Nuvve Holding Corp 10-Q for FY2022 Q1

Nuvve Holding Corp. (NVVE)

10-Q 2022-05-13 For: 2022-03-31

Added on April 05, 2026

About this 10-Q

Nuvve Holding Corp filed this 10-Q on May 13, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.37M; up 196.7% from $799.03K a year earlier
Net loss: $8.97M; compared with a net loss of $5.36M a year earlier
Diluted EPS: -$0.49; compared with -$0.52 a year earlier

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PART I—FINANCIAL INFORMATION			1
	Item 1.	Interim Condensed Consolidated Financial Statements (Unaudited).	1
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	29
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	38
	Item 4.	Controls and Procedures.	38

PART II—OTHER INFORMATION			39
	Item 1.	Legal Proceedings	39
	Item 1A.	Risk Factors	39
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	40
	Item 3.	Defaults Upon Senior Securities.	40
	Item 4.	Mine Safety Disclosures.	40
	Item 5.	Other Information.	40
	Item 6.	Exhibits.	40


	March 31, 2022		December 31, 2021
Assets
Current assets
Cash	$	23,704,646	$	32,360,520
Restricted cash	480,000		380,000
Accounts receivable	1,431,134		1,886,708
Inventories	9,328,206		11,118,188

Prepaid expenses and other current assets	1,685,008		1,036,645
Total Current Assets	36,628,994		46,782,061

Property and equipment, net	572,499		356,194
Intangible assets, net	1,446,218		1,481,077
Investment	670,951		670,951
Right-of-use operating assets	3,397,270		3,483,042
Deferred financing costs	43,562,847		43,562,847
Financing receivables	238,624		138,161
Security deposit, long-term	3,057		3,057
Total Assets	$	86,520,460	$	96,477,390

Liabilities, Mezzanine Equity and Stockholders’ Equity

Current Liabilities
Accounts payable	$	3,216,560	$	5,738,873
Accrued expenses	3,564,224		2,874,018
Deferred revenue	690,868		719,771

Operating lease liabilities - current	254,057		41,513

Other liabilities	108,384		110,574

Total Current Liabilities	7,834,093		9,484,749

Operating lease liabilities - noncurrent	3,319,734		3,441,642
Warrants liability	458,476		866,000
Derivative liability - non-controlling redeemable preferred shares	433,000		511,948
Other long-term liabilities	17,283		18,860
Total Liabilities	12,062,586		14,323,199

Commitments and Contingencies
Mezzanine equity
Redeemable non-controlling interests, preferred shares, zero par value, 1,000,000 shares authorized, 3,138 shares issue and outstanding at March 31, 2022 and December 31, 2021; aggregate liquidation preference of $3,264,775 at March 31, 2022	3,046,892		2,885,427
Stockholders’ (Deficit) Equity


Preferred stock, $0.0001 par value, 1,000,000 shares authorized; zero shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	—		—

Common stock, $0.0001 par value, 100,000,000 shares authorized; 18,891,500 and 18,861,130 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	1,891		1,888

Additional paid-in capital	128,594,145		127,138,504
Accumulated other comprehensive income (loss)	99,762		113,446
Accumulated deficit	(56,385,798)		(47,412,470)
Nuvve Stockholders’ Equity (Deficit)	72,310,000		79,841,368
Non-controlling interests	(899,018)		(572,604)
Total Stockholders’ Equity (Deficit)	71,410,982		79,268,764
Total Liabilities, Mezzanine equity and Stockholders’ Equity	$	86,520,460	$	96,477,390


	Three Months Ended March 31,
	2022		2021
Revenue
Products and services	$	2,253,784	$	311,903
Grants	117,249		487,129
Total revenue	2,371,033		799,032
Operating expenses
Cost of product and service revenue	2,142,312		127,228
Selling, general, and administrative	7,625,550		4,482,740
Research and development	2,135,575		1,262,950
Total operating expenses	11,903,437		5,872,918

Operating loss	(9,532,404)		(5,073,886)
Other income (expense)
Interest income (expense)	1,458		(597,549)


Change in fair value of warrants liability	433,000		421,830
Change in fair value of derivative liability	53,472		—
Other, net	(29,787)		(112,115)
Total other (expense) income, net	458,143		(287,834)
Loss before taxes	(9,074,261)		(5,361,720)
Income tax (benefit) expense	—		—
Net loss	$	(9,074,261)	$	(5,361,720)
Less: Net loss attributable to non-controlling interests	(100,933)		—
Net loss attributable to Nuvve Holding Corp.	$	(8,973,328)	$	(5,361,720)
Less: Preferred dividends on redeemable non-controlling interests	64,015		—
Less: Accretion on redeemable non-controlling interests preferred shares	161,466		—
Net loss attributable to Nuvve common stockholders	$	(9,198,809)	$	(5,361,720)

