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| | | | F-1 | | | |
Annex A: Agreement and Plan Of Merger
|
| | | | A-1 | | |
Annex B: Form of Subscription Agreement
|
| | | | B-1 | | |
Annex C: Form of Support Agreement
|
| | | | C-1 | | |
Annex D: Form of Amended and Restated Registration Rights and Lockup Agreement
|
| | | | D-1 | | |
Annex E: Form of Second Amended and Restated Certificate of Incorporation of DiamondPeak Holdings Corp.
|
| | | | E-1 | | |
Annex F: Form of 2020 Equity Incentive Plan
|
| | | | F-1 | | |
| | |
Number of shares
of Class A common stock(1) |
| |
% of all shares
of Class A common stock |
| ||||||
DiamondPeak Public Stockholders
|
| | | | 23,750,000 | | | | | | 14.4% | | |
The Sponsor
|
| | | | 6,187,500 | | | | | | 3.8% | | |
Our anchor investor(2)
|
| | | | 5,062,500 | | | | | | 3.1% | | |
David Hamamoto, DiamondPeak’s Chairman and Chief Executive
Officer(3) |
| | | | 1,000,000 | | | | | | * | | |
Lordstown Stockholders(1)
|
| | | | 75,918,054 | | | | | | 46.0% | | |
Convertible Promissory Noteholders
|
| | | | 4,000,000 | | | | | | 2.4% | | |
PIPE Investors(2)
|
| | | | 50,000,000 | | | | | | 30.3% | | |
| | |
Number of shares
of Class A common stock(1) |
| |
% of all shares
of Class A common stock |
| ||||||
DiamondPeak Public Stockholders
|
| | | | 31,666,666 | | | | | | 17.2% | | |
The Sponsor
|
| | | | 10,647,500 | | | | | | 5.8% | | |
Our anchor investor(2)
|
| | | | 6,752,500 | | | | | | 3.7% | | |
David Hamamoto, DiamondPeak’s Chairman and Chief Executive
Officer(3) |
| | | | 1,333,333 | | | | | | * | | |
Lordstown Stockholders(1)
|
| | | | 75,918,054 | | | | | | 41.3% | | |
Convertible Promissory Noteholders
|
| | | | 4,000,000 | | | | | | 2.2% | | |
PIPE Investors(2)
|
| | | | 50,000,000 | | | | | | 27.2% | | |
| | |
Number of shares
of Class A common stock(1) |
| |
% of all shares
of Class A common stock |
| ||||||
DiamondPeak Public Stockholders
|
| | | | 23,750,000 | | | | | | 14.4% | | |
The Sponsor
|
| | | | 6,187,500 | | | | | | 3.8% | | |
Our anchor investor(2)
|
| | | | 5,062,500 | | | | | | 3.1% | | |
David Hamamoto, DiamondPeak’s Chairman and Chief Executive
Officer(3) |
| | | | 1,000,000 | | | | | | * | | |
Lordstown Stockholders(1)
|
| | | | 75,918,054 | | | | | | 46.0% | | |
Convertible Promissory Noteholders
|
| | | | 4,000,000 | | | | | | 2.4% | | |
PIPE Investors(2)
|
| | | | 50,000,000 | | | | | | 30.3% | | |
| | |
Number of shares
of Class A common stock(1) |
| |
% of all shares
of Class A common stock |
| ||||||
DiamondPeak Public Stockholders
|
| | | | 31,666,666 | | | | | | 17.2% | | |
The Sponsor
|
| | | | 10,647,500 | | | | | | 5.8% | | |
Our anchor investor(2)
|
| | | | 6,752,500 | | | | | | 3.7% | | |
David Hamamoto, DiamondPeak’s Chairman and Chief Executive
Officer(3) |
| | | | 1,333,333 | | | | | | * | | |
Lordstown Stockholders(1)
|
| | | | 75,918,054 | | | | | | 41.3% | | |
Convertible Promissory Noteholders
|
| | | | 4,000,000 | | | | | | 2.2% | | |
PIPE Investors(2)
|
| | | | 50,000,000 | | | | | | 27.2% | | |
| | |
Six Months Ended June 30,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018(1)
|
| ||||||||||||
Revenue
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
General and administrative expenses
|
| | | | (646,883) | | | | | | (242,061) | | | | | | (618,608) | | | | | | (1,650) | | |
Loss from operations
|
| | | $ | (646,883) | | | | | $ | (242,061) | | | | | $ | (618,608) | | | | | $ | (1,650) | | |
Other income – interest earned on marketable securities held in Trust Account
|
| | | | 1,033,199 | | | | | | 2,008,496 | | | | | | 4,547,860 | | | | | | — | | |
Income (loss) before provision for income taxes
|
| | | $ | 386,316 | | | | | $ | 1,766,435 | | | | | $ | 3,929,252 | | | | | $ | (1,650) | | |
Provision for income taxes
|
| | | | (195,977) | | | | | | (400,784) | | | | | | (913,051) | | | | | | — | | |
Net income (loss)
|
| | | $ | 190,339 | | | | | $ | 1,365,651 | | | | | $ | 3,016,201 | | | | | $ | (1,650) | | |
Weighted average shares outstanding of Class A redeemable common stock
|
| | | | 28,000,000 | | | | | | 27,644,068 | | | | | | 27,860,927 | | | | | | — | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.03 | | | | | $ | 0.05 | | | | | $ | 0.12 | | | | | $ | — | | |
Weighted average shares outstanding of Class B
non-redeemable common stock |
| | | | 7,000,000 | | | | | | 7,000,000 | | | | | | 7,000,000 | | | | | | 6,250,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.08) | | | | | $ | (0.02) | | | | | $ | (0.06) | | | | | $ | (0.00) | | |
| | |
As of June 30,
2020 |
| |
As of December 31,
|
| ||||||||||||
| | |
2019
|
| |
2018(1)
|
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 857,071 | | | | | $ | 1,070,048 | | | | | $ | 20,000 | | |
Total assets
|
| | | | 285,275,830 | | | | | | 284,801,982 | | | | | | 120,000 | | |
Total liabilities
|
| | | | 10,373,276 | | | | | | 10,089,767 | | | | | | 96,650 | | |
Total stockholders’ equity and Class A common shares subject to possible redemptions
|
| | | | 274,902,554 | | | | | | 274,712,215 | | | | | | 23,350 | | |
| | |
For The Six
Months Ended June 30, 2020 |
| |
For The
Period From April 30, 2019 to June 30, 2019 |
| |
For The
Period From April 30, 2019 to December 31, 2019 |
| |||||||||
Revenue
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Selling and administrative expenses
|
| | | | 8,677,026 | | | | | | — | | | | | | 4,525,745 | | |
Research and development expenses
|
| | | | 13,254,225 | | | | | | — | | | | | | 5,864,769 | | |
Total operating expenses
|
| | | | 21,931,251 | | | | | | — | | | | | | 10,390,514 | | |
Gain on sale of assets
|
| | | | 2,345,996 | | | | | | — | | | | | | — | | |
Loss from operations
|
| | | | (19,585,255) | | | | | | — | | | | | | (10,390,514) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | |
Other income
|
| | | | 125,946 | | | | | | — | | | | | | — | | |
Interest expense
|
| | | | (362,018) | | | | | | — | | | | | | — | | |
Net Loss
|
| | | $ | (19,821,327 ) | | | | | $ | — | | | | |
$
|
(10,390,514)
|
| |
Net loss attributable to common shareholders
|
| | | $ | (19,821,327 ) | | | | | $ | — | | | | |
$
|
(10,390,514)
|
| |
Weighted average number of common shares outstanding
|
| | | | 1,293,660 | | | | | | — | | | | | | 1,064,150 | | |
Loss per share attributable to common shareholders –
Basic and Diluted |
| | | $ | (15.32) | | | | | $ | — | | | | | $ | (9.76) | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Total assets
|
| | | $ | 33,541,002 | | | | | $ | 33,546,046 | | |
Total liabilities
|
| | | | 37,095,240 | | | | | | 24,989,747 | | |
Total stockholders’ (deficit) equity
|
| | | | (3,554,238) | | | | | | 8,556,299 | | |
| | |
Pro Forma
Combined (Assuming Minimum Redemption) |
| |
Pro Forma
Combined (Assuming Maximum Redemption) |
| ||||||
Summary Unaudited Pro Forma Condensed Combined Statement of Operations Data
|
| | | | | | | | | | | | |
Six Months Ended June 30, 2020 (in thousands except per share data)
|
| | | | | | | | | | | | |
Revenue
|
| | | $ | — | | | | | $ | — | | |
Net loss per share – Class A – basic and diluted
|
| | | $ | (0.12) | | | | | $ | (0.15) | | |
Weighted-average Class A shares outstanding – basic and
diluted |
| | | | 164,918,054 | | | | | | 137,883,448 | | |
Summary Unaudited Pro Forma Condensed Combined Statement of Operations Data
|
| | | | | | | | | | | | |
Period From April 30, 2019 through December 31, 2019 (in thousands except per share data)
|
| | | | | | | | | | | | |
Revenue
|
| | | $ | — | | | | | $ | — | | |
Net loss per share – Class A – basic and diluted
|
| | | $ | (0.07) | | | | | $ | (0.08) | | |
Weighted-average Class A shares outstanding – basic and
diluted |
| | | | 164,918,054 | | | | | | 137,883,448 | | |
Summary Unaudited Pro Forma Condensed Combined | | | | | | | | | | | | | |
Balance Sheet Data as of June 30, 2020 | | | | | | | | | | | | | |
Total assets
|
| | | $ | 782,014 | | | | | $ | 507,834 | | |
Total liabilities
|
| | | $ | 7,054 | | | | | $ | 7,054 | | |
Total stockholders’ equity
|
| | | $ | 774,960 | | | | | $ | 500,780 | | |
|
Total shares and options transferred
|
| | | | 78,867,856 | | |
|
Value per share(1)
|
| | | $ | 10.00 | | |
|
Total Share Consideration(2)
|
| | | $ | 788,678,560 | | |
| | |
Assuming Minimum
Redemptions (Shares) |
| |
%
|
| |
Assuming Maximum
Redemptions (Shares) |
| |
%
|
| ||||||||||||
Lordstown Shareholders
|
| | | | 75,918 | | | | | | 46.1% | | | | | | 75,883 | | | | | | 55.0% | | |
Convertible Promissory Notes
|
| | | | 4,000 | | | | | | 2.4% | | | | | | 4,000 | | | | | | 2.9% | | |
Total Lordstown Merger Shares
|
| | | | 79,918 | | | | | | 48.5% | | | | | | 79,883 | | | | | | 57.9% | | |
DiamondPeak Public Shares
|
| | | | 28,000 | | | | | | 17.0% | | | | | | 1,000 | | | | | | 0.7% | | |
DiamondPeak Founder Shares
|
| | | | 7,000 | | | | | | 4.2% | | | | | | 7,000 | | | | | | 5.1% | | |
Total DiamondPeak Shares
|
| | | | 35,000 | | | | | | 21.2% | | | | | | 8,000 | | | | | | 5.8% | | |
GM PIPE
|
| | | | 7,500 | | | | | | 4.5% | | | | | | 7,500 | | | | | | 5.5% | | |
PIPE
|
| | | | 42,500 | | | | | | 25.8% | | | | | | 42,500 | | | | | | 30.8% | | |
Total PIPE
|
| | | | 50,000 | | | | | | 30.3% | | | | | | 50,000 | | | | | | 36.3% | | |
Pro Forma Common Stock at June 30, 2020
|
| | | | 164,918 | | | | | | 100.0% | | | | | | 137,883 | | | | | | 100.0% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
As of
June 30, 2020 |
| | | | | | | | | | | | | |
As of
June 30, 2020 |
| ||||||
| | |
As of June 30, 2020
|
| |
Pro Forma
Adjustments (Assuming Minimum Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming Minimum Redemption) |
| |
Pro Forma
Adjustments (Assuming Maximum Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming Maximum Redemption) |
| |||||||||||||||||||||
| | |
Lordstown
(Historical) |
| |
DiamondPeak
(Historical) |
| | | ||||||||||||||||||||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 455 | | | | | $ | 857 | | | | |
$
|
21,596
|
| | | |
|
A
|
| | | |
$
|
720,899
|
| | | |
$
|
(274,180)
|
| | | |
|
N
|
| | | |
$
|
446,719
|
| |
| | | | | | | | | | | | | | | | | 284,335 | | | | |
|
B
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 425,000 | | | | |
|
C
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (9,800) | | | | |
|
D
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (35,200) | | | | |
|
E
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 38,406 | | | | |
|
F
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (4,750) | | | | |
|
G
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | 13 | | | | | | — | | | | | | — | | | | | | | | | | | | 13 | | | | | | — | | | | | | | | | | | | 13 | | |
Prepaid expenses and other current assets
|
| | | | 91 | | | | | | 84 | | | | | | 4,750 | | | | |
|
G
|
| | | | | 4,925 | | | | | | — | | | | | | | | | | | | 4,925 | | |
Total current assets
|
| | | | 559 | | | | | | 941 | | | | | | 724,337 | | | | | | | | | | | | 725,837 | | | | | | (274,180) | | | | | | | | | | | | 451,657 | | |
Non-current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and investments held in Trust Account
|
| | | | — | | | | | | 284,335 | | | | | | (284,335) | | | | |
|
B
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Property, plant and equipment
