land Contract and Promissory Note discounted at an effective rate of 2.67%. (b)The cash payment at the closing of the SERES Asset Purchase included $0.1 million of transaction costs including title insurance, legal and other closing fees, which were capitalized as part of the purchase price due to the fact that this was accounted for as an asset purchase and not the acquisition of a business. (c)This consideration related to the upfront license fee pursuant to the SERES Exclusive Intellectual Property License Agreement, which was recorded in accounts payable as of June 30, 2021. (d)As part of the SERES Asset Purchase, ELM was obligated to deliver 5,000,000 shares of the Company's common stock, which had a fair value $49.9 million based the closing price of $9.99 per share on June 24, 2021. The following table summarizes the allocation of the purchase price based on the relative fair values of the assets acquired (in thousands):
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Supplemental Cash Flow Information |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Successor: Noncash investing and financing activities for the nine months ended September 30, 2021 are summarized as follows (in thousands):
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Actual results may differ from those estimates. Emerging Growth Company — The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"). Section 102(b)(1) of the Jumpstart Our Business Startups Act (“JOBS Act”) exempts emerging growth companies (“EGC”) from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-EGCs but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an EGC, can adopt the new or revised standard at the time private companies adopt the new or revised standard, until such time the Company is no longer considered to be an EGC. At times, the Company may elect to early adopt a new or revised standard. This may make the comparison of the Company’s consolidated financial statements with another public company difficult due to potential differences in accounting standards used. Revenue Recognition — The Company derives its revenues from the sale of electric 'last mile' delivery and utility vehicles. Revenues are recognized when control of these products is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. Shipping and handling fees charged to customers are reported within revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. The Company does not have any significant financing components as payment is received shortly after point of sale. Because customer contract contains only one performance obligation that is satisfied at a point in time, there are no satisfied performance obligations that would result in contract assets other than trade accounts receivable. Cash and Cash Equivalents — The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Cash includes cash equivalents which are highly liquid investments that are readily convertible to cash. Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange and are included in cash equivalents. Restricted Cash — Restricted cash represents cash collateral held by the bank as security covering our credit card purchases and a letter of credit. The letter of credit was issued to SERES in conjunction with the SERES Asset Purchase and will be required until the Promissory Note is settled. As monthly payments reduce the obligation due, the Company may request a reduction in the amount of the letter of credit, subject to the confirmation by the counterparty. Upon approval, additional funds will be made available for use by the Company. Concentration of Credit Risk — The Company’s cash and cash equivalents are placed in accounts that exceed federally insured limits as of September 30, 2021 and December 31, 2020. The Company has not experienced any credit loss related to its cash and cash equivalents. Prepaid expenses and other current assets — Prepaid expenses may include prepaid insurance, prepaid engineering costs, prepaid software subscriptions, prepaid inventory and other prepaid amounts to vendors. Prepaid expenses for the Predecessor are related to prepaid rent associated with the Mishawaka parking lot. Other current assets primarily consist of the current portion of service contracts to be amortized over the next 12 months. Inventories — Inventories are stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) methods. Property, Plant and equipment — Property, Plant and equipment is stated at cost less accumulated depreciation. Property and equipment are initially recorded at cost or fair value established at the acquisition date if acquired as part of a business combination. Maintenance, repairs and minor improvements are charged to expense as incurred, while major renewals and betterment are capitalized. Leasehold improvements are amortized over the terms of the leases or useful lives, whichever is shorter. Construction in progress is not depreciated until available for its intended use. Depreciation is computed using the straight-line method over the following estimated useful lives:
*Certain assets in these categories are currently included in construction in progress and are not being depreciated. Leases — The Company leases an office building and land under long-term operating leases. Operating lease expense is recognized on a straight-line basis over the expected lease term. The lease term begins on the date the Company has the right to control the use of the leased property pursuant to the terms of the lease. The difference recognized between rental expense and amounts payable under the lease is recorded as deferred rent. Lease payments required in advance are recorded as prepaid rent expense. Intangibles and other assets — The Company's intangible assets consist of an intellectual property and technology ("IP") license, a favorable lease intangible, computer software and website development. Other assets consist of service contract assets and related development costs. Intangibles and other assets are stated at cost less accumulated amortization. Development costs for computer software, cloud computing arrangements and website development are expensed or capitalized based on the nature of the activities. Planning stage activities are expensed as incurred. Application and development stage activities are capitalized. Operating stage activities post-implementation are generally expensed as incurred unless they add additional functionality to the software. Training costs regardless of the stage of development are expensed as incurred. The intangibles and other assets are amortized on a straight line basis. •The IP license intangible consists of technological know-how obtained as part of the SERES Asset Purchase and is being amortized over a useful life of 2 years. •The favorable lease intangible relates to the ground lease assumed as part of the SERES Asset Purchase and is being amortized to rent expense over the remaining noncancellable term of the lease of approximately 30 years. •Computer software and website development consist of perpetual software licenses and capitalized development costs, which are being amortized over the useful life of 3 years. •Service contract assets consist of noncancellable service contracts related to cloud computing and the related capitalized development costs and are amortized over the noncancellable term of the hosting arrangement. Impairment and Disposal of Long-Lived Assets — The carrying amount of long-lived assets is reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When such events occur, the Company will compare the carrying amounts of the assets to their undiscounted expected future cash flows. If the Company determines that the carrying value of the asset is not recoverable, a permanent impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value. When a long-lived asset is disposed, the related costs and accumulated depreciation or amortization are removed and any gain or loss on the disposal is recorded. Research and Development Costs — The Company expenses research and development costs as they are incurred. Research and development costs consist primarily of contracted development services, prototype and sample costs including any related shipping or transport costs. There were no research and development costs for the Predecessor. Share-Based Compensation — We use the fair value method of accounting for the restricted stock units (“RSUs”) granted to employees to measure the cost of employee services received in exchange for the share-based awards. The fair value of RSUs is measured on the grant date based on the closing fair market value of our common share. The resulting cost is recognized over the period during which an employee is required to provide service in exchange for the awards, usually the vesting period, which is generally three years for RSUs. Share-based compensation expense is recognized on a straight-line basis, net of actual forfeitures in the period. For performance-based awards with a vesting schedule based entirely on the attainment of performance conditions, share-based compensation expense is recognized for each tranche over the vesting period ascribed to the achievement of the operational milestone for such tranche when the achievement of each individual performance milestone becomes probable. For performance-based awards with a vesting schedule based entirely on the attainment of market conditions, the fair value of such awards is estimated on the grant date using a Monte Carlo simulation; the share-based compensation expense associated with each tranche is recognized over the derived service period determined by the Monte Carlo simulation. As we accumulate additional employee share-based awards data over time and as we incorporate market data related to our common share, we may calculate significantly different volatility values, which could materially impact the valuation of our share-based awards and the share-based compensation expense that we will recognize in future periods. Share-based compensation expense is recorded in research and development expense and general and administrative expense in the consolidated statements of operations. Segment Information — Operating segments are defined as components of an entity for which separate financial information is available and regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and assessing the performance of an individual segment. The CODM is the Chief Executive Officer (“CEO”). The Company has determined that it currently has one reportable segment as the CEO reviews financial information presented at the total Company level based on discrete financial information, which is only available at this level, for purposes of assessing the operating performance and allocating resources. Defined Benefit Pension Plan — The Company provides a defined benefit plan to certain former and current union employees. The determination of the obligation and expense is dependent on certain actuarial assumptions. Changes in those assumptions are recognized immediately through earnings. The service component of net periodic benefit costs is reported as general and administrative expense while all other components of net periodic benefit costs are reported as other expense in the consolidated statements of operations and comprehensive loss. Income Taxes — Deferred tax assets and liabilities are recognized on the basis of the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of the assets and liabilities and the respective tax values, and net operating losses and tax credit carryforwards on a tax jurisdiction basis. Deferred tax assets and liabilities are measured using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recorded in the results of operations in the period that includes the enactment date under the law. