|
Item
2.01
|
Completion
of Acquisition or Disposition of Assets.
|
The
disclosure set forth in the “Introductory Note” above is incorporated by reference into this Item 2.01.
As permitted by the Company’s organizational
documents and by Section 228 of the DGCL, certain of the Company’s stockholders holding, in the aggregate, a majority of
the then issued and outstanding shares of Class F Common Stock and Class A Common Stock on September 18, 2020, executed and delivered
to the Company a Stockholders’ Written Consent approving the Business Combination and the other transactions contemplated
by the Business Combination Agreement (the “First Stockholders’ Written Consent”). The Business Combination
was completed on November 20, 2020.
As
of the Closing Date and following the completion of the Business Combination, the Company had the following outstanding securities:
|
●
|
Approximately 20,906,572 shares of Class A Common Stock.
|
As of the Closing Date and following the
completion of the Business Combination, the Company had an additional 11,966,886 shares of Class A Common Stock reserved for issuance
to former stockholders of Onyx upon delivery of certain administrative paperwork to the Company.
FORM
10 INFORMATION
Prior
to the Closing, the Company was a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) with no operations, formed as a vehicle to effect a business combination with one or more
operating businesses. After the Closing, the Company became a holding company whose only assets consist of equity interests in
PARTS iD, LLC.
Cautionary
Note Regarding Forward-Looking Statements
This
Current Report on Form 8-K contains or incorporates by reference “forward-looking statements” within the meaning
of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of
the Exchange Act. These statements may include, but are not limited to, statements regarding the Company’s Business Combination,
the financing of the Business Combination, the benefits of the Business Combination respecting our Stockholders and the associated
objectives, expectations and intentions, all statements regarding the Company’s expected future financial position, results
of operations, cash flows, dividends, financing plans, business strategy, budgets, capital expenditures, competitive positions,
growth opportunities, plans and objectives of management, all discussions, expressed or implied, and statements containing words
such as “anticipate,” “approximate,” “believe,” “plan,” “estimate,”
“expect,” “project,” “could,” “can,” “would,” “should,”
“will,” “intend,” “may,” “might,” “potential,” “upside”
and other similar expressions. All statements in this Current Report on Form 8-K that are not historical facts are forward-looking statements
that reflect the best judgment of the Company based upon currently available information. Such forward-looking statements
are inherently uncertain, and our Stockholders and other potential investors must recognize that actual results may differ materially
from the Company’s expectations as a result of a variety of factors, including, without limitation, those discussed below.
Such forward-looking statements are based upon management’s current expectations and include known and unknown risks,
uncertainties and other factors, many of which the Company is unable to predict or control, that may cause its actual results,
performance or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements.
These statements involve risks, uncertainties and other factors discussed below and detailed from time to time in the Company’s
filings with the SEC. These risks, uncertainties and other factors include, among other things:
|
●
|
potential
adverse reactions or changes to business relationships resulting from the completion of the Business Combination;
|
|
|
|
|
●
|
the
Company’s ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among
other things, competition and the ability of the Company to grow and manage growth profitably following the Closing;
|
|
●
|
the
risk of exceeding the costs related to the Business Combination;
|
|
|
|
|
●
|
the
inability to retain key personnel following the Closing of the Business Combination;
|
|
●
|
adverse
changes in U.S. and non-U.S. governmental laws and regulations;
|
|
●
|
the
outcome of any legal proceedings against the Company;
|
|
●
|
the
effect of the COVID-19 pandemic on the Company’s business;
|
|
●
|
the
ability of the Company to execute its business model, including market acceptance of its planned products and services and
the ability of our stockholders to realize the anticipated benefits of the Business Combination;
|
|
●
|
the
Company’s ability to raise capital;
|
|
●
|
other
risks and uncertainties set forth in the Information Statement in the section entitled “Risk Factors” beginning
on page 19 of the Information Statement, which is incorporated herein by reference.
|
Business
and Properties
The
business and properties of the Company and Onyx prior to the Business Combination are described in the Information Statement in
the sections entitled “Information About Legacy Acquisition Corp.” beginning on page 86 and “Information
About Onyx Enterprises Int’l, Corp.” beginning on page 110 of the Information Statement, which are incorporated
herein by reference.