|
| | | | 21,741 | | | | | | — | | | | | | 23,195 | | | | |
|
A
|
| | | | | 44,936 | | | | | | — | | | | | | | | | | | | 44,936 | | |
Intangible assets
|
| | | | 11,111 | | | | | | — | | | | | | — | | | | | | | | | | | | 11,111 | | | | | | — | | | | | | | | | | | | 11,111 | | |
Restricted cash
|
| | | | 130 | | | | | | — | | | | | | — | | | | | | | | | | | | 130 | | | | | | — | | | | | | | | | | | | 130 | | |
Total non-current assets
|
| | | | 32,982 | | | | | | 284,335 | | | | | | (261,140) | | | | | | | | | | | | 56,177 | | | | | | — | | | | | | | | | | | | 56,177 | | |
TOTAL ASSETS
|
| | |
|
33,541
|
| | | |
|
285,276
|
| | | |
|
463,197
|
| | | | | | | | | |
|
782,014
|
| | | |
|
(274,180)
|
| | | | | | | | | |
|
507,834
|
| |
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | | 5,616 | | | | | | 25 | | | | | | — | | | | | | | | | | | | 5,641 | | | | | | — | | | | | | | | | | | | 5,641 | | |
Due to related party
|
| | | | 5,938 | | | | | | — | | | | | | (5,938) | | | | |
|
A
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Related party notes payable
|
| | | | 24,271 | | | | | | — | | | | | | (24,271) | | | | |
|
A
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Accrued and other current liabilities
|
| | | | 255 | | | | | | 405 | | | | | | (405) | | | | |
|
E
|
| | | | | 255 | | | | | | — | | | | | | | | | | | | 255 | | |
Income taxes payable
|
| | | | — | | | | | | 143 | | | | | | — | | | | | | | | | | | | 143 | | | | | | — | | | | | | | | | | | | 143 | | |
Total current liabilities
|
| | | | 36,080 | | | | | | 573 | | | | | | (30,614) | | | | | | | | | | | | 6,039 | | | | | | — | | | | | | | | | | | | 6,039 | | |
Non-current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes Payable
|
| | | | 1,015 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,015 | | | | | | — | | | | | | | | | | | | 1,015 | | |
Convertible promissory notes
|
| | | | — | | | | | | — | | | | | | 40,000 | | | | |
|
F
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | | | | | | | | | | | | | (40,000) | | | | |
|
H
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred underwriting commissions
|
| | | | — | | | | | | 9,800 | | | | | | (9,800) | | | | |
|
D
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Total non-current liabilities
|
| | | | 1,015 | | | | | | 9,800 | | | | | | (9,800) | | | | | | | | | | | | 1,015 | | | | | | — | | | | | | | | | | | | 1,015 | | |
Total liabilities
|
| | | | 37,095 | | | | | | 10,373 | | | | | | (40,414) | | | | | | | | | | | | 7,054 | | | | | | — | | | | | | | | | | | | 7,054 | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
As of
June 30, 2020 |
| | | | | | | | | | | | | |
As of
June 30, 2020 |
| ||||||
| | |
As of June 30, 2020
|
| |
Pro Forma
Adjustments (Assuming Minimum Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming Minimum Redemption) |
| |
Pro Forma
Adjustments (Assuming Maximum Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming Maximum Redemption) |
| |||||||||||||||||||||
| | |
Lordstown
(Historical) |
| |
DiamondPeak
(Historical) |
| | | ||||||||||||||||||||||||||||||||||||||||
Commitment and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Temporary equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Common stock subject to possible redemption
|
| | | | — | | | | | | 269,903 | | | | | | (269,903) | | | | |
|
I
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Class A common stock
|
| | | | — | | | | | | — | | | | | | 4 | | | | |
|
C
|
| | | | | 16 | | | | | | (2) | | | | |
|
N
|
| | | | | 14 | | |
| | | | | | | | | | | | | | | | | 3 | | | | |
|
I
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 8 | | | | |
|
J
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1 | | | | |
|
K
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class B common stock
|
| | | | — | | | | | | 1 | | | | | | (1) | | | | |
|
K
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Additional paid-in capital
|
| | | | 26,658 | | | | | | 1,794 | | | | | | 75,000 | | | | |
|
A
|
| | | | | 821,211 | | | | | | (274,178) | | | | |
|
N
|
| | | | | 545,989 | | |
| | | | | | | | | | | | | | | | | 424,996 | | | | |
|
C
|
| | | | | | | | | | | (1,044) | | | | |
|
O
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (26,700) | | | | |
|
E
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 269,900 | | | | |
|
I
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (8) | | | | |
|
J
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 3,205 | | | | |
|
L
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 40,000 | | | | |
|
H
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 6,366 | | | | |
|
M
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Retained earnings (deficit)
|
| | | | (30,212) | | | | | | 3,205 | | | | | | (8,095) | | | | |
|
E
|
| | | | | (46,267) | | | | | | 1,044 | | | | |
|
O
|
| | | | | (45,223) | | |
| | | | | | | | | | | | | | | | | (3,205) | | | | |
|
L
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (6,366) | | | | |
|
M
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (1,594) | | | | |
|
F
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity (deficit)
|
| | | | (3,554) | | | | | | 5,000 | | | | | | 773,514 | | | | | | | | | | | | 774,960 | | | | | | (274,180) | | | | | | | | | | | | 500,780 | | |
TOTAL LIABILITIES, TEMPORARY EQUITY
AND STOCKHOLDERS’ DEFICIT |
| | |
|
33,541
|
| | | |
|
285,276
|
| | | |
|
463,197
|
| | | | | | | | | |
|
782,014
|
| | | |
|
(274,180)
|
| | | | | | | | | |
|
507,834
|
| |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For the
Six Months Ended June 30, 2020 |
| | | | | | | |
For the
Six Months Ended June 30, 2020 |
| ||||||
| | |
For the Six Months Ended June 30, 2020
|
| |
Pro Forma
Adjustments (Assuming Minimum Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming Minimum Redemption) |
| |
Pro Forma
Adjustments (Assuming Maximum Redemption) |
| |
Pro Forma
Combined (Assuming Maximum Redemption) |
| |||||||||||||||||||||
| | |
Lordstown
(Historical) |
| |
DiamondPeak
(Historical) |
| | |||||||||||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, administrative and other
|
| | | | 8,677 | | | | | | 647 | | | | | | (60) | | | | |
|
AA
|
| | | | | 9,264 | | | | | | — | | | | | | 9,264 | | |
Research and development
|
| | | | 13,254 | | | | | | — | | | | | | — | | | | | | | | | | | | 13,254 | | | | | | — | | | | | | 13,254 | | |
Total operating costs and expenses
|
| | | | 21,931 | | | | | | 647 | | | | | | (60) | | | | | | | | | | | | 22,518 | | | | | | — | | | | | | 22,518 | | |
Gain on sale of assets
|
| | | | 2,346 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,346 | | | | | | — | | | | | | 2,346 | | |
Loss from operations
|
| | | | (19,585) | | | | | | (647) | | | | | | 60 | | | | | | | | | | | | (20,172) | | | | | | — | | | | | | (20,172) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income (expense)
|
| | | | 126 | | | | | | — | | | | | | — | | | | | | | | | | | | 126 | | | | | | — | | | | | | 126 | | |
Interest expense
|
| | | | (362) | | | | | | — | | | | | | 362 | | | | |
|
BB
|
| | | | | — | | | | | | — | | | | | | — | | |
Other income – Interest income on Trust Account
|
| | | | — | | | | | | 1,033 | | | | | | (1,033) | | | | |
|
CC
|
| | | | | — | | | | | | — | | | | | | — | | |
Total other income (expense)
|
| | | | (236) | | | | | | 1,033 | | | | | | (671) | | | | | | | | | | | | 126 | | | | | | — | | | | | | 126 | | |
Net income (loss) before income tax provision
|
| | | | (19,821) | | | | | | 386 | | | | | | (611) | | | | | | | | | | | | (20,046) | | | | | | — | | | | | | (20,046) | | |
Income tax provision
|
| | | | — | | | | | | 196 | | | | | | (196) | | | | |
|
DD
|
| | | | | — | | | | | | — | | | | | | — | | |
Net income (loss)
|
| | | | (19,821) | | | | | | 190 | | | | | | (415) | | | | | | | | | | | | (20,046) | | | | | | — | | | | | | (20,046) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Assuming
Minimum Redemptions (Note 4) |
| | | | | | | |
Assuming
Maximum Redemptions (Note 4) |
| ||||||
Weighted Common shares outstanding – Class A
|
| | | | | | | | | | 28,000,000 | | | | | | | | | | | | | | | | | | 164,918,054 | | | | | | | | | | | | 137,883,448 | | |
Basic and diluted net income (loss) per share – Class A
|
| | | | | | | | | $ | 0.03 | | | | | $ | | | | | | | | | | | $ | (0.12) | | | | | $ | | | | | $ | (0.15) | | | ||
Weighted Common shares outstanding – Class B
|
| | | | | | | | | | 7,000,000 | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Basic and diluted net income (loss) per share – Class B
|
| | | | | | | | | $ | (0.08) | | | | | $ | | | | | | | | | | | $ | — | | | | | $ | | | | | $ | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For the
Year ended December 31, 2019 |
| | | | | | | |
For the
Year ended December 31, 2019 |
| ||||||
| | |
For the Year ended December 31, 2019
|
| |
Pro Forma
Adjustments (Assuming Minimum Redemptions) |
| | | | | | | |
Pro Forma
Combined (Assuming Minimum Redemptions) |
| |
Pro Forma
Adjustments (Assuming Maximum Redemption) |
| |
Pro Forma
Combined (Assuming Maximum Redemption) |
| |||||||||||||||||||||
| | |
Lordstown
(Historical) |
| |
DiamondPeak
(Historical) |
| | |||||||||||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative
|
| | | | 4,526 | | | | | | 619 | | | | | | (100) | | | | |
|
AA
|
| | | | | 5,045 | | | | | | — | | | | | | 5,045 | | |
Research and development
|
| | | | 5,865 | | | | | | — | | | | | | — | | | | | | | | | | | | 5,856 | | | | | | — | | | | | | 5,865 | | |
Total operating costs and
expenses |
| | | | 10,391 | | | | | | 619 | | | | | | (100) | | | | | | | | | | | | 10,910 | | | | | | — | | | | | | 10,910 | | |
Loss from operations
|
| | | | (10,391) | | | | | | (619) | | | | | | 100 | | | | | | | | | | | | (10,910) | | | | | | — | | | | | | (10,910) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | |
Other income – Interest income on Trust Account
|
| | | | — | | | | | | 4,548 | | | | | | (4,548) | | | | |
|
CC
|
| | | | | — | | | | | | — | | | | | | — | | |
Total other income (expense)
|
| | | | — | | | | | | 4,548 | | | | | | (4,548) | | | | | | | | | | | | — | | | | | | — | | | | | | — | | |
Net income (loss) before income tax provision
|
| | | | (10,391) | | | | | | 3,929 | | | | | | (4,448) | | | | | | | | | | | | (10,910) | | | | | | — | | | | | | (10,910) | | |
Income tax provision
|
| | | | — | | | | | | 913 | | | | | | (913) | | | | |
|
DD
|
| | | | | — | | | | | | — | | | | | | — | | |
Net income (loss)
|
| | | | (10,391) | | | | | | 3,016 | | | | | | (3,535) | | | | | | | | | | | | (10,910) | | | | | | — | | | | | | (10,910) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Assuming
Minimum Redemptions (Note 4) |
| | | | | | | |
Assuming
Maximum Redemptions (Note 4) |
| ||||||
Weighted Common shares outstanding – Class A
|
| | | | | | | | | | 27,860,927 | | | | | | | | | | | | | | | | | | 164,918,054 | | | | | | | | | | | | 137,883,448 | | |
Basic and diluted net income (loss) per share – Class A
|
| | | | | | | | | $ | 0.12 | | | | | | | | | | | | | | | | | $ | (0.07) | | | | | | | | | | | $ | (0.08) | | |
Weighted Common shares outstanding – Class B
|
| | | | | | | | | | 7,000,000 | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Basic and diluted net loss per share – Class B
