EXHIBIT 99.1
Unaudited Interim Condensed Consolidated Financial Statements
For
the three and six months ended
|
1
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| Note | June 30, 2023 | December 31, 2022 | ||||||||||
| $ | $ | |||||||||||
| Current Assets | ||||||||||||
| Cash and cash equivalents | ||||||||||||
| Trade and other receivables | ||||||||||||
| Inventory | 3 | |||||||||||
| Prepaids and deposits | ||||||||||||
| Current assets | ||||||||||||
| Long-term Assets | ||||||||||||
| Intangible assets | ||||||||||||
| Property, plant, and equipment | 4 | |||||||||||
| Assets | ||||||||||||
|
|
||||||||||||
| Current Liabilities | ||||||||||||
| Accounts payable and accrued liabilities | ||||||||||||
| Credit facility | 5 | |||||||||||
| Current portion of deferred revenue | 6 | |||||||||||
| Current portion of provision for warranty cost | 7 | |||||||||||
| Current debt facilities | 8 | |||||||||||
| Current portion of other long-term liabilities | ||||||||||||
| Current liabilities | ||||||||||||
| Long-term Liabilities | ||||||||||||
| Convertible debt | 9 | |||||||||||
| Other long-term liabilities | 10 | |||||||||||
| Provision for warranty cost | 7 | |||||||||||
| Liabilities | ||||||||||||
| Shareholders’ Equity | ||||||||||||
| Share capital | 11 | |||||||||||
| Contributed surplus | 11 | |||||||||||
| Accumulated other comprehensive (loss) income | ||||||||||||
| Deficit | ( |
) | ( |
) | ||||||||
| Shareholders’ Equity | ||||||||||||
| Liabilities and shareholders’ equity | ||||||||||||
NATURE OF OPERATIONS (Note 1)
COMMITMENTS AND CONTINGENCIES (Note 15)
Approved on behalf of the Board:
| /s/“William R. Trainer” | /s/“Christopher Strong” | |
| Director | Director |
See accompanying notes to the consolidated financial statements
2
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Loss
(Unaudited, In thousands of US dollars, except for per share amounts)
| Note | For
the three months ended June 30, 2023 |
For
the three months ended June 30, 2022 |
For
the six months ended June 30, 2023 |
For
the six months ended June 30, 2022 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Revenue | ||||||||||||||||||||
| Vehicle sales | 14 | |||||||||||||||||||
| Other | 14 | |||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Cost of sales | 4 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
| Gross profit | ||||||||||||||||||||
| Expenses | ||||||||||||||||||||
| Sales and administration | ||||||||||||||||||||
| Stock-based compensation | 11 | |||||||||||||||||||
| Amortization | ||||||||||||||||||||
| Interest and finance costs | 8,9,10 | |||||||||||||||||||
| Change in fair value of embedded derivatives | 9 | ( |
) | ( |
) | |||||||||||||||
| Gain on modification of debt | 8 | ( |
) | ( |
) | |||||||||||||||
| Foreign exchange (gain) loss | ( |
) | ( |
) | ||||||||||||||||
| Expenses | ||||||||||||||||||||
| Loss before taxes | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| Current income tax expense | ||||||||||||||||||||
| Net loss | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| Loss per share | ||||||||||||||||||||
| Basic | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| Diluted | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| Weighted average number of common shares outstanding | ||||||||||||||||||||
| Basic and diluted | ||||||||||||||||||||
See accompanying notes to the consolidated financial statements
3
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Comprehensive Loss
(Unaudited, In thousands of US dollars)
| For
the three months ended June 30, 2023 |
For
the three months ended June 30, 2022 |
For
the six months ended June 30, 2023 |
For
the six months ended June 30, 2022 | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Net loss | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Other comprehensive loss items that may be reclassified subsequently to net (loss) income | ||||||||||||||||
| Exchange differences on translation of foreign operations | ( |
) | ( |
) | ||||||||||||
| Total other comprehensive (loss) income | ( |
) | ( |
) | ||||||||||||
| Total comprehensive loss | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
See accompanying notes to the consolidated financial statements
4
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Changes in Equity
