Financial Assets And Financial Liabilities

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about financial instruments [abstract]

Financial Assets And Financial Liabilities

13. FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The following table shows the carrying amounts and fair values of financial assets, including their levels in the fair value hierarchy.

Financial assets

A breakdown of financial assets at December 31, is as follows:

A. Current and non-current financial assets


	December 31, 2023				December 31, 2022
(In thousand Euros)	Non-current		Current		Non-current		Current
Customer sales and services		—		43,258		—		39,797
Other receivables		—		140		—		16
Loans to employees		180		18		—		14

Trade and other financial receivables		180		43,416		—		39,827

Loans granted to Joint Venture						—		—
Guarantee deposit		1,341		—		1,133		—

Non-current financial assets		1,341		—		1,133		—

Guarantee deposit		—		82		—		560
Financial investments		—		5,728		—		5,397

Other current financial assets		—		5,810		—		5,957


Total		1,521		49,226		1,133		45,784

Trade and other financial receivables are mainly amounts due from customers for goods sold or services performed in the ordinary course of business. They are due for settlement in the short term (less than 1 year) and therefore are classified as current. Trade and other financial receivables are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing components, in which case they are recognized at fair value. The Group holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method.

The carrying amounts of the customer sales and services include receivables which are subject to a factoring arrangement. Under this arrangement, the Group has transferred the relevant receivables to the factor in exchange for cash and is prevented from selling or pledging the receivables. However, the Group has retained late payment and credit risk. The Group therefore continues to recognize the transferred assets in their entirety in its statement of financial position, except as mentioned in Note 13C.

The amount repayable under the factoring agreement is presented as secured borrowing. The Group considers that the held to collect business model remains appropriate for these receivables and hence continues to measure them at amortized cost.

At December 31, 2023, other current financial assets include financial investments, such as investment funds in financial institutions, totaling Euros 5,728 thousand (Euros 5,397 thousand at December 31, 2022).

These financial investments are deposits managed by financial institutions in investment funds to obtain profitability. The Group has considered their classification as current assets because it expects to liquidate these investments in the following 12 months.

B. Expected credit loss assessment for corporate customers at December 31, 2023 and 2022.

The Group applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables and contract assets. To measure expected credit losses on a collective basis, trade receivables and contract assets are grouped based on similar credit risk and aging. The contract assets have similar risk characteristics to the trade receivables for similar types of contracts.

The impairment of trade receivables is recognized under “Expected credit loss for trade and other receivables” in other operating expenses.

The total expense recognized in profit or loss 2023 was Euros 1,893 thousand and Euros 3,873 thousand during 2022. This amount includes Euros 581 thousand corresponding mainly due to the impact of final uncollectible balances (2022: Euros 0 thousand). The allowance for doubtful debts provision as of December 31, 2023 estimated based on the expected credit loss, was Euros 1,536 thousand, as compared to Euros 1,656 thousand as of December 31, 2022, for amounts outstanding less than 180 days as at reporting date. Additionally, the Company has recognized as of December 31, 2023, a bad debt provision for amounts outstanding 180 days or longer for Euros 4,836 thousand, as compared to Euros 3,404 thousand as at December 31, 2022, which has been calculated taking into account specific accounts receivable considered doubtful.

The expected loss rates are based on the Group’s historical credit losses.

C. Financial assets by class and category


	December 31, 2023
(In thousand Euros)	Financial assets measured at amortized cost		Financial assets measured at FTVPL		Financial assets measured at FVTOCI		Total
Customer sales and services		43,258		—		—		43,258
Other receivables		140		—		—		140
Loans to employees		198		—		—		198
Trade and other financial receivables		43,596		—		—		43,596
Guarantee deposit		1,341		—		—		1,341
Non-current financial assets		1,341		—		—		1,341
Guarantee deposit		82		—		—		82
Financial investments		302		5,187		239		5,728
Other current financial assets		384		5,187		239		5,810
Total		45,321		5,187		239		50,747


	December 31, 2022
(In thousand Euros)	Financial assets measured at amortized cost		Financial assets measured at FTVPL		Financial assets measured at FVTOCI		Total
Customer sales and services		39,797		—		—		39,797
Other receivables		16		—		—		16
Loans to employees		14		—		—		14

Trade and other financial receivables		39,827		—		—		39,827

Guarantee deposit		1,133		—		—		1,133

Non-current financial assets		1,133		—		—		1,133

Guarantee deposit		560		—		—		560
Financial investments		128		5,030		239		5,397

Other current financial assets		688		5,030		239		5,957


Total		41,648		5,030		239		46,917

Financial assets measured at FVTOCI correspond to investments in hedge funds whose quotation is considered level 1 for fair value purposes.

