Electriq Power Holdings, Inc.

CIK:0001827871|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net revenues	$ 834,262	$ 5,988,248	$ 1,019,207	$ 15,334,583
Cost of goods sold	853,615	5,621,589	1,921,367	13,957,964
Gross (loss) profit	(19,353)	366,659	(902,160)	1,376,619
Operating expenses:
Research and development	1,011,633	901,058	3,147,943	2,716,351
Sales and marketing	1,308,928	909,871	3,522,731	2,790,657
General and administrative	4,806,693	2,626,179	14,235,262	6,975,600
Total operating expenses	7,127,254	4,437,108	20,905,936	12,482,608
Loss from operations	(7,146,607)	(4,070,449)	(21,808,096)	(11,105,989)
Other expense (income):
Interest expense	1,291,851	918,035	3,292,932	1,223,254
Unrealized fair value adjustments	14,895,081	5,170,186	(10,891,144)	32,128,614
Other (income) expense, net	(3,380,090)	4,428	(745,062)	5,864
Loss before income taxes	(19,953,449)	(10,163,098)	(13,464,822)	(44,463,721)
Income tax expense	0	0	0	0
Net loss	(19,953,449)	(10,163,098)	(13,464,822)	(44,463,721)
Cumulative preferred stock dividends	45,803	451,895	978,752	1,283,334
Net loss attributable to common stockholders	$ (19,999,252)	$ (10,614,993)	$ (14,443,574)	$ (45,747,055)
Net loss per share attributable to common stockholders - basic (in dollars per share)	$ (0.74)	$ (6.65)	$ (1.40)	$ (29.57)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	$ (0.74)	$ (6.65)	$ (1.40)	$ (29.57)
Weighted average number of common shares outstanding - basic (in shares)	26,944,552	1,595,724	10,290,182	1,546,928
Weighted average number of common shares outstanding - diluted (in shares)	26,944,552	1,595,724	10,290,182	1,546,928

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (13,464,822)	$ (44,463,721)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	3,289,369	765,258
Accretion of discount and dividends on cumulative mandatorily redeemable preferred stock	1,319,145	0
Unrealized fair value adjustments	(10,891,144)	32,128,614
Depreciation and amortization	123,308	119,388
Amortization of right of use assets	507,511	163,626
Settlement gain	(5,641,658)
Write-off of inventory deposits	5,040,689	0
Changes in assets and liabilities:
Accounts receivable, net	(54,500)	(963,629)
Inventory	(1,853,445)	(4,119,767)
Inventory deposits	(96,712)	(2,488,479)
Prepaid expenses and other current assets	(384,274)	(23,948)
Deposits	(21,718)	(900,160)
Accounts payable	6,660,128	(630,627)
Accrued expenses and other current liabilities	(7,274,682)	1,851,794
Other long-term liabilities	(470,168)	210,976
Net cash used in operating activities	(23,212,973)	(18,350,675)
Cash flows from investing activities:
Acquisition of property and equipment	(431,685)	(834,132)
Other	(4,923)	(3,798)
Net cash used in investing activities	(436,608)	(837,930)
Cash flows from financing activities:
Proceeds from loan payable	0	11,200,000
Payments on loans payable and note conversions	(3,584,989)	(1,333,027)
Proceeds from convertible note payable	3,500,000	0
Proceeds received from Business Combination	1,820	0
Proceeds from issuance of cumulative mandatorily redeemable preferred stock	9,550,792	0
Proceeds from conversion of warrants for preferred stock	0	693,000
Proceeds from issuance of common stock, net of issuance costs	17,439,776	95,614
Payment of equity issuance costs	(594,040)	0
Other	(45,000)	(40,000)
Net cash provided by financing activities	26,268,359	10,615,587
Net increase (decrease) in cash	2,618,778	(8,573,018)
Cash, beginning of period	5,480,960	12,730,198
Cash, end of period	8,099,738	4,157,180
Supplemental disclosures of cash flow information:
Interest paid	1,601,660	130,890
Taxes paid	0	0
Right of use assets obtained in exchange for lease obligations	787,764	1,200,086
Non-cash financing activities:
Conversion of Electriq’s SAFE notes into shares of common stock at Closing Date of Business Combination	24,787,728	0
Conversion and exchange of Electriq warrants for shares of common stock at Closing Date of Business Combination	2,185,254	0
Retroactive conversion of pre-2023 seed preferred stock to shares of common stock upon Business Combination	34,792,203	0
Supplemental disclosure of non-cash notes conversion agreements:
Decrease in loans payable	(11,377,297)	(1,333,027)
Total principal payments on loan payable	(3,584,989)	(1,333,027)
Proceeds from issuance of cumulative mandatorily redeemable preferred stock	9,550,792	0
Proceeds from issuance of common stock, net of issuance costs	17,439,776	95,614
Series B Preferred Stock
Cash flows from financing activities:
Proceeds from issuance of cumulative mandatorily redeemable preferred stock	9,550,792	0
Supplemental disclosure of non-cash notes conversion agreements:
Non-cash principal portion converted to cumulative mandatorily redeemable preferred stock and common stock	7,792,308	0
Stock issued	15,959,393	0
Non-cash portion converted to cumulative mandatorily redeemable preferred stock	(6,408,601)	0
Proceeds from issuance of cumulative mandatorily redeemable preferred stock	9,550,792	0
Common
Cash flows from financing activities:
Proceeds from issuance of common stock, net of issuance costs	17,439,776	95,614
Supplemental disclosure of non-cash notes conversion agreements:
Stock issued	27,323,483	95,614
Non-cash portion allocated to common stock from note conversion agreements	(9,883,707)	0
Proceeds from issuance of common stock, net of issuance costs	$ 17,439,776	$ 95,614