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on its combined financial position, results of operations or cash flows. Therefore, no reserves for uncertain tax positions have been recorded. The Company does not expect its unrecognized tax benefits to change significantly over the next twelve months. Warrant Liabilities — The Company accounts for the warrants in accordance with the guidance contained in ASC 815-40 under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the warrants as liabilities at their fair value and adjusts the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations. For periods subsequent to the detachment of the public warrants from the units issued in the Forum's initial public offering, the public warrant quoted market price was used as the fair value of the warrants as of each relevant date. Other Long-Term Liabilities — Other long-term liabilities for the Successor consist of the long-term portion of a noncancellable service contract that are payable beyond one year. Earnings (Loss) Per Share — The Company computes basic earnings (loss) per share by dividing income available to common shareholders by the weighted average number of common shares outstanding. As a result of the Business Combination, the Company has retrospectively adjusted the weighted average number of common shares outstanding prior to the Business Combination by multiplying them by the merger exchange ratio. The computation of diluted earnings (loss) per share is similar to the computation of basic earnings (loss) per share, except the Company adjusts the weighted average number of shares outstanding to include estimates of additional shares that would be issued if potentially dilutive common shares had been issued. In addition, the Company adjusts income (loss) available to common shareholders to include any changes in income or loss that would result from the assumed issuance of the dilutive common shares. For the three and nine months ended September 30, 2021, there were no dilutive potential common shares due to the fact that the average share price during the periods was lower than the strike price of the warrants, the contingent share price thresholds for the Earnout Shares were not met during the periods, and the effect of including outstanding RSUs would have an anti-dilutive effect. Fair Value Measurements —Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements for assets or liabilities required to measured or disclosed at fair value are classified and disclosed in one of the following three categories:
Recently Adopted Accounting Pronouncements — In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods beginning after December 31, 2021, with early adoption permitted. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company early adopted ASU 2018-15 effective April 1, 2021. As the Company had no implementation costs incurred related to a cloud computing arrangement prior to that date, there was no impact on the retrospective periods. For the three months ended September 30, 2021, the Company capitalized $0.2 million of development cost related to a SAP cloud computing arrangement that will be amortized over the noncancellable service contract period of five years beginning in June 2021. Recently Issued Accounting Pronouncements — In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right of use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021. Additionally, in July 2018, the FASB issued ASU 2018-11, Leases: Targeted Improvements (“ASU 2018-11”), which provided an alternate transition method by allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The adoption of the standard will impact the balance sheet requiring the Company to record an operating lease liability for the present value of the remaining lease payments on the date of transition and a right-of-use asset equal to the operating lease liability adjusted for any deferred rent, prepaid rent expense and lease intangibles. The Company does not expect there to be any impact on the consolidated statements of operations and comprehensive loss as the rent expense for operating leases will continue to be on a straight-line basis under the new standard. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for annual periods beginning after December 15, 2021, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company does not expect this standard to have a material impact on its financial statements. In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) Disclosure Framework”. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this update are effective for fiscal years ending after December 15, 2021 with early adoption permitted. The Company does not expect this standard to have a material impact on its financial statements.
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Property, Plant, and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property and equipment consisted of the following (in thousands):
There was no property, plant and equipment for the Successor as of December 31, 2020. The Company has no capital leases. Depreciation related to property, plant and equipment for the periods presented was as follows (in thousands):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASESOn January 16, 2021, the Company commenced an operating lease for an office building that will expire on December 31, 2023. In conjunction with the closing of the SERES Asset Purchase on June 25, 2021, the Company entered into a sublease for the land adjacent to the ELMS Facility, which functions as a parking lot for the ELMS Facility. Operating lease expense for the periods presented was as follows (in thousands):
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Intangible and Other Assets (Successor) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE AND OTHER ASSETS (SUCCESSOR) | INTANGIBLE AND OTHER ASSETS (SUCCESSOR) Intangible and other assets of the Successor consisted of the following (in thousands):
Amortization expense related to intangible assets, excluding the favorable lease intangible, was $758 thousand and $812 thousand for the three and nine months ended September 30, 2021, respectively. The amortization of the service contract and related development costs included in IT expense was $14 thousand for the nine months ended September 30, 2021. The current portion of the service contract of $0.2 million, representing the amount expected to be amortized to expense over the next 12 months is reported in prepaid expenses and other current assets. There were no intangible or other assets for the Predecessor.
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Income Taxes |
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Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES As the Successor and Predecessor have not generated any taxable income since inception, the net deferred tax assets were fully offset by valuation allowances and no benefit from federal or state income tax has been included in the condensed consolidated statements of operations and comprehensive loss. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management believes it is more likely than not that the deferred tax assets will not be realized; accordingly, a valuation allowance has been established for the full amount of the deferred tax assets. As of September 30, 2021, there were no unrecognized tax benefits. The Company does not expect the unrecognized tax benefits to change significantly over the next 12 months. The Company currently has no federal or state tax examinations in progress nor has it had any federal or state tax examinations since its inception. As a result, all of the Company’s net operating loss carryforwards are subject to federal and state tax examination.
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Convertible Promissory Notes (Successor) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONVERTIBLE PROMISSORY NOTES (SUCCESSOR) | CONVERTIBLE PROMISSORY NOTES (SUCCESSOR)On December 10, 2020, ELM issued the ELM Convertible Notes, which would have matured on June 10, 2022, to certain investors. The principal amount of $25 million accrued interest at the rate of 0.15% per annum. Unpaid interest (“PIK Interest”) was capitalized to the outstanding principal balance. In connection with the closing of the Business Combination, the outstanding principal of $25 million plus accrued PIK Interest of $20 thousand converted into shares of common stock, at a conversion price per share equal to the product of (i) the price per share paid by the PIPE Investors in the PIPE Investment of $10 per share multiplied by (ii) 0.90909 resulting in 2,752,223 common shares being issued by the Company. The Company accounted for the ELM Convertible Notes as a share-settled debt based on its conclusion that the ELM Convertible Notes represented an obligation to issue a variable number of shares predominantly based on a fixed amount. As a result, the Company was accreting the carrying value to the expected settlement value over the life of the ELM Convertible Notes under the effective interest method using an accretion rate of 6.29%. Upon consummation of the Business Combination, the Company accelerated the accretion of the notes to their redemption value of $27.5 million resulting in total interest expense for the ELM Convertible Notes of $2.4 million for the nine months ended September 30, 2021. SERES LAND CONTRACT OBLIGATION AND PROMISSORY NOTE (SUCCESSOR) In conjunction with the closing of the SERES Asset Purchase, the Company is obligated to make future payments under the Land Contract and Promissory Note. The Land Contract obligation is non-interest bearing and the Promissory Note has a stated interest rate of 0.13% and both mature on April 30, 2023. The fair value of the obligations on the date of closing (June 25, 2021) were determined to be $112.4 million with an effective interest rate of 2.67%. The required principal payments under the obligations as of September 30, 2021 were as follows (in thousands):
The carrying values as of September 30, 2021 were as follows (in thousands):
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Seres Land Contract and Promissory Note (Successor) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SERES LAND CONTRACT AND PROMISSORY NOTE (SUCCESSOR) | CONVERTIBLE PROMISSORY NOTES (SUCCESSOR)On December 10, 2020, ELM issued the ELM Convertible Notes, which would have matured on June 10, 2022, to certain investors. The principal amount of $25 million accrued interest at the rate of 0.15% per annum. Unpaid interest (“PIK Interest”) was capitalized to the outstanding principal balance. In connection with the closing of the Business Combination, the outstanding principal of $25 million plus accrued PIK Interest of $20 thousand converted into shares of common stock, at a conversion price per share equal to the product of (i) the price per share paid by the PIPE Investors in the PIPE Investment of $10 per share multiplied by (ii) 0.90909 resulting in 2,752,223 common shares being issued by the Company. The Company accounted for the ELM Convertible Notes as a share-settled debt based on its conclusion that the ELM Convertible Notes represented an obligation to issue a variable number of shares predominantly based on a fixed amount. As a result, the Company was accreting the carrying value to the expected settlement value over the life of the ELM Convertible Notes under the effective interest method using an accretion rate of 6.29%. Upon consummation of the Business Combination, the Company accelerated the accretion of the notes to their redemption value of $27.5 million resulting in total interest expense for the ELM Convertible Notes of $2.4 million for the nine months ended September 30, 2021. SERES LAND CONTRACT OBLIGATION AND PROMISSORY NOTE (SUCCESSOR) In conjunction with the closing of the SERES Asset Purchase, the Company is obligated to make future payments under the Land Contract and Promissory Note. The Land Contract obligation is non-interest bearing and the Promissory Note has a stated interest rate of 0.13% and both mature on April 30, 2023. The fair value of the obligations on the date of closing (June 25, 2021) were determined to be $112.4 million with an effective interest rate of 2.67%. The required principal payments under the obligations as of September 30, 2021 were as follows (in thousands):