Net loss per share attributable to Nuvve common stockholders, basic and diluted	$	(0.49)	$	(0.52)

Weighted-average shares used in computing net loss per share attributable to Nuvve common stockholders, basic and diluted	18,864,374		10,408,080


	Three Months Ended March 31,
	2022		2021
Net loss	$	(9,074,261)	$	(5,361,720)
Other comprehensive (loss) income, net of taxes
Foreign currency translation adjustments, net of taxes	(13,684)		116,749
Total Comprehensive loss	$	(9,087,945)	$	(5,244,971)
Less: Comprehensive loss attributable to non-controlling interests	(100,933)		—
Comprehensive loss attributable to Nuvve Holding Corp.	$	(8,987,012)	$	(5,244,971)
Less: Preferred dividends on redeemable non-controlling interests	(64,015)		—
Less: Accretion on redeemable non-controlling interests preferred shares	(161,466)		—
Comprehensive loss attributable to Nuvve common stockholders	$	(8,761,531)	$	(5,244,971)


	Common Stock	Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit			Non-controlling Interests		Total
			Shares					Amount
Balances December 31, 2021		18,861,130		$	1,888	$	127,138,504		$	113,446	$	(47,412,470)	$	(572,604)	79,268,764
Exercise of stock options and vesting of restricted stock		30,370		3		—			—		—		—		3
Stock-based compensation		—		—		1,455,641			—		—		—		1,455,641

Currency translation adjustment		—		—		—			(13,684)		—		—		(13,684)
Preferred dividends - non-controlling interest		—		—		—			—		—		(64,015)		(64,015)
Accretion on redeemable non-controlling interests preferred shares		—		—		—			—		—		(161,466)		(161,466)

Net loss		—		—		—			—		(8,973,328)		(100,933)		(9,074,261)
Balances March 31, 2022		18,891,500		$	1,891	$	128,594,145		$	99,762	$	(56,385,798)	$	(899,018)	$	71,410,982


	Series A Convertible Preferred Stock			Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit				Total
	Shares	Amount			Shares			Amount
Balances December 31, 2020, as previously reported	16,789,088	$	1,679		26,162,122	$	2,616		$	19,650,659	$	(77,841)	$	(20,457,823)		$	(880,710)
Conversion of shares due to merger capitalization	(16,789,088)	(1,679)			(17,039,126)	(1,704)			3,383		—		—			—
Balances December 31, 2020, as previously reported	—	—			9,122,996	912			19,654,042		(77,841)		(20,457,823)			(880,710)
Beneficial conversion feature - convertible debenture	—	—			—	—			427,796		—		—			427,796
Conversion of convertible debenture	—	—			544,178	54			3,999,381		—		—			3,999,435
Repurchase of common stock from EDF	—	—			(600,000)	(60)			(5,999,940)		—		—			(6,000,000)
Assumption of private warrant liability from Newborn	—	—			—	—			(1,253,228)		—		—			(1,253,228)
Merger recapitalization, net of share redemption of $18,629 and issuance costs of $5,979,675	—	—			8,060,418	806			51,750,557		—		—			51,751,363
Placement agent fee paid in common stock	—	—			208,532	21			2,085,299		—		—			2,085,320
PIPE offering, less issuance costs of $2,500	—	—			1,425,000	143			14,247,357		—		—			14,247,500
Notice of exercise of put option	—	—			—	—			(2,000,000)		—		—			(2,000,000)
Stock-based compensation	—	—			—	—			262,105		—		—			262,105
Currency translation adjustment	—	—			—	—			—		116,749		—			116,749
Net loss	—	—			—	—			—		—		(5,361,720)			(5,361,720)
Balances March 31, 2021	—	—			18,761,124	1,876			83,173,369		38,908		(25,819,543)			57,394,610


NUVVE HOLDING CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(Unaudited)
	Three Months Ended March 31,
	2022		2021



Supplemental Disclosure of Noncash Financing Activity
Conversion of preferred stock to common stock	$	—	$	1,679
Conversion of debenture and accrued interest to common shares	$	—	$	3,999,435
Conversion of shares due to reverse recapitalization	$	—	$	3,383

Issuance of common stock for merger success fee	$	—	$	2,085,299
Non-cash merger transaction costs	$	—	$	2,085,299
Accrued transaction costs related to reverse recapitalization	$	—	$	189,434
Issuance of private warrants	$	—	$	1,253,228