The financial investments valued at FVTPL relate to investment funds held at financial institutions. These financial assets are considered level 3 for fair value purposes.

The rest of the financial assets (both current and non-current) are measured at their amortized cost, which does not materially differ from their fair value.

Financial liabilities

Loans and borrowings


	December 31, 2023				December 31, 2022
(In thousand Euros)	Non- current		Current		Non- current		Current
Loans		80,861		32,037		44,359		5,853
Working capital lines of credit and others		—		94,459		—		83,415
Loans and borrowings		80,861		126,496		44,359		89,268
Derivative warrant liabilities		—		3,119		—		5,834
Lease liabilities (see note 9)		34,063		4,914		24,657		2,644


Total		114,924		134,529		69,016		97,746

Financial liabilities are measured at their amortized cost, which does not differ from their fair value (it is considered that the applicable interest rates still represent market spreads), except for the derivative warrant liabilities which is measured at FVTPL.

The working capital lines of credit are a type of short-term financing used to cover ongoing business’s operations. These small-business loans are not used to fund large investments and are renewed every 90 days.

Bank loans

At December 31, 2023, the Group had credit lines and other financing products of Euros 130,670 thousand (Euros 120,220 thousand at December 31, 2022), of which a total of Euros 94,442 thousand has been drawn down (Euros 81,920 thousand at December 31, 2022). In addition to the aforementioned financing products, the company engages in non-recourse factoring with a limit of Euro 12,000 thousand at December 31, 2023, of which Euro 1,630 thousand have been disposed.

Interest expense on bank loans was Euros 13,791 thousand at December 31, 2023 (Euros 3,711 thousand at December 31, 2022) (See Note 22). At December 31, 2023, accrued interest payable was Euros 204 thousand (Euros 128 thousand at December 31, 2022).

The group has loans which require compliance with certain financial covenants. On December 31, 2023, the Group achieved these financial covenants or has obtained the corresponding waiver issued by the bank, except for 2 loans totalling Euros 9.783 thousand which have been classified as a short term loan. However at 16 February 2024 the Group has received a waiver from the bank, confirming that they will not execute this clause of early payment for these loans.

Details of the maturities, by year, of the principal and interest of the loans and borrowings as of December 31, 2023 and December 31, 2022, are as follows:


(In thousand Euros)	December 31, 2023		December 31, 2022
2023		—		92,581
2024		136,179		14,851
2025		31,317		12,741
2026		26,379		9,460
2027		17,699		7,780
2028		12,831		3,725
More than five years		4,784		3,713

Total		229,189		144,851

Details of loans and borrowings at December 31, 2023 and 2022 are as follows:


(In thousand Euros)		December 31, 2023
Company	Currency	Less than 1 year		1 to 3 years		Over 3 years		Total
Bank loans
Fixed rate loan	EUR		19,927		4,914		429		25,270
Floating rate loan	EUR		98,149		6,201		10,274		114,624
Covenant Loan	EUR		8,270		36,818		19,719		64,807


Total			126,346		47,933		30,422		204,701

Borrowings
Fixed rate loan	EUR		150		459		2,047		2,656

Total			150		459		2,047		2,656

Total			126,496		48,392		32,469		207,357


(In thousand Euros)		December 31, 2022
Company	Currency	Less than 1 year		1 to 3 years		Over 3 years		Total
Bank loans
Fixed rate loan	EUR		13,135		11,694		5,376		30,205
Floating rate loan	EUR		75,353		4,240		9,478		89,071
Covenant Loan	EUR		609		6,197		5,625		12,431

Total			89,097		22,131		20,479		131,707

Borrowings
Fixed rate loan	EUR		171		384		1,365		1,920

Total			171		384		1,365		1,920

Total			89,268		22,515		21,844		133,627

As of December 31, 2023, the Group had loans at variable interest rates referenced to Euribor plus a differential between 3% and 8% and at fixed interest rates that range between 0% and 5.67%, respectively, compared to variable rates referenced to Euribor plus a differential between 3% and 6.79% and fixed rates between 0% and 6.32%, respectively, during fiscal year ended December 31, 2022.

Borrowings

At December 31, 2023, loans from a Government entity (CDTI) was outstanding for Euros 2,656 thousand (Euros 1,920 thousand at December 31, 2022).