Risk
Factors
The
risks associated with the Company’s business are described in the Information Statement in the section entitled “Risk
Factors” beginning on page 19 of the Information Statement, which is incorporated herein by reference.
Financial
Information
Unaudited
Consolidated Financial Statements
The unaudited consolidated financial statements
of Onyx as of September 30, 2020 and for the nine months ended September 30, 2020 and 2019 set forth in Exhibit 99.1 hereto have
been prepared in accordance with U.S. generally accepted accounting principles and pursuant to the regulations of the SEC. The
unaudited financial information reflects, in the opinion of management, all adjustments, consisting of normal recurring adjustments,
considered necessary for a fair statement of Onyx’s financial position, results of operations and cash flows for the periods
indicated. The results reported for the interim period presented in 2020 are not necessarily indicative of results that may be
expected for the full year.
These
unaudited consolidated financial statements should be read in conjunction with the historical audited consolidated financial statements
of Onyx as of and for the year ended December 31, 2019 and the related notes included in the Information Statement, in the section
entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operation for Onyx Enterprises
Intl’l, Corp.” beginning on page 120 of the Information Statement and the section entitled “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” included herein.
Unaudited
Pro Forma Condensed Consolidated Combined Financial Information
The
unaudited pro forma condensed combined financial information of the Company as of and for the year ended December 31, 2019 is
included in the Information Statement in the section entitled “Unaudited Pro Forma Condensed Combined Financial Information”
beginning on page 41 of the Information Statement, which is incorporated herein by reference.
The unaudited pro forma condensed combined
financial information of Legacy, Onyx and the Company as of and for the nine months ended September 30, 2020 is set forth in Exhibit
99.2 hereto and is incorporated herein by reference.
Management’s
Discussion and Analysis of Financial Condition and Results of Operations
Management’s
discussion and analysis of the financial condition and results of operation of Onyx prior to the Business Combination is included
in the Information Statement in the section entitled “Management’s Discussion and Analysis of Financial Condition
and Results of Operations for Onyx Enterprises Int’l, Corp.” beginning on page 120 of the Information Statement,
which is incorporated herein by reference, and is supplemented by management’s discussion and analysis of the financial
condition and results of operation of Onyx as of and for the nine months ended September 30, 2020 set forth below:
Comparison
of the Nine Months Ended September 30, 2020 and September 30, 2019
|
|
Nine Months ended
|
|
|
Changes from previous
period
|
|
|
|
2020
|
|
|
% Sales
|
|
|
2019
|
|
|
% Sales
|
|
|
Dollars
|
|
|
Percentage
|
|
Revenues
|
|
|
307,751,463
|
|
|
|
|
|
|
|
217,749,149
|
|
|
|
|
|
|
|
90,002,314
|
|
|
|
41.3
|
%
|
Cost of goods sold
|
|
|
240,928,853
|
|
|
|
78.3
|
%
|
|
|
171,235,868
|
|
|
|
78.6
|
%
|
|
|
69,692,985
|
|
|
|
40.7
|
%
|
Gross profit
|
|
|
66,822,610
|
|
|
|
21.7
|
%
|
|
|
46,513,281
|
|
|
|
21.4
|
%
|
|
|
20,309,329
|
|
|
|
43.7
|
%
|
Gross Margin
|
|
|
21.7
|
%
|
|
|
|
|
|
|
21.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
25,014,794
|
|
|
|
8.1
|
%
|
|
|
15,584,259
|
|
|
|
7.2
|
%
|
|
|
9,430,535
|
|
|
|
60.5
|
%
|
Selling, general & administrative
|
|
|
28,883,134
|
|
|
|
9.4
|
%
|
|
|
25,810,128
|
|
|
|
11.9
|
%
|
|
|
3,073,006
|
|
|
|
11.9
|
%
|
Depreciation
|
|
|
5,034,672
|
|
|
|
1.6
|
%
|
|
|
4,242,694
|
|
|
|
1.9
|
%
|
|
|
791,978
|
|
|
|
18.7
|
%
|
Total operating expenses
|
|
|
58,932,600
|
|
|
|
19.1
|
%
|
|
|
45,637,081
|
|
|
|
21.0
|
%
|
|
|
13,295,519
|
|
|
|
29.1
|
%
|
Income from operations
|
|
|
7,890,010
|
|
|
|
2.6
|
%
|
|
|
876,200
|
|
|
|
0.4
|
%
|
|
|
7,013,810
|
|
|
|
800.5
|
%
|
Other expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
7,684
