Company Quick10K Filing
Gores Metropoulos
Price1.00 EPS-4,239,658
Shares-0 P/E-0
MCap-0 P/FCF-0
Net Debt-1 EBIT5
TEV-1 TEV/EBIT-0
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-03-13
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-06
10-K 2018-12-31 Filed 2019-03-29
8-K 2020-08-24 Enter Agreement, Sale of Shares, Other Events, Exhibits
8-K 2019-03-22
8-K 2019-02-05
8-K 2019-01-31

GMHI 10Q Quarterly Report

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 gmhi-ex311_7.htm
EX-31.2 gmhi-ex312_6.htm
EX-32.1 gmhi-ex321_8.htm
EX-32.2 gmhi-ex322_9.htm

Gores Metropoulos Earnings 2020-06-30

Balance SheetIncome StatementCash Flow

gmhi-10q_20200630.htm
false Q2 0001758057 --12-31 Accelerated Filer Yes Yes P180D P2D P2D P10D P10D 1.33 0001758057 2020-01-01 2020-06-30 0001758057 us-gaap:CommonClassAMember 2020-01-01 2020-06-30 0001758057 us-gaap:WarrantMember 2020-01-01 2020-06-30 0001758057 gmhi:UnitsMember 2020-01-01 2020-06-30 xbrli:shares 0001758057 us-gaap:CommonClassAMember 2020-08-06 0001758057 gmhi:CommonClassFMember 2020-08-06 iso4217:USD 0001758057 2020-06-30 0001758057 2019-12-31 0001758057 us-gaap:CommonClassAMember 2020-06-30 0001758057 us-gaap:CommonClassAMember 2019-12-31 0001758057 gmhi:CommonClassFMember 2020-06-30 0001758057 gmhi:CommonClassFMember 2019-12-31 iso4217:USD xbrli:shares 0001758057 2020-04-01 2020-06-30 0001758057 2019-04-01 2019-06-30 0001758057 2019-01-01 2019-06-30 0001758057 us-gaap:CommonClassAMember 2020-04-01 2020-06-30 0001758057 us-gaap:CommonClassAMember 2019-04-01 2019-06-30 0001758057 us-gaap:CommonClassAMember 2019-01-01 2019-06-30 0001758057 gmhi:CommonClassFMember 2020-04-01 2020-06-30 0001758057 gmhi:CommonClassFMember 2019-04-01 2019-06-30 0001758057 gmhi:CommonClassFMember 2020-01-01 2020-06-30 0001758057 gmhi:CommonClassFMember 2019-01-01 2019-06-30 0001758057 us-gaap:CommonClassAMember 2019-03-31 0001758057 gmhi:CommonClassFMember 2019-03-31 0001758057 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001758057 us-gaap:RetainedEarningsMember 2019-03-31 0001758057 2019-03-31 0001758057 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001758057 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001758057 us-gaap:CommonClassAMember 2019-06-30 0001758057 gmhi:CommonClassFMember 2019-06-30 0001758057 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001758057 us-gaap:RetainedEarningsMember 2019-06-30 0001758057 2019-06-30 0001758057 gmhi:CommonClassFMember 2018-12-31 0001758057 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001758057 us-gaap:RetainedEarningsMember 2018-12-31 0001758057 2018-12-31 0001758057 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0001758057 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0001758057 us-gaap:CommonClassAMember 2020-03-31 0001758057 gmhi:CommonClassFMember 2020-03-31 0001758057 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001758057 us-gaap:RetainedEarningsMember 2020-03-31 0001758057 2020-03-31 0001758057 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001758057 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001758057 us-gaap:RetainedEarningsMember 2020-06-30 0001758057 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001758057 us-gaap:RetainedEarningsMember 2019-12-31 0001758057 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0001758057 2019-02-05 0001758057 2019-02-05 2019-02-05 0001758057 us-gaap:PrivatePlacementMember 2019-02-05 2019-02-05 xbrli:pure 0001758057 srt:MaximumMember 2020-01-01 2020-06-30 0001758057 srt:MinimumMember 2020-06-30 0001758057 us-gaap:IPOMember 2019-02-05 2019-02-05 0001758057 us-gaap:IPOMember 2019-02-05 0001758057 us-gaap:OverAllotmentOptionMember 2019-02-05 2019-02-05 0001758057 us-gaap:WarrantMember 2020-01-01 2020-06-30 0001758057 us-gaap:WarrantMember us-gaap:CommonClassAMember 2020-06-30 0001758057 gmhi:CommonClassFMember gmhi:FounderSharesMember us-gaap:PrincipalOwnerMember 2018-10-16 2018-10-18 0001758057 gmhi:CommonClassFMember gmhi:FounderSharesMember us-gaap:PrincipalOwnerMember 2018-10-18 0001758057 gmhi:FounderSharesMember srt:DirectorMember 2018-10-16 2018-10-18 0001758057 gmhi:FounderSharesMember us-gaap:PrincipalOwnerMember 2019-03-16 2019-03-18 0001758057 gmhi:FounderSharesMember 2019-03-16 2019-03-18 0001758057 us-gaap:CommonClassAMember gmhi:FounderSharesMember 2018-10-16 2018-10-18 0001758057 gmhi:PrivatePlacementWarrantsMember us-gaap:PrincipalOwnerMember 2019-02-05 0001758057 gmhi:PrivatePlacementWarrantsMember us-gaap:PrincipalOwnerMember 2019-02-05 2019-02-05 0001758057 us-gaap:CommonClassAMember gmhi:PrivatePlacementWarrantsMember 2019-02-05 0001758057 gmhi:SponsorLoanMember us-gaap:IPOMember 2018-10-16 2018-10-18 0001758057 gmhi:SponsorLoanMember us-gaap:IPOMember 2019-01-24 2019-01-25 0001758057 gmhi:SponsorLoanMember us-gaap:IPOMember 2019-12-31 0001758057 gmhi:AdministrativeServiceAgreementMember srt:AffiliatedEntityMember 2020-01-01 2020-06-30 0001758057 gmhi:AdministrativeServiceAgreementMember 2020-01-01 2020-06-30 0001758057 gmhi:AdministrativeServiceAgreementMember 2019-01-01 2019-12-31 0001758057 us-gaap:CashMember 2020-06-30 0001758057 us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001758057 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2020-06-30 gmhi:Vote