B. Derivative warrant liabilities

As mentioned in Note 6, as part of the Transaction, 5,750,000 Public Warrants and 8,933,333 Private Warrants issued by Kensington were assumed by Wallbox.

Public Warrants entitle the holder to convert each warrant into one Class A ordinary share of Wallbox, Euros 0.12 par value, at an exercise price of USD 11.50.

Private Warrants, on a cash-less basis, entitle their holder to convert the warrants into a number of Wallbox Class A ordinary shares, Euros 0.12 par value, equal to the product of the number of warrants to convert multiplied by the quotient obtained by dividing the excess of ‘Sponsor’s Fair Market Value’ over the exercise price of USD 11.50 by the Sponsor’s Fair Market Value’.

The Sponsor Fair Market Value shall mean the average last reported sale price of the ordinary shares for the ten (10) trading days ending on the third trading day prior to the date on which notice of exercise of the Private Warrant is provided.

Until warrant holders acquire the ordinary shares upon exercise of such warrants, they will have no voting or economic rights. The warrants will expire on October 1, 2026, five years after the Transaction, or earlier upon redemption or liquidation, in accordance with their terms.

In addition, during 2023, Wallbox issued new warrants as part of the facility agreement with Banco Bilbao Vizcaya Argentaria S.A. (“BBVA”) entered into in February 2023. On February 9, 2023 the Company signed an agreement with BBVA granting BBVA an aggregate of 1,007,894 warrants exercisable for 1,007,894 Class A Shares for exercise price of 5.32 USD per share (the “BBVA Warrants”). The BBVA Warrants are exercisable until February 9, 2033 unless earlier redeemed by the Company pursuant to the warrant agreement.

As there are no elements in the warrant agreements that give Wallbox the option to prevent the warrant owners from converting their warrants within 12 months, Wallbox has classified the derivative warrant liabilities as a current liability.

Movement in the derivative warrant liabilities for the year ended December 31, 2023 and 2022 is summarized as follows:


	Public Warrant						Private Warrant						BBVA Warrant					Total
	Number of warrants			Thousand Euros			Number of warrants			Thousand Euros			Number of warrants		Thousand Euros			Number of warrants			Thousand Euros
At December 31, 2021		5,705,972			24,887			8,933,333			58,365			—		—			14,639,305			83,252
Public and Private Warrants exercised on January 11, 2022		(141,808	)		(472	)		(50,000	)		(276	)		—		—			(191,808	)		(748	)
Public Warrants exercised on February 1, 2022		(304,635	)		(933	)		—			—			—		—			(304,635	)		(933	)
Public Warrants exercised on March 23, 2022		(22	)		(1	)		—			—			—		—			(22	)		(1	)
Public Warrants exercised on October 10, 2022		(1	)		—			—			—			—		—			(1	)		-
Change in fair value of derivative warrant liabilities		—			(22,730	)		—			(58,018	)		—		—			—			(80,748	)
Exchange differences		—			1,419			—			3,593			—		—			—			5,012

At December 31, 2022		5,259,506			2,170			8,883,333			3,664			-		-			14,142,839			5,834

Warrants issuance		—			—			—			—			1,007,894		3,893			1,007,894			3,893
Change in fair value of derivative warrant liabilities		—			(1,440	)		—			(2,433	)		—		(2,603	)		—			(6,476	)
Exchange differences		—			(17	)		—			(29	)		—		(86	)		—			(132	)
At December 31, 2023		5,259,506			713			8,883,333			1,202			1,007,894		1,204			15,150,733			3,119

Fair value measurements

The financial liability for the derivative warrants is accounted for at fair value through profit or loss. The Private Warrants have been measured at fair value using a Monte Carlo simulation (Level 3). The Public Warrants are listed and have been measured at fair value using the quoted price (Level 1).

Public Warrants are listed and have been measured at fair value using the quoted price (Level 1). As of December 31, 2023, the fair value of the Public and Private Warrants was USD 0.15 (2022: USD 0.44) based on the public quote of Public Warrants. The fair value of the BBVA Warrants was USD 1.32 based on a Black-Scholes valuation methodology for options and warrants.