|
| | | | | | | | | $ | (0.06) | | | | | | | | | | | | | | | | | $ | — | | | | | | | | | | | $ | — | | |
| | |
For the Six Months Ended
June 30, 2020 |
| |
For the Year ended
December 31, 2019 |
| ||||||||||||||||||
(in thousands, except per share data)
|
| |
Assuming
Minimum Redemption |
| |
Assuming
Maximum Redemption |
| |
Assuming
Minimum Redemption |
| |
Assuming
Maximum Redemption |
| ||||||||||||
Pro forma net loss
|
| | | $ | (20,046) | | | | | $ | (20,046) | | | | | $ | (10,910) | | | | | $ | (10,910) | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 164,918,054 | | | | | | 137,883,448 | | | | | | 164,918,054 | | | | | | 137,883,448 | | |
Net loss per share (Basic and Diluted) attributable to Class A common stockholders(1)
|
| | | $ | (0.12) | | | | | $ | (0.15) | | | | | $ | (0.07) | | | | | $ | (0.08) | | |
| | | | | | | | | | | | | | |
Combined Pro Forma
|
| |||||||||
| | |
DiamondPeak
(Historical) |
| |
Lordstown
(Historical) |
| |
Pro Forma
Combined (Assuming Minimum Redemption) |
| |
Pro Forma
Combined (Assuming Maximum Redemption) |
| ||||||||||||
As of and for the six months ended June 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Book Value per share(1)
|
| | | $ | 0.14 | | | | | $ | (2.75) | | | | | $ | 4.70 | | | | | $ | 3.63 | | |
Weighted average shares outstanding of Class A common stock – basic and diluted
|
| | | | 28,000,000 | | | | | | 1,293,660 | | | | | | 164,918,054 | | | | | | 137,883,448 | | |
Weighted average shares outstanding of Class B common stock – basic and diluted
|
| | | | 7,000,000 | | | | | | — | | | | | | — | | | | | | — | | |
Net income (loss) per share of Class A common stock – basic and diluted
|
| | | $ | 0.03 | | | | | $ | (15.32) | | | | | $ | (0.12) | | | | | $ | (0.15) | | |
Net loss per share of Class B common stock – basic and diluted
|
| | | $ | (0.08) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | | | | | | | | | | | | |
Combined Pro Forma
|
| |||||||||
| | |
DiamondPeak
(Historical) |
| |
Lordstown
(Historical) |
| |
Pro Forma
Combined (Assuming Minimum Redemption) |
| |
Pro Forma
Combined (Assuming Maximum Redemption) |
| ||||||||||||
As of and for the Year ended December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Book Value per share(1)
|
| | | $ | 0.14 | | | | | $ | 8.04 | | | | | | N/A(2) | | | | | | N/A(2) | | |
Weighted average shares outstanding of Class A common stock – basic and diluted
|
| | | | 27,860,927 | | | | | | 1,064,150 | | | | | | 164,918,054 | | | | | | 137,883,448 | | |
Weighted average shares outstanding of Class B common stock – basic and diluted
|
| | | | 7,000,000 | | | | | | — | | | | | | — | | | | | | — | | |
Net income (loss) per share of Class A common stock – basic and diluted
|
| | | $ | 0.12 | | | | | $ | (9.76) | | | | | $ | (0.07) | | | | | $ | (0.08) | | |
Net loss per share of Class B common stock – basic and diluted
|
| | | $ | (0.06) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
As of
June 30, 2020 |
| |||||||||||||||
| | | | | | | | |
Pro Forma
Combined (Assuming Minimum Redemption) |
| |
Pro Forma
Combined (Assuming Maximum Redemption) |
| ||||||
(In thousands)
|
| |
DiamondPeak
(Historical) |
| |||||||||||||||
Cash
|
| | | $ | 857 | | | | | $ | 720,899 | | | | | | 446,719 | | |
Marketable securities held in Trust Account
|
| | | | 284,335 | | | | | | — | | | | | | — | | |
Debt | | | | | | | | | | | | | | | | | | | |
Total debt
|
| | | | — | | | | | | — | | | | | | — | | |
Common stock subject to possible redemption
|
| | | | 269,903 | | | | | | — | | | | | | — | | |
Stockholders’ Equity: | | | | | | | | | | | | | | | | | | | |
Class A common stock
|
| | | | — | | | | | | 16 | | | | | | 14 | | |
Class B common stock
|
| | | | 1 | | | | | | — | | | | | | — | | |
Additional paid in capital
|
| | | | 1,794 | | | | | | 821,211 | | | | | | 545,989 | | |
Retained earnings (deficit)
|
| | | | 3,205 | | | | | | (46,267) | | | | | | (45,223) | | |
Total stockholders’ equity
|
| | | | 5,000 | | | | | | 774,960 | | | | | | 500,780 | | |
Total capitalization
|
| | |
$
|
274,903
|
| | | |
$
|
782,014
|
| | | |
|
507,834
|
| |
($ in millions)
|
| |
2020E
|
| |
2021E
|
| |
2022E
|
| |
2023E
|
| |
2024E
|
| |||||||||||||||
Total Units Sold
|
| | | | 0 | | | | | | 2,200 | | | | | | 31,600 | | | | | | 65,000 | | | | | | 107,000 | | |
Revenue | | | | $ | 0 | | | | | $ | 118 | | | | | $ | 1,690 | | | | | $ | 3,476 | | | | | $ | 5,776 | | |
% Growth
|
| | | | — | | | | | | — | | | | |
|
1336.4%
|
| | | |
|
105.7%
|
| | | |
|
66.2%
|
| |
Cost of Goods Sold
|
| | | | — | | | | | $ | (203) | | | | | $ | (1,551) | | | | | $ | (2,877) | | | | | $ | (4,701) | | |
Gross Profit
|
| | | $ | 0 | | | | | $ | (85) | | | | | $ | 139 | | | | | $ | 599 | | | | | $ | 1,076 | | |
% Margin
|
| | | | NM | | | | | | NM | | | | | | 8.2% | | | | | | 17.2% | | | | | | 18.6% | | |
EBITDA | | | | $ | (64) | | | | | $ | (155) | | | | | $ | 10 | | | | | $ | 298 | | | | | $ | 600 | | |
% Margin
|
| | | | NM | | | | | | NM | | | | | | 0.6% | | | | | | 8.6% | | | | | | 10.4% | | |
CapEx | | | | $ | (90) | | | | | $ | (45) | | | | | $ | (40) | | | | | $ | (40) | | | | | $ | (20) | | |
% Sales
|
| | | | NM | | | | | | 38.3% | | | | | | 2.4% | | | | | | 1.2% | | | | | | 0.3% | | |
| | |
Number of shares of
Class A common stock(1) |
| |
% of all shares of
Class A common stock |
| ||||||
DiamondPeak Public Stockholders
|
| | | | 23,750,000 | | | | | | 14.4% | | |
The Sponsor
|
| | | | 6,187,500 | | | | | | 3.8% | | |
Our anchor investor(2)
|
| | | | 5,062,500 | | | | | | 3.1% | | |
David Hamamoto, DiamondPeak’s Chairman and Chief Executive Officer(3)
|
| | | | 1,000,000 | | | | | | * | | |
Lordstown Stockholders(1)
|
| | | | 75,918,054 | | | | | | 46.0% | | |
Convertible Promissory Noteholders
|
| | | | 4,000,000 | | | | | | 2.4% | | |
PIPE Investors(2)
|
| | | | 50,000,000 | | | | | | 30.3% | | |
| | |
Number of shares of
Class A common stock(1) |
| |
% of all shares of
Class A common stock |
| ||||||
DiamondPeak Public Stockholders
|
| | | | 31,666,666 | | | | | | 17.2% | | |
The Sponsor
|
| | | | 10,647,500 | | | | | | 5.8% | | |
Our anchor investor(2)
|
| | | | 6,752,500 | | | | | | 3.7% | | |
David Hamamoto, DiamondPeak’s Chairman and Chief Executive Officer(3)
|
| | | | 1,333,333 | | | | | | * | | |
Lordstown Stockholders(1)
|
| | | | 75,918,054 | | | | | | 41.3% | | |
Convertible Promissory Noteholders
|
| | | | 4,000,000 | | | | | | 2.2% | | |
PIPE Investors(2)
|
| | | | 50,000,000 | | | | | | 27.2% | | |
|
Sources of Funds(1)
|
| |
Uses
|
| ||||||||||||
|
(in millions)
|
| |||||||||||||||
|
Cash in DiamondPeak Trust Account(2)
|
| | | $ | 284.3 | | | |
Cash to Balance Sheet
|
| | | $ | 679.3 | | |
|
Proceeds of the PIPE Investment
(excluding GM PIPE Proceeds) |
| | | | 425 | | | |
Deal Expenses
|
| | | | 45 | | |
|
GM PIPE Proceeds(3)
|
| | | | 75 | | | |
PIK for GM(3)
|
| | | | 60 | | |
|
Total Cash Sources
|
| | | $ | 784.3 | | | |
Total Cash Uses
|
| | | $ | 784.3 | | |
|
Charter of DiamondPeak in effect prior to the completion of the
Business Combination |
| |
Proposed Charter of DiamondPeak as amended and restated in
connection with the completion of the Business Combination |
|
|
COMPANY NAME
|
| |||
| DiamondPeak Holdings Corp. | | | Lordstown Motors Corp. (“Lordstown”) | |
|
AUTHORIZED CAPITAL STOCK
|
| |||
| DiamondPeak is authorized to issue (a) 110,000,000 shares of common stock including (i) 100,000,000 shares of Class A common stock and (ii) 10,000,000 shares of Class B common stock and (b) 1,000,000 shares of preferred stock. | | | Lordstown is authorized to issue 312,000,000 shares of capital stock, consisting of (i) 300,000,000 shares of common stock and (ii) 12,000,000 shares of preferred stock. | |
|
CLASS B COMMON STOCK
|
| |||
| Conversion Rights. Shares of Class B common stock are convertible into shares of Class A common stock on a one-for-one basis automatically upon the closing, subject to certain adjustments set forth in the Charter. | | | In connection with the Business Combination, all shares of Class B common stock will automatically be converted into shares of Class A common stock pursuant to the terms of the Charter. Upon the closing, the number of authorized shares of Class B common stock will be reduced to zero. | |
| Voting. Generally, each holder of Class B common stock is entitled to one vote per share, voting together with the holders of Class A common stock as a single class. | | | | |
| Dividends. Holders of Class B common stock are entitled to receive dividends and other distributions when and if declared thereon by the DiamondPeak board on an equal per share basis together with the holders of Class A common stock. | | | | |
| Liquidation. Holders of Class B common stock are entitled to receive all the remaining assets of DiamondPeak available for distribution to its stockholders in the event of any voluntary or involuntary liquidation, dissolution or winding up of DiamondPeak, ratably in proportion to the number of shares of Class A common stock on an as converted basis held by them, together with the holders of Class A common stock. | | | | |
|
Charter of DiamondPeak in effect prior to the completion of the
Business Combination |
| |
Proposed Charter of DiamondPeak as amended and restated in
connection with the completion of the Business Combination |
|
|
BUSINESS COMBINATION REQUIREMENTS
|
| |||
| The Charter contained a number of provisions related to DiamondPeak’s initial business combination and the redemption rights of DiamondPeak’s stockholders in connection with the initial business combination. | | | The Proposed Charter does not address the initial business combination, which shall have been completed at the time the Proposed Charter is effected, and does not provide for any further redemption rights of DiamondPeak’s stockholders. | |
|
EXCLUSIVE FORUM
|
| |||
| The Charter designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by DiamondPeak’s stockholders (except certain types of actions, including actions arising under the Securities Act), unless DiamondPeak consents in writing to the selection of an alternative forum. | | |
The Proposed Charter designates that, to the fullest extent permitted by law, a state court located within the State of Delaware (or, if no court located within the State of Delaware has jurisdiction, the federal district court for the District of Delaware) will be the sole and exclusive forum for any internal or intra-corporate claim or any action asserting a claim governed by the internal affairs doctrine as defined by the laws of the State of Delaware, including, but not limited to (i) any derivative action or proceeding brought on behalf of DiamondPeak; (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee or stockholder of DiamondPeak to DiamondPeak or DiamondPeak’s stockholders; or (iii) any action asserting a claim arising pursuant to any provision of the DGCL or the Proposed Charter or the bylaws (in each case, as they may be amended from time to time), or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware), unless DiamondPeak consents in writing to the selection of an alternative forum.