(Unaudited, In thousands of US dollars, except for per number of shares)
| Note | Number of Shares | Share Capital | Contributed Surplus | Accumulated Other Comprehensive Income | Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||
| $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Balance, January 1, 2022 | ( |
) | ( |
) | ||||||||||||||||||||||||
| Issuance of shares – private placement | 11.2 | (b) | ||||||||||||||||||||||||||
| Issuance of shares – options exercised | 11.2 | (c) | ( |
) | ||||||||||||||||||||||||
| Share issuance costs | — | ( |
) | ( |
) | |||||||||||||||||||||||
| Share issuance costs – agent warrants | — | ( |
) | |||||||||||||||||||||||||
| Warrants | — | |||||||||||||||||||||||||||
| Stock-based compensation | 11.3-11.4 | — | ||||||||||||||||||||||||||
| Other comprehensive loss | — | |||||||||||||||||||||||||||
| Net loss | — | ( |
) | ( |
) | |||||||||||||||||||||||
| Balance, June 30, 2022 | ( |
) | ||||||||||||||||||||||||||
| Balance, January 1, 2023 | ( |
) | ||||||||||||||||||||||||||
| Issuance of shares – private placement | 11.2 | (a) | ||||||||||||||||||||||||||
| Share issuance costs | 11.2 | (a) | — | ( |
) | ( |
) | |||||||||||||||||||||
| Stock-based compensation | 11.3-11.4 | — | ||||||||||||||||||||||||||
| Other comprehensive loss | — | ( |
) | ( |
) | |||||||||||||||||||||||
| Net loss | — | ( |
) | ( |
) | |||||||||||||||||||||||
| Balance, June 30, 2023 | ( |
) | ||||||||||||||||||||||||||
See accompanying notes to the consolidated financial statements
5
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Cash Flows
(Unaudited, In thousands of US dollars)
| Six months ended | Six months ended | |||||||||||
| Note | June 30, 2023 | June 30, 2022 | ||||||||||
| OPERATING ACTIVITIES | $ | $ | ||||||||||
| Net loss for the year | ( |
) | ( |
) | ||||||||
| Items not involving cash: | ||||||||||||
| Loss on disposal of property and equipment | ||||||||||||
| Gain on modification of debt | ( |
) | ||||||||||
| Amortization | ||||||||||||
| Foreign exchange (gain) loss | ( |
) | ( |
) | ||||||||
| Interest and finance costs | 8,9 | |||||||||||
| Change in fair value of embedded derivatives | ( |
) | ||||||||||
| Stock-based compensation | 11 | |||||||||||
| (1,992 | ) | (4,407 | ) | |||||||||
| Changes in non-cash items: | ||||||||||||
| Trade and other receivables | ( |
) | ||||||||||
| Inventory | 3 | ( |
) | |||||||||
| Prepaids and deposits | ( |
) | ( |
) | ||||||||
| Accounts payable and accrued liabilities | ||||||||||||
| Deferred consideration | ( |
) | ||||||||||
| Deferred revenue | 6 | ( |
) | |||||||||
| Warranty provision | 7 | ( |
) | |||||||||
| Taxes paid | ( |
) | ( |
) | ||||||||
| Interest paid | ( |
) | ( |
) | ||||||||
| Cash (used) provided in operating activities | ( |
) | ||||||||||
| INVESTING ACTIVITIES | ||||||||||||
| Purchase of intangible assets | ( |
) | ( |
) | ||||||||
| Proceeds from government subsidy | ||||||||||||
| Purchase of property and equipment | ( |
) | ( |
) | ||||||||
| Proceeds on disposal of property and equipment | ||||||||||||
| Cash used in investing activities | ( |
) | ( |
) | ||||||||
| FINANCING ACTIVITIES | ||||||||||||
| Proceeds from issuance of common shares | 11 | |||||||||||
| Share issuance costs | 11 | ( |
) | ( |
) | |||||||
| Proceeds of credit facility | 5 | |||||||||||
| Proceeds from convertible debt | 9 | |||||||||||
| Convertible debt financing fees | 9 | ( |
) | |||||||||
| Proceeds from long-term loans | 10 | |||||||||||
| Repayment of long-term loans | ( |
) | ( |
) | ||||||||
| Cash provided in financing activities | ||||||||||||
| Effect of foreign exchange rate on cash | ( |
) | ||||||||||
| Increase in cash and cash equivalents | ||||||||||||
| Cash and cash equivalents, beginning | ||||||||||||
| Cash and cash equivalents, ending | ||||||||||||
See accompanying notes to the consolidated financial statements
6
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| 1. | NATURE OF OPERATIONS |
