Aeva Technologies, Inc. annual report, FY2019

Filing identity and reporting period

Important identity mismatch: The supplied filing is InterPrivate Acquisition Corp.’s Form 10-K, not an Aeva Technologies, Inc. filing. It reports the period from incorporation on August 16, 2019 through December 31, 2019; it is not a standalone fourth-quarter report. The filing was signed March 30, 2020.

InterPrivate was a blank-check company formed to pursue a business combination. At year-end it had not begun operations, generated no revenue, and reported no substantive target-company discussions. Its IPO and private placements closed in February 2020, after the reporting date.

Financial results and liquidity

MetricReported amount or status
RevenueNone
Formation and operating costs / net loss$1,000 / $1,000
Net loss per share$0.00, basic and diluted
Cash flow from operations$0
Cash at December 31, 2019$0
Total assets$106,895, including $106,870 of deferred offering costs
Current liabilities$81,808, including an $80,808 related-party promissory note
Stockholders’ equity$25,087
Long-term debtNone reported

The company reported no operating revenues or operating history from which to assess margins or ongoing cash generation. It said the related-party note balance was $124,148 at IPO closing and was repaid on February 6, 2020.

Material developments after year-end

In February 2020, the company sold 24.15 million public units at $10 each, raising $241.5 million in gross IPO proceeds, and sold 618,000 private units for $6.18 million. It placed $241.5 million in a trust account and reported $867,876 of cash outside the trust for working capital. Transaction costs were $5,310,386, including $4,830,000 in underwriting fees.

The trust funds were intended primarily to finance a business combination. The company had until November 6, 2021 to complete one; otherwise, it generally was required to redeem public shares and liquidate. Public warrants carried an $11.50 exercise price. These post-year-end financing events should not be confused with December 31, 2019 balances.

Outlook, risks, and unusual items

  • Management expected no operating revenue until after a business combination and said it did not expect to need additional funds for ordinary pre-transaction expenditures, while acknowledging that cost overruns, redemptions, or transaction financing needs could require additional funding.
  • The filing added COVID-19 as a risk, citing possible adverse effects on target businesses and potential delays to the company’s search and transaction process.
  • Related-party arrangements beginning in February 2020 included monthly payments of $10,000 for administrative support and $10,000 to a vice president for business-combination assistance. A further success fee of 3.5% of IPO gross proceeds—stated as $8,452,500—was payable to EarlyBirdCapital upon a completed business combination.
  • Management reported effective disclosure controls as of year-end. The 10-K did not include management’s internal-control assessment or an auditor attestation under the applicable transition rules for newly public companies.
  • No legal proceedings or off-balance-sheet arrangements were reported as of December 31, 2019. The auditor gave an unqualified opinion on the financial statements.

Most important facts to verify

  1. Confirm the filing is for InterPrivate Acquisition Corp., not Aeva Technologies, Inc.; the supplied company metadata does not match the filing.
  2. Confirm the reporting period is inception through December 31, 2019, and distinguish year-end financial statements from the February 2020 IPO and related transactions.
  3. Review the trust-account amount, outside-trust working capital, offering costs, and related-party note repayment against the audited statements and subsequent-event disclosures.
  4. Assess the business-combination deadline, redemption and liquidation terms, potential related-party payments, and EarlyBirdCapital success fee.