|
|
|
|
0.0
|
%
|
|
|
4,814
|
|
|
|
0.0
|
%
|
|
|
2,870
|
|
|
|
59.6
|
%
|
Income before income tax
|
|
|
7,882,326
|
|
|
|
2.5
|
%
|
|
|
871,386
|
|
|
|
0.4
|
%
|
|
|
7,010,940
|
|
|
|
804.6
|
%
|
Income tax expenses
|
|
|
1,659,227
|
|
|
|
0.5
|
%
|
|
|
215,145
|
|
|
|
0.1
|
%
|
|
|
1,444,082
|
|
|
|
671.2
|
%
|
Net income
|
|
$
|
6,223,099
|
|
|
|
2.0
|
%
|
|
$
|
656,241
|
|
|
|
0.3
|
%
|
|
$
|
5,566,858
|
|
|
|
848.3
|
%
|
Revenues
Revenues
increased $90.0 million, or 41.3%, for the nine months ended September 30, 2020 compared to the same period for 2019. This increase
was primarily attributable to a 29.4% increase in website traffic and a 24.1% increase in conversion rate compared to the same
period for 2019, caused by rapid adoption of online shopping during the initial outbreak of COVID-19.
Sales
promotions such as free shipping, discounted shipping and discounted product pricing can impact conversion rates, average order
value, sales volume and margin in varying amounts depending on the type of promotion, the effective promotional value, the length
of the promotion, the specific products, brands and categories the promotions are applied to, and the promotional and pricing
strategies and activities of competitors for the same or similar products during the period. Onyx measures the impact from pricing
and promotional strategies using tools like A/B testing, discount code redemptions and sequential analysis among others.
Cost
of Goods Sold
Cost
of goods sold is composed of product cost, the associated fulfilment and handling costs charged by vendors, if any, and shipping
costs. In the nine months ended September 30, 2020, cost of goods sold increased by $69.7 million, or 40.7%, compared to the same
period in 2019. The increase in cost of goods sold was primarily driven by an increase in the number of orders delivered. For
the nine months ended September 30, 2020, the cost of goods sold was 78.3% of revenues, consistent with 78.6% of revenues in the
same period of 2019.
Gross
Profit and Gross Margin
Gross
profit increased $20.3 million, or 43.7%, for the nine months ended September 30, 2020 compared to the same period for 2019. This
increase was primarily attributable to the 41.3% increase in revenue in the nine months ended September 30, 2020. Gross margin
in the nine months ended September 30, 2020 of 21.7% was slightly higher than gross margin of 21.4% in the same period for 2019.
Operating
Expenses
Advertising
expenses increased $9.4 million, or 60.5%, for the nine months ended September 30, 2020 compared to the same period for 2019.
This increase was primarily attributable to i) an increase in paid traffic along with an increase in revenue in the nine months
ended September 30, 2020, and ii) testing of new social media advertising campaigns and development of commercials for connected
TV marketing.
Selling,
general and administrative (“SG&A”) expenses increased $3.1 million, or 11.9%, for the nine months
ended September 30, 2020 versus the same period for 2019. This increase was primarily attributable to an increase in merchant
services provider processing fees in line with the increase in revenue and small changes in other operational costs, including
one-time Legacy merger deal expenses of $0.3 million. As a percentage of revenue, SG&A expenses decreased from 11.9% to 9.4%,
reflecting greater operating cost leverage on higher revenues during the nine months ended September 30, 2020.
Depreciation
expenses increased $0.8 million, or 18.7%, for the nine months ended September 30, 2020 compared to the same period for 2019.
This increase was primarily attributable to increased depreciation related to prior years’ website and software development
combined with a marginal increase in website and software development costs during the nine months ended September 30, 2020.
Interest
Expense
Interest
expense increased $2.9 thousand, or 59.6%, for the nine months ended September 30, 2020 compared to the same period in 2019. This
increase in terms of dollar amount was not material.
Income
Tax Expenses
Income
tax expenses increased $1.4 million, or 671.2%, for the nine months ended September 30, 2020 compared to the same period for 2019.
