ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

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.