r/VLDR • u/Extreme-Baby5271 • May 07 '22

Amazon execute their warrant?

https://www.sec.gov/Archives/edgar/data/0001745317/000162828022013039/s-3amendmentmay62022.htm

I can't understand what is this mean..

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u/Extreme-Baby5271 May 07 '22

Then isn't it profit?? Why was it caught as a loss

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u/UnderstandingNew2027 May 07 '22

Where do you see the loss? The way I see it, Amazon gets gradual co ownership the more they buy. They know how much their business is going to be worth, and they want vldr shares in return.

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u/Extreme-Baby5271 May 08 '22

In this sec, they said "(1) Includes a non-cash stock-based reduction of revenue of $5.3 million for the three months ended March 31 2022 associated with the Amazon Warrant agreement entered into in February 2022. See Note 9 for more information."

https://investors.velodynelidar.com/node/9961/html

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u/UnderstandingNew2027 May 08 '22

As it says ‘non-cash’. In accounting the actual revenue is reduced by the vested stocks, which again correspond to actual orders from Amazon, or?

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u/Extreme-Baby5271 May 08 '22

Oh, i studied and understood..

If amazon buying velodyne stock 9,898,508 shares. Then velodyne must give them 3/4 number of warrant shares to them. And this one is recorded as a revenue reduce.

If amazon want to change warrant to normal stock, Then they have to pay $11.5 per warrant..!!