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM         TO        

Commission File Number: 001-38791

 

GORES METROPOULOS, INC.

(Exact name of registrant as specified in its Charter)

 

 

Delaware

 

83-1804317

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

 

9800 Wilshire Blvd.

 

 

Beverly Hills, CA

 

90212

(Address of principal executive offices)

 

(Zip Code)

 

(310) 209-3010

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbols

 

Name of each exchange on which registered

Class A Common Stock

 

GMHI

 

Nasdaq Capital Market

Warrants

 

GMHIW

 

Nasdaq Capital Market

Units

 

GMHIU

 

Nasdaq Capital Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES  NO 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES  NO 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). YES  NO 

As of August 6, 2020, there were 40,000,000 shares of the Company’s Class A common stock, par value $0.0001 per share, and 10,000,000 shares of the Company’s Class F common stock, par value $0.0001 per share, issued and outstanding.

 

 



TABLE OF CONTENTS

 

 

Page

PART I—FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

Balance Sheets (Unaudited)

3

 

 

Statements of Operations (Unaudited)

4

 

 

Statements of Changes in Stockholders’ Equity (Unaudited)

5

 

 

Statements of Cash Flows (Unaudited)

6

 

 

Notes to Unaudited, Interim Financial Statements (Unaudited)

7

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

19

 

 

 

Item 4.

Controls and Procedures

19

 

 

PART II—OTHER INFORMATION

20

 

 

 

Item 1.

Legal Proceedings

20

 

 

 

Item 1A.

Risk Factors

20

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

20

 

 

 

Item 3.

Defaults Upon Senior Securities

21

 

 

 

Item 4.

Mine Safety Disclosures

22

 

 

 

Item 5.

Other Information

22

 

 

 

Item 6.

Exhibits

23

 

 

2


GORES METROPOULOS, INC.

BALANCE SHEETS

 

 

 

June 30, 2020

 

 

December 31, 2019

 

 

 

(unaudited)

 

 

(audited)

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

1,011,395

 

 

$

 

1,365,240

 

Prepaid assets

 

 

 

107,501

 

 

 

 

136,399

 

        Total current assets

 

 

 

1,118,896

 

 

 

 

1,501,639

 

Deferred income tax

 

 

 

15,079

 

 

 

 

2,353

 

Investments and cash held in Trust Account

 

 

 

406,397,612

 

 

 

 

406,434,959

 

        Total assets

 

$

 

407,531,587

 

 

$

 

407,938,951

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

Accrued expenses, formation and offering costs

 