The carrying values as of September 30, 2021 were as follows (in thousands):
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Warrant Liabilities (Successor) |
9 Months Ended |
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Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
WARRANT LIABILITIES (SUCCESSOR) | WARRANT LIABILITIES (SUCCESSOR) Each whole warrant entitles the holder thereof to purchase one share of common stock at an exercise price of $11.50 per share. As of September 30, 2021, there were 8,580,375 warrants outstanding consisting of 8,396,673 public warrants, which were included in the units issued in Forum's initial public offering ("Public Warrants"), and 183,702 private placement warrants, which were included in the units issued in the concurrent private placement at the time of Forum's initial public offering ("Private Placement Warrants" and, collectively with the Public Warrants, the "warrants"). The Public and Private Placement Warrants were accounted for as liabilities and are presented as warrant liabilities on the condensed consolidated balance sheets. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the condensed consolidated statement of operations. The measurements of the warrants were based on the closing price of the Public Warrants as of September 30, 2021. The Public Warrants may only be exercised for a whole number of shares. No fractional warrants were issued upon separation of the units issued in the initial public offering into their component parts of Public Warrants and shares of common stock. The Public Warrants became exercisable on August 21, 2021. Redemption of warrants when the price per share of common stock equals or exceeds $18. The Company may redeem the outstanding warrants (except with respect to the Private Placement Warrants): •in whole and not in part; •at a price of $0.01 per warrant; •upon a minimum of 30 days’ prior written notice of redemption to each warrant holder; and •if, and only if, the closing price of the common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like and for certain issuances of common stock and equity-linked securities as described below) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders. Redemption of warrants when the price per share of common stock equals or exceeds $10.00. The Company may redeem the outstanding warrants: •in whole and not in part; •at $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares, based on the redemption date and the fair market value of the common stock; •if, and only if, the closing price of the common stock equals or exceeds $10.00 per share (as adjusted per stock splits, stock dividends, reorganizations, reclassifications, recapitalizations and the like) for any 20 trading days within the 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; and •if the closing price of the common stock for any 20 trading days within the 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted per stock splits, stock dividends, reorganizations, reclassifications, recapitalizations and the like), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. If the Company calls the Public Warrants for redemption for cash, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement between the Company and Continental Stock Transfer & Trust Company. The exercise price and number of shares of common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. The warrants will not be adjusted for the issuance of common stock at a price below the exercise price of the warrants Additionally, in no event will the Company be required to net cash settle the warrants upon exercise. The Private Placement Warrants will be exercisable for cash or on a cashless basis, at the holder’s option, and be non-redeemable (except as described above under “Redemption of warrants when the price per share of common stock equals or exceeds $10.00”) so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company in all redemption scenarios and exercisable by such holders on the same basis as the Public Warrants.
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Employee Benefit Plans |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Plan The Company assumed the Predecessor's defined benefit plan as part of the SERES Asset Purchase. Net periodic pension costs for the periods presented consist of the following (in thousands):
Defined Contribution Plans (Predecessor) Certain union and non-union employees of Predecessor participated in 401(k) plans. The Predecessor recorded expense for contributions to these plans related to dedicated EVAP Operations employees for the periods presented as follows (in thousand):
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Share Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE BASED COMPENSATION | SHARE BASED COMPENSATION Successor: Under the Electric Last Mile Solutions, Inc. 2020 Incentive Plan (the “Plan”), the Company may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock RSUs, other stock-based awards, other cash-based awards, and dividend equivalents to key personnel and employees. During the nine months ended September 30, 2021, the Company issued RSUs subject to time-based or earnout and performance based requirements. Earnout and Performance Based Restricted Stock Units Earnout and performance based RSUs represent the right to receive a share of the Company’s common stock if service, performance, and/or market conditions, or a combination thereof, are met over a defined period. Earnout and performance based RSUs are granted at the fair market value on the date of the grant. The RSUs that contain a market condition, such as stock price milestones, are subject to a Monte-Carlo simulation model to determine the grant date fair value by simulating a range of possible future stock prices for the Company over the performance period. The grant date fair value of the market condition RSUs is recognized as compensation expense over the greater of the Monte Carlo simulation model’s derived service period and the arrangement’s explicit service period, assuming both conditions must be met. During the quarter ended September 30, 2021, the Company granted 14,148,000 in Earnout RSUs that entitle the holder to receive half of the common shares of the Company granted if, during a 36-month period, the closing price of the common stock for any 20 trading days in any 30 consecutive day trading period exceeds $14.00 and the other half of the common shares of the Company granted if, during a 36-month period, the closing price of the common stock for any 20 trading days in any 30 consecutive day trading period exceeds $16.00 per share. A third-party valuation expert was engaged to complete a Monte Carlo simulation to account for the market condition. That simulation takes into account the beginning stock price of the Company’s common stock, the expected volatilities for the Company’s stock price and the expected risk-free rate of return. The single grant-date fair value computed by this valuation method is recognized by the Company in accounting for the awards regardless of the actual future outcome of the market condition. RSUs subject to performance conditions, such as operational milestones, are measured on the grant date, the total fair value of which is calculated as the product of the number of RSUs and the grant date stock price. Compensation expense for RSUs with a performance condition is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period. The following table summarizes the Company's unvested earnout and performance based RSU activity:
Time Based Restricted Stock Units Time based RSUs represent the right to receive a share of the Company’s company stock based on time-based vesting. Time based RSUs are granted at the fair market value on date of grant. The following table summarizes the Company's unvested time based RSU activity:
Stock based compensation expense for all RSUs is as follows for the three and nine months ended September 30. 2021:
The Company's total unrecognized compensation cost for all unvested RSUs as of September 30, 2021 was $72.4 million, which will be adjusted for future forfeitures, if any. The Company expects to recognize such cost over the 30 month period. Predecessor: Certain employees of the EVAP Operations were covered by the SF Motors 2018 Stock Option Plan. The stock option compensation expense has been derived from the equity awards granted by SERES to employees of EVAP Operations who are specifically identified in the plan as well as an allocation of expenses related to corporate employees of SERES. The compensation expense is based on the fair value of stock options recognized over the requisite service period of the individual grantee, which equals the vesting period. The SERES options expire ten years from the date of grant. Share options granted generally vest over either 42 or 48 months. The options vest 25% on the one-year anniversary of the date of grant with the remaining balance vesting equally on a monthly basis over the remaining vesting term. Upon termination of employment, SERES employees have 90 days to exercise any vested options before the options are forfeited and cancelled. SERES’s policy is to recognize forfeitures as they occur. No options were granted during the period from January 1, 2021 through June 25, 2021 or the nine months ended September 30, 2020. Share based compensation expense for the Predecessor periods were as follows (in thousands):
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Fair Value Measurements (Successor) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS (SUCCESSOR) | FAIR VALUE MEASUREMENTS (SUCCESSOR) The following table presents information about the Company’s assets that were measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands):
Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange, which are included in cash equivalents and Level 1 fair value measurements. Transfers to/from Levels 1, 2 and 3 are recognized at the end of the reporting period. There were no transfers between levels for the nine months ended September 30, 2021. The following table presents information about the Company’s financial instruments that were not measured at fair value at September 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation inputs the Company utilized to estimate such fair value (in thousands):
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Commitment and Contingencies |
9 Months Ended |