Vicinity Motor Corp. (“Vicinity”, “VMC” or the “Company”) is a Canadian company that is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and relationships with manufacturing partners to supply its flagship electric, compressed natural gas (“CNG”) and clean-diesel Vicinity buses and the VMC 1200 class 3 electric truck. VMC (formerly Grande West Transportation Group) was incorporated on December 4, 2012 under the laws of British Columbia. The Company conducts its active operations in Canada through its wholly owned operating subsidiary, Vicinity Motor (Bus) Corp. which was incorporated on September 2, 2008 under the laws of British Columbia. The Company also conducts its active operations in the U.S. through a wholly owned subsidiary, Vicinity Motor (Bus) USA Corp., incorporated on April 8, 2014 under the laws of the State of Delaware. The Company’s head office is located at 3168 262nd Street, Aldergrove, British Columbia.
| 2. | BASIS OF PRESENTATION |
The following companies are consolidated with Vicinity Motor Corp. as at June 30, 2023:
| Company Name | Registered | Holding | Functional Currency |
Intercompany balances and transactions, and any unrealized gains arising from intercompany transactions, were eliminated in preparing the consolidated financial statements.
a) Statement of compliance
These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, certain information and footnote disclosure normally included in annual financial statements prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board, have been omitted or condensed. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2022.
The interim condensed consolidated financial statements were authorized for issue by the Board of Directors on August 14, 2023.
b) Basis of measurement
The interim condensed consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments carried at fair value.
c) Use of estimates and judgments
The preparation of the consolidated financial statements in conformity with IFRS requires the use of judgments and/or estimates that affect the amounts reported and disclosed in the consolidated financial statements and related notes. These judgments and estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to previous experience, but actual results may differ materially from the amounts included in the consolidated financial statements. For significant estimates and judgements refer to Note 7 and Note 9 of these interim consolidated financial statements as well as the audited consolidated financial statements for the year ended December 31, 2022. During the current period the Company entered into a convertible debt arrangement and accordingly the following are new estimates and judgements.
Fair value of embedded derivatives
The Company is required to determine the fair value of embedded derivatives related to conversion features and redemption options as at the reporting date. Since the embedded derivatives are not traded in an active market, their fair value is based on estimates and valuation techniques as disclosed in Note 9.
7
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| 3. | INVENTORY |
| June 30, 2023 | December 31, 2022 | |||||||
| $ | $ | |||||||
| Finished goods | ||||||||
| Work in progress - vehicles | ||||||||
| Parts for resale | ||||||||
| Total Inventory | ||||||||
As at June 30, 2023 and December 31, 2022, work in progress – vehicles consists of the cost of buses and trucks still being manufactured. Finished goods inventory consisted of the costs of assembled buses and trucks, as well as freight and other costs incurred directly by the Company in compiling inventory. All inventory is part of the general security agreement to secure the credit facility described in Note 5.
During the six months ended June 30, 2023,
the Company recognized $
| 4. | PROPERTY AND EQUIPMENT |
During the six months ended June 30, 2023, the Company completed construction and received its certificate of occupancy for its US manufacturing campus in Ferndale, Washington. The building will start being amortised once it is capable of operating in the manner intended by management.
| 5. | CREDIT FACILITY |
During the year ended December 31, 2017,
the Company entered into a revolving credit facility agreement with a financial institution for a maximum amount of C$
During the six months ended June 30, 2023,
the terms of the agreement were amended to reduce the ABL facility to C$
As at June 30, 2023, the Company had drawn
$nil on this facility (December 31, 2022: $
During the six months ended June 30, 2023,
the Company obtained $
As at June 30, 2023, the Company had
drawn $
As at June 30, 2023, the Company is in compliance with all covenants.