$

 

85,889

 

 

$

 

53,203

 

State franchise tax accrual

 

 

 

20,000

 

 

 

 

200,000

 

     Current income tax and interest payable

 

 

 

194,654

 

 

 

 

1,102,662

 

        Total current liabilities

 

 

 

300,543

 

 

 

 

1,355,865

 

Deferred underwriting compensation

 

 

 

14,000,000

 

 

 

 

14,000,000

 

        Total liabilities

 

$

 

14,300,543

 

 

$

 

15,355,865

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies:

 

 

 

 

 

 

 

 

 

 

Class A subject to possible redemption, 38,713,476 and 38,713,476 shares at June 30, 2020 and December 31, 2019, respectively (at redemption value of $10 per share)

 

 

 

387,134,760

 

 

 

 

387,134,760

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 1,000,000 shares authorized, none issued or outstanding

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

 

 

 

 

Class A common stock, $0.0001 par value; 200,000,000 shares authorized, 1,286,524 and 1,286,524 shares issued and outstanding (excluding 38,713,476 and 38,713,476 shares subject to possible redemption) at June 30, 2020 and December 31, 2019, respectively

 

 

 

129

 

 

 

 

129

 

Class F common stock, $0.0001 par value; 20,000,000 shares authorized, 10,000,000 and 10,000,000 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively

 

 

 

1,000

 

 

 

 

1,000

 

Additional paid-in capital

 

 

 

24,006

 

 

 

 

24,006

 

Retained earnings

 

 

 

6,071,149

 

 

 

 

5,423,191

 

 

 

 

 

 

 

 

 

 

 

 

        Total stockholders’ equity

 

 

 

6,096,284

 

 

 

 

5,448,326

 

 

 

 

 

 

 

 

 

 

 

 

        Total liabilities and stockholders’ equity

 

$

 

407,531,587

 

 

$

 

407,938,951

 

 

See accompanying notes to the unaudited, interim financial statements.

3


GORES METROPOULOS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

Three Months Ended

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2020

June 30, 2019

 

 

June 30, 2020

 

 

June 30, 2019

 

Revenues

$

 

 

 

$

 

 

 

$

 

 

 

$

 

 

Professional fees and other expenses

 

 

(160,123

)

 

 

 

(140,925

)

 

 

 

(358,968

)

 

 

 

(309,984

)

State franchise taxes, other than income tax

 

 

(50,000

)

 

 

 

(50,000

)

 

 

 

(100,000

)

 

 

 

(100,000

)

   Net loss from operations

 

 

(210,123

)

 

 

 

(190,925

)

 

 

 

(458,968

)

 

 

 

(409,984

)

Other income - interest income

 

 

57,058

 

 

 

 

2,500,856

 

 

 

 

1,325,278

 

 

 

 

3,892,361

 

   Net income before income taxes

$

 

(153,065

)

 

$

 

2,309,931

 

 

$

 

866,310

 

 

$

 

3,482,377

 

Income tax provision and interest

 

 

32,143

 

 

 

 

(449,295

)

 

 

 

(218,352

)

 

 

 

(727,551

)

   Net Income attributable to common shares

$

 

(120,922

)

 

$

 

1,860,636

 

 

$

 

647,958

 

 

$

 

2,754,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss) per ordinary share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Class A ordinary shares - basic and diluted

$

 

(0.00

)

 

$

 

0.05

 

 

$

 

0.02

 

 

$

 

0.09

 

       Class F ordinary shares - basic and diluted

$

 

(0.00

)

 

$

 

(0.01

)

 

$

 

(0.01

)

 

$

 

(0.03

)

 

See accompanying notes to the unaudited, interim financial statements.

 

 

4


GORES METROPOULOS, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

 

 

Three Months Ended June 30, 2019

 

 

 

Class A Ordinary Shares

 

 

Class F Ordinary Shares

 

 

Additional

 

 

Retained

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Paid-In Capital

 

 

Earnings

 

 

Equity

 

Beginning Balance at April 1, 2019

 

 

1,696,791

 

 

$

 

170

 

 

 

 

10,000,000

 

 

$

 

1,000

 

 

$

 

4,126,635

 

 

$

 

872,205

 

 

$

 

5,000,010

 

Class A common stock subject to possible redemption; 38,489,273 shares at a redemption price of $10.00

 

 

(186,064

)

 

 

 

(19

)

 

 

 

-

 

 

 

 

-

 

 

 

 

(1,860,621

)