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Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Sampling results received in 2020 related to a groundwater investigation at the ELMS Facility indicated chromium contamination is present in the groundwater. The source of the chromium contamination is unknown, and EVAP Operations did not use, store or dispose of chromium during its period of ownership or operation. The Indiana Department of Environmental Management (“IDEM”) and the United States Environmental Protection Agency (“USEPA”) have received the sampling results. IDEM and USEPA have not made any specific requests or demands for additional investigation of the plant, but additional discussions with IDEM and USEPA are anticipated. In the pending investigation, IDEM and USEPA have threatened a potential enforcement action to compel further investigation or remediation. The potential loss is currently neither probable nor reasonably estimable. |
Shareholders' Equity (Deficit) |
9 Months Ended |
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Sep. 30, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY (DEFICIT) | SHAREHOLDERS’ EQUITY (DEFICIT) Successor: The Company is authorized to issue two classes of stock to be designated as common stock and preferred stock as follows: Preferred Stock — The Company is authorized to issue 100,000,000 shares of preferred stock with a par value of $0.0001 per share. The Company’s board of directors is authorized to issue one or more series of preferred stock, setting forth with respect to each series: the number of shares to be included in such series, the voting powers, full or limited, or no voting power of the shares of such series, and the designation, preferences and relative, participating, optional or other special rights, if any, of the shares of each such series and any qualifications, limitations or restrictions thereof. There are no preferred shares issued or outstanding. Common Stock — The Company is authorized to issue 1,000,000,000 shares of common stock with a par value of $0.0001 per share. As of September 30, 2021, the Company had 5,250,000 shares held in escrow, consisting of 5,000,000 Earnout Shares and 250,000 shares held for any downward post-closing purchase price adjustment in connection with the Business Combination. The shares held in escrow are considered issued, but not outstanding as presented in the condensed consolidated balance sheet and for the calculation of earnings per share. Subsequent to September 30, 2021, shares held in escrow are to be released to the ELM shareholders. Predecessor: The Predecessor financial statements are prepared on a carve-out basis to present a portion of the business of SERES, which does not constitute a separate legal entity and therefore has no legal equity, therefore the net assets of the Predecessor have been presented as Predecessor parent's net investment.
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Successor: On June 23, 2021, an entity controlled by Jason Luo sold 6,097 common shares of ELM back to ELM for the original purchase price of $10.00 per share or a total of $61 thousand, prior to and in connection with the issuance of 5,000,000 shares of the Company's common stock to SERES upon the closing of the Business Combination pursuant to the SERES Asset Purchase Agreement. This transaction was presented in the condensed consolidated statement of changes in shareholders’ equity (deficit). Predecessor: Corporate allocations and employee benefits - The Predecessor has not historically operated as a separate company and had various relationships with SERES whereby SERES provided services to EVAP Operations. SERES provided EVAP Operations with certain services, including, but not limited to, corporate executives, finance, human resources, information technology, legal affairs, office operations, project management office, and supply chain as well as other general support. The condensed financial statements of the Predecessor reflect an allocation of these costs reported in general and administrative expenses. When specific identification was not practicable, a proportional cost method was used, primarily based on headcount. Corporate allocations include support from Santa Clara and Auburn Hills. Certain employees of the Predecessor participated in the SERES defined benefit, defined contribution and share based compensation plans. The corporate allocations and other related party transactions reported in the Predecessor period can be summarized as follows (in thousands):
Centralized Cash Management — As SERES used a centralized cash management system, all allocated costs and expenses have been deemed to have been paid by the Predecessor to SERES in the year in which costs were incurred. This resulted in changes in Predecessor parent’s net investment of $0.4 million for the period from January 1, 2021 through June 25, 2021 and $(0.1) million for the nine months ended September 30, 2020.
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Subsequent Event |
9 Months Ended |
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Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTOn October 13, 2021, the Company reached an agreement with Contemporary Amperex Technology Co., Limited to supply batteries and secure production capacity needed for its all-electric Class 1 Urban Delivery commercial vehicle. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | These unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and accounting principles generally accepted in the United States (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Accordingly, the unaudited condensed consolidated financial statements should be read in connection with the Company’s audited financial statements and related notes as of and for the year ended December 31, 2020 included in the definitive proxy statement filed on June 9, 2021. The accompanying condensed consolidated financial statements are unaudited; however, in the opinion of management, they include all normal and recurring adjustments necessary to fairly state the Company’s unaudited condensed consolidated financial statements for the periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year or any other periods. The Company’s condensed consolidated financial statements and certain note presentations for the periods prior to June 25, 2021 are presented in two distinct periods to indicate the application of a different basis of accounting between EVAP Operations (the “Predecessor”) and ELM (the “Successor”). The Predecessor reporting period represents the presentation of EVAP Operations up to the date of its acquisition by ELM on June 25, 2021. As such, the financial statement activity of EVAP Operations for the nine months ended September 30, 2021 consist of activity through the date of acquisition by ELM and as such, there is no financial statement activity for the three months ended September 30, 2021. The Successor reporting period represents operations of ELM for the applicable periods subsequent to its inception on August 20, 2020. The accompanying financial statements of the Company include a black line division which indicates that the Predecessor and Successor reporting entities shown are not comparable. The Successor reporting period overlaps the Predecessor reporting period for the period from August 20, 2020 through June 25, 2021 during which time ELM was formed to raise capital including through the completion of the Business Combination. The Business Combination was accounted for as a reverse recapitalization, with the Company treated as the “acquired” company for financial reporting purposes based on ELM security holders having a majority of the voting power of the Company, ELM having the authority to appoint the majority of the directors on the board of directors, and senior management of ELM comprising all of the senior management of the Company. Accordingly, for accounting purposes, the financial statements of the Company represent a continuation of the financial statements of ELM, with the acquisition being treated as the equivalent of ELM issuing stock for the net assets of the Company, accompanied by a recapitalization. As a result of ELM being the accounting acquirer, all historical financial information presented in the consolidated financial statements for the Successor periods represents the accounts of ELM. For historical periods prior to the Business Combination, common stock, additional paid-in capital, shares and net loss per common share have been recasted to reflect the exchange ratio established in the Business Combination. The full impact of the COVID-19 pandemic continues to evolve as of the date of these financial statements. Management is actively monitoring the situation and its impact on the Company’s business, operations, financial condition and results of operations. Since our formation, the Company continues to increase employment levels of personnel to support the operations that, as of the date of these financial statements, have been largely administrative in nature and have focused on vehicle engineering, procuring suppliers, and preparing for necessary capital expenditures in the ELMS Facility. Due to the travel restrictions imposed globally, the Company's ability to collaborate with its suppliers, many of whom are international, has been impacted. The Company continues to monitor for new developments related to the COVID-19 pandemic, which are unpredictable. Future COVID-19 developments could result in additional impacts on the Company's business, operations, financial condition, and results of operations. Predecessor The Predecessor condensed financial statements have been prepared on a carve-out basis and are derived from the accounting records of SERES using the historical results of operations and historical basis of assets and liabilities of the EVAP Operations. The Predecessor financial statements include all expenses, assets and liabilities determined to be directly attributable to EVAP Operations as well as an allocation of general corporate expenses of SERES. The direct expenses include participation in SERES employee benefit and share based compensation plans for employees dedicated to EVAP Operations. The allocation of general corporate expense are based on expenses for certain functions located at the SERES Santa Clara, California and Auburn Hills, Michigan locations, such as corporate executives, finance, human resources, information technology, legal affairs, office operations, project management office, and supply chain as well as other general overhead costs. Corporate expense allocations have been determined on a basis that EVAP Operations considered to be a reasonable reflection of the utilization of services provided or the benefit received by EVAP Operations during the periods presented. However, these allocations are not based on arms’ length transactions and it is impractical for management to estimate costs that would be reflective if EVAP Operations were operating on a standalone basis. Until June 25, 2021, EVAP Operations was a component owned by SERES, which did not constitute a separate legal entity, and had no treasury functions or bank accounts. All transactions between SERES and EVAP Operations have been included as related party transactions and considered to be effectively settled at the time the transaction was recorded. The total net effect of the settlement of these transactions is reflected within Predecessor parent’s net investment in the Predecessor balance sheet and as a financing activity in the Predecessor statement of cash flows.