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash	$ 8,099,738	$ 5,480,960
Accounts receivable, less allowance for doubtful accounts of $40,449 and $30,429 as of September 30, 2023 and December 31, 2022, respectively	371,923	317,423
Inventory, net	20,929,486	13,532,475
Inventory deposits	238,068	5,182,045
Prepaid expenses and other current assets	752,391	368,117
Total current assets	30,391,606	24,881,020
Property and equipment, net	1,730,670	1,422,293
Right of use assets	3,346,958	3,241,705
Deposits	131,257	109,539
Total assets	35,600,491	29,654,557
Current liabilities:
Current portion of loan payable	0	11,377,297
SAFE notes	0	51,600,000
Accounts payable	8,201,251	1,377,123
Warrants liability	0	14,114,411
Accrued payroll and employee benefits	2,233,598	629,773
Lease liability	718,027	347,131
Warrants liability	34,970,682	0
Accrued expenses	2,294,996	5,196,432
Total current liabilities	48,418,554	84,642,167
Derivative warrant liabilities	3,039,603
Convertible note payable	0	5,000,000
Cumulative mandatorily redeemable preferred stock liability	21,465,335	0
Other long-term liabilities	2,605,293	2,503,038
Total liabilities	75,528,785	92,145,205
Commitments and contingencies (Note 7)
Mezzanine equity:
Common stock; $0.0001 par value; 3,734,062 and zero shares contingently redeemable, respectively at September 30, 2023 and December 31, 2022	39,523,511	0
Stockholders’ deficit:
Common stock; $0.0001 par value; 38,020,283 and 21,373,035 shares issued and outstanding, respectively at September 30, 2023 and December 31, 2022	3,802	2,137
Additional paid-in capital	39,002,908	42,500,908
Accumulated deficit	(118,458,233)	(104,993,411)
Accumulated other comprehensive loss	(282)	(282)
Total stockholders’ deficit	(79,451,805)	(62,490,648)
Total liabilities, mezzanine equity and stockholders’ deficit	$ 35,600,491	$ 29,654,557