 

 

 

-

 

 

 

 

(1,860,640

)

Net income

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,860,636

 

 

 

 

1,860,636

 

Balance at June 30, 2019

 

 

1,510,727

 

 

$

 

151

 

 

 

 

10,000,000

 

 

$

 

1,000

 

 

$

 

2,266,014

 

 

$

 

2,732,841

 

 

$

 

5,000,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2019

 

 

 

Class A Ordinary Shares

 

 

Class F Ordinary Shares

 

 

Additional

 

 

Retained Earnings/

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Paid-In Capital

 

 

(Acc. Deficit)

 

 

Equity

 

Beginning Balance at January 1, 2019

 

 

-

 

 

$

 

-

 

 

 

 

10,781,250

 

 

$

 

1,078

 

 

$

 

23,922

 

 

$

 

(21,985

)

 

$

 

3,015

 

Forfeited Class F Common stock by Sponsor

 

 

-

 

 

 

 

-

 

 

 

 

(781,250

)

 

 

 

(78

)

 

 

 

78

 

 

 

 

-

 

 

 

 

-

 

Proceeds from initial public offering of Units on February 5, 2019 at $10.00 per Unit

 

 

40,000,000

 

 

 

 

4,000

 

 

 

 

-

 

 

 

 

-

 

 

 

 

399,996,000

 

 

 

 

-

 

 

 

 

400,000,000

 

Sale of 6,666,666 Private Placement Warrants to Sponsor on February 5, 2019 at $1.50 per Private Placement Warrant

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

10,000,000

 

 

 

 

-

 

 

 

 

10,000,000

 

Underwriters discounts

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(8,000,000

)

 

 

 

-

 

 

 

 

(8,000,000

)

Offering costs charged to additional paid-in capital

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(865,105

)

 

 

 

-

 

 

 

 

(865,105

)

Deferred underwriting compensation

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(14,000,000

)

 

 

 

-

 

 

 

 

(14,000,000

)

Class A common stock subject to possible redemption; 38,489,273 shares at a redemption price of $10.00

 

 

(38,489,273

)

 

 

 

(3,849

)

 

 

 

-

 

 

 

 

-

 

 

 

 

(384,888,881

)

 

 

 

-

 

 

 

 

(384,892,730

)

Net income

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

2,754,826

 

 

 

 

2,754,826

 

Balance at June 30, 2019

 

 

1,510,727

 

 

$

 

151

 

 

 

 

10,000,000

 

 

$

 

1,000

 

 

$

 

2,266,014

 

 

$

 

2,732,841

 

 

$

 

5,000,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2020

 

 

 

Class A Ordinary Shares

 

 

Class F Ordinary Shares

 

 

Additional

 

 

Retained

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Paid-In Capital

 

 

Earnings

 

 

Equity

 

Beginning Balance at April 1, 2020

 

 

1,286,524

 

 

$

 

129

 

 

 

 

10,000,000

 

 

$

 

1,000

 

 

$

 

24,006

 

 

$

 

6,192,071

 

 

$

 

6,217,206

 

Class A common stock subject to possible redemption; 38,713,476 shares at a redemption price of $10.00

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

Net loss

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(120,922

)

 

 

 

(120,922

)

Balance at June 30, 2020

 

 

1,286,524

 

 

$

 

129

 

 

 

 

10,000,000

 

 

$

 

1,000

 

 

$

 

24,006

 

 

$

 

6,071,149

 

 

$

 

6,096,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2020

 

 

 

Class A Ordinary Shares

 

 

Class F Ordinary Shares

 

 

Additional

 

 

Retained

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Paid-In Capital

 

 

Earnings

 

 

Equity

 

Beginning Balance at January 1, 2020

 

 

1,286,524

 

 

$

 

129

 

 

 

 

10,000,000

 

 

$

 

1,000

 

 

$

 

24,006

 

 

$

 

5,423,191

 

 

$

 

5,448,326

 

Class A common stock subject to possible redemption; 38,713,476 shares at a redemption price of $10.00

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

Net income

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

647,958

 

 

 

 

647,958

 

Balance at June 30, 2020

 

 

1,286,524

 

 

$

 

129

 

 

 

 

10,000,000

 

 

$

 

1,000

 

 

$

 

24,006

 

 

$

 

6,071,149

 

 

$

 

6,096,284

 

See accompanying notes to the unaudited, interim financial statements

 

5


GORES METROPOULOS, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

Six Months Ended

 