This change was primarily attributable to an increase in taxable income for the period. For the nine months ended September 30,
2020, the effective income tax rate was 21.05% compared to 24.69% for the same period for 2019. The increase in rate was primarily
attributable to differences in expenses not deductible for income tax purposes.
Liquidity
and Capital Resources
Onyx’s
primary sources of liquidity are cash on hand of $36.9 million as of September 30, 2020, cash generated from operations and changes
in operating assets and liabilities of Onyx. Onyx believes its current resources will be sufficient to fund its cash
needs, as they arise, for at least the next 12 months. Onyx’s primary uses of cash are for investment in website and software
development.
Comparison
of the Nine Months Ended September 30, 2020 and 2019
The
following table summarizes the key cash flow metrics from Onyx’s statements of cash flows for the nine months ended September
30, 2020 and 2019:
|
|
Nine Months
Ended
September 30,
|
|
|
|
2020
|
|
|
2019
|
|
Net cash provided by operating activities
|
|
$
|
28,879,301
|
|
|
$
|
4,608,760
|
|
Net cash used in investing activities
|
|
|
(5,171,877
|
)
|
|
|
(5,351,722
|
)
|
Net cash used in financing activities
|
|
|
(390,892
|
)
|
|
|
(390,078
|
)
|
Net change in cash
|
|
$
|
23,316,532
|
|
|
$
|
(1,133,040
|
)
|
Cash
Flows from Operating Activities
The
net cash provided by operating activities consisted of our net income adjusted for certain non-cash items including depreciation
as well as the effect of changes in working capital and other activities. Operating cash flows can be volatile and are sensitive
to many factors, including changes in working capital and our net income (loss). Onyx has a negative working capital model (current
liabilities exceed current assets). Any profitable growth in revenue results in incremental cash for Onyx, as Onyx receives funds
when customers place orders on the website, while accounts payable are paid over a period time, based on vendor terms, which range
on average from one week to eight weeks.
Cash
provided by operating activities in the nine months ended September 30, 2020 was $28.9 million and was driven primarily by cash
provided by a) operating assets and liabilities of $16.3 million, b) net income of $6.2 million, c) impact of non-cash item
depreciation and amortization expense of $5.0 million, and d) the net impact of deferred income taxes $1.4 million.
Cash
used in operating activities in the nine months ended September 30, 2019 was $4.6 million and was driven primarily by cash provided
by a) impact of non-cash item depreciation and amortization expense of $4.2 million, and b) net income of $0.7 million,
partly offset by cash used by operating assets and liabilities of $0.5 million.
Cash
Flows from Investing Activities
Net
cash used in investing activities was $5.2 million and $5.4 million for the nine months ended September 30, 2020 and 2019, respectively.
This decrease of $0.2 million, or 3.4%, was primarily attributable to lower spending on website and software development (technology
platform and catalog) costs and purchases of property and equipment. This is something that varies depending on the timing of
technology and product development cycles.
Cash
Flows from Financing Activities
Net
cash used in financing activities for the nine months ended September 30, 2020 of $0.4 million was consistent with net cash used
in financing activities of $0.4 million during the same period for 2019.
Critical
Accounting Estimates
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the amounts reported in Onyx’s consolidated financial statements and accompanying notes. Onyx
considers its most important accounting policies that require significant estimates and management judgment to be those policies
discussed below. Onyx’s other significant accounting policies are summarized in Note 2 of the Notes to the Unaudited Financial
Statements for the nine months ended September 30, 2020 and 2019 set forth in Exhibit 99.1 to this Current Report on Form
8-K.
Revenue
Recognition
Onyx
recognizes revenue from product sales and associated shipping fees, net of promotional discounts and return allowances, when the
following revenue recognition criteria are met: persuasive evidence of an arrangement exists; the selling price is fixed or determinable;
collectability is reasonably assured; and the product is delivered to the customer. Onyx estimates customer product return allowances
based on historical experience and reduces product revenue, inclusive of shipping fees, by expected product returns.
Amounts
received from customers prior to the delivery of products are recorded as customer deposits in the accompanying balance sheets.
These advances are recognized as revenue in accordance with Onyx’s policy on revenue recognition.