8
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| 6. | DEFERRED REVENUE |
| June 30, 2023 | December 31, 2022 | |||||||||||
| $ | $ | |||||||||||
| Sales deposits – future delivery of buses | ||||||||||||
| Future delivery of buses | (a) | |||||||||||
| Deferred revenue | ||||||||||||
| Less: current portion | ||||||||||||
| Long-term portion of deferred revenue | ||||||||||||
| a) |
| 7. | PROVISION FOR WARRANTY COST |
The Company provides a two year bumper to bumper warranty coverage for vehicles on specified components, with the exception of normal wear and tear.
During the six months ended June 30, 2023, the Company recorded warranty expense of $147 (June 30, 2022 - $451) as part of its cost of sales in connection with sales completed during the six months. During the six months ended June 30, 2023, $276 of warranty costs (June 30, 2022 - $498) have been incurred against the provision. Change in estimate of the warranty provision relates to re-assessment of the warranty provision compared to the actual warranty claims applied.
| $ | ||||
| Balance at December 31, 2021 | ||||
| Additions | ||||
| Warranty claims applied | ( |
) | ||
| Change in estimate of warranty provision | ||||
| Change in foreign exchange | ( |
) | ||
| Balance at December 31, 2022 | ||||
| Additions | ||||
| Warranty claims applied | ( |
) | ||
| Change in estimate of warranty provision | ( |
) | ||
| Change in foreign exchange | ||||
| Balance at June 30, 2023 | ||||
| Less: Current portion | ||||
| Long-term portion of warranty provision | ||||
9
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| 8. | CURRENT DEBT FACILITIES |
| June 30, 2023 | December 31, 2022 | |||||||||||
| $ | $ | |||||||||||
| Unsecured debentures - 2021 | (a) | |||||||||||
| a) |
The unsecured debentures include
During the six months ended June 30, 2023,
the Company incurred $
(June 30, 2022 - $
| 9. | CONVERTIBLE DEBT |
On March 27, 2023, the Corporation completed
a private placement of unsecured convertible debentures for gross proceeds of C$
Each convertible debenture is convertible at the holder’s option into Units at any time prior to maturity at a conversion price of C$ per Unit. Upon conversion, each Unit will consist of one Common Share and 0.2 of a Warrant. Each Warrant is exercisable into a Common Share at an exercise price of C$ for a period of thirty-six months following the initial debenture closing date. The convertible debenture is redeemable at the Company’s option at any time after 12 months, with 30 days notice, at a redemption price of 105% of the principal, payable in cash, plus any accrued interest up to the maturity date.
The unsecured convertible debentures represent financial instruments that include host debentures accounted for at amortized cost and embedded derivatives related to the conversion feature and redemption option, which are separated from the convertible debentures and accounted for at fair value with changes in fair value recorded in the statement of loss.
