Quanergy : THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE - Form 8-K

THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

In re:		Chapter 11
QUANERGY SYSTEMS, INC., 1		Case No. 22-11305 (CTG)
Debtor.

NOTES TO MONTHLY OPERATING REPORT

On December 13, 2022 (the "Petition Date"), the above-captioned debtor and debtor in possession (the "Debtor") filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court").

Please be advised that the accompanying monthly operating report and the exhibits thereto (the "MOR") are unaudited, preliminary, and may not comply with generally accepted accounting principles in the United States of America ("U.S. GAAP") in all material respects.

The MOR is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the reporting requirements of the Bankruptcy Code and the United States Trustee. The unaudited financial statements have been derived from the Debtor's books and records. The MOR generally reflects the operations and financial position of the Debtor on a consolidated basis with non-Debtor Quanergy Perception Technologies, Inc. The information presented herein has not been subjected to all procedures that would typically be applied to financial information presented in accordance with U.S. GAAP. Upon the application of such procedures, the financial information could be subject to changes, and these changes could be material. The information furnished in the MOR includes normal recurring adjustments, but does not include all of the adjustments that would typically be made for interim financial statements in accordance with U.S. GAAP.

Given the complexity of the Debtor's business, inadvertent errors, omissions or over-inclusions may have occurred. Accordingly, the Debtor hereby reserves the right to amend or supplement the MOR, if necessary, but shall be under no obligation to do so.

1	The Debtor and the last four digits of its taxpayer identification number are: Quanergy Systems, Inc. (5845). The Debtor's mailing address for purposes of the Chapter 11 Case is c/o SierraConstellation Partners, LLC 355 S. Grand Avenue Suite 1450 Los Angeles, CA 90071.

Quanergy Systems, Inc.

Exhibits to the May MOR

For the period July 1, 2023 through July 31, 2023

Page #		Table of Contents
3		Statement of Cash Receipts and Disbursements
4		Balance Sheet for period ending July 31, 2023
5		Statement of Operations
6		Accounts Receivable as of July 31, 2023
7		Post-petition Accounts Payable as of July 31, 2023
8		Bank Reconciliation
9		Payments Made on Pre-Petition Debt as of July 31, 2023
10		Payments to Insiders
11		Payments to Professionals as of July 31, 2023

2

Quanergy Systems, Inc.

Statement of Cash Receipts and Disbursements

($ in USD)

		7/1-7/31
Beginning Cash Balance		$	6,639,011
Receipts
Advisory and Tax Refunds		$	15,714
NewCo Prefunding			77,645
Total Receipts		$	93,359
Operating Disbursements
Prefunded NewCo Payments		$	68,475
AP			74,042
Other			2,618
Total Operating Disbursements		$	145,135
Operating Cash Flow		$	(51,776	)
Restructuring Related
Professional fees		$	11,790
UST fees			3,347
Total Restructuring Related		$	15,137
Net Cash Flow		$	(66,913	)
Ending Cash Balance		$	6,572,098

3

Quanergy Systems, Inc.

Balance Sheet for period ending July 31, 2023

($ in USD)

		7/31/2023
Assets
Current Assets:
Cash and cash equivalents		$	6,572,098
Restricted cash			70,000
Accounts receivable, net of allowance for doubtful accounts			293,034
Prepaid business insurance and D&O			3,647,140
Prepaid expenses and other current assets			736,890
Total Current Assets		$	11,319,162
Operating lease assets		$	478,156
Other long-term assets			229,031
Total Assets		$	12,026,349
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable		$	6,249,032
Accrued expenses			1,626,724
Accrued liabilities			9,897,864
Accrued liabilities (Post petition)			178,557
Professional fees (Post petition)			4,566,523
Other current liabilities			954,592
Total Current Liabilities		$	23,473,292
Operating lease liabilities		$	478,156
Other long-term liabilities			9,744,384
Total Liabilities		$	33,695,832
Total Stockholders' equity		$	(21,669,483	)
Total Liabilities and Stockholders' Equity		$	12,026,349

4

Quanergy Systems, Inc.

Statement of Operations

($ in USD)

		7/1 - 7/31
Revenue		$	-
Cost of sales			-
Gross Margin		$	-
Selling expenses		$	16,315
General and administrative			128,594
Restructuring expenses			379,853
Other operating expenses			(9,936	)
Income (loss) from operations		$	(514,826	)
Other income:
Interest income		$	-
Loss on asset sale			-
Income (loss) before income taxes		$	(514,826	)
Income tax		$	-
Net Income (loss)		$	(514,826	)

5

Quanergy Systems, Inc.

Accounts Receivable as of July 31, 2023

($ in USD)

		7/31/2023
Accounts Receivable Reconciliation
Total Accounts Receivable at the beginning of the reporting period		$	839,824
+ Amounts billed during the period			-
- Amounts collected during the period			-
- Amounts written off as uncollectible during the period			(46,575	)
Total Accounts Receivable at the end of the reporting period		$	793,249
		7/31/2023
Accounts Receivable Aging
Current		$	-
1-30 Days Past Due			-
31-60 Days Past Due			-
61-90 Days Past Due			-
91+ Days Past Due			793,249
Total		$	793,249

6

Quanergy Systems, Inc.

Post-petition Accounts Payable Aging as of July 31, 2023

($ in USD)

		7/31/2023
Current		$	-
1-30 Days Past Due			-
31-60 Days Past Due			-
61-90 Days Past Due			-
Total		$	-

7

Quanergy Systems, Inc.

Bank Reconciliation

($ in USD)

Silicon Valley Bank x2011

Bank Reconciliation		Bank Name		Bank Balance			Adjustments			Book Balance
x2011		Silicon Valley Bank		$	1,959,464			$	(265	)		$	1,959,199
Negative adjustment of $265 due to check (#12639) made to CoWay USA Inc.
Silicon Valley Bank x4224
Bank Reconciliation		Bank Name		Bank Balance			Adjustments			Book Balance
x4224		Silicon Valley Bank		$	70,000			$	-			$	70,000
Silicon Valley Bank x1506
Bank Reconciliation		Bank Name		Bank Balance			Adjustments			Book Balance
x1506		Silicon Valley Bank		$	4,604,899			$	-			$	4,604,899
Silicon Valley Bank x1498
Bank Reconciliation		Bank Name		Bank Balance			Adjustments			Book Balance
x1498		Silicon Valley Bank		$	8,000			$	-			$	8,000
Silicon Valley Bank x2927
Bank Reconciliation		Bank Name		Bank Balance			Adjustments			Book Balance
x2927		Silicon Valley Bank		$	-			$	-			$	-
Silicon Valley Bank x1679
Bank Reconciliation		Bank Name		Bank Balance			Adjustments			Book Balance
x1679		Silicon Valley Bank		$	-			$	-			$	-

8

Quanergy Systems, Inc.

Payments Made on Pre-Petition Debt as of July 31, 2023

($ in USD)

Payee Name		Date			Amount			Description
		$	-
Total			$	-

9

Quanergy Systems, Inc.

Payments to Insiders (7/1/2023 - 7/31/2023)

($ in USD)

as of		Description		Amount
7/31/2023		Salary, benefits & consulting		$	24,167

10

Quanergy Systems, Inc.

Payments to Professionals as of July 31, 2023

($ in USD)

Professional Firm		Date			Amount			Description
Stretto			7/26/2023			$	11,790			Professional fees for services rendered from June 1, 2023 - June 30, 2023
Total			$	11,790			Total professional fees paid in current month

11