Transfer of Inventory to property and equipment	$	87,095	$	—


2022 (remaining nine months)	$	540,331
Thereafter	150,537
Total	$	690,868


	March 31, 2022		December 31, 2021
Long-lived assets:
United States	$	1,948,891	$	1,811,607
Denmark	23,550		25,664
	$	1,972,441	$	1,837,271


	Level 1: Quoted Prices in Active Markets for Identical Assets		Level 2: Significant Other Observable Inputs		Level 3: Significant Unobservable Inputs		Total at March 31, 2022		Total Gains (Losses) For The Three Months Ended March 31, 2022
Recurring fair value measurements
Private warrants	$	—	$	—	$	433,000	$	433,000	$	433,000
Derivative liability - non-controlling redeemable preferred shares	—		—		458,476		458,476		53,472
Total recurring fair value measurements	$	—	$	—	$	891,476	$	891,476	$	486,472


	Private Warrants		Non-controlling redeemable preferred shares - derivative liability
Balance at December 31, 2021	$	866,000	$	511,948






Total (gains) losses for period included in earnings	(433,000)		(53,472)
Balance at March 31, 2022	$	433,000	$	458,476


	March 31, 2022		December 31, 2021
Other long term liabilities:
Derivative liability - non-controlling redeemable preferred shares	$	458,476	$	511,948


		March 31, 2022		December 31, 2021

Trade receivables		$	1,494,322	$	1,949,896

Less: allowance for doubtful accounts		(63,188)		(63,188)

	Accounts receivable, net	$	1,431,134	$	1,886,708

Allowance for doubtful accounts:

	Balance December 31, 2021	$	(63,188)
	Provision	—
	Write-off	—
	Recoveries	—
	Balance March 31, 2022	$	(63,188)


	March 31, 2022		December 31, 2021
DC Chargers	$	7,431,300	$	7,687,598
AC Chargers	204,687		232,920
Vehicles - School Buses (1)	1,620,000		3,180,000
Others	72,219		17,670
Total	$	9,328,206	$	11,118,188


	March 31, 2022		December 31, 2021


Computers & Servers	$	113,490	$	105,499
Vehicles	168,862		168,862

Office furniture and equipment	317,546		161,771
Others	93,146		6,050
Total	693,044		442,182
Less: Accumulated Depreciation	(120,545)		(85,988)
Property, plant and equipment, net	$	572,499	$	356,194

	March 31, 2022		March 31, 2021

Depreciation expense	$	25,975	$	6,508


2022 (remaining nine months)	$	104,577
2023	139,437
2024	139,437
2025	139,437
2026	139,437
Thereafter	783,893
	$	1,446,218


	Number of Warrants	Number of Warrants Exercisable	Exercise Price	Expiration Date
Public Warrants	2,875,000	2,875,000	$11.50	March 19, 2026
Private Warrants	136,250	136,250	$11.50	March 19, 2026
PIPE Warrants	1,353,750	1,353,750	$11.50	March 19, 2026
Stonepeak/Evolve Warrants - series B	2,000,000	2,000,000	$10.00	May 17, 2031
Stonepeak/Evolve Warrants - series C	1,000,000	500,000	$15.00	May 17, 2031
Stonepeak/Evolve Warrants - series D	1,000,000	500,000	$20.00	May 17, 2031
Stonepeak/Evolve Warrants - series E	1,000,000	500,000	$30.00	May 17, 2031
Stonepeak/Evolve Warrants - series F	1,000,000	500,000	$40.00	May 17, 2031
	10,365,000	8,365,000


	2010 Plan		2020 Plan
Expected life of options (in years) (1)	6.1		6.1
Dividend yield (2)	0	%	0	%
Risk-free interest rate (3)	2.00	%	2.00	%
Volatility (4)	54.4	%	54.4	%


	Shares	Weighted- Average Exercise Price per Share($)	Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value($)
Outstanding - December 31, 2021	1,035,035	3.21	5.90	5,688,201
Granted	—	—	—	—
Exercised	—	—	—	—
Forfeited	—	—	—	—
Expired/Cancelled	(5,310)	1.37	—	—
Outstanding - March 31, 2022	1,029,725	3.22	5.69	5,649,500

Options Exercisable at March 31, 2022	857,024	2.43	5.14	5,344,262
Option Vested at March 31, 2022	857,024	2.43	5.14	5,344,262


	Three Months Ended March 31,
	2022		2021
Amount received from option exercised	$	—	$	—

	March 31, 2022				Weighted average remaining recognition period
Total unrecognized options compensation costs	$	9,987,990			2.98


