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Our plan includes analytics-driven, targeted marketing investments to accelerate growth while being accretive to margins. Net revenues exceeded expectations and increased 40% to $37.0 million from $26.4 million in the same period in 2019. Parking around the former Kitchen 64 diner was once again at a premium Monday morning, as the brothers behind Midlothian's Brick House Diner held a soft Investments in Additional Processing Capacity. As we continue to grow our physical and online footprint, these hubs and the vast amount of information they provide will continue to be an important source of value to our buyers, sellers and our business model. ( BizSense file) Eight months in as a publicly traded company, CarLotz is taking some heat from some of its shareholders. Our return policy allows customers to initiate a return until the earlier of the first three days or 500 miles after delivery. Then CarLotz does any necessary reconditioning itself, and sells the cars directly to consumers, collecting fees worth between $1200 and $1700 on each vehicle sold. Check out this fabulous retail store and online I called a head to to set an appointment to test drive the vehicle I was interested in. Forward-looking statements may be preceded by, followed by or include the words believes, estimates, expects, projects, forecasts, may, will, should, seeks, plans, scheduled, anticipates or intends or similar expressions. Our real estate team has identified our first set of new hub locations, in furtherance of our strategy of opening three to four new hubs per quarter in 2021, and more than 40 hubs by the end of 2023. In April2020, we entered into a promissory note as part of the PPP, the total outstanding amount of which, approximately $1.75million, was repaid in connection with the consummation of the Merger and the principal and interest payments of which are not included in the above table. Liability awards are re-measured to fair value each reporting period. We believe an expanded footprint will enable us to increase our vehicle sales and further penetrate our national vehicle sourcing partners while also attracting new corporate vehicle sourcing partners that were previously unavailable due to our geographic limitations. We sell wholesale vehicles primarily through auction as wholesale vehicles acquired often do not meet our standards for retail vehicle sales. 100% free, no signups. We have an alternative fee arrangement with the corporate vehicle sourcing partner that accounted for over 60% of our vehicles sourced during the fourth quarter of 2020 and first quarter of 2021 to date. Revenue excludes any sales taxes, title and registration fees, and other government fees that are collected from customers. We are excited to have executed a merger with Acamar Partners Acquisition Corp. in January that resulted in our debut as a public company, and we have established the foundation required to continue to build and grow through 2021 and beyond., Highlights of Fiscal Year 2020 Financial Results. The refund will be issued to the original form of payment minus the return shipping fee. Extended warranties sold beginning January1, 2019 are serviced by a company owned by a significant shareholder of the Company. Specialties: Thanks so much for shopping at CarLotz, the consignment store for cars! Processed returns and exchange of merchandise, which includes inspecting whether the items are in good condition and quality control. On December 2, 2020, CarLotz issued a promissory note (the Note) to AFC. Advances under the Ally Facility, if not demanded earlier, are due and payable for each vehicle financed under the Ally Facility as and when such vehicle is sold, leased, consigned, gifted, exchanged, transferred, or otherwise disposed of. During initial shelter in place orders and economic shutdowns, we saw a decrease in sales activity as consumers for the most part stayed home during the months of March through May of 2020. Get 20 years of historical current vs average ps ratio charts for LOTZ stock and other companies. The increase was primarily due to an increase in wholesale vehicle unit sales as we sold 1,159 wholesale vehicles in 2019, compared to 610 wholesale vehicles in 2018, as well as an increase in average sale price of $2,125. Upon any event of default (including, without limitation, our obligation to pay upon demand any outstanding liabilities of the Ally Facility), the Lender may, at its option and without notice to us, exercise its right to demand immediate payment of all liabilities and other indebtedness and amounts owed to the Lender and its affiliates by us and our affiliates. Highlights of Fourth Quarter 2020 Financial Results. CarLotz reached a deal in October to go public via a merger with Acamar Partners, a special purpose acquisition company (SPAC). Used Cars for Sale. Through the industrys leading consignment-to-retail sales model, CarLotz is able to obtain non-competitively sourced inventory to