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Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Actual results may differ from those estimates. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Emerging Growth Company | Emerging Growth Company — The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"). Section 102(b)(1) of the Jumpstart Our Business Startups Act (“JOBS Act”) exempts emerging growth companies (“EGC”) from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-EGCs but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an EGC, can adopt the new or revised standard at the time private companies adopt the new or revised standard, until such time the Company is no longer considered to be an EGC. At times, the Company may elect to early adopt a new or revised standard. This may make the comparison of the Company’s consolidated financial statements with another public company difficult due to potential differences in accounting standards used. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition — The Company derives its revenues from the sale of electric 'last mile' delivery and utility vehicles. Revenues are recognized when control of these products is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. Shipping and handling fees charged to customers are reported within revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. The Company does not have any significant financing components as payment is received shortly after point of sale. Because customer contract contains only one performance obligation that is satisfied at a point in time, there are no satisfied performance obligations that would result in contract assets other than trade accounts receivable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents — The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Cash includes cash equivalents which are highly liquid investments that are readily convertible to cash. Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange and are included in cash equivalents. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash | Restricted Cash — Restricted cash represents cash collateral held by the bank as security covering our credit card purchases and a letter of credit. The letter of credit was issued to SERES in conjunction with the SERES Asset Purchase and will be required until the Promissory Note is settled. As monthly payments reduce the obligation due, the Company may request a reduction in the amount of the letter of credit, subject to the confirmation by the counterparty. Upon approval, additional funds will be made available for use by the Company. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk | Concentration of Credit Risk — The Company’s cash and cash equivalents are placed in accounts that exceed federally insured limits as of September 30, 2021 and December 31, 2020. The Company has not experienced any credit loss related to its cash and cash equivalents. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets | Prepaid expenses and other current assets — Prepaid expenses may include prepaid insurance, prepaid engineering costs, prepaid software subscriptions, prepaid inventory and other prepaid amounts to vendors. Prepaid expenses for the Predecessor are related to prepaid rent associated with the Mishawaka parking lot. Other current assets primarily consist of the current portion of service contracts to be amortized over the next 12 months. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories — Inventories are stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) methods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and equipment — Property, Plant and equipment is stated at cost less accumulated depreciation. Property and equipment are initially recorded at cost or fair value established at the acquisition date if acquired as part of a business combination. Maintenance, repairs and minor improvements are charged to expense as incurred, while major renewals and betterment are capitalized. Leasehold improvements are amortized over the terms of the leases or useful lives, whichever is shorter. Construction in progress is not depreciated until available for its intended use. Depreciation is computed using the straight-line method over the following estimated useful lives:
*Certain assets in these categories are currently included in construction in progress and are not being depreciated.
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Leases | Leases — The Company leases an office building and land under long-term operating leases. Operating lease expense is recognized on a straight-line basis over the expected lease term. The lease term begins on the date the Company has the right to control the use of the leased property pursuant to the terms of the lease. The difference recognized between rental expense and amounts payable under the lease is recorded as deferred rent. Lease payments required in advance are recorded as prepaid rent expense. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles and other assets | Intangibles and other assets — The Company's intangible assets consist of an intellectual property and technology ("IP") license, a favorable lease intangible, computer software and website development. Other assets consist of service contract assets and related development costs. Intangibles and other assets are stated at cost less accumulated amortization. Development costs for computer software, cloud computing arrangements and website development are expensed or capitalized based on the nature of the activities. Planning stage activities are expensed as incurred. Application and development stage activities are capitalized. Operating stage activities post-implementation are generally expensed as incurred unless they add additional functionality to the software. Training costs regardless of the stage of development are expensed as incurred. The intangibles and other assets are amortized on a straight line basis. •The IP license intangible consists of technological know-how obtained as part of the SERES Asset Purchase and is being amortized over a useful life of 2 years. •The favorable lease intangible relates to the ground lease assumed as part of the SERES Asset Purchase and is being amortized to rent expense over the remaining noncancellable term of the lease of approximately 30 years. •Computer software and website development consist of perpetual software licenses and capitalized development costs, which are being amortized over the useful life of 3 years. •Service contract assets consist of noncancellable service contracts related to cloud computing and the related capitalized development costs and are amortized over the noncancellable term of the hosting arrangement.
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Impairment and Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived Assets — The carrying amount of long-lived assets is reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When such events occur, the Company will compare the carrying amounts of the assets to their undiscounted expected future cash flows. If the Company determines that the carrying value of the asset is not recoverable, a permanent impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value. When a long-lived asset is disposed, the related costs and accumulated depreciation or amortization are removed and any gain or loss on the disposal is recorded. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development Costs | Research and Development Costs — The Company expenses research and development costs as they are incurred. Research and development costs consist primarily of contracted development services, prototype and sample costs including any related shipping or transport costs. There were no research and development costs for the Predecessor. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation — We use the fair value method of accounting for the restricted stock units (“RSUs”) granted to employees to measure the cost of employee services received in exchange for the share-based awards. The fair value of RSUs is measured on the grant date based on the closing fair market value of our common share. The resulting cost is recognized over the period during which an employee is required to provide service in exchange for the awards, usually the vesting period, which is generally three years for RSUs. Share-based compensation expense is recognized on a straight-line basis, net of actual forfeitures in the period. For performance-based awards with a vesting schedule based entirely on the attainment of performance conditions, share-based compensation expense is recognized for each tranche over the vesting period ascribed to the achievement of the operational milestone for such tranche when the achievement of each individual performance milestone becomes probable. For performance-based awards with a vesting schedule based entirely on the attainment of market conditions, the fair value of such awards is estimated on the grant date using a Monte Carlo simulation; the share-based compensation expense associated with each tranche is recognized over the derived service period determined by the Monte Carlo simulation. As we accumulate additional employee share-based awards data over time and as we incorporate market data related to our common share, we may calculate significantly different volatility values, which could materially impact the valuation of our share-based awards and the share-based compensation expense that we will recognize in future periods. Share-based compensation expense is recorded in research and development expense and general and administrative expense in the consolidated statements of operations.