In
May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-09,
Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). This new standard replaces all previous
accounting guidance on this topic, eliminates all industry-specific guidance and provides a unified model to determine how
revenue is recognized. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled
in exchange for those goods or services. In doing so, companies need to use more judgment and make more estimates than under prior
guidance. Judgments include identifying performance obligations in the contract, estimating the amount of consideration to include
in the transaction price, and allocating the transaction price to each performance obligation.
Effective
January 1, 2019 Onyx elected to adopt ASU 2014-09 using the modified retrospective method which applied to all new contracts
initiated on or after January 1, 2019 and all open contracts which had remaining obligations as of that date. Prior period
amounts are not adjusted and continue to be reported in accordance with Onyx’s historical accounting practices under Topic
605. The adoption of ASU 2014-09 did not have a material impact on Onyx’s balance sheets and financial results for
the nine months ended September 30, 2019 and there was no cumulative effect to retained earnings on the date of adoption.
In
determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, Onyx performs
the following steps (i) identifies contracts with customers; (ii) identifies performance obligation(s); (iii) determines
the transaction price; (iv) allocates the transaction price to the performance obligation(s); and (v) recognizes revenue
when (or as) Onyx satisfies each performance obligation.
Onyx
recognizes revenue on product sales through Onyx’s website as the principal in the transaction as Onyx has concluded it
controls the product before it is transferred to the customer. Onyx controls products when it is the entity responsible for fulfilling
the promise to the customer and takes responsibility for the acceptability of the goods, assumes inventory risk from shipment
through the delivery date, has discretion in establishing prices, and selects the suppliers of products sold.
Onyx’s
revenue recognition is impacted by estimates of unshipped and undelivered orders at the end of the applicable reporting period.
If actual unshipped and undelivered orders are not consistent with Onyx’s estimates, the impact on Onyx’s revenue
for the applicable reporting period could be material. Unshipped and undelivered orders as of September 30, 2020 and 2019 were
$13.9 million and $8.9 million, respectively, which are reflected as customer deposits on the Company’s balance sheets.
For
the nine months ended September 30, 2020 and 2019, the unshipped and undelivered orders, the goods in transit, and cost of goods
sold were estimated based on a) 10 days of unshipped and/or undelivered orders based on the actual computed days for similar orders
at the end of December 2019, and b) the cost of goods sold and goods in transit were estimated by applying the percentages to
total revenues for unshipped and undelivered orders based on the actual data for June 2020 and December 2019, respectively.
Sales
discounts earned by customers at the time of purchase and taxes collected from customers, which are remitted to governmental authorities,
are deducted from gross revenue in determining net revenue. Allowances for sales returns are estimated and recorded based on historical
experience and reduce product revenue, inclusive of shipping fees, by expected product returns. Net allowances for sales returns
at September 30, 2020 and 2019 were $664,886 and $550,450, respectively.
If
actual sales returns are not consistent with Onyx’s estimates or adjustments, Onyx may incur future losses or gains that
could be material. Adjustments to return allowances for the nine months ended September 30, 2020 and 2019 are as follows:
Nine Months Ended September 30,
|
|
Balance at Beginning
of Period
|
|
|
Adjustments
|
|
|
Balance at Close
of Period
|
|
2020
|
|
$
|
495,697
|
|
|
$
|
169,189
|
|
|
$
|
664,886
|
|
2019
|
|
$
|
480,192
|
|
|
$
|
70,256
|
|
|
$
|
550,450
|
|
Website
and Software Development
Onyx
capitalizes certain costs associated with website and software (technology platform including the catalog) developed for internal
use in accordance with Accounting Standards Codification (“ASC”) 350-50, Intangibles — Goodwill and Other
— Website Development Costs and ASC 350-40, Intangibles — Goodwill and Other — Internal Use Software
when both the preliminary project design and the testing stage are completed and management has authorized further funding
for the project, which it deems probable of completion and to be used for the function intended. Capitalized costs include amounts
directly related to website and software development such as contractors’ fees, payroll and payroll-related costs for employees
who are directly associated with and who devote time to the internal-use software project. Capitalization of such costs ceases
when the project is substantially complete and ready for its intended use. Capitalized costs are amortized over a three-year period
commencing on the date that the specific module or platform is placed in service. Costs incurred during the preliminary stages
of development and ongoing maintenance costs are expensed as incurred. Determinations as to when a project is substantially complete
and what constitutes ongoing maintenance require judgments and estimates by management. Onyx periodically reviews the carrying
values of capitalized costs and makes judgments as to ultimate realization. The amount of capitalized software costs for the nine
months ended September 30, 2020 and 2019 are as follows:
Nine Months Ended September 30,
|
|
Capitalized
Software
|
|
2020
|
|
$
|
5,146,408
|
|
2019
|
|
$
|
5,272,434
|
|
Off-Balance
Sheet Arrangements
Onyx
is not a party to any off-balance sheet arrangements.
