EX-99.3 4 ea186500ex99-3_shifttech.htm LIQUIDATION ANALYSIS DATED OCTOBER 3 2023

Exhibit 99.3

STRICTLY CONFIDENTIAL

DRAFT - SUBJECT TO MATERIAL REVISION

Ch. 11 Liquidation Analysis

Shift Technologies, Inc.

October 3, 2023

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Shift Technologies, Inc.	*STRICTLY CONFIDENTIAL*
Ch. 11 Liquidation - Wholesale Liquidation	*DRAFT - SUBJECT TO MATERIAL REVISION*

Line Item	Assumptions
General Assumptions

- Form	- Liquidating Ch. 11 (3 months)

- Filing Date

- 10/6/2023 - 10/8/2023

- DIP Financing

- No DIP Financing required, Company may require access to restricted cash.

Recovery Values

- Unrestricted & Restricted Cash at filing

- Assumed usage of Ally FLOC restricted cash during the liquidation, all other restricted cash amounts (cash backed LCs supporting leases) assumed unrecovered.

- Limited unrestricted cash prior to filing.

- Restricted to be repaid as collections from liquidation of inventory comes in.

- Cash at end of liquidation distributed to prepetition unsecured creditors after satisfaction of administrative and priority claims.

- Accounts Receivable as of filing date	- 87% - 97% Recovery
	- A/R has should be collected recovered in first three weeks following filing

- Inventory as of filing date	- 71% - 89% Recovery equating to $0 front end GPU on the high end.
	- 394 vehicles sold in the liquidation.
	- Cars are liquidated at wholesale/auction in the ordinary course following filing. - 40 cars sold at 10% price reductions in “as is / red light” sales - Sales taxes on inventory sales excluded from recovery (assumed collected and passed on, net amount included in winddown budget)

- All Other Assets as of filing date	- 0-5% Recovery

Administrative Costs

- Winddown Budget	- $5.0 - $4.1M Cost
	- 22% of forecasted payroll and benefits for one month (then nominal spend thereafter), 100% of rent and sales tax, 10% of forecasted other payables (plus 20% cushion in the low case). - Inclusive of prepetition admin and priority claims. - 1 months of rent payments for the Oakland building, Pamona and the SF HQ, deferred till end of Ch. 11 case due to 10/6/2023 filing date. - $150K retention for remaining employees. - $990K for workers comp, general liability and other insurance renewal WE 10/13.

- Professional Fees	- $2.1M Total. 20% higher in low case.

- Plan Administrator	- $300K for estate winddown and plan administration

- UST Fees

- $450K

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Shift Technologies, Inc.	*STRICTLY CONFIDENTIAL*
Ch. 11 Liquidation - Wholesale Liquidation	*DRAFT - SUBJECT TO MATERIAL REVISION*

General Note: Assumptions for individual line-items detailed on the prior page.

	Estimated		Recovery (%)						Recovery ($)
*($ in thousands)*	NBV⁽¹⁾		Low			High			Low			High
Asset Values
Unrestricted & Restricted Cash	$	8,819		100.0	%		100.0	%	$	8,819		$	8,819
Accounts receivable, net		3,859		87.1	%		96.8	%		3,361			3,734
Inventory		9,301		70.8	%		88.6	%		6,589			8,236
Prepaid and other current assets		4,812		0.0	%		5.0	%		0			241
Property & Equipment, net		1,732		0.0	%		5.0	%		0			87
Capitalized website/software		903		0.0	%		5.0	%		0			45
Other non-current tangible assets		1,313		0.0	%		5.0	%		0			66
Total	$	30,738		61.1	%		69.1	%	$	18,768		$	21,227
Ch. 11 Administrative & Priority Claims
Wind-Down Budget (incl. prepetition admin & priority claims)									$	(4,964	)	$	(4,136	)
Professional Fees									$	(2,520	)		(2,100	)
Plan Administrator									$	(300	)		(300	)
US Trustee Fees									$	(450	)		(450	)

Total		$	(8,234	)		$	(6,986	)
Net Proceeds Available for Distribution		$	10,535			$	14,240

Secured Debt
Ally FLOC		$	6,976				100.0	%			100.0	%		$	6,976			$	6,976

Total		$	6,976				100.0	%			100.0	%		$	6,976			$	6,976
Available to Unsecureds		$	3,559															$	7,265

Unsecured Debt
Accounts Payable	$	4,852	1.8	%	3.6	%	$	86	$	176
Accrued Expenses		8,797	1.8	%	3.6	%		156		318
Unpaid Rent & Lease Rejection Damages		8,830	1.8	%	3.6	%		157		320
Senior Unsecured Notes		20,500	1.8	%	3.6	%		364		742
Convertible Notes		152,700	1.8	%	3.6	%		2,708		5,528
Litigation Claim		5,000	1.8	%	3.6	%		89		181
Total	$	200,679	1.8	%	3.6	%	$	3,559	$	7,265

Footnote:

1	Estimated Net Book Value as of 10/6/2023 utilizes the 13-week cash flow forecast for cash, working capital assets and secured debt balances, and the 8/31/2023 balance sheet for all other line items.

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