sell. Until we reach an optimal pooled inventory level, we view vehicles available-for-sale as a key measure of our growth. Our proprietary Retail Remarketing technology provides our corporate vehicle sourcing partners with real-time performance metrics and data analytics along with custom business intelligence reporting that enables price and vehicle triage optimization between the wholesale and retail channel. Buyers can browse our extensive, and growing, inventory online through our website or at our locations as well as select from our fully integrated financing and insurance products with ease. For the year ended December31, 2018, net cash provided by financing activities was $4.5million, primarily driven by $29.1million in proceeds from borrowings under the AFC Facility, partially offset by repayment of borrowings under the AFC Facility of $24.6million. For the year ended December31, 2018, net cash used in operating activities was $11.8million, primarily driven by a net loss of $6.6million adjusted for non-cash gains of $0.1million and net changes in our operating assets and liabilities of $(5.3) million. The increase was primarily due to the full-year effect of CarLotz becoming the sole member of Orange Grove via redemption of the remaining 80% membership interest. Once eligibility for return is confirmed, a specialist will help facilitate the process and pick up your Bed Frame. Our hubs with integrated vehicle processing centers allow us to add value by efficiently reconditioning vehicles and quickly move them to market. Our return policy allows customers to initiate a return during the first three days or 500 miles after delivery, whichever comes first. EBITDA is defined as net loss attributable to common stockholders adjusted to exclude interest expense, and depreciation and amortization expense. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Management evaluates its accounting policies, estimates and judgments on an on-going basis. Redeemable convertible preferred stock tranche obligation, SeriesA Preferred Stock $0.001 stated value; authorized 3,052,127 shares; issued and outstanding 2,034,751 shares; aggregate liquidation preference of approximately $37,114 and $34,300 as of December31, 2020 and 2019, respectively, Common stock, $0.001 par value; authorized 7,600,000 shares, issued 3,869,118 shares, and outstanding 3,716,526 shares, Treasury stock, $0.001 par value; 152,592 shares, Cost of sales (exclusive of depreciation), Change in fair value of warrants liability, Change in fair value of redeemable convertible preferred stock tranche obligation, Redeemable convertible preferred stock dividends (undeclared and cumulative), Adjustments to reconcile net loss to net cash used in operating activities, Loss on disposition of property and equipment, Accrued expenses and transaction expenses, Cash related to consolidation of Orange Grove, Proceeds from sales of marketable securities, Issuance of redeemable convertible preferred stock, net, Cash and cash equivalents and restricted cash, beginning, Cash and cash equivalents and restricted cash, ending, Purchases of property under capital lease obligations, Transfer from property and equipment to inventory, Transfer from lease vehicles to inventory, Redeemable convertible preferred stock distributions accrued, Purchase of property and equipment with long-term debt, Promissory note based on consolidation of Orange Grove, Settlement of redeemable convertible preferred stock tranche obligation, Total retail vehicles and finance and insurance gross profit. We plan to expand our F&I product offering to drive additional gross profit. Such an effort may take a number ofmonths and may not precisely replicate the variety and quality of vehicles that we have been sourcing from a single source. We support our corporate vehicle sourcing partners by offering an attractive sell-through rate and our integrated technology platforms allow our supply partners to track the sale process of their vehicles in real-time, along with a custom system for managing customer leads and leads from third party providers. The increase was primarily due to an increase in the number of retail vehicle unit sales as we sold 6,435 retail vehicles in 2019, compared to 4,077 retail vehicles in 2018 as well as an increase of the average sale price of $936. In fact, the company says its sellers typically see a $2,000-$5,000 benefit from using their services. The increase in average sale price was primarily due to an increase in the percentage of units sourced via consignment, and the decrease in retail vehicle unit sales was due to the COVID-19 pandemic and related government lockdown and travel restrictions imposed. F&I revenue consists of 100% gross margin products for which gross profit equals revenue. Last month, CarLotz cut back its revenue outlook for the year along with vehicles sold and gross profit estimates due to a pause on consignments from its largest commercial vehicle sourcing partner. If the award is deemed probable