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Segment Information | Segment Information — Operating segments are defined as components of an entity for which separate financial information is available and regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and assessing the performance of an individual segment. The CODM is the Chief Executive Officer (“CEO”). The Company has determined that it currently has one reportable segment as the CEO reviews financial information presented at the total Company level based on discrete financial information, which is only available at this level, for purposes of assessing the operating performance and allocating resources. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Defined Benefit Pension Plan — The Company provides a defined benefit plan to certain former and current union employees. The determination of the obligation and expense is dependent on certain actuarial assumptions. Changes in those assumptions are recognized immediately through earnings. The service component of net periodic benefit costs is reported as general and administrative expense while all other components of net periodic benefit costs are reported as other expense in the consolidated statements of operations and comprehensive loss. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes — Deferred tax assets and liabilities are recognized on the basis of the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of the assets and liabilities and the respective tax values, and net operating losses and tax credit carryforwards on a tax jurisdiction basis. Deferred tax assets and liabilities are measured using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recorded in the results of operations in the period that includes the enactment date under the law. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on its combined financial position, results of operations or cash flows. Therefore, no reserves for uncertain tax positions have been recorded. The Company does not expect its unrecognized tax benefits to change significantly over the next twelve months.
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Warrant Liabilities | Warrant Liabilities — The Company accounts for the warrants in accordance with the guidance contained in ASC 815-40 under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the warrants as liabilities at their fair value and adjusts the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations. For periods subsequent to the detachment of the public warrants from the units issued in the Forum's initial public offering, the public warrant quoted market price was used as the fair value of the warrants as of each relevant date. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Liabilities | Other Long-Term Liabilities — Other long-term liabilities for the Successor consist of the long-term portion of a noncancellable service contract that are payable beyond one year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share — The Company computes basic earnings (loss) per share by dividing income available to common shareholders by the weighted average number of common shares outstanding. As a result of the Business Combination, the Company has retrospectively adjusted the weighted average number of common shares outstanding prior to the Business Combination by multiplying them by the merger exchange ratio. The computation of diluted earnings (loss) per share is similar to the computation of basic earnings (loss) per share, except the Company adjusts the weighted average number of shares outstanding to include estimates of additional shares that would be issued if potentially dilutive common shares had been issued. In addition, the Company adjusts income (loss) available to common shareholders to include any changes in income or loss that would result from the assumed issuance of the dilutive common shares. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements —Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements for assets or liabilities required to measured or disclosed at fair value are classified and disclosed in one of the following three categories:
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Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements — In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods beginning after December 31, 2021, with early adoption permitted. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company early adopted ASU 2018-15 effective April 1, 2021. As the Company had no implementation costs incurred related to a cloud computing arrangement prior to that date, there was no impact on the retrospective periods. For the three months ended September 30, 2021, the Company capitalized $0.2 million of development cost related to a SAP cloud computing arrangement that will be amortized over the noncancellable service contract period of five years beginning in June 2021. Recently Issued Accounting Pronouncements — In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right of use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021. Additionally, in July 2018, the FASB issued ASU 2018-11, Leases: Targeted Improvements (“ASU 2018-11”), which provided an alternate transition method by allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The adoption of the standard will impact the balance sheet requiring the Company to record an operating lease liability for the present value of the remaining lease payments on the date of transition and a right-of-use asset equal to the operating lease liability adjusted for any deferred rent, prepaid rent expense and lease intangibles. The Company does not expect there to be any impact on the consolidated statements of operations and comprehensive loss as the rent expense for operating leases will continue to be on a straight-line basis under the new standard. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for annual periods beginning after December 15, 2021, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company does not expect this standard to have a material impact on its financial statements. In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) Disclosure Framework”. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this update are effective for fiscal years ending after December 15, 2021 with early adoption permitted. The Company does not expect this standard to have a material impact on its financial statements.
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Reverse Recapitalization (Tables) |
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Reverse Recapitalization [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reverse Recapitalization | The net change in cash and cash equivalents and net assets from the reverse capitalization was as follows (in thousands):
The change in number of share outstanding as a result of the reverse recapitalization is summarized as follows:
(a)These assets and liabilities represent the reported balances and outstanding shares of Forum as of the Closing Date immediately prior to the consummation of the Business Combination. The Forum common shares consisted of all Class A redeemable and nonredeemable common shares and Class B common shares outstanding prior to the Business Combination. (b)As of the Closing Date, 11,077,058 Class A common shares included in the units issued in Forum's initial public offering were redeemed resulting in the payment of $110.8 million from the trust to the holders of the redeemed shares. (c)In connection with the Business Combination, Forum entered into subscription agreements with certain investors (the “PIPE Investors”), pursuant to which it issued 13,000,000 shares of common stock at $10.00 per share (the “PIPE Shares”) for an aggregate purchase price of $130 million (the “PIPE Financing”), which closed simultaneously with the consummation of the Business Combination. (d)In connection with the Business Combination, the Company incurred $26.1 million of transaction costs, consisting of underwriting, legal and other professional fees, of which $25.7 million was recorded in additional paid-in capital as a reduction of proceeds and the remaining amount was expensed immediately. (e)The prepaid and other current assets represent a related party receivable of $17 thousand recorded on Forum's balance sheet as of the Closing Date immediately prior to the consummation of the Business Combination. (f)The Company issued 77,110,597 common shares in exchange for 93,903 ELM common shares resulting in an exchange ratio of 821.17. This exchange ratio was applied to ELM's common shares at par, additional paid-in capital as well as the calculation of weighted average shares outstanding and loss per common share. The total shares issued equals the recasted shares outstanding at December 31, 2020 of 82,117,288, net of the recasted shares repurchased from a related party immediately prior to the Business Combination of 5,006,691. (g)Upon completion of the Business Combination the Company’s Class B common stock, par value $0.0001 per share (“Class B common stock”), converted into the Company’s Class A common stock, par value $0.0001 per share (“Class A common stock”), and then all Class A common stock was reclassified as common stock. There was also an increase in the authorized capital stock from 111,000,000 shares, consisting of 100,000,000 shares of Class A common stock, 10,000,000 shares of Class B common stock and 1,000,000 shares of preferred stock, par value $0.0001 per share (“preferred stock”), to 1,100,000,000 shares, consisting of 1,000,000,000 shares of common stock, and 100,000,000 shares of preferred stock creating an additional 890,000,000 shares of common stock and 99,000,000 shares of preferred stock. (h)On December 10, 2020, ELM issued convertible promissory notes (“ELM Convertible Notes”) to certain investors in an aggregate principal amount of $25 million. The Company entered into a joinder to the ELM Convertible Notes with the holders thereof, pursuant to which the outstanding principal of $25 million plus accrued interest converted at the Closing Date into shares of common stock, at a conversion price per share equal to the product of (i) the price per share paid by the PIPE Investors in the PIPE Investment (i.e. $10.00) multiplied by (ii) 0.90909. Upon the consummation of the Business Combination, ELM accelerated the accretion of the notes to their redemption value resulting in total interest expense for the ELM Convertible Notes of $2.4 million for the nine months ended September 30, 2021, . (i)As part of the SERES Asset Purchase, ELM was obligated to deliver 5 million shares of the Company's common stock to SERES. This was part of the purchase consideration delivered to SERES with a fair value $49.9 million on the Closing Date. Therefore, it has not been disclosed as part of the reverse recapitalization, but as part of the SERES Asset Purchase (see Note 4 for additional information).