Notwithstanding the foregoing, the Proposed Charter provides that, to the fullest extent permitted by law, the federal district court for the District of Delaware (or, if such court does not have jurisdiction over such action, any other federal district court of the United States) will be the sole and exclusive forum for any action asserting a cause of action arising under the Securities Act or any rule or regulation promulgated thereunder, provided, however, that if the foregoing provisions are, or the application of such provisions to any person or entity or any circumstance is, illegal, invalid or unenforceable, the sole and exclusive forum for any action asserting a cause of action arising under the Securities Act or any rule or regulation promulgated thereunder (in each case, as amended) will be the Court of Chancery of the State of Delaware.
|
|
|
Charter of DiamondPeak in effect prior to the completion of the
Business Combination |
| |
Proposed Charter of DiamondPeak as amended and restated in
connection with the completion of the Business Combination |
|
|
LIMITATION OF DIRECTOR LIABILITY
|
| |||
| The Charter provides that a DiamondPeak director shall not be personally liable to DiamondPeak or our stockholders for monetary damages for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists or may hereafter be amended unless a director violated his or her duty of loyalty to DiamondPeak or our stockholders, acted in bad faith, knowingly or intentionally violated the law, authorized unlawful payments of dividends, unlawful stock purchases or unlawful redemptions, or derived improper personal benefit from his or her actions as a director. | | | The Proposed Charter provides that a DiamondPeak director shall not be personally liable to DiamondPeak or our stockholders for monetary damages for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists or may hereafter be amended. If the DGCL is amended after the effectiveness of the Proposed Charter to authorize the further elimination or limitation of the liability of directors, then the liability of DiamondPeak directors shall be eliminated or limited to the fullest extent authorized by the DGCL, as so amended. | |
Name
|
| |
Age
|
| |
Position
|
|
David T. Hamamoto | | |
60
|
| | Chairman and Chief Executive Officer | |
Kyriakos Mihalitsis | | |
40
|
| | Chief Financial Officer | |
Mark A. Walsh | | |
60
|
| | Director | |
Andrew C. Richardson | | |
53
|
| | Director | |
Steven R. Hash | | |
55
|
| | Director | |
Judith A. Hannaway | | |
67
|
| | Director | |
Estimated Retooling Costs
|
| | | | | | |
Stamping
|
| | | $ | 3,000,000 | | |
Body Shop
|
| | | $ | 32,000,000 | | |
Paint
|
| | | $ | 16,000,000 | | |
Battery Packing
|
| | | $ | 27,000,000 | | |
Hub Motor Manufacturing
|
| | | $ | 23,000,000 | | |
General Assembly
|
| | | $ | 14,000,000 | | |
Facility Infrastructure, Material Handling and Spare Parts
|
| | | $ | 5,000,000 | | |
Total retooling costs
|
| | | $ | 120,000,000 | | |
| | |
Six months ended
June 30, 2020 |
| |||
Net sales
|
| | | $ | — | | |
Operating expenses | | | | | | | |
Selling and administrative expenses
|
| | | | 8,677,026 | | |
Research and development expenses
|
| | | | 13,254,225 | | |
Total operating expenses
|
| | | | 21,931,251 | | |
Gain on sale of assets
|
| | | | 2,345,996 | | |
Loss from operations
|
| | | | (19,585,255) | | |
Other income
|
| | | | 125,946 | | |
Interest expense
|
| | | | (362,018) | | |
Loss before income taxes
|
| | | | (19,821,327) | | |
Income tax expense
|
| | | | — | | |
Net loss
|
| | | $ | (19,821,327) | | |
| | |
For the Period April 30, 2019
(Inception) to December 31, 2019 |
| |||
Net sales
|
| | | $ | — | | |
Operating expenses:
|
| | | | | | |
Selling and administrative expenses
|
| | | | 4,525,745 | | |
Research and development expenses
|
| | | | 5,864,769 | | |
Total operating expenses
|
| | | | 10,390,514 | | |
Loss from operations
|
| | | | (10,390,514) | | |
Loss before income taxes
|
| | | | (10,390,514) | | |
Income tax expense
|
| | | | — | | |
Net loss
|
| | | | (10,390,514) | | |
| | |
Six months ended
June 30, 2020 |
| |
For the Period April 30,
2019 to December 31, 2019 |
| ||||||
Net cash used by operating activities
|
| | | $ | (13,644,708) | | | | | $ | (5,201,521) | | |
Net cash provided by (used by) investing activities
|
| | | $ | 1,193,175 | | | | | $ | (133,263) | | |
Net cash provided by financing activities
|
| | | $ | 10,877,152 | | | | | $ | 7,494,001 | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
| | |
Total
|
| |
Less than
1 Year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than
5 years |
| |||||||||||||||
Contractual Obligations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Related party notes payable
|
| | | $ | 24,271,244 | | | | | $ | 24,271,244 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Operating leases
|
| | | $ | 7,000 | | | | | $ | 7,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total
|
| | | $ | 24,278,244 | | | | | $ | 24,278,244 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Name
|
| |
Age
|
| |
Position
|
|
Executive Officers | | | | | | | |
Stephen S. Burns | | |
61
|
| | Chief Executive Officer, Director | |
John LaFleur | | |
59
|
| | Chief Operating Officer | |
Julio Rodriguez | | |
61
|
| | Chief Financial Officer | |
Rich Schmidt | | |
53
|
| | Chief Production Officer | |
Caimin Flannery | | |
74
|
| | Vice President of Business Development | |
John Vo | | |
47
|
| | Vice President of Propulsion | |
Darren Post | | |
60
|
| | Vice President of Engineering | |
Thomas V. Canepa | | |
60
|
| |
General Counsel and Corporate Secretary
|
|
Non-Employee Directors | | | | | | | |
David T. Hamamoto(3) | | |
60
|
| | Director | |
Keith Feldman(1) | | |
44
|
| | Director | |
Jane Reiss(1) | | |
59
|
| | Director | |
Dale Spencer(2) | | |
62
|
| | Director | |
Michael Gates(3) | | |
60
|
| | Director | |
Mick Kowitz(2) | | |
53
|
| | Director | |
Angela Strand(2)(3) | | | | | | Director | |
Martin J. Rucidlo(1) | | |
63
|
| | Director | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Option
Awards (l) |
| |
Total
($) |
| ||||||||||||
Stephen S. Burns
Chief Executive Officer |
| | | | 2019 | | | | | | 99,113 | | | | | | — | | | | | | 99,113 | | |
Julio Rodriguez
Chief Financial Officer |
| | | | 2019 | | | | | | 70,588 | | | | | | 763,834 | | | | | | 834,422 | | |
John LaFleur
Chief Operating Officer |
| | | | 2019 | | | | | | 57,447 | | | | | | 763,834 | | | | | | 821,281 | | |
| | |
Option Awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Grant
Date |
| |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |||||||||||||||
Stephen S. Burns
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Julio Rodriguez
|
| | | | 11/1/19(1) | | | | | | 4,750.62 | | | | | | 9,280.62 | | | | | | 100.00 | | | | | | 10/31/29 | | |
John LaFleur
|
| | | | 11/1/19(1) | | | | | | 4,750.62 | | | | | | 9,280.62 | | | | | | 100.00 | | | | | | 10/31/29 | | |
| | |
Prior to the Business Combination
|
| |
After the Business Combination
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Assuming
No Redemption |
| |
Assuming Maximum
Redemption |
| ||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial
Owner(1) |
| |
Number of
Shares |
| |
% of
Class(1) |
| |
Number of
Shares(2) |
| |
% of
Class |
| |
Number of
Shares |
| |
%
|
| |
Number of
Shares |
| |
%
|
| ||||||||||||||||||||||||
Directors and Executive Officers
Prior to the Business Combination |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
David T. Hamamoto(3)
|
| | | | 1,000,000 | | | | | | 4% | | | | | | 6,187,500.00 | | | | | | 88.4% | | | | | | 11,980,833 | | | | | | 7.1% | | | | | | 12,543,333 | | | | | | 8.8% | | |
Mark A. Walsh(4)
|
| | | | — | | | | | | — | | | | | | 6,187,500.00 | | | | | | 88.4% | | | | | | 10,647,500 | | | | | | 6.3% | | | | | | 11,210,000 | | | | | | 7.9% | | |
Andrew Richardson(5)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 88,357 | | | | | | 0.1% | | | | | | 88,357 | | | | | | 0.1% | | |
Steven R. Hash(5)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 88,357 | | | | | | 0.1% | | | | | | 88,357 | | | | | | 0.1% | | |
Judith A. Hannaway(5)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 88,357 | | | | | | 0.1% | | | | | | 88,357 | | | | | | 0.1% | | |
Kyriakos Mihalitsis
|
| | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
All executive officers and
directors prior to the Business Combination, as a group (6 individuals) |
| | | | 1,000,000 | | | | | | — | | | | | | 6,187,500.00 | | | | | | 88.4% | | | | | | 11,980,833 | | | | | | 7.1% | | | | | | 12,543,333 | | | | | | 8.8% | | |
Other Five Percent Holders Prior
to the Business Combination |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
DiamondPeak Sponsor LLC(6)
|
| | | | — | | | | | | — | | | | | | 6,187,500.00 | | | | | | 88.4% | | | | | | 10,647,500 | | | | | | 6.3% | | | | | | 11,210,000 | | | | | | 7.9% | | |
BlackRock, Inc.(7)
|
| | | | 3,250,000 | | | | | | 12% | | | | | | 812,500.00 | | | | | | 11.6% | | | | | | 6,752,500 | | | | | | 4.1% | | | | | | 2,940,000 | | | | | | 2.1% | | |
UBS O’Connor LLC(8)
|
| | | | 2,150,000 | | | | | | 8% | | | | | | — | | | | | | — | | | | | | 6,650,000 | | | | | | 3.9% | | | | | | 4,500,000 | | | | | | 3.2% | | |
RP Investment Advisors LP(9)
|
| | | | 1,950,000 | | | | | | 7% | | | | | | — | | | | | | — | | | | | | 1,950,000 | | | | | | 1.2% | | | | | | — | | | | | | 0.0% | | |
Deutsche Bank AG(10)
|
| | | | 1,699,999 | | | | | | 6% | | | | | | — | | | | | | — | | | | | | 2,244,533 | | | | | | 1.4% | | | | | | 544,534 | | | | | | 0.4% | | |
Millennium Management LLC(11)
|
| | | | 1,643,799 | | | | | | 6% | | | | | | — | | | | | | — | | | | | | 5,643,799 | | | | | | 3.3% | | | | | | 4,000,000 | | | | | | 2.8% | | |
Directors and Executive Officers
following the Business Combination |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stephen S. Burns(12)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 46,355,891 | | | | | | 28.1% | | | | | | 49,793,751 | | | | | | 36.1% | | |
David T. Hamamoto(3)
|
| | | | 1,000,000 | | | | | | 4% | | | | | | 6,187,500.00 | | | | | | 88.4% | | | | | | 11,980,833 | | | | | | 7.1% | | | | | | 16,273,333 | | | | | | 11.1% | | |
John LaFleur(13)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 524,790 | | | | | | 0.3% | | | | | | 530,947 | | | | | | 0.4% | | |
Julio Rodriquez(13)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 524,790 | | | | | | 0.3% | | | | | | 530,947 | | | | | | 0.4% | | |