of being earned, related equity-based compensation is recorded over the estimated service period. We also sell vehicles to wholesalers or other dealers, primarily at auctions, generally for vehicles acquired via trade-in or vehicles acquired via consignment that do not meet our quality standards for sale to retail customers or that remain unsold at the end of the consignment period. Items with a value of $35 or more must be returned using a trackable shipping method. The increase was primarily due to an increase in unit sales as we sold 7,594 vehicles in 2019, compared to 4,687 vehicles in 2018. The changes in operating assets and liabilities are primarily driven by an increase in inventories of $4.8million and an increase in accounts receivable of $0.7million, partially offset by a $0.2million increase in accounts payable and a $0.1million increase in accrued expenses. The AFC Facility was secured by all of our assets. Our reconditioning program is driven byyears of experience that allows us to cost-effectively repair, enhance and process a large number of vehicles. Going forward, our strategy is to make capital investments in additional hubs with integrated processing centers by leveraging our data analytics and deep industry experience, and taking into account a combination of factors, including proximity to buyers and sellers, transportation costs, access to inbound inventory and sustainable low-cost labor. Through the industrys leading consignment to retail sales model, we have access to non-competitively sourced inventory. We believe that we can benefit from significant untapped volume with existing corporate vehicle sourcing partners and that our growing footprint will allow us to better serve our national accounts. The following table summarizes our consolidated statements of cash flows for the periods indicated: For the year ended December 31, 2020, net cash used in operating activities was $4.6 million, primarily driven by a net loss of $6.6 million adjusted for non-cash charges of $0.5 million and net changes to our operating assets and liabilities of $2.5 million. Wholesale vehicle sales revenue increased by $5.3million, or 168.1%, to $8.5million during 2019, from $3.2million in 2018. Earnings fell to a loss of $14.18 million, resulting in a 307.83% decrease from last quarter. The following table reconciles EBITDA and Adjusted EBITDA to net loss attributable to common stockholders for the periods presented: MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. We provide customers with options for financing, insurance and extended warranties. Accordingly, we recognize commission revenue at the time of sale. The Note was repaid upon the consummation of the Merger. Internal Control Over Financial Reporting. Founded in 2011, CarLotz currently operates ten retail hub locations in the U.S, with two more facilities under lease, initially launched in the Mid-Atlantic region and since expanded to the Southeast, Southcentral, Midwest, and Pacific Northwest regions of the United States. Including a related $125 million private investment from the group . Management believes the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA is useful to investors in comparing the Companys performance prior to the merger and the Companys performance following the merger. We maintain stable long-term relationships with numerous key blue-chip national accounts with a robust sales pipeline of potential new accounts. If you receive the product and are not satisfied, you can ask for a return with no reason for 30 days from the delivery date and get a full refund. Pay is decent but once you break it down and compare it to how many hours they expect you to work (even on your day off), it's more mediocre-level. C.J. At these hubs, our vehicles undergo an extensive 133-point inspection and reconditioning in preparation for resale. As we exited the third quarter and relaxed our capital preservation strategy, we saw record consignment and inventory volume that led to record quarterly unit sales and revenue. Under the Ally Facility, the Company is subject to financial covenants that require the Company to maintain at least 10% of the credit line in cash and cash equivalents, to maintain at least 10% of the credit line on deposit with Ally Bank and to maintain a minimum tangible net worth of $90 million calculated in accordance with GAAP. Without a doubt Markon/ Ben E. Keith Quality Assurance Team provides the best quality and yields in the entire food distribution industry. For the year ended December31, 2020, net cash provided by financing activities was $4.5million, primarily driven by $5.3million in proceeds from borrowings on long-term debt and $24.2 million in proceeds from borrowings under the AFC Facility, partially offset by repayment of borrowings under the AFC Facility of $25.0million. Prior to the Merger, we were a private company with limited internal accounting personnel and other resources to address our internal control over financial reporting.