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Seres Asset Purchase (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Asset Acquisition | The consideration of $145 million to be paid pursuant to the land contract and promissory note entered into in connection with the SERES Asset Purchase Agreement on the Closing Date (the "Land Contract" and the "Promissory Note", respectively) is summarized as follows (in thousands):
The following table summarizes the purchase price consideration (in thousands):
(a)Represents the fair value of the future payments under the Land Contract and Promissory Note discounted at an effective rate of 2.67%. (b)The cash payment at the closing of the SERES Asset Purchase included $0.1 million of transaction costs including title insurance, legal and other closing fees, which were capitalized as part of the purchase price due to the fact that this was accounted for as an asset purchase and not the acquisition of a business. (c)This consideration related to the upfront license fee pursuant to the SERES Exclusive Intellectual Property License Agreement, which was recorded in accounts payable as of June 30, 2021. (d)As part of the SERES Asset Purchase, ELM was obligated to deliver 5,000,000 shares of the Company's common stock, which had a fair value $49.9 million based the closing price of $9.99 per share on June 24, 2021. The following table summarizes the allocation of the purchase price based on the relative fair values of the assets acquired (in thousands):
|
Supplemental Cash Flow Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Noncash Investing and Financing Activities | Noncash investing and financing activities for the nine months ended September 30, 2021 are summarized as follows (in thousands):
|
Summary of Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Depreciation is computed using the straight-line method over the following estimated useful lives:
*Certain assets in these categories are currently included in construction in progress and are not being depreciated. Property and equipment consisted of the following (in thousands):
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Property, Plant, and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Depreciation is computed using the straight-line method over the following estimated useful lives:
*Certain assets in these categories are currently included in construction in progress and are not being depreciated. Property and equipment consisted of the following (in thousands):
|
Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Lease Expense | Operating lease expense for the periods presented was as follows (in thousands):
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Intangible and Other Assets (Successor) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible and Other Assets | Intangible and other assets of the Successor consisted of the following (in thousands):
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Seres Land Contract and Promissory Note (Successor) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Land Contract Obligation and Promissory Note | The required principal payments under the obligations as of September 30, 2021 were as follows (in thousands):
The carrying values as of September 30, 2021 were as follows (in thousands):
|
Employee Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Pension Costs | Net periodic pension costs for the periods presented consist of the following (in thousands):
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Schedule of Expenses for Defined Contribution Plans | The Predecessor recorded expense for contributions to these plans related to dedicated EVAP Operations employees for the periods presented as follows (in thousand):
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Share Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of RSU Activity | The following table summarizes the Company's unvested earnout and performance based RSU activity:
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Schedule of Share Based Compensation Expense | Stock based compensation expense for all RSUs is as follows for the three and nine months ended September 30. 2021:
|
Fair Value Measurements (Successor) (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents information about the Company’s assets that were measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands):
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Schedule of Financial Instruments Not Measured at Fair Value | The following table presents information about the Company’s financial instruments that were not measured at fair value at September 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation inputs the Company utilized to estimate such fair value (in thousands):
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Related Party Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Corporate Allocations and Other Related Party Transactions | The corporate allocations and other related party transactions reported in the Predecessor period can be summarized as follows (in thousands):
|
Seres Asset Purchase - Narrative (Details) - SERES Asset Purchase |
Jun. 25, 2021
USD ($)
shares
|
Apr. 09, 2021
USD ($)
vehicle
|
---|---|---|
Asset Acquisition [Line Items] | ||
Aggregate cash consideration | $ 145,000,000 | |
Number of shares required to be delivered (in shares) | shares | 5,000,000 | |
Sublease annual payments | $ 72,000 | |
Initial royalty fee | $ 5,000,000 | |
Fee per vehicle sold | $ 100 | |
Vehicles sold milestone | vehicle | 100,000 |
Seres Asset Purchase - Summary of Purchase Price Consideration (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Jun. 24, 2021 |
|
Asset Acquisition [Line Items] | ||||
Cash payment at closing | $ 0 | $ 30,187 | ||
SERES Asset Purchase | ||||
Asset Acquisition [Line Items] | ||||
Fair value of Land Contract obligation and Promissory Note | $ 112,436 | |||
Cash payment at closing | 30,187 | |||
Upfront license fee and other | 5,012 | |||
Stock issuance | 49,950 | |||
Total | $ 197,585 | |||
Effective interest rate (as a percent) | 2.67% | |||
Payments for transaction costs | $ 100 | |||
Number of shares required to be delivered (in shares) | 5,000,000 | |||
Share price (in dollars per share) | $ 9.99 |
Seres Asset Purchase - Summary of Allocation of Purchase Price (Details) - SERES Asset Purchase $ in Thousands |
Jun. 25, 2021
USD ($)
|
---|---|
Asset Acquisition [Line Items] | |
Intellectual property and technology license intangible asset | $ 5,948 |
Other assets | 300 |
Fair value of pension obligation | (113) |
Total | 197,585 |
Land | |
Asset Acquisition [Line Items] | |
Property, plant and equipment acquired | 1,859 |
Buildings | |
Asset Acquisition [Line Items] | |
Property, plant and equipment acquired | 113,893 |
Machinery and equipment | |
Asset Acquisition [Line Items] | |
Property, plant and equipment acquired | 72,602 |
Site improvements | |
Asset Acquisition [Line Items] | |
Property, plant and equipment acquired | 1,202 |
Leasehold improvements | |
Asset Acquisition [Line Items] | |
Property, plant and equipment acquired | $ 1,894 |
Supplemental Cash Flow Information - Schedule of Noncash Investing and Financing Activities (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Supplemental Cash Flow Elements [Abstract] | |
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 |
Supplemental Cash Flow Information - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Cash and Cash Equivalents [Abstract] | |
Cash paid for interest | $ 656,000 |
Cash paid for taxes | $ 0 |
Summary of Significant Accounting Policies - Schedule of Useful Lives of Property, Plant and Equipment (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 39 years |
Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Computer hardware | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Site improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2021
USD ($)
shares
|
Sep. 30, 2021
segment
shares
|
|
Finite-Lived Intangible Assets [Line Items] | ||
Number of reportable segments | segment | 1 | |
Dilutive potential common shares (in shares) | shares | 0 | 0 |
Capitalized development costs | $ | $ 200 | |
Noncancellable service contract period | 5 years | |
Restricted Stock Units (RSUs) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Vesting period of award | 3 years | |
IP license intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life of intangible assets | 2 years | |
Favorable lease intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life of intangible assets | 30 years | |
Computer software and website development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life of intangible assets | 3 years |
Property, Plant, and Equipment - Narrative (Details) - USD ($) |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 192,736,000 | $ 0 |
Property, Plant, and Equipment - Depreciation (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Jun. 25, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 0 | $ 384 | $ 418 | |||