 

 

Six Months Ended

 

 

 

 

June 30, 2020

 

 

 

June 30, 2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

 

647,958

 

 

$

 

2,754,826

 

Changes in state franchise tax accrual

 

 

 

(180,000

)

 

 

 

98,569

 

Changes in prepaid assets and deferred costs

 

 

 

28,899

 

 

 

 

(250,891

)

Changes in deferred offering costs

 

 

 

 

 

 

 

437,375

 

Changes in accrued expenses, formation and offering costs

 

 

 

32,685

 

 

 

 

(306,365

)

Changes in current income tax and interest payable

 

 

 

(908,008

)

 

 

 

27,050

 

Changes in deferred income tax

 

 

 

(12,726

)

 

 

 

359,203

 

Net cash provided by/(used in) operating activities

 

 

 

(391,192

)

 

 

 

3,119,767

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Cash deposited in Trust Account

 

 

 

 

 

 

 

(400,000,000

)

Interest reinvested in Trust Account

 

 

 

37,347

 

 

 

 

(3,886,144

)

Net cash provided by/(used in) investing activities

 

 

 

37,347

 

 

 

 

(403,886,144

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of Units in initial public offering

 

 

 

 

 

 

 

400,000,000

 

Proceeds from sale of Private Placement Warrants to Sponsor

 

 

 

 

 

 

 

10,000,000

 

Repayment of notes and advances payable – related party

 

 

 

 

 

 

 

(150,000

)

Payment of underwriters’ discounts and commissions

 

 

 

 

 

 

 

(8,000,000

)

Payment of accrued offering costs

 

 

 

 

 

 

 

(865,105

)

Net cash provided by financing activities

 

 

 

 

 

 

 

400,984,895

 

Increase/(decrease) in cash

 

 

 

(353,845

)

 

 

 

218,518

 

Cash at beginning of period

 

 

 

1,365,240

 

 

 

 

52,489

 

Cash at end of period

 

$

 

1,011,395

 

 

$

 

271,007

 

Supplemental disclosure of cash and non-cash financing activities:

 

 

 

 

 

 

 

 

 

 

Deferred underwriting compensation

 

$

 

 

 

$

 

14,000,000

 

Accrued expenses, formation, and offering costs

 

 

 

 

 

 

 

20,053

 

Cash paid for income and state franchise taxes

 

 

 

1,419,136

 

 

 

 

342,729

 

 

See accompanying notes to the unaudited, interim financial statements.

6


GORES METROPOULOS, INC.

NOTES TO THE UNAUDITED, INTERIM FINANCIAL STATEMENTS

1.       Organization and Business Operations

Organization and General

Gores Metropoulos, Inc. (the “Company”) was incorporated in Delaware on August 28, 2018. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar Business Combination with one or more businesses (the “Business Combination”). The Company has neither engaged in any operations nor generated any revenue to date. The Company’s management has broad discretion with respect to the Business Combination, but intends to focus its search for a target business in the consumer products and services industries. The Company’s Sponsor is Gores Metropoulos Sponsor, LLC, a Delaware limited liability company (the “Sponsor”). The Company has selected December 31st as its fiscal year-end.

At June 30, 2020, the Company had not commenced any operations. All activity for the period from August 28, 2018 (inception) through June 30, 2020 relates to the Company’s formation and initial public offering (“Public Offering”) described below. The Company completed the Public Offering on February 5, 2019 (the “IPO Closing Date”). The Company will not generate any operating revenues until after the completion of its Business Combination, at the earliest. Subsequent to the Public Offering, the Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Public Offering and the sale of the Private Placement Warrants (as defined below) held in the Trust Account (as defined below).

Financing

Upon the IPO Closing Date and the sale of the Private Placement Warrants, an aggregate of $400,000,000 was placed in a Trust Account with Continental Stock Transfer & Trust Company acting as trustee (the “Trust Account”).

The Company intends to finance a Business Combination with the net proceeds from its $400,000,000 Public Offering and its sale of $10,000,000 of Private Placement Warrants.    

Trust Account

Funds held in the Trust Account can be invested only in U.S. government treasury bills with a maturity of one hundred and eighty (180) days or less or in money market funds meeting certain conditions under Rule 2a‑7 under the Investment Company Act of 1940, as amended, that invest only in direct U.S. government obligations. As of June 30, 2020, the Trust Account consisted of cash and treasury bills.