| Host debentures | Embedded derivatives | Total | ||||||||||
| $ | $ | $ | ||||||||||
| As at January 1, 2023 | ||||||||||||
| Convertible debt principal | ||||||||||||
| Transactions costs | ( |
) | ( |
) | ||||||||
| As at March 24, 2023 | ||||||||||||
| Change in fair value | N/A | ( |
) | ( |
) | |||||||
| Interest accretion | ||||||||||||
| Foreign exchange | ||||||||||||
| As at June 30, 2023 | ||||||||||||
10
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| 9. | CONVERTIBLE DEBT (Continued) |
The fair value of the embedded derivatives were estimated using a binomial tree method with the following assumptions as at June 30, 2023:
| Assumptions | |||
| Risk-free interest rate | – % | ||
| Credit spread | % | ||
| Expected life of options | – years | ||
| Annual dividend rate | % | ||
| Annualized volatility | – % | ||
For the six months ended June 30, 2023, the
change in fair value resulted in a gain of $
| 10. | OTHER LONG-TERM LIABILITIES |
| June 30, 2023 | December 31, 2022 | |||||||||||
| $ | $ | |||||||||||
| Term loan | (a) | |||||||||||
| Lease obligation | (b) | |||||||||||
| Vehicles | ||||||||||||
| Less: Current portion | ( |
) | ( |
) | ||||||||
| a) | Term loan |
During the six months ended June 30,
2023, the Company secured a financing with a lender for proceeds up to $
During the six months ended June 30, 2023,
the Company incurred $
11
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| 10. | OTHER LONG-TERM LIABILITIES (Continued) |
| b) | Lease Obligation |
Minimum lease payments in respect of lease liabilities for the right-of-use assets included in property, plant and equipment (Note 4) and the effect of discounting are as follows:
| June 30, 2023 | ||||
| $ | ||||
| Undiscounted minimum lease payments: | ||||
| Less than one year | ||||
| One to two years | ||||
| Two to three years | ||||
| Three to six years | ||||
| Effect of discounting | ( |
) | ||
| Present value of minimum lease payments – total lease liability | ||||
| Less: Current portion | ( |
) | ||
| Long-term lease liabilities | ||||
The Company has lease agreements for office and warehouse facilities expiring October 31, 2023, March 31, 2027 and May 31, 2027. and October 31, 2023. The Company also has a lease agreement for a vehicle expiring on November 30, 2025.
| 11. | SHARE CAPITAL |
11.1 Authorized: Unlimited number of common shares without par value
11.2 Issued and Outstanding Common Shares:
The details for the common share issuances during the six months ended June 30, 2023 are as follows:
| a. | During the six months ended June 30, 2023, the Company issued shares at prices ranging from $0.87 to $1.01, the Company incurred share issuance costs of $ for net proceeds of $ through its At-the-Market equity program. |
The details for the common share issuances during the six months ended June 30, 2022 were as follows:
| b. | During the six months ended June 30, 2022, |
During the six months ended June 30, 2022, the Company also issued shares at prices ranging from $2.96 to $3.65 for gross proceeds of $ through its At-the-Market equity program.
| c. | During the six months ended June 30, 2022, stock options were exercised by employees of the Company
at an average exercise price of $1.13 for gross proceeds of $ |
11.3 Directors, Consultants, and Employee stock options
The Company has adopted a share option plan for which options to acquire up to a total of 10% of the issued share capital, at the award date, may be granted to eligible optionees from time to time. Generally, share options granted have a maximum term of five years, and a vesting period and exercise price determined by the directors.
During the six months ended June 30, 2022, the
Company granted
12
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| 11. | SHARE CAPITAL (Continued) |
During the six months ended June 30, 2023,
the Company recognized $
The following tables summarize information about the Company’s stock options outstanding at June 30, 2023:
| Remaining | |||||||||||||||||||
| Options | Options | Exercise | Contractual | ||||||||||||||||
| Outstanding | Exercisable | Price | Life (Years) | Expiry Date | |||||||||||||||
| C$ | |||||||||||||||||||
| January 17, 2019 | |||||||||||||||||||
| November 15, 2019 | |||||||||||||||||||
| November 28, 2019 | |||||||||||||||||||
| May 4, 2020 | |||||||||||||||||||
| November 23, 2020 | |||||||||||||||||||
| January 12, 2021 | |||||||||||||||||||
| February 1, 2021 | |||||||||||||||||||
| April 27, 2021 | |||||||||||||||||||
| March 31, 2022 | |||||||||||||||||||
| September 22, 2022 | |||||||||||||||||||
| November 25, 2022 | |||||||||||||||||||
| Total | |||||||||||||||||||
During the six months ended June 30, 2023,
11.4 Deferred Share Units
Pursuant to the Company’s Deferred Share Unit (“DSU”) Incentive Plan approved by the board of directors of the Company on July 8, 2018, deferred stock units to acquire common shares of the Company may be granted to specified board members of the Company in accordance with the terms and conditions of the plan.