Jane Reiss(14)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 27,941 | | | | | | 0.0% | | | | | | 28,269 | | | | | | 0.0% | | |
Dale Spencer(14)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 27,941 | | | | | | 0.0% | | | | | | 28,269 | | | | | | 0.0% | | |
Keith Feldman
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
Michael Gates
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
Mick Kowitz
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
Angelga Strand
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
Martin J. Rucidlo
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
All Directors and Executive
Officers following the Business Combination, as a group (11 individuals) |
| | | | | | | | | | | | | | | | | | | | | | — | | | | | | 60,962,029 | | | | | | 35.4% | | | | | | 68,723,188 | | | | | | 46.1% | | |
Other Five Percent Holders Following the Business Combination
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Workhorse Group Inc.(15)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,475,313 | | | | | | 9.99% | | | | | | 13,774,556 | | | | | | 9.99% | | |
Fidelity(16) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,012,516 | | | | | | 6.7% | | | | | | 11,012,516 | | | | | | 8.0% | | |
DiamondPeak Sponsor LLC(6)
|
| | | | — | | | | | | — | | | | | | 6,187,500.00 | | | | | | 88.4% | | | | | | 10,647,500 | | | | | | 6.3% | | | | | | 11,210,000 | | | | | | 7.9% | | |
GM(17) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,500,000 | | | | | | 4.5% | | | | | | 7,500,000 | | | | | | 5.4% | | |
Redemption Date
(period to expiration of warrants) |
| |
Fair Market Value of Class A Common Stock
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
|
$10.00
|
| |
$11.00
|
| |
$12.00
|
| |
$13.00
|
| |
$14.00
|
| |
$15.00
|
| |
$16.00
|
| |
$17.00
|
| |
$18.00
|
| |||||||||||||||||||||||||||||
57 months
|
| | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.365 | | |
54 months
|
| | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.365 | | |
51 months
|
| | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.365 | | |
48 months
|
| | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.365 | | |
45 months
|
| | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.365 | | |
42 months
|
| | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.364 | | |
39 months
|
| | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.364 | | |
36 months
|
| | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.364 | | |
33 months
|
| | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.364 | | |
30 months
|
| | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.364 | | |
27 months
|
| | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.364 | | |
24 months
|
| | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.364 | | |
21 months
|
| | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.364 | | |
18 months
|
| | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.363 | | |
15 months
|
| | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.363 | | |
12 months
|
| | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.363 | | |
9 months
|
| | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.362 | | |
6 months
|
| | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.362 | | |
3 months
|
| | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months
|
| | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | |
Units
|
| |
Class A common stock
|
| |
Warrants
|
| |||||||||||||||||||||||||||
Quarter Ended
|
| |
High
|
| |
Low
|
| |
High
|
| |
Low
|
| |
High
|
| |
Low
|
| ||||||||||||||||||
2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
September 30(1) | | | |
|
33.90
|
| | | |
|
10.76
|
| | | |
|
29.01
|
| | | |
|
10.24
|
| | | |
|
12.82
|
| | | |
|
2.11
|
| |
June 30
|
| | |
|
11.0
|
| | | |
|
10.00
|
| | | |
|
10.30
|
| | | |
|
9.85
|
| | | |
|
1.76
|
| | | |
|
.50
|
| |
March 31
|
| | |
|
10.65
|
| | | |
|
9.71
|
| | | |
|
10.40
|
| | | |
|
9.50
|
| | | |
|
1.20
|
| | | |
|
.25
|
| |
2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
December 31
|
| | |
|
10.25
|
| | | |
|
10.18
|
| | | |
|
9.95
|
| | | |
|
9.90
|
| | | |
|
.88
|
| | | |
|
.64
|
| |
September 30
|
| | |
|
10.20
|
| | | |
|
10.05
|
| | | |
|
10.08
|
| | | |
|
10.01
|
| | | |
|
.85
|
| | | |
|
.68
|
| |
June 30(2) | | | |
|
10.10
|
| | | |
|
10.00
|
| | | |
|
9.81
|
| | | |
|
9.71
|
| | | |
|
1.05
|
| | | |
|
.75
|
| |
March 31(3) | | | |
|
10.02
|
| | | |
|
9.87
|
| | | |
|
N/A
|
| | | |
|
N/A
|
| | | |
|
N/A
|
| | | |
|
N/A
|
| |
| DiamondPeak Holdings Corp. | | | | | | | |
| For the six months ended June 30, 2020 | | | | | | | |
| Unaudited Financial Statements | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
|
For the Year Ended December 31, 2019 and For the Period from November 13, 2018 (Inception) through December 31, 2018
|
| | | | | | |
| Financial Statements | | | | | | | |
| | | | | F-19 | | | |
| | | | | F-20 | | | |
| | | | | F-21 | | | |
| | | | | F-22 | | | |
| | | | | F-23 | | | |
| | | | | F-24 | | | |
| Lordstown Motors Corp. | | | |||||
| For the six months ended June 30, 2020 | | | |||||
| Unaudited Financial Statements | | | | | | | |
| | | | | F-36 | | | |
| | | | | F-37 | | | |
| | | | | F-38 | | | |
| | | | | F-39 | | | |
| | | | | F-40 | | | |
| For the Period From April 30, 2019 through December 31, 2019 | | | | | | | |
| Financial Statements | | | | | | | |
| | | | | F-47 | | | |
| | | | | F-49 | | | |
| | | | | F-50 | | | |
| | | | | F-51 | | | |
| | | | | F-52 | | | |
| | | | | F-53 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 857,071 | | | | | $ | 1,070,048 | | |
Prepaid income taxes
|
| | | | — | | | | | | 52,949 | | |
Prepaid expenses
|
| | | | 83,750 | | | | | | 97,125 | | |
Total Current Assets
|
| | | | 940,821 | | | | | | 1,220,122 | | |
Marketable securities held in Trust Account
|
| | | | 284,335,009 | | | | | | 283,581,860 | | |
Total Assets
|
| | | $ | 285,275,830 | | | | | $ | 284,801,982 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 430,248 | | | | | $ | 289,767 | | |
Income taxes payable
|
| | | | 143,028 | | | | | | — | | |
Total Current Liabilities
|
| | | | 573,276 | | | | | | 289,767 | | |
Deferred underwriting fee payable
|
| | | | 9,800,000 | | | | | | 9,800,000 | | |
Total Liabilities
|
| | | | 10,373,276 | | | | | | 10,089,767 | | |
Commitments and contingencies (Note 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 26,990,255 and 26,971,221 shares at $10.00 per share at June 30, 2020 and December 31, 2019, respectively
|
| | | | 269,902,550 | | | | | | 269,712,210 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized, none issued and outstanding
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 1,009,745 and 1,028,779 shares issued and outstanding (excluding 26,990,255 and 26,971,221 shares subject to possible redemption) at June 30, 2020 and December 31, 2019, respectively
|
| | | | 101 | | | | | | 103 | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized;
7,000,000 shares issued and outstanding at June 30, 2020 and December 31, 2019 |
| | | | 700 | | | | | | 700 | | |
Additional paid-in capital
|
| | | | 1,794,313 | | | | | | 1,984,651 | | |
Retained earnings
|
| | | | 3,204,890 | | | | | | 3,014,551 | | |
Total Stockholders’ Equity
|
| | | | 5,000,004 | | | | | | 5,000,005 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 285,275,830 | | | | | $ | 284,801,982 | | |
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
General and administrative expenses
|
| | | $ | 484,621 | | | | | $ | 153,798 | | | | | $ | 646,883 | | | | | $ | 242,061 | | |
Loss from operations
|
| | | | (484,621) | | | | | | (153,798) | | | | | | (646,883) | | | | | | (242,061) | | |
Other income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 115,042 | | | | | | 1,577,282 | | | | | | 1,033,199 | | | | | | 2,008,496 | | |
(Loss) income before provision for income taxes
|
| | | | (369,579) | | | | | | 1,423,484 | | | | | | 386,316 | | | | | | 1,766,435 | | |
Provision for income taxes
|
| | | | (13,664) | | | | | | (320,729) | | | | | | (195,977) | | | | | | (400,784) | | |
Net (loss) income
|
| | | $ | (383,243) | | | | | $ | 1,102,755 | | | | | $ | 190,339 | | | | | $ | 1,365,651 | | |
Weighted average shares outstanding of Class A redeemable common stock
|
| | | | 28,000,000 | | | | | | 28,000,000 | | | | | | 28,000,000 | | | | | | 27,644,068 | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.00 | | | | | $ | 0.04 | | | | | $ | 0.03 | | | | | $ | 0.05 | | |
Weighted average shares outstanding of Class B non-redeemable common stock
|
| | | | 7,000,000 | | | | | | 7,000,000 | | | | | | 7,000,000 | | | | | | 7,000,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.06) | | | | | $ | (0.01) | | | | | $ | (0.08) | | | | | $ | (0.02) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2020
|
| | | | 1,028,779 | | | | | $ | 103 | | | | | | 7,000,000 | | | | | $ | 700 | | | | | $ | 1,984,651 | | | | | $ | 3,014,551 | | | | | $ | 5,000,005 | | |
Change in value of common stock subject to possible
redemption |
| | | | (57,358) | | | | | | (6) | | | | | | — | | | | | | — | | | | | | (573,574) | | | | | | — | | | | | | (573,580) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 573,582 | | | | | | 573,582 | | |
Balance – March 31, 2020 (unaudited)
|
| | | | 971,421 | | | | | | 97 | | | | | | 7,000,000 | | | | | | 700 | | | | | $ | 1,411,077 | | | | | | 3,588,133 | | | | | | 5,000,007 | | |
Change in value of common stock subject to possible
redemption |
| | | | 38,324 | | | | | | 4 | | | | | | — | | | | | | — | | | | | | 383,236 | | | | | | — | | | | | | 383,240 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (383,243) | | | | | | (383,243) | | |
Balance – June 30, 2020 (unaudited)
|
| | | | 1,009,745 | | | | | $ | 101 | | | | | | 7,000,000 | | | | | $ | 700 | | | | | $ | 1,794,313 | | | | | $ | 3,204,890 | | | | | $ | 5,000,004 | | |
|
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid in Capital |
| |
(Accumulated
Deficit) Retained Earnings |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2019(1)
|
| | | | — | | | | | $ | — | | | | | | 7,187,500 | | | | | $ | 719 | | | | | $ | 24,281 | | | | | $ | (1,650) | | | | | $ | 23,350 | | |
Sale of 28,000,000 Units, net of underwriting discounts and offering
costs |
| | | | 28,000,000 | | | | | | 2,800 | | | | | | — | | | | | | — | | | | | | 264,067,038 | | | | | | — | | | | | | 264,069,838 | | |