The Company’s amended and restated certificate of incorporation provides that, other than the withdrawal of interest to fund regulatory compliance requirements and other costs related thereto (a “Regulatory Withdrawal”), subject to an annual limit of $750,000, for a maximum 24 months and/or additional amounts necessary to pay franchise and income taxes, if any, none of the funds held in trust will be released until the earliest of: (i) the completion of the Business Combination; or (ii) the redemption of any public shares of common stock properly tendered in connection with a stockholder vote to amend the Company’s amended and restated certificate of incorporation to modify the substance or timing of the Company’s obligation to redeem 100% of such public shares of common stock if the Company does not complete the Business Combination within 24 months from the IPO Closing Date; or (iii) the redemption of 100% of the public shares of common stock if the Company is unable to complete a Business Combination within 24 months from the IPO Closing Date, subject to the requirements of law and stock exchange rules.

7


Business Combination

The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Public Offering, although substantially all of the net proceeds of the Public Offering are intended to be generally applied toward consummating a Business Combination. The Business Combination must be with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held in the Trust Account (less any deferred underwriting commissions and taxes payable on interest income earned) at the time of the Company signing a definitive agreement in connection with the Business Combination. Furthermore, there is no assurance that the Company will be able to successfully effect a Business Combination.

The Company, after signing a definitive agreement for a Business Combination, will either (i) seek stockholder approval of the Business Combination at a meeting called for such purpose in connection with which stockholders may seek to redeem their shares, regardless of whether they vote for or against the Business Combination, for cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination, including interest income but less taxes payable, or (ii) provide stockholders with the opportunity to sell their shares to the Company by means of a tender offer (and thereby avoid the need for a stockholder vote) for an amount in cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination, including interest income but less taxes payable. The decision as to whether the Company will seek stockholder approval of the Business Combination or will allow stockholders to sell their shares in a tender offer will be made by the Company, solely in its discretion, and will be based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require the Company to seek stockholder approval, unless a vote is required by law or under NASDAQ rules. If the Company seeks stockholder approval, it will complete its Business Combination only if a majority of the outstanding shares of common stock voted are voted in favor of the Business Combination. Currently, the Company will not redeem its public shares of common stock in an amount that would cause its net tangible assets to be less than $5,000,001. In such case, the Company would not proceed with the redemption of its public shares of common stock and the related Business Combination, and instead may search for an alternate Business Combination.

As a result of the foregoing redemption provisions, the public shares of common stock will be recorded at the redemption amount and classified as temporary equity, in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 480, “Distinguishing Liabilities from Equity” (“ASC Topic 480”) in subsequent periods.

The Company will have 24 months from the IPO Closing Date to complete its Business Combination. If the Company does not complete a Business Combination within this period of time, it shall (i) cease all operations except for the purposes of winding up; (ii) as promptly as reasonably possible, but not more than ten business days thereafter, redeem the public shares of common stock for a per share pro rata portion of the Trust Account, including interest income, but less taxes payable (less up to $100,000 of such net interest income to pay dissolution expenses) and (iii) as promptly as possible following such redemption, dissolve and liquidate the balance of the Company’s net assets to its remaining stockholders, as part of its plan of dissolution and liquidation. The Sponsor and the Company’s officers and directors have entered into a letter agreement with the Company, pursuant to which they waived their rights to participate in any redemption with respect to their Founder Shares (as defined below); however, if the Sponsor or any of the Company’s officers, directors or affiliates acquire public shares of common stock, they will be entitled to a pro rata share of the Trust Account in the event the Company does not complete a Business Combination within the required time period.

In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per Unit in the Public Offering.

8


Emerging Growth Company

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.

2.       Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”), and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of June 30, 2020 and the results of operations and cash flows for the periods presented. Operating results for the six months ended June 30, 2020 are not necessarily indicative of results that may be expected for the full year or any other period. The accompanying unaudited financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K filed with the SEC on March 13, 2020.

Net Income/(Loss) Per Common Share

The Company has two classes of shares, which are referred to as Class A common stock (the “Common Stock”) and Class F common stock (the “Founders Shares”). Net income/(loss) per common share is computed utilizing the two-class method. The two-class method is an earnings allocation formula that determines earnings per share separately for each class of common stock based on an allocation of undistributed earnings per the rights of each class. At June 30, 2020, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into common stock and then share in the earnings of the Company under the treasury stock method. As a result, diluted net income/(loss) per common share is the same as basic net income/(loss) per common share for the period. The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income/(loss) per share for each class of common stock:

 

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