Recent
Accounting Pronouncements
See Note 2 of the Notes to the Unaudited
Financial Statements for the nine months ended September 30, 2020 and 2019, set forth in Exhibit 99.1 to this Current Report on
Form 8-K, for information on how recent accounting pronouncements have affected or may affect Onyx’s financial position,
results of operations or cash flows.
Properties
The
properties of the Company and Onyx prior to the Business Combination are described in the Information Statement in the sections
entitled “Information About Legacy Acquisition Corp.” beginning on page 86 and “Information About
Onyx Enterprises Int’l, Corp.” beginning on page 110 of the Information Statement, which are incorporated herein
by reference.
Security
Ownership of Certain Beneficial Owners and Management
The
following table sets forth information known to the Company regarding the beneficial ownership of the Common Stock as of November
20, 2020, after giving effect to the Closing, by:
|
●
|
each
person who is known by the Company to be the beneficial owner of more than five percent (5%) of the outstanding shares of
the Common Stock;
|
|
●
|
each
current named executive officer and director of the Company; and
|
|
●
|
all
current executive officers and directors of the Company, as a group.
|
Beneficial
ownership is determined according to the rules of the SEC, which generally provide that a person has beneficial ownership of a
security if he, she or it possesses sole or shared voting or investment power over that security, including options and warrants
that are currently exercisable or exercisable within 60 days.
The beneficial ownership percentages set
forth in the table below are based on approximately 32,873,458 shares of Class A Common Stock as of November 20, 2020 and do not
take into account the issuance of any shares of Class A Common Stock under the PARTS iD 2020 Equity Incentive Plan, a copy of which
was attached to the Information Statement as Annex E, which is incorporated herein by reference or the PARTS iD 2020
Employee Stock Purchase Plan, a copy of which was attached to the Information Statement as Annex F, which is incorporated
herein by reference.
Unless
otherwise noted in the footnotes to the following table, and subject to applicable community property laws, the persons and entities
named in the table have sole voting and investment power with respect to their beneficially owned common stock and preferred stock.
Name and Address of Beneficial Owner
|
|
Number of
Shares of
Class A
Common Stock
Beneficially Owned
|
|
|
Percentage of
Outstanding
Class A
Common Stock
%
|
|
Principal Stockholders:
|
|
|
|
|
|
|
|
|
Onyx Enterprises Canada Inc.(1)
|
|
|
14,084,072
|
|
|
|
42.84
|
%
|
Roman Gerashenko(2)
|
|
|
5,983,443
|
|
|
|
18.20
|
%
|
Stanislav Royzenshteyn(2)
|
|
|
5,983,443
|
|
|
|
18.20
|
%
|
Legacy Acquisition Sponsor I LLC(3)
|
|
|
3,180,873
|
|
|
|
9.68
|
%
|
|
|
|
|
|
|
|
|
|
Directors and Executive Officers:
|
|
|
|
|
|
|
|
|
Antonino Ciappina
|
|
|
-
|
|
|
|
-
|
|
Kailas Agrawal
|
|
|
-
|
|
|
|
-
|
|
Ajay Roy
|
|
|
-
|
|
|
|
-
|
|
Mark Atwater
|
|
|
|
|
|
|
|
|
Prashant Pathak(4)
|
|
|
14,084,072
|
|
|
|
42.84
|
%
|
Aditya Jha
|
|
|
-
|
|
|
|
|
|
Rahul Petkar
|
|
|
-
|
|
|
|
|
|
Ann M. Schwister
|
|
|
-
|
|
|
|
|
|
Edwin J. Rigaud(5)
|
|
|
3,180,873
|
|
|
|
9.68
|
%
|
Darryl T.F. McCall(5)
|
|
|
3,180,873
|
|
|
|
9.68
|
%
|
Richard White(5)
|
|
|
3,180,873
|
|
|
|
9.68
|
%
|
|
(1)
|
The address of Onyx Enterprises
Canada Inc. (“OEC”) is 2 Bloor Street W., Suite 2006, Toronto, Ontario, Canada M4W 3E2.