Reconciliation of movements of liabilities to cash flows arising from financing activities


(In thousand Euros)	Loans and borrowings			Derivative warrant liabilities			Lease liabilities			Total
Balance at January 1, 2023		133,627			5,834			27,301			166,762

Proceeds from loans		419,471			—			—			419,471
Principal paid on lease liabilities		—			—			(2,809	)		(2,809	)
Interest paid on lease liabilities		—			—			(1,341	)		(1,341	)
Repayments of loans		(337,977	)		—			—			(337,977	)
Interest and bank fees paid		(18,908	)		—			—			(18,908	)

Total changes from financing cash flows		62,586			—			(4,150	)		58,436

The effect of changes in foreign exchange rates		(149	)		(132	)		(160	)		(441	)

Change in fair value of derivative warrant liabilities		—			(6,476	)		—			(6,476	)
New leases		—			—			1,386			1,386
Business combinations		—			—			13,014			13,014
Transfers		(3,893	)		3,893			—			—
Interest and bank fees expenses		13,906			—			1,341			15,247
Other		1,280			—			245			1,525

Total liability-related other changes		11,293			(2,583	)		15,986			24,696

Balance at December 31, 2023		207,357			3,119			38,977			249,453


(In thousand Euros)	Loans and borrowings			Derivative warrant liabilities			Lease liabilities			Total
Balance at January 1, 2022		51,345			83,252			19,710			154,307

Proceeds from loans		291,204			—			—			291,204
Proceeds from warrants (Public and Private)		—			4,625			—			4,625
Principal paid on lease liabilities		—			—			(2,191	)		(2,191	)
Interest paid on lease liabilities		—			—			(1,267	)		(1,267	)
Repayments of loans		(218,902	)		—			—			(218,902	)
Repayments of borrowings		(42	)		—			—			(42	)
Interest and bank fees paid		(3,199	)		—			—			(3,199	)
Interest paid on convertible bonds		(223	)		—			—			(223	)

Total changes from financing cash flows		68,838			4,625			(3,458	)		70,005

The effect of changes in foreign exchange rates		46			5,011			278			5,335

Change in fair value of derivative warrant liabilities		—			(80,748	)		—			(80,748	)
New leases		—			—			8,517			8,517
Governmental loan receivable		248			—			—			248
Public Warrants exercised		—			(6,306	)		—			(6,306	)
Business combinations		9,439			—			988			10,427
Interest and bank fees expenses		3,711			—			1,266			4,977

Total liability-related other changes		13,398			(87,054	)		10,771			(62,885	)

Balance at December 31, 2022		133,627			5,834			27,301			166,762


(In thousand Euros)	Loans and borrowings			Derivative warrant liabilities			Lease liabilities			Convertible bonds			Total
Balance at January 1, 2021		22,372			—			4,117			26,146			52,635
Proceeds from loans		204,677			—			—			—			204,677
Proceeds from borrowings		124			—			—			—			124
Proceeds from warrants (Public and Private)		—			—			—			—			—
Proceeds from convertible bonds		—			—			—			34,550			34,550
Principal paid on lease liabilities		—			—			(828	)		—			(828	)
Interest paid on lease liabilities		—			—			(631	)		—			(631	)
Repayments of loans		(176,324	)		—			—			—			(176,324	)
Repayments of borrowings		(87	)		—			—			—			(87	)
Interest and bank fees paid		(3,047	)		—			—			—			(3,047	)
Interest paid on convertible bonds		—			—			—			(997	)		(997	)
Other payments		(297	)		—			—			—			(297	)
Total changes from financing cash flows		25,046			—			(1,459	)		33,553			57,140
The effect of changes in foreign exchange rates		—			—			(2	)		—			(2	)
Issuance of Public and Private Warrants on Transaction date		—			14,491			—			—			14,491
Public Warrants exercised		—			(193	)		—			—			(193	)
Change in fair value of derivative warrant liabilities		—			68,954			—			—			68,954
Valuation of convertible bonds		—			—			—			25,491			25,491
Redemption of convertible bonds and convertible note		—			—			—			(87,105	)		(87,105	)
New leases		—			—			16,423			—			16,423
Interest accrual		470			—			—			(470	)		—
Governmental loan receivable		365			—			—			—			365
Interest and bank fees expenses		3,092			—			631			2,385			6,108

Total liability-related other changes		3,927			83,252			17,054			(59,699	)		44,534
Balance at December 31, 2021		51,345			83,252			19,710			—			154,307

Trade and other payables

Details of trade and other payables at December 31, 2023 and 2022 are as follows:


(In thousand Euros)	December 31, 2023		December 31, 2022
Suppliers		36,538		65,830
Personnel (salaries payable)		5,843		5,351
Customer advances		2,700		68
Total		45,081		71,249

Trade and other payables are unsecured and are typically paid in less than 12 months upon recognition. The carrying amounts of trade and other payables are considered equal to their fair values, due to their short-term nature.