PARTS iD(ID) - 2020 Q2 - Quarterly Report

Financial Position - As of June 30, 2020, the company had approximately $563,000 in cash, indicating a need for significant capital to pursue acquisition plans [90]. - The company has approximately $563,000 of proceeds available outside the Trust Account as of June 30, 2020 [108]. - The Company has a cash position of $563,000 as of June 30, 2020, which is deemed adequate to fund operations until the Extended Date [115]. - The Company has determined that its negative liquidity raises substantial doubt about its ability to continue as a going concern [118]. Business Combination and Acquisitions - The company terminated the Share Exchange Agreement with Blue Valor Limited on July 20, 2020, due to the adverse impact of the COVID-19 pandemic on market valuations [92]. - The deadline to complete a business combination has been extended to November 20, 2020, allowing the company additional time to pursue alternative business combinations [96]. - The company is evaluating alternative business combinations following the termination of the agreement with Blue Valor Limited [92]. - The company anticipates that issuing additional shares or debt securities in a business combination could significantly dilute existing investors' equity interests [89]. - The company’s ability to complete a business combination is uncertain and may be affected by ongoing COVID-19 developments [87]. - The company’s board of directors would wind up affairs and redeem 100% of the outstanding public shares if it cannot consummate a business combination by the Extended Date [113]. Financial Performance - The Company recorded a net income available to Class A common stockholders of $(145,000) for the three months ended June 30, 2020, compared to $1,385,000 for the same period in 2019 [122]. - Interest income for the three months ended June 30, 2020, was $105,000, down from $1,805,000 in the same period of 2019 [122]. - The Company has incurred offering costs of approximately $17,387,000, primarily consisting of underwriter discounts of $16,500,000 [125]. - The effective tax rate for the Company was approximately 1% for the three months ended June 30, 2020, compared to 20% for the same period in 2019 [127]. Loans and Expenses - The company issued a total of $5,574,932.40 in loans under the Amended Seller Note by June 30, 2020, to support its operations and extensions [97]. - As of June 30, 2020, the total amount borrowed by the company under Seller Loans was approximately $5,574,932.40, with six loans made [110]. - The company incurred principal operating expenses of approximately $215,000 for the six months ended June 30, 2020, including $1,593,000 in consulting, legal, and travel costs [103]. - The company expects to incur increased expenses for due diligence and other costs related to identifying and closing a business combination [105]. - The Company expects to use up to $750,000 annually from the Trust Account for working capital purposes during the Second Extension [115]. Shareholder Information - The company had 29,305,180 public shares outstanding after stockholders redeemed 694,820 shares in connection with the Extension Amendment [97]. - As of June 30, 2020, 23,877,301 of the 30,000,000 common shares sold in the Public Offering have been redeemed, leaving 6,122,699 shares outstanding [130]. - Up to $1,500,000 of loans from the Sponsor or affiliates may be convertible into warrants at a price of $0.50 per warrant [116]. - The company may withdraw up to $750,000 annually from the Trust Account for taxes and working capital during the extension period [96]. - The company may withdraw up to $750,000 annually from the Trust Account for working capital requirements during the extension period [107]. Deferred Tax Assets - The Company has a deferred tax asset of approximately $1,498,000 as of June 30, 2020, primarily related to start-up and business combination costs [127].