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

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 September MOR

For the period September 1, 2023 through September 30, 2023

Page #		Table of Contents
3		Statement of Cash Receipts and Disbursements
4		Balance Sheet for period ending September 30, 2023
5		Statement of Operations
6		Accounts Receivable as of September 30, 2023
7		Post-petition Accounts Payable as of September 30, 2023
8		Bank Reconciliation
9		Payments Made on Pre-Petition Debt as of September 30, 2023
10		Payments to Insiders
11		Payments to Professionals
12		Payments to Professionals To Date

2

Quanergy Systems, Inc.

Statement of Cash Receipts and Disbursements

($ in USD)

		9/1-9/30
Beginning Cash Balance		$	6,503,979
Receipts
Collections		$	36,360
Subsidiary dividend1			376
NewCo prefunding			50,337
Total Receipts		$	87,073
Operating Disbursements
Pre-petition liability payments		$	-
Prefunded NewCo payments			50,347
AP			81,410
Other			461
Total Operating Disbursements		$	132,218
Operating Cash Flow		$	(45,145	)
Restructuring Related
Professional fees		$	160,082
Total Restructuring Related		$	160,082
Net Cash Flow		$	(205,227	)
Ending Cash Balance		$	6,298,752

[1]

Subsidiary income represents the return of cash from the Company's wholly owned subsidiaries which are being closed down. It is part of the accumulated profits of the subsidiaries in the foreign territories in which they operate, and the return of the remaining cash to the Company is considered dividend income.

3

Quanergy Systems, Inc.

Balance Sheet for period ending September 30, 2023

($ in USD)

		9/30/2023
Assets
Current Assets:
Cash and cash equivalents		$	6,298,752
Restricted cash			70,000
Accounts receivable, net of allowance for doubtful accounts			78,255
Prepaid business insurance and D&O			3,530,556
Prepaid expenses and other current assets			736,941
Total Current Assets		$	10,714,504
Other long-term assets		$	229,031
Total Assets		$	10,943,535
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable		$	6,250,311
Accrued expenses			1,626,724
Accrued liabilities			9,827,864
Accrued liabilities (Post petition)			127,833
Professional fees (Post petition)			4,349,959
Other current liabilities			975,915
Total Current Liabilities		$	23,158,606
Operating lease liabilities		$	478,156
Other long-term liabilities			9,619,384
Total Liabilities		$	33,256,146
Total Stockholders' equity		$	(22,312,611	)
Total Liabilities and Stockholders' Equity		$	10,943,535

4

Quanergy Systems, Inc.

Statement of Operations

($ in USD)

		9/1-9/30
Revenue		$	-
Cost of sales			-
Gross Margin		$	-
Selling expenses		$	(5,442	)
General and administrative			145,084
Lease expenses			-
Restructuring expenses			(379,355	)
Other operating expenses			(376	)
Income (loss) from operations		$	240,089
Other income:
Interest income		$	-
Loss on asset sale			-
Income (loss) before income taxes		$	240,089
Income tax		$	-
Net Income (loss)		$	240,089

5

Quanergy Systems, Inc.

Accounts Receivable as of September 30, 2023

($ in USD)

		9/30/2023
Accounts Receivable Reconciliation
Total Accounts Receivable at the beginning of the reporting period		$	609,412
+ Amounts billed during the period			-
- Amounts collected during the period			(36,360	)
Total Accounts Receivable at the end of the reporting period		$	573,052
		9/30/2023
Accounts Receivable Aging
Current		$	-
1-30 Days Past Due			-
31-60 Days Past Due			-
61-90 Days Past Due			-
91+ Days Past Due			573,052
Total		$	573,052

6

Quanergy Systems, Inc.

Post-petition Accounts Payable Aging as of September 30, 2023

($ in USD)

		9/30/2023
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		$	1,335,208			$	-			$	1,335,208

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		$	4,955,544			$	-			$	4,955,544

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 September 30, 2023

($ in USD)

Payee Name		Date			Amount			Description
N/A			N/A				N/A
Total			$	-

9

Quanergy Systems, Inc.

Payments to Insiders (9/1/2023 - 9/30/2023)

($ in USD)

as of		Description		Amount
9/30/2023		Salary, benefits & consulting		$24,167

10

Quanergy Systems, Inc.

Payments to Debtor's Professionals (9/1/2023 - 9/30/2023)*

($ in USD)

Professional Firm		Date			Amount			Description
N/A			N/A			$	-
Total			$	-				Total professional fees paid in current month

*	Payments not listed on Part 5 of MOR

11

Quanergy Systems, Inc.

Payments to Debtor's Professionals to date

($ in USD)

		2023
Professional Firm		January			February			March			April			May			June			July			August			September			Total
Cooley		$	-			$	229,253			$	373,740			$	-			$	-			$	-			$	-			$	-			$	-			$	602,993
FTI Consulting			-				-				444,891				-				-				-				-				-				-				444,891
Raymond James			125,000				125,000				-				-				-				-				-				-				-				250,000
Seward & Kissel LLP			-				-				-				-				-				-				-				-				-				-
Sierra Constellation Partners			-				-				59,274				-				-				-				-				-				160,082				219,357
Stretto, Inc			-				-				174,974				51,921				-				57,731				11,790				16,798				-				313,215
Young Conaway Stargatt & Taylor, LLP			-				191,643				197,164				-				-				-				-				-				-				388,807
Total		$	125,000			$	545,895			$	1,250,044			$	51,921			$	-			$	57,731			$	11,790			$	16,798			$	160,082			$	2,219,263

12