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ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended
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Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract] |
ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I | ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| December 31, 2021 |  | December 31, 2022
Assets |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 357,008 |  |  | $ | 99,337 |
Short-term investment | — |  |  | 25,070 |
Amount due from subsidiaries | — |  |  | 2,000 |
Total Current Assets | 357,008 |  |  | 126,407 |
Investments in subsidiaries | 690,032 |  |  | 592,264 |
Total Assets | $ | 1,047,040 |  |  | $ | 718,671 |
Liabilities |  |  |
Current liabilities: |  |  |
Amount due to inter-company | 359,202 |  |  | 105,533 |
Accrued expenses and other current liabilities | 35 |  |  | 35 |
Total Current Liabilities | 359,237 |  |  | 105,568 |
Warrant liability | 1,105 |  |  | 126 |
Total Liabilities | $ | 360,342 |  |  | $ | 105,694 |
Shareholders’ Deficit |  |  |
Common Stock (par value of US$0.0001 per share, 750,000,000 shares authorized as of December 31, 2021 and 2022; 300,530,516 and 309,316,011 shares issued, and 298,843,016 and 307,628,511 shares outstanding as of December 31, 2021 and 2022) | $ | 30 |  |  | $ | 31 |
Additional paid-in capital | 1,306,034 |  | 1,416,160
Statutory reserves | 6,032 |  | 6,032
Accumulated deficit | (632,099) |  | (791,165)
Accumulated other comprehensive income (loss) | 6,701 |  | (18,081) |
Total Shareholders’ Equity | 686,698 |  | 612,977
Total Liabilities and Shareholders’ Equity | $ | 1,047,040 |  |  | $ | 718,671 |
The accompanying notes are an integral part of these consolidated financial statements. ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF OPERATIONS (In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| Year Ended December 31,
| 2020 |  | 2021 |  | 2022
Revenues from subsidiaries | $ | 199 |  |  | $ | — |  |  | $ | — |
Gross profit | 199 |  |  | — |  |  | — |
Operating expenses: |  |  |  |  |
General and administrative expenses | (3,340) |  |  | (2,424) |  |  | (2,438) |
Total operating expenses | (3,340) |  |  | (2,424) |  |  | (2,438) |
Subsidy income | 224 |  |  | — |  |  | — |
Loss from operations | (2,917) |  |  | (2,424) |  |  | (2,438) |
Other income and expenses: |  |  |  |  |
Interest income | 38 |  |  | 10 |  |  | 2,179 |
Loss on changes in fair value of Bridge Notes | — |  |  | (9,861) |  |  | — |
Gain on change in fair value of warrant liability | — |  |  | 2,469 |  |  | 979 |
Other expense, net | — |  |  | 59 |  |  | — |
(Loss) income before provision for income taxes | (2,879) |  |  | (9,747) |  |  | 720 |
Income tax expense | — |  |  | — |  |  | — |
Loss from investment in subsidiaries | (30,746) |  |  | (196,736) |  |  | (158,920) |
Net loss | $ | (33,625) |  |  | $ | (206,483) |  |  | $ | (158,200) |
Other comprehensive loss, net of tax of nil: |  |  |  |  |
Foreign currency translation adjustment | 16,622 |  |  | (655) |  |  | (24,782) |
Total comprehensive loss attributable to Microvast Holdings, Inc. | $ | (17,003) |  |  | $ | (207,138) |  |  | $ | (182,982) |
The accompanying notes are an integral part of these consolidated financial statements. ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS (In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| Year Ended December 31,
| 2020 |  | 2021 |  | 2022
Net cash used in operating activities | (3,398) |  |  | (2,846) |  |  | (4,498) |
Cash flows from investing activities |  |  |  |  |
Purchases of property, plant and equipment | (380) |  |  | (18,465) |  |  | — |
Investment in subsidiaries | — |  |  | (354,014) |  |  | (255,662) |
Purchases of short-term investment | — |  |  | — |  |  | (25,070) |
Net cash used in investing activities | (380) |  |  | (372,479) |  |  | (280,732) |
Cash flows from financing activities |  |  |  |  |
Cash received from the trust account upon Merger, net of transaction costs | — |  |  | 223,605 |  |  | — |
Cash received from PIPE investors upon Merger | — |  |  | 482,500 |  |  | — |
Issuance of Bridge Notes | — |  |  | 57,500 |  |  | — |
Payment to exited noncontrolling interests | — |  |  | (32,872) |  |  | — |
Cash received from shareholders | — |  |  | — |  |  | 27,559 |
Net cash generated from financing activities | — |  |  | 730,733 |  |  | 27,559 |
(Decrease)/increase in cash, cash equivalents and restricted cash | (3,778) |  |  | 355,408 |  |  | (257,671) |
Cash, cash equivalents and restricted cash at beginning of the period | 5,378 |  |  | 1,600 |  |  | 357,008 |
Cash, cash equivalents and restricted cash at end of the period | $ | 1,600 |  |  | $ | 357,008 |  |  | $ | 99,337 |
The accompanying notes are an integral part of these consolidated financial statements. 1. BASIS FOR PREPARATION The financial information of the Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company has used the equity method to account for investments in its subsidiaries. On July 23, 2021, Tuscan Holdings Corp. consummated the Merger with Microvast, Inc. pursuant to the Merger agreement dated February 1, 2021, with Microvast, Inc. surviving from the Merger. As a result of the Merger, Tuscan Holdings Corp. was renamed “Microvast Holdings, Inc.” The Merger transaction is accounted for as a reverse recapitalization as Microvast, Inc. was determined to be the accounting acquirer. As such, the historical consolidated comparative information as of and for the year ended December 31, 2020 in this Schedule I relates to Microvast, Inc. The shares issued and outstanding prior to the completion of the Merger has been retroactively adjusted to give effect to the exchange ratio established in the Merger Agreement. 2. INVESTMENTS IN SUBSIDIARIES The Company and its subsidiaries were included in the consolidated financial statements where the inter-company transactions and balances were eliminated upon consolidation. For the purpose of the Company’s stand-alone financial statements, its investments in subsidiaries were reported using the equity method of accounting. The Company’s share of income from its subsidiaries were reported as equity in earnings of subsidiaries in the accompanying parent company financial statements.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI https://asc.fasb.org/extlink&oid=126898705&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=126929396&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
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