Sale of 5,066,667 Private Placement Warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,600,000 | | | | | | — | | | | | | 7,600,000 | | |
Forfeiture of 812,500 shares of Class B common stock by Sponsor
|
| | | | — | | | | | | — | | | | | | (812,500) | | | | | | (81) | | | | | | 81 | | | | | | — | | | | | | — | | |
Issuance of Class B common stock to Anchor Investor
|
| | | | — | | | | | | — | | | | | | 812,500 | | | | | | 81 | | | | | | 2,745 | | | | | | — | | | | | | 2,826 | | |
Forfeiture of 187,500 shares of Class B common stock by Sponsor
|
| | | | — | | | | | | — | | | | | | (187,500) | | | | | | (19) | | | | | | 19 | | | | | | — | | | | | | — | | |
Common stock subject to possible redemption
|
| | | | (26,695,890) | | | | | | (2,670) | | | | | | — | | | | | | — | | | | | | (266,956,230) | | | | | | — | | | | | | (266,958,900) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 262,896 | | | | | | 262,896 | | |
Balance – March 31, 2019 (unaudited)
|
| | | | 1,304,110 | | | | | $ | 130 | | | | | | 7,000,000 | | | | | $ | 700 | | | | | $ | 4,737,934 | | | | | $ | 261,246 | | | | | $ | 5,000,010 | | |
Change in value of common stock subject to
possible redemption |
| | | | (110,276) | | | | | | (11) | | | | | | — | | | | | | — | | | | | | (1,102,749) | | | | | | — | | | | | | (1,102,760) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,102,755 | | | | | | 1,102,755 | | |
Balance – June 30, 2019 (unaudited)
|
| | | | 1,193,834 | | | | | $ | 119 | | | | | | 7,000,000 | | | | | $ | 700 | | | | | $ | 3,635,185 | | | | | $ | 1,364,001 | | | | | $ | 5,000,005 | | |
|
| | |
Six Months Ended
June 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 190,339 | | | | | $ | 1,365,651 | | |
Adjustments to reconcile net income to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in the Trust Account
|
| | | | (1,033,199) | | | | | | (2,008,496) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid income taxes
|
| | | | 52,949 | | | | | | — | | |
Prepaid expenses
|
| | | | 13,375 | | | | | | (166,250) | | |
Accounts payable and accrued expenses
|
| | | | 140,481 | | | | | | 117,470 | | |
Income taxes payable
|
| | | | 143,028 | | | | | | 36,784 | | |
Net cash used in operating activities
|
| | | | (493,027) | | | | | | (654,841) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Cash invested in Trust Account
|
| | | | — | | | | | | (280,000,000) | | |
Cash withdrawn from Trust Account to pay franchise taxes and income taxes
|
| | | | 280,050 | | | | | | 364,000 | | |
Net cash provided by (used in) investing activities
|
| | | | 280,050 | | | | | | (279,636,000) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B common stock
|
| | | | — | | | | | | 2,826 | | |
Proceeds from sale of Units, net of underwriting fee paid
|
| | | | — | | | | | | 274,400,000 | | |
Proceeds from sale of Private Placement Warrants
|
| | | | — | | | | | | 7,600,000 | | |
Proceeds from promissory note – related party
|
| | | | — | | | | | | 185,970 | | |
Repayment of promissory note – related party
|
| | | | — | | | | | | (223,470) | | |
Payment of offering costs
|
| | | | — | | | | | | (487,662) | | |
Net cash provided by financing activities
|
| | | | — | | | | |
|
281,477,664
|
| |
Net Change in Cash
|
| | | | (212,977) | | | | | | 1,186,823 | | |
Cash – Beginning of period
|
| | | | 1,070,048 | | | | | | 20,000 | | |
Cash – End of period
|
| | | $ | 857,071 | | | | | $ | 1,206,823 | | |
Supplementary cash flow information: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | — | | | | | $ | 364,000 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | — | | | | | $ | 266,693,780 | | |
Change in value of common stock subject to possible redemption
|
| | | $ | 190,340 | | | | | $ | 1,367,880 | | |
Deferred underwriting fee payable
|
| | | $ | — | | | | | $ | 9,800,000 | | |
Description
|
| |
Level
|
| |
June 30,
2020 |
| |
December 31,
2019 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund
|
| | | | 1 | | | | | $ | 284,335,009 | | | | | $ | 283,581,860 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 1,070,048 | | | | | $ | 20,000 | | |
Prepaid income taxes
|
| | | | 52,949 | | | | | | — | | |
Prepaid expenses
|
| | | | 97,125 | | | | | | — | | |
Total Current Assets
|
| | | | 1,220,122 | | | | | | 20,000 | | |
Deferred offering costs
|
| | | | — | | | | | | 100,000 | | |
Marketable securities held in Trust Account
|
| | | | 283,581,860 | | | | | | — | | |
Total Assets
|
| | | $ | 284,801,982 | | | | | $ | 120,000 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 289,767 | | | | | $ | 1,650 | | |
Accrued offering costs
|
| | | | — | | | | | | 57,500 | | |
Promissory note – related party
|
| | | | — | | | | | | 37,500 | | |
Total Current Liabilities
|
| | | | 289,767 | | | | | | 96,650 | | |
Deferred underwriting fee payable
|
| | | | 9,800,000 | | | | | | — | | |
Total Liabilities
|
| | | | 10,089,767 | | | | | | 96,650 | | |
Commitments and contingencies (Note 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 26,971,221 shares at $10.00 per share
|
| | | | 269,712,210 | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized, none issued
and outstanding |
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized;
1,028,779 and no shares issued and outstanding (excluding 26,971,221 and no shares subject to possible redemption) at December 31, 2019 and 2018, respectively |
| | | | 103 | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 7,000,000 and 7,187,500 shares issued and outstanding at December 31, 2019 and 2018, respectively
|
| | | | 700 | | | | | | 719 | | |
Additional paid-in capital
|
| | | | 1,984,651 | | | | | | 24,281 | | |
Retained earnings (accumulated deficit)
|
| | | | 3,014,551 | | | | | | (1,650) | | |
Total Stockholders’ Equity
|
| | | | 5,000,005 | | | | | | 23,350 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 284,801,982 | | | | | $ | 120,000 | | |
| | |
Year Ended
December 31, 2019 |
| |
For the
Period from November 13, 2018 (Inception) Through December 31, 2018 |
| ||||||
General and administrative expenses
|
| | | $ | 618,608 | | | | | $ | 1,650 | | |
Loss from operations
|
| | | | (618,608) | | | | | | (1,650) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 4,547,860 | | | | | | — | | |
Income (loss) before provision for income taxes
|
| | | | 3,929,252 | | | | | | (1,650) | | |
Provision for income taxes
|
| | | | (913,051) | | | | | | — | | |
Net income (loss)
|
| | | $ | 3,016,201 | | | | | $ | (1,650) | | |
Weighted average shares outstanding of Class A redeemable common stock
|
| | | | 27,860,927 | | | | | | — | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.12 | | | | | $ | — | | |
Weighted average shares outstanding of Class B non-redeemable common stock
|
| | | | 7,000,000 | | | | | | 6,250,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.06) | | | | | $ | (0.00) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – November 13, 2018 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to
Sponsor(1) |
| | | | — | | | | | | — | | | | | | 7,187,500 | | | | | | 719 | | | | | | 24,281 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,650) | | | | | | (1,650) | | |
Balance – December 31, 2018
|
| | | | — | | | | | | — | | | | | | 7,187,500 | | | | | | 719 | | | | | | 24,281 | | | | | | (1,650) | | | | | | 23,350 | | |
Sale of 28,000,000 Units, net of underwriting
discounts and offering costs |
| | | | 28,000,000 | | | | | | 2,800 | | | | | | — | | | | | | — | | | | | | 264,067,038 | | | | | | — | | | | | | 264,069,838 | | |
Sale of 5,066,667 Private Placement
Warrants |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,600,000 | | | | | | — | | | | | | 7,600,000 | | |
Forfeiture of 812,500 shares of Class B common stock by Sponsor
|
| | | | — | | | | | | — | | | | | | (812,500) | | | | | | (81) | | | | | | 81 | | | | | | — | | | | | | — | | |
Issuance of Class B common stock to Anchor Investor
|
| | | | — | | | | | | — | | | | | | 812,500 | | | | | | 81 | | | | | | 2,745 | | | | | | — | | | | | | 2,826 | | |
Forfeiture of 187,500 shares of Class B common stock by Sponsor
|
| | | | — | | | | | | — | | | | | | (187,500) | | | | | | (19) | | | | | | 19 | | | | | | — | | | | | | — | | |
Common stock subject to possible redemption
|
| | | | (26,971,221) | | | | | | (2,697) | | | | | | — | | | | | | — | | | | | | (269,709,513) | | | | | | — | | | | | | (269,712,210) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,016,201 | | | | | | 3,016,201 | | |
Balance – December 31, 2019
|
| | | | 1,028,779 | | | | | $ | 103 | | | | | | 7,000,000 | | | | | $ | 700 | | | | | $ | 1,984,651 | | | | | $ | 3,014,551 | | | | | $ | 5,000,005 | | |
|
| | |
Year Ended
December 31, 2019 |
| |
For the
Period from November 13, 2018 (Inception) Through December 31, 2018 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 3,016,201 | | | | | $ | (1,650) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in the Trust Account
|
| | | | (4,547,860) | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid income taxes
|
| | | | (52,949) | | | | | | — | | |
Prepaid expenses
|
| | | | (97,125) | | | | | | — | | |
Accounts payable and accrued expenses
|
| | | | 288,117 | | | | | | 1,650 | | |
Net cash used in operating activities
|
| | |
|
(1,393,616)
|
| | | | | — | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Cash invested in Trust Account
|
| | | | (280,000,000) | | | | | | — | | |
Cash withdrawn from Trust Account to pay income taxes
|
| | | | 966,000 | | | | | | — | | |
Net cash used in investing activities
|
| | |
|
(279,034,000)
|
| | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B common stock
|
| | | | 2,826 | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting fee paid
|
| | | | 274,400,000 | | | | | | — | | |
Proceeds from sale of Private Placement Warrants
|
| | | | 7,600,000 | | | | | | — | | |
Proceeds from promissory note – related party
|
| | | | 185,970 | | | | | | — | | |
Repayment of promissory note – related party
|
| | | | (223,470) | | | | | | — | | |
Payment of offering costs
|
| | | | (487,662) | | | | | | (5,000) | | |
Net cash provided by financing activities
|
| | | | 281,477,664 | | | | | | 20,000 | | |
Net Change in Cash
|
| | | | 1,050,048 | | | | | | 20,000 | | |
Cash – Beginning of period
|
| | | | 20,000 | | | | | | — | | |
Cash – End of period
|
| | | $ | 1,070,048 | | | | | $ | 20,000 | | |
Supplementary cash flow information: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 966,000 | | | | | $ | — | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Value of common stock subject to possible redemption