|
|
(2)
|
Consists of 5,983,443
shares of Class A Common Stock reserved for issuance upon delivery of certain administrative paperwork to the Company.
|
|
(3)
|
The address of Legacy Acquisition Sponsor I LLC is 1308 Race Street, Suite 200, Cincinnati, Ohio 45202.
|
|
(4)
|
Consists
of 14,084,072 shares of Class A Common Stock held by OEC. Mr. Pathak serves as the President and a director of OEC. Mr. Pathak
disclaims beneficial ownership of such shares, except to the extent of his pecuniary interest therein.
|
|
(5)
|
Consists
of 3,180,873 shares of Class A Common Stock held by Legacy Acquisition Sponsor I LLC. The
reporting person is the managing member of Legacy Acquisition Sponsor I LLC and disclaims beneficial ownership of such shares,
except to the extent of his pecuniary interest therein.
|
Directors
and Executive Officers
The
directors and executive officers following the Closing of the Business Combination are described in the Information Statement
in the Section entitled “Management After the Business Combination” beginning on page 130 of the Information
Statement, which is incorporated herein by reference.
Executive
Compensation
The
Company intends to develop an executive compensation program that is designed to align compensation with its objectives and the
creation of stockholder value, while enabling the Company to attract, motivate and retain individuals who contribute to the long-term
success of the Company.
Decisions
on the executive compensation will be made by the Company’s compensation committee.
Certain
Relationships and Related Transactions
The
certain relationships and related party transactions of the Company are described in the Information Statement in the section
entitled “Certain Relationships and Related Party Transactions” beginning on page 149 of the Information Statement,
which is incorporated herein by reference.
Legal
Proceedings
Information
about legal proceedings is set forth in the Information Statement in the section entitled “Information About Onyx Enterprises
Int’l, Corp. — Legal Proceedings” on page 114 of the Information Statement, which is incorporated herein
by reference.
Market
Price of and Dividends on the Registrant’s Common Equity and Related Stockholder Matters
The
information related to the Class A Common Stock set forth in the section entitled “Price Range of Securities and Dividend
Information” on page 151 of the Information Statement is incorporated herein by reference. Additional information regarding
holders of the Company’s securities is set forth in the section entitled “Description of Registrant’s Securities
to be Registered” below.
On November 23, 2020, the Class A Common Stock will begin trading
on the NYSE under the new trading symbols “ID”. As of the Closing Date and following the completion of the Business
Combination, the Company had approximately 20,973,498 shares of the Class A Common Stock issued and outstanding held of record
by four holders and will have an additional 11,966,886 shares outstanding upon delivery of certain administrative paperwork by
former stockholders of Onyx to the Company.
The
Company has not paid any cash dividends on the Class A Common Stock to date. The Company may retain future earnings, if any, for
future operations, expansion and debt repayment and has no current plans to pay cash dividends for the foreseeable future. Any
decision to declare and pay dividends in the future will be made at the discretion of the Board and will depend on, among other
things, the Company’s results of operations, financial condition, cash requirements, contractual restrictions and other
factors that the Board may deem relevant. In addition, the Company’s ability to pay dividends may be limited by covenants
of any existing and future outstanding indebtedness the Company or its subsidiaries incur. The Company does not anticipate declaring
any cash dividends to holders of the Class A Common Stock in the foreseeable future.
Description
of Registrant’s Securities to be Registered
Class
A Common Stock
A
description of the Class A Common Stock is included in the Information Statement in the section entitled “Description
of Securities — Capital Stock” and “— Founder Shares” beginning on page 134 of the Information
Statement, which are incorporated herein by reference.
Indemnification
of Directors and Officers
Information
about indemnification of the Company’s directors and officers is set forth in the Information Statement in the section entitled
“Limitation on Liability and Indemnification of Officers and Directors” beginning on page 96 of the Information
Statement, which is incorporated herein by reference.
Financial
Statements and Supplementary Data
The
information set forth in Item 9.01 of this Current Report on Form 8-K is incorporated herein by reference.