Predecessor | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 12 | $ 23 | $ 35 |
Leases (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Jun. 25, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Operating Leased Assets [Line Items] | ||||||
Operating lease expense | $ 0 | $ 85 | $ 208 | |||
Predecessor | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating lease expense | $ 18 | $ 35 | $ 54 |
Intangible and Other Assets (Successor) - Schedule of Intangible and Other Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 6,195 | $ 39 |
Accumulated amortization | (813) | (1) |
Intangible assets, net | 5,382 | 38 |
Capitalized development costs | 742 | 0 |
Intangible and other assets, net | 6,124 | 38 |
IP license intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 5,948 | 0 |
Favorable lease intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 151 | 0 |
Computer software and website development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 96 | $ 39 |
Intangible and Other Assets (Successor) - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
Jun. 25, 2021 |
Dec. 31, 2020 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 758 | $ 812 | ||
Amortization of service contract and related development costs | 14 | |||
Current portion of service contract | 200 | 200 | ||
Intangible and other assets, net | $ 6,124 | $ 6,124 | $ 38 | |
Predecessor | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible and other assets, net | $ 0 | $ 0 |
Income Taxes (Details) |
Sep. 30, 2021
USD ($)
|
---|---|
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 0 |
Convertible Promissory Notes (Successor) (Details) |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Jun. 25, 2021
USD ($)
$ / shares
shares
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2021
USD ($)
|
Dec. 10, 2020
USD ($)
|
|
Debt Instrument [Line Items] | |||||
Outstanding principal converted | $ 27,522,000 | ||||
Interest expense | $ 0 | $ 656,000 | 3,126,000 | ||
ELM Convertible Notes | Convertible Promissory Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 25,000,000 | ||||
Interest rate (as a percent) | 0.15% | ||||
Outstanding principal converted | $ 25,000,000 | ||||
Accrued PIK interest converted | $ 20,000 | ||||
Debt conversion, price per share (in dollars per share) | $ / shares | $ 10.00 | ||||
Debt conversion ratio | 0.90909 | ||||
Debt conversion, shares issued (in shares) | shares | 2,752,223 | ||||
Accretion rate (as a percent) | 6.29% | ||||
Redemption value | $ 27,500,000 | ||||
Interest expense | $ 2,400,000 |
Seres Land Contract and Promissory Note (Successor) - Narrative (Details) - Notes payable - USD ($) $ in Thousands |
Sep. 30, 2021 |
Jun. 25, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Fair value of debt obligations | $ 112,436 | $ 112,400 |
Effective interest rate (as a percent) | 2.67% | |
Promissory Note | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 0.13% | |
Fair value of debt obligations | $ 42,824 |
Seres Land Contract and Promissory Note (Successor) - Schedule of Required Principal Payments Under Debt Obligations (Details) - Notes payable $ in Thousands |
Sep. 30, 2021
USD ($)
segment
|
Jun. 25, 2021
USD ($)
|
---|---|---|
Debt Instrument [Line Items] | ||
19 Consecutive equal monthly installments through April 30, 2023 | $ 4,523 | |
Total principal payments under Land Contract and Promissory Note | 85,952 | |
Fair value at inception | 112,436 | $ 112,400 |
Land Contract Obligation | ||
Debt Instrument [Line Items] | ||
19 Consecutive equal monthly installments through April 30, 2023 | 3,103 | |
Total principal payments under Land Contract and Promissory Note | 58,965 | |
Fair value at inception | $ 69,612 | |
Number of equal monthly installments | segment | 19 | |
Promissory Note | ||
Debt Instrument [Line Items] | ||
19 Consecutive equal monthly installments through April 30, 2023 | $ 1,420 | |
Total principal payments under Land Contract and Promissory Note | 26,987 | |
Fair value at inception | $ 42,824 |
Seres Land Contract and Promissory Note (Successor) - Schedule of Carrying Values of Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Instrument [Line Items] | ||
Less current portion due in next 12 months | $ (54,286) | $ 0 |
Notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 84,086 | |
Less current portion due in next 12 months | (54,286) | |
Noncurrent | 29,800 | |
Land Contract Obligation | Notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 57,658 | |
Less current portion due in next 12 months | (37,242) | |
Noncurrent | 20,416 | |
Promissory Note | Notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 26,428 | |
Less current portion due in next 12 months | (17,044) | |
Noncurrent | $ 9,384 |
Employee Benefit Plans - Schedule of Net Periodic Pension Costs (Details) - Pension Plan - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Jun. 25, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 0 | $ 8 | $ 9 | |||
Interest cost | 0 | 1 | 1 | |||
Expected return on plan assets | 0 | 0 | 0 | |||
Net periodic costs | $ 0 | $ 9 | $ 10 | |||
Predecessor | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 12 | $ 16 | $ 37 | |||
Interest cost | 0 | 2 | 1 | |||
Expected return on plan assets | 0 | 0 | 0 | |||
Net periodic costs | $ 12 | $ 18 | $ 38 |
Employee Benefit Plans - Schedule of Expenses for Defined Contribution Plans (Details) - Predecessor - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended |
---|---|---|---|
Sep. 30, 2020 |
Jun. 25, 2021 |
Sep. 30, 2020 |
|
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 2 | $ 24 | $ 34 |
Non-Union 401(k) | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | 1 | 22 | 29 |
Union 401(k) | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 1 | $ 2 | $ 5 |
Share Based Compensation - Schedule of Share Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Jun. 25, 2021 |
Sep. 30, 2020 |
|
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 5,111 | |||
Restricted Stock Units (RSUs) | Research and development expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | 472 | |||
Restricted Stock Units (RSUs) | General and administrative expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 4,639 | |||
Share-based Payment Arrangement, Option | Predecessor | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 19 | $ 25 | $ 75 |
Fair Value Measurements (Successor) - Schedule of Fair Value Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Liabilities: | ||
Warrant Liability | $ 14,243 | $ 0 |
Fair Value, Inputs, Level 1 | Fair Value, Recurring | ||
Assets: | ||
Cash and cash equivalents - Money Market Funds | 139,014 | 20,000 |
Public Warrants | Fair Value, Inputs, Level 1 | Fair Value, Recurring | ||
Liabilities: | ||
Warrant Liability | 13,938 | 0 |
Private Placement Warrants | Fair Value, Inputs, Level 2 | Fair Value, Recurring | ||
Liabilities: | ||
Warrant Liability | $ 305 | $ 0 |
Fair Value Measurements (Successor) - Schedule of Financial Instruments Not Measured at Fair Value (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Liabilities: | ||
SERES Land Contract Obligation and Promissory Note | $ 84,086 | $ 0 |
ELM Convertible Notes | $ 0 | $ 25,411 |
Related Party Transactions - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Jun. 25, 2021 |
Jun. 23, 2021 |
Jun. 30, 2021 |
Jun. 25, 2021 |
Sep. 30, 2020 |
|
Related Party Transaction [Line Items] | |||||
Value of shares repurchased | $ 61 | ||||
SERES Asset Purchase | |||||
Related Party Transaction [Line Items] | |||||
Number of shares required to be delivered (in shares) | 5,000,000 | ||||
Affiliated Entity | Entity Controlled By Jason Luo | |||||
Related Party Transaction [Line Items] | |||||
Repurchase of common stock (in shares) | 6,097 | ||||
Price of shares repurchased (in dollars per share) | $ 10.00 | ||||
Value of shares repurchased | $ 61 | ||||
Affiliated Entity | SERES | Predecessor | |||||
Related Party Transaction [Line Items] | |||||
Changes in parent's net investment | $ 400 | $ (100) |
Related Party Transactions - Schedule of Corporate Allocations and Other Related Party Transactions (Details) - Predecessor - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended |
---|---|---|---|
Sep. 30, 2020 |
Jun. 25, 2021 |
Sep. 30, 2020 |
|
Corporate allocations | |||
Related Party Transaction [Line Items] | |||
Related party transaction expenses | $ 789 | $ 143 | $ 2,039 |
Sokon SAP license allocations | |||
Related Party Transaction [Line Items] | |||
Related party transaction expenses | 11 | 21 | 33 |
Defined contribution plan expense | |||
Related Party Transaction [Line Items] | |||
Related party transaction expenses | 1 | 24 | 34 |
Defined benefit plan expense | |||
Related Party Transaction [Line Items] | |||
Related party transaction expenses | 13 | 17 | 38 |
Share based compensation expense | |||
Related Party Transaction [Line Items] | |||
Related party transaction expenses | $ 78 | $ 25 | $ 134 |
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