|
| | | $ | 269,712,210 | | | | | $ | — | | |
Deferred underwriting fee payable
|
| | | $ | 9,800,000 | | | | | $ | — | | |
Offering costs included in accrued offering costs
|
| | | $ | — | | | | | $ | 57,500 | | |
Payment of offering costs through promissory note
|
| | | $ | — | | | | | $ | 37,500 | | |
| | |
December 31,
2019 |
| |||
Deferred tax asset | | | | | | | |
Organizational and start-up costs
|
| | | $ | 87,897 | | |
Total deferred tax asset
|
| | | | 87,897 | | |
Valuation allowance
|
| | | | (87,897) | | |
Deferred tax asset, net of valuation allowance
|
| | | $ | — | | |
| | |
December 31,
2019 |
| |||
Federal | | | | | | | |
Current
|
| | | $ | 913,051 | | |
Deferred
|
| | | | (87,897) | | |
State | | | | | | | |
Current
|
| | | | — | | |
Deferred
|
| | | | — | | |
Change in valuation allowance
|
| | | | 87,897 | | |
Income tax provision
|
| | | $ | 913,051 | | |
|
Statutory federal income tax rate
|
| | | | 21.0% | | |
|
State taxes, net of federal tax benefit
|
| | | | 0.0% | | |
|
Change in valuation allowance
|
| | | | 2.2% | | |
|
Income tax provision
|
| | | | 23.2% | | |
Description
|
| |
Level
|
| |
December 31,
2019 |
| ||||||
Assets: | | | | | | | | | | | | | |
Marketable securities held in Trust Account — U.S. Treasury Securities Money Market Fund
|
| | | | 1 | | | | | $ | 283,581,860 | | |
| | |
(Unaudited)
As of June 30, 2020 |
| |
As of
December 31, 2019 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 454,827 | | | | | $ | 2,159,217 | | |
Accounts receivable
|
| | | | 12,500 | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | 91,238 | | | | | | — | | |
Total current assets
|
| | | $ | 558,565 | | | | | $ | 2,159,217 | | |
Property, plant and equipment
|
| | | | 21,741,328 | | | | | | 20,275,729 | | |
Intangible assets
|
| | | | 11,111,100 | | | | | | 11,111,100 | | |
Restricted cash
|
| | | | 130,009 | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 33,541,002 | | | | | $ | 33,546,046 | | |
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 5,616,032 | | | | | $ | 1,801,655 | | |
Accrued and other current liabilities
|
| | | | 254,857 | | | | | | 414,719 | | |
Due to related party
|
| | | | 5,938,455 | | | | | | 2,630,907 | | |
Related party notes payable
|
| | | | 24,271,244 | | | | | | 20,142,466 | | |
Total current liabilities
|
| | | $ | 36,080,588 | | | | | $ | 24,989,747 | | |
Note payable
|
| | | | 1,014,652 | | | | | | — | | |
Total liabilities
|
| | | $ | 37,095,240 | | | | | $ | 24,989,747 | | |
COMMITMENTS AND CONTINGENCIES (NOTE 11) | | | | | | | | | | | | | |
Stockholders’ equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 10,000,000 shares authorized;
1,305,982 and 1,221,853 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively |
| | | | 128 | | | | | | 122 | | |
Additional paid in capital
|
| | | | 26,657,475 | | | | | | 18,946,691 | | |
Accumulated deficit
|
| | | | (30,211,841) | | | | | | (10,390,514) | | |
Total stockholders’ (deficit) equity
|
| | | | (3,554,238) | | | | | | 8,556,299 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT)
EQUITY |
| | | $ | 33,541,002 | | | | | $ | 33,546,046 | | |
| | |
Six months ended
June 30, 2020 |
| |
For the period
from April 30, 2019 to June 30, 2019 |
| ||||||
Net sales
|
| | | $ | — | | | | | $ | — | | |
Operating expenses | | | | | | | | | | | | | |
Selling and administrative expenses
|
| | | | 8,677,026 | | | | | | — | | |
Research and development expenses
|
| | | | 13,254,225 | | | | | | — | | |
Total operating expenses
|
| | | | 21,931,251 | | | | | | — | | |
Gain on sale of assets
|
| | | | 2,345,996 | | | | | | | | |
Loss from operations
|
| | | | (19,585,255) | | | | | | — | | |
Other income (expense)
|
| | | | | | | | | | | | |
Other income
|
| | | | 125,946 | | | | | | | | |
Interest expense
|
| | | | (362,018) | | | | | | — | | |
Loss before income taxes
|
| | | | (19,821,327) | | | | | | — | | |
Income tax expense
|
| | | | — | | | | | | — | | |
Net loss
|
| | | $ | (19,821,327) | | | | | $ | — | | |
Loss per share attributable to common shareholders | | | | | | | | | | | | | |
Basic & Diluted
|
| | | | (15.32) | | | | | | — | | |
Weighted average number of common shares outstanding | | | | | | | | | | | | | |
Basic & Diluted
|
| | | | 1,293,660 | | | | | | — | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance at December 31, 2019
|
| | | | 1,221,853 | | | | | $ | 122 | | | | | $ | 18,946,691 | | | | | $ | (10,390,514) | | | | | $ | 8,556,299 | | |
Issuance of common stock
|
| | | | 84,129 | | | | | | 6 | | | | | | 6,396,493 | | | | | | — | | | | | | 6,396,499 | | |
Stock compensation
|
| | | | — | | | | | | — | | | | | | 1,314,291 | | | | | | — | | | | | | 1,314,291 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (19,821,327) | | | | | | (19,821,327) | | |
Balance at June 30, 2020
|
| | | | 1,305,982 | | | | | $ | 128 | | | | | $ | 26,657,475 | | | | | $ | (30,211,841) | | | | | $ | (3,554,238) | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Inception at April 30, 2019
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of common stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance at June 30, 2019
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Six months ended
June 30, 2020 |
| |
For the period from
April 30, 2019 to June 30, 2019 |
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (19,821,327) | | | | | $ | — | | |
Adjustments to reconcile net loss to cash used by operating activities:
|
| | | | | | | | | | | | |
Stock-based compensation
|
| | | | 1,314,291 | | | | | | — | | |
Interest expense
|
| | | | 350,000 | | | | | | | | |
Gain on disposal of fixed assets
|
| | | | (2,345,996) | | | | | | | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivables
|
| | | | (12,500) | | | | | | — | | |
Prepaid expenses
|
| | | | (91,238) | | | | | | — | | |
Accounts payable, Accrued liabilities, and Due to related party
|
| | | | 6,962,062 | | | | | | — | | |
Net cash used by operating activities
|
| | | | (13,644,708) | | | | | | — | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchases of capital assets
|
| | | | (1,202,821) | | | | | | — | | |
Sale of capital assets
|
| | | | 2,395,996 | | | | | | — | | |
Net cash provided by investing activities
|
| | | | 1,193,175 | | | | | | — | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Notes payable
|
| | | | 1,014,652 | | | | | | — | | |
Related party notes payable
|
| | | | 3,466,000 | | | | | | | | |
Issuance of common stock
|
| | | | 6,396,500 | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 10,877,152 | | | | | | — | | |
Net decrease in cash and cash equivalents and restricted cash
|
| | | | (1,574,381) | | | | | | — | | |
Cash and cash equivalents and restricted cash at beginning of period
|
| | | | 2,159,217 | | | | | | — | | |
Cash and cash equivalents and restricted cash at end of period
|
| | | $ | 584,836 | | | | | $ | — | | |
| | |
June 30,
2020 |
| |
June 30,
2019 |
| ||||||
Risk-free interest rate
|
| | | | 1.59% | | | | | | — | | |
Expected term (life) of options (in years)
|
| | | | 10.0 | | | | | | — | | |
Expected dividends
|
| | | | 0% | | | | | | — | | |
Expected volatility
|
| | | | 50% | | | | | | — | | |
| | |
Number of
Options |
| |
Weighted Average
Grant Date Fair Value per Option |
| |
Weighted Average
Exercise Price |
| |
Weighted Average
Remaining Contractual Term (Years) |
| ||||||||||||
Outstanding, beginning of period
|
| | | | 80,374 | | | | | $ | 60.78 | | | | | $ | 100 | | | | | | 9.9 | | |
Granted
|
| | | | 18,282 | | | | | | 60.45 | | | | | | 100 | | | | | | 9.6 | | |
Exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | |
Forfeited
|
| | | | (1,500) | | | | | | 60.74 | | | | | | 100 | | | | | | 9.6 | | |
Expired
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | |
Outstanding, end of period
|
| | | | 97,156 | | | | | $ | 60.72 | | | | | $ | 100 | | | | | | 9.4 | | |
|
Range of Exercise Prices
|
| |
Number
|
| |
Weighted Average
Remaining Life |
| |
Weighted Average
Exercise Price |
| |||||||||
|
$100
|
| | | | 24,753 | | | | | | 9.8 | | | | | $ | 100 | | |
| | |
Period ended
June 30, 2020 |
| |||
Net loss after tax attributable to common stock-holders
|
| | | | (19,821,327) | | |
Basic and diluted weighted average shares outstanding
|
| | | | 1,293,660 | | |
Net loss per unit attributable to common stockholder, basic and diluted
|
| | | | (15.32) | | |
| | |
As of December 31,
2019 |
| |||
ASSETS | | | | | | | |
Current Assets | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,159,217 | | |
Total current assets
|
| | | | 2,159,217 | | |
Property, plant and equipment
|
| | | | 20,275,729 | | |
Intangible assets
|
| | | | 11,111,100 | | |
TOTAL ASSETS
|
| | | $ | 33,546,046 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
Current Liabilities | | | | | | | |
Accounts payable
|
| | | $ | 1,801,655 | | |
Accrued and other current liabilities
|
| | | | 414,719 | | |
Due to related party
|
| | | | 2,630,907 | | |
Related party notes payable
|
| | | | 20,142,466 | | |
Total current liabilities
|
| | | | 24,989,747 | | |
Total liabilities
|
| | | | 24,989,747 | | |
COMMITMENTS AND CONTINGENCIES (NOTE 11) | | | | | | | |
Stockholders’ equity | | | | | | | |
Common stock, $0.0001 par value, 10,000,000 shares authorized 1,221,853 shares issued and outstanding
|
| | | | 122 | | |
Additional paid in capital
|
| | | | 18,946,691 | | |
Accumulated deficit
|
| | | | (10,390,514) | | |
Total stockholders’ equity
|
| | | | 8,556,299 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 33,546,046 | | |
| | |
For the Period From
April 30, 2019 to December 31, 2019 |
| |||
Net sales
|
| | | $ | — | | |
Operating expenses
|
| | | | — | | |
Selling and administrative expenses
|
| | | | 4,525,745 | | |
Research and development expenses
|
| | | | 5,864,769 | | |
Total operating expenses
|
| | | | 10,390,514 | | |
Loss from operations
|
| | | | (10,390,514) | | |
Loss before income taxes
|
| | | | (10,390,514) | | |
Income tax expense
|
| | | | — | | |
Net loss
|
| | | $ | (10,390,514) | | |
Loss per share attributable to common shareholders | | | | | | | |
Basic & Diluted
|
| | | | (9.76) | | |
Weighted average number of common shares outstanding | | | | | | | |
Basic & Diluted
|
| | | | 1,064,150 | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Inception at April 30, 2019
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of common stock
|
| | | | 1,221,853 | | | | | | 122 | | | | | | 18,604,979 | | | | | | — | | | | | | 18,605,101 | | |