	Shares	Weighted- Average Grant Date Fair Value($)
Nonvested at December 31, 2021	353,817	11.00
Granted	27,478	10.15
Vested/Release	(30,370)	13.79
Cancelled/Forfeited	—	—
Nonvested and Outstanding at March 31, 2022	350,925	10.70


	Classification	March 31, 2022

Operating lease assets	Right-of-use operating lease assets	$	3,397,270
Finance lease assets	Property, plant and equipment, net	23,550
Total lease assets		$	3,420,820

Operating lease liabilities - current	Operating lease liabilities - current	$	254,057
Operating lease liabilities - noncurrent	Operating lease liabilities - noncurrent	3,319,734
Finance lease liabilities - current	Other liabilities - current	7,444
Finance lease liabilities - noncurrent	Other long-term liabilities	17,283
Total lease liabilities		$	3,598,518


	Operating Lease		Finance Lease
Maturities of lease liabilities are as follows:	March 31, 2022		March 31, 2022
2022	$	125,784	$	5,583
2023	514,377		7,444
2024	529,807		7,444
2025	545,703		7,444
2026	562,074		—
Thereafter	3,017,861		1,861
Total lease payments	5,295,606		29,776
Less: interest	(1,721,815)		(5,049)
Total lease obligations	$	3,573,791	$	24,727


						March 31, 2022
Weighted-average remaining lease terms (in years):
Operating lease						9.7
Finance lease						4.0

Weighted-average discount rate:
Operating lease						7.8%
Finance lease						7.8%


2022	$	146,495
2023	256,785
2024	264,488
2025	272,423
2026	280,596
Thereafter	1,507,106
Total lease payments	$	2,727,893


Milestone Event: Aggregated Vehicles	Milestone Payment Amount
10,000	$	500,000
20,000	750,000
40,000	750,000
60,000	750,000
80,000	750,000
100,000	1,000,000
200,000	1,000,000
250,000	2,000,000
	$	7,500,000


Shares Authorized	Shares Issued and Outstanding	Stated Value per Share		Initial Carrying Value		Accrued Preferred Dividends		Liquidation Preference
1,000,000	3,138	$	1,000	$	3,138,000	$	126,775	$	3,264,775


	March 31, 2022




Add: net loss attributable to non-controlling interests as of March 31, 2022	$	(100,933)
Less: dividends paid to non-controlling interests as of March 31, 2022	64,015
Less: Preferred share accretion adjustment	161,466
Non-controlling interests	$	(326,414)


	Three Months Ended March 31, 2022


Net loss attributable to non-controlling interests	$	(100,933)


	Three Months Ended March 31, 2022
Beginning balance - December 31, 2021	$	2,885,426




Preferred share Accretion adjustment	161,466
Ending balance - March 31, 2022	$	3,046,892


	Three Months Ended March 31,				Period-over-Period Change
	2022		2021		Change ($)		Change (%)
Revenue
Products and services	$	2,253,784	$	311,903	$	1,941,881	623	%
Grants	117,249		487,129		(369,880)		(76)	%
Total revenue	2,371,033		799,032		1,572,001		197	%
Operating expenses
Cost of product and service revenue	2,142,312		127,228		2,015,084		1,584	%
Selling, general and administrative expenses	7,625,550		4,482,740		3,142,810		70	%
Research and development expense	2,135,575		1,262,950		872,625		69	%
Total operating expenses	11,903,437		5,872,918		6,030,519		103	%
Operating loss	(9,532,404)		(5,073,886)		(4,458,518)		88	%
Other income (expense)
Interest income (expense)	1,458		(597,549)		599,007		(100)	%

Change in fair value of conversion option on convertible notes	—		—		—		100	%
Change in fair value of private warrants liability	433,000		421,830		11,170		100	%
Change in fair value of derivative liability	53,472		—		53,472		100	%
Other, net	(29,787)		(112,115)		82,328		(73)	%
Total other (expense) income, net	458,143		(287,834)		745,977		(259)	%
Loss before taxes	(9,074,261)		(5,361,720)		(3,712,541)		69	%
Income tax (benefit) expense	—		—		—		—	%
Net loss	$	(9,074,261)	$	(5,361,720)	$	(3,712,541)	69	%
Less: Net loss attributable to non-controlling interests	(100,933)		—		(100,933)		100	%
Net loss attributable to Nuvve Holding Corp.	$	(8,973,328)	$	(5,361,720)	$	(3,611,608)	67	%


			NUVVE HOLDING CORP.

			By:			/s/ Gregory Poilasne
						Gregory Poilasne Chief Executive Officer


			By:			/s/ David Robson
						David Robson Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)