Each DSU entitles the participant to receive one common share upon vesting. DSUs vest into common shares on the board members’ separation date from the board of directors. DSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such DSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the DSU vests and the DSU participant receives common shares.
A summary of the Company’s DSUs are as follows:
| Number of DSUs | |||||
| Outstanding, December 31, 2021 | |||||
| Issued | |||||
| Outstanding, December 31, 2022 | |||||
| Issued | |||||
| Outstanding, June 30, 2023 | |||||
During the six months ended June 30, 2023, the Company issued DSUs (June 30, 2022 – ) to board members of the Company that vest upon the board members separation date from the Board of Directors.
During the six months ended June 30, 2023, the Company recorded $ (June 30, 2022 - $) as stock-based compensation for the fair value of the DSUs issued.
13
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| 12. | RELATED PARTY BALANCES AND TRANSACTIONS |
Key management consists of personnel having the authority and responsibility for planning, directing and controlling the activities of the Company, which are the directors and executive officers of the Company.
Compensation to key management:
| Six months ended | Six months ended | |||||||
| June 30, 2023 | June 30, 2022 | |||||||
| $ | $ | |||||||
| Salaries and benefits | ||||||||
| Stock-based compensation | ||||||||
During the six months ended June 30, 2023
the Company paid $
During the six months ended June 30, 2022
the Company paid $
Balances with key management and other related parties are:
As at June 30, 2023, included in accounts
payable are balances owing to key management or companies controlled by officers of the Company in the amount of $nil (June 30,
2022 - $
All related party balances are non-interest bearing, unsecured and have no fixed terms of repayment and have been classified as current.
| 13. | FINANCIAL INSTRUMENTS |
Fair values
The Company’s financial instruments
include cash and cash equivalents, trade and other receivables, accounts payable, the credit facility, short-term loans and convertible
debt. The carrying amounts of cash and cash equivalents, trade and other receivables, accounts payable, the credit facility, and short-term
loans approximate fair value due to their short term nature. The embedded derivatives related to the convertible debt are the only instruments
measured at fair value through profit and loss in accordance with IFRS 9 – Financial Instruments. The fair value of the host debenture
as at June 30, 2023 is $
The following table summarizes the carrying values and fair values of the Company’s financial instruments:
| June 30, 2023 | December 31, 2022 | |||||||
| $ | $ | |||||||
| Assets: | ||||||||
| Measured at amortized cost (i) | ||||||||
| Liabilities: | ||||||||
| Amortized cost (ii) | ||||||||
| Fair value through P&L (iii) | ||||||||
| (i) | |
| (ii) | |
| (iii) |
The Company classifies its fair value measurements in accordance with the three-level fair value hierarchy. The measurement is classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
14
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| 13. | FINANCIAL INSTRUMENTS (Continued) |
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices), and
Level 3 – Inputs that are not based on observable market data
The Company valued the derivatives associated with the convertible debt (iii) as a level 3 instrument. The Company used the binomial tree method to determine the fair value of the embedded derivatives attributed to the convertible debt (Note 9).
| 14. | SEGMENT INFORMATION |
Allocation of revenue to geographic areas for the single segment is as follows:
| Six months ended
June 30, 2023 |
Six months ended
June 30, 2022 | |||||||||||||||||||||||
| Canada | USA | Total | Canada | USA | Total | |||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| Bus Sales | ||||||||||||||||||||||||
| Truck Sales | ||||||||||||||||||||||||
| Vehicle Sales | ||||||||||||||||||||||||
| Spare part sales | ||||||||||||||||||||||||
| Operating lease revenue | ||||||||||||||||||||||||
| Other revenue | ||||||||||||||||||||||||
| Total Revenue | ||||||||||||||||||||||||
During the six months ended June 30, 2023,
the Company had sales of $
| 15. | COMMITMENTS AND CONTINGENCIES |
The Company entered into a production agreement
with one of its manufacturers whereby the parties have agreed to a specified production volume. The Company also has outstanding purchase
order commitments related to equipment for its new manufacturing facility. Future payments as at June 30, 2023 are $
15