Stock compensation
|
| | | | — | | | | | | — | | | | | | 341,712 | | | | | | — | | | | | | 341,712 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (10,390,514) | | | | | | (10,390,514) | | |
Balance at December 31, 2019
|
| | | | 1,221,853 | | | | | $ | 122 | | | | | $ | 18,946,691 | | | | | $ | (10,390,514) | | | | | $ | 8,556,299 | | |
| | |
For the Period
April 30, 2019 to December 31, 2019 |
| |||
Cash flows from operating activities | | | | | | | |
Net loss
|
| | | $ | (10,390,514) | | |
Adjustments to reconcile net loss to cash used by operating activities:
|
| | | | | | |
Stock-based compensation
|
| | | | 341,712 | | |
Changes in assets and liabilities:
|
| | | | | | |
Accounts payable, Accrued and other current liabilities, and Due to related party
|
| | | | 4,847,281 | | |
Net cash used by operating activities
|
| | | | (5,201,521) | | |
Cash flows from investing activities | | | | | | | |
Purchase of property, plant and equipment
|
| | | | (133,263) | | |
Net cash used by investing activities
|
| | | | (133,263) | | |
Cash flows from financing activities | | | | | | | |
Issuance of common stock
|
| | | | 7,494,001 | | |
Net cash provided by financing activities
|
| | | | 7,494,001 | | |
Net increase in cash and cash equivalents
|
| | | | 2,159,217 | | |
Beginning cash and cash equivalents
|
| | | | — | | |
Ending cash and cash equivalents
|
| | | $ | 2,159,217 | | |
Supplemental Disclosures of non-cash activities | | | | | | | |
Capital assets acquired with notes payable
|
| | | $ | 20,142,466 | | |
Common stock issued in exchange for intangible assets
|
| | | $ | 11,111,100 | | |
| | |
December 31,
2019 |
|
Risk-free interest rate
|
| |
1.73 – 1.93%
|
|
Expected term (life) of options (in years)
|
| |
10.0
|
|
Expected dividends
|
| |
0%
|
|
Expected volatility
|
| |
50%
|
|
| | |
Number of
Options |
| |
Weighted
Average Grant Date Fair Value per Option |
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Remaining Contractual Term (Years) |
| ||||||||||||
Outstanding, beginning of period
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Granted
|
| | | | 80,374 | | | | | $ | 60.78 | | | | | | 100 | | | | | | 9.9 | | |
Exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Expired
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Outstanding, end of period
|
| | | | 80,374 | | | | | $ | 60.78 | | | | | | 100 | | | | | | 9.9 | | |
|
Range of
Exercise Prices |
| |
Number
|
| |
Weighted
Average Remaining Contractual Term |
| |
Weighted
Average Exercise Price |
| |||||||||
|
$100
|
| | | | 21,277 | | | | | | 9.8 | | | | | $ | 100 | | |
| | |
Period ended
December 31, 2019 |
| |||
Net loss after tax attributable to common stockholders
|
| | | | (10,390,514) | | |
Basic and diluted weighted average shares outstanding
|
| | | | 1,064,150 | | |
Net loss per unit attributable to common stockholder, basic and diluted
|
| | | | (9.76) | | |
| | |
Derived Tax
Rates |
| |
Period ended
December 31, 2019 |
| |||
Federal tax benefit as statutory rates
|
| |
(21.0)%
|
| | | $ | (2,182,008) | | |
Stock based compensation
|
| |
0.2
|
| | | | 21,635 | | |
Other permanent differences and credits
|
| |
0.0
|
| | | | 584 | | |
Change in valuation allowance
|
| |
20.8
|
| | | | 2,159,789 | | |
Total tax benefit
|
| |
0.0%
|
| | | $ | — | | |
| | |
December 31, 2019
|
| |||
Deferred tax assets: | | | | | | | |
Non-qualified stock options
|
| | | $ | 50,125 | | |
Net operating losses
|
| | | | 2,109,664 | | |
Total deferred tax assets
|
| | | | 2,159,789 | | |
Valuation allowance
|
| | | | (2,159,789) | | |
Total deferred tax assets, net of valuation allowance
|
| | | $ | — | | |
| | |
Operating leases
|
| |||
2020
|
| | | $ | 17,500 | | |
2021
|
| | | | | | |
2022
|
| | | | — | | |
2023
|
| | | | — | | |
2024
|
| | | | — | | |
Thereafter
|
| | | | — | | |
Total minimum lease payments
|
| | | $ | 17,500 | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-3 | | |
| | | | | A-3 | | | |
| | | | | A-3 | | | |
| | | | | A-3 | | | |
| | | | | A-3 | | | |
| | | | | A-4 | | | |
| | | | | A-4 | | | |
| | | | | A-4 | | | |
| | | | | A-4 | | | |
| | | | | A-5 | | | |
| | | | | A-5 | | | |
| | | | | A-5 | | | |
| | | | | A-6 | | | |
| | | | | A-6 | | | |
| | | | | A-6 | | |
| | | | | A-6 | | | |
| | | | | A-7 | | | |
| | | | | A-7 | | | |
| | | | | A-8 | | | |
| | | | | A-8 | | | |
| | | | | A-9 | | | |
| | | | | A-9 | | | |
| | | | | A-9 | | | |
| | | | | A-9 | | | |
| | | | | A-11 | | | |
| | | | | A-11 | | | |
| | | | | A-11 | | |
| | | | | A-14 | | | |
| | | | | A-15 | | | |
| | | | | A-15 | | | |
| | | | | A-16 | | | |
| | | | | A-17 | | | |
| | | | | A-17 | | | |
| | | | | A-18 | | | |
| | | | | A-18 | | | |
| | | | | A-18 | | | |
| | | | | A-18 | | | |
| | | | | A-19 | | | |
| | | | | A-19 | | |
| | | | | A-20 | | | |
| | | | | A-20 | | | |
| | | | | A-21 | | | |
| | | | | A-21 | | | |
| | | | | A-22 | | | |
| | | | | A-23 | | | |
| | | | | A-23 | | | |
| | | | | A-23 | | | |
| | | | | A-24 | | | |
| | | | | A-24 | | | |
| | | | | A-24 | | | |
| | | | | A-24 | | | |
| | | | | A-24 | | | |
| | | | | A-24 | | | |
| | | | | A-25 | | | |
| | | | | A-25 | | |
| | | | | A-26 | | | |
| | | | | A-28 | | | |
| | | | | A-29 | | | |
| | | | | A-30 | | | |
| | | | | A-30 | | | |
| | | | | A-30 | | | |
| | | | | A-30 | | | |
| | | | | A-31 | | | |
| | | | | A-31 | | |
| | | | | A-31 | | | |
| | | | | A-32 | | | |
| | | | | A-32 | | | |
| | | | | A-33 | | | |
| | | | | A-33 | | | |
| | | | | A-34 | | | |
| | | | | A-34 | | | |
| | | | | A-36 | | | |
| | | | | A-37 | | | |
| | | | | A-37 | | | |
| | | | | A-37 | | | |
| | | | | A-37 | | | |
| | | | | A-38 | | | |
| | | | | A-38 | | |
| | | | | A-38 | | | |
| | | | | A-38 | | | |
| | | | | A-39 | | | |
| | | | | A-40 | | |
| | | | | A-40 | | | |
| | | | | A-41 | | |
| | | | | A-41 | | | |
| | | | | A-42 | | | |
| | | | | A-42 | | | |
| | | | | A-44 | | | |
| | | | | A-45 | | | |
| | | | | A-45 | | | |
| | | | | A-45 | | |
| | | | | A-46 | | | |
| | | | | A-46 | | | |
| | | | | A-46 | | | |
| | | | | A-46 | | | |
| | | | | A-47 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-49 | | | |
| | | | | A-49 | | | |
| | | | | A-49 | | |
| Exhibits | | | | |
| Exhibit A | | | Definitions | |
| Exhibit B | | | Support Agreements | |
| Exhibit C | | | Registration Rights and Lock-Up Agreement | |
| Exhibit D | | | Amended and Restated Parent Charter | |
| Exhibit E | | | Surviving Corporation Charter | |
| Exhibit F | | | Amended and Restated Bylaws of Surviving Corporation | |
| Schedules | | | | |
| Schedule 1.6 | | | Directors of Parent | |
| Schedule 3.2 | | | Stockholders | |
| Schedule 6.2(h) | | | Transaction Expenses | |
| Schedule A-1 | | | Initial Stockholder Consent | |
| Schedule A-2 | | | Terminating Agreements | |
| Schedule A-3 | | | Key Contracts | |
| Schedule A-4 | | | Key Employees | |
| | | | DIAMONDPEAK HOLDINGS CORP. | | |||
| | | | By: | | |
/s/ David T. Hamamoto
Name: David T. Hamamoto
Title:
Chief Executive Officer and Chairman
|
|
| | | | DPL MERGER SUB CORP. | | |||
| | | | By: | | |
/s/ David T. Hamamoto
Name: David T. Hamamoto
Title:
Chief Executive Officer and Chairman
|
|
| | | | LORDSTOWN MOTORS CORP. | | |||
| | | | By: | | |
/s/ Stephen S. Burns
Name: Stephen S. Burns
Title:
Chief Executive Officer
|
|
|
Class I Directors (3 Total)
|
| |
Class II Directors (3 Total)
|
| |
Class III Directors (3 Total)
|
|
|
1.
Individual nominated by Stephen S. Burns
2.
Individual nominated by Stephen S. Burns
3.
Individual nominated by Stephen S. Burns
|
| |
4.
Individual nominated by General Motors
5.
Individual nominated by Stephen S. Burns
6.
Individual nominated by Stephen S. Burns
|
| |
7.
Individual nominated by Stephen S. Burns
8.
Individual nominated by DiamondPeak in consultation with Stephen S. Burns
9.
Individual nominated by DiamondPeak
|
|
Print Name: |
|
Number of Subscribed Shares subscribed for: |
|
| | | | |||||
| Price Per Subscribed Share: | | | | $ | [•] | | |
| Aggregate Purchase Price: | | | | $ | | |
|
DiamondPeak Holdings Corp.
|
| |||
|
40 W 57th Street, 29th Floor
|
| |||
|
New York, NY 10019
|
| |||
|
Attention:
|
| | David Hamamoto, Brett Bossung | |
|
Telephone:
|
| | (212) 716-2000 | |
|
Email:
|
| |
hamamoto@diamondheadpartners.com;
brett.bossung@silverpeak.com |
|
|
Sullivan & Cromwell LLP
|
| |||
|
125 Broad Street
|
| |||
|
New York, NY, 10004
|
| |||
|
Attention:
|
| | Robert Downes, Scott Crofton | |
|
Telephone:
|
| | (212) 558-4000 | |
|
Email:
|
| | downesr@sullcrom.com; croftons@sullcrom.com | |
| | | | DiamondPeak Holdings Corp. | | ||||||
| | | | By: | | |
|
| |||
| | | | | | | Name: | | | ||
| | | | | | | Title: | | |
|
Signature of Stockholder
|
| |
Name of Person Signing for the Stockholder (If signing in a representative capacity for a corporation, trust, partnership or other entity)
|
|
|
Printed Name of Stockholder
|
| |
Title of Person Signing for the Stockholder (If signing in a representative capacity for a corporation, trust, partnership or other entity)
|
|
|
[Signature of Stockholder’s Spouse]
|
| |
[Printed Name of Stockholder’s Spouse]
|
|
|
Shares Owned Beneficially
|
| |
Shares Held of Record
|
| |
Shares Over Which the
Stockholder has Full Voting Power |
|
|
[•]
|
| |
[•]
|
| |
[•]
|
|
|
Signature of Stockholder
|
| |
Name of Person Signing for the Stockholder (If signing in a representative capacity for a corporation, trust, partnership or other entity)
|
|
|
Printed Name of Stockholder
|
| |
Title of Person Signing for the Stockholder (If signing in a representative capacity for a corporation, trust, partnership or other entity)
|
|
| | | | By: | | |
|
| | |||||
| | | | | | | Name: | | | | ||||
| | | | | | | Title: | | | | ||||
| | | | Address for Notices: | | | ||||||||
| | | | With copies to: | | | | |
| | | | Parent: | | |||
| | | |
DiamondPeak Holdings Corp., a
Delaware corporation |
| |||
| | | | By: | | |
Name:
Title: |
|
| | | | Stockholders: | | |||
| | | | By: | | |
Name:
Title: |
|
| | | | Address | | |||
| | | |
|
|
| Date: , 20[ ] | | | |||||
| [NAME OF JOINING PARTY] | | | | | |||
| By: | | |
Name:
Title: |
| | ||
| Address for Notices: | | | | | |||
| AGREED ON THIS [ ] day of [ ], 20[ ]: | | | |||||
| By: | | |
Name:
Title: |
| |
|
Name
|
| |
Address
|
|
| GM EV Holdings LLC | | | | |
| Stephen S. Burns | | | | |
| Workhorse Group Inc. | | | | |
| DiamondPeak Sponsor LLC | | | | |
| BlackRock Credit Alpha Master Fund L.P. | | | | |
| HC NCBR Fund | | | | |
| Brown Gibbons Lang & Company | | | | |