Item 8.01 Other Events.

As previously disclosed, PARTS iD, Inc., a Delaware corporation (the "Company") had a working capital deficiency of approximately $36.7 million as of September 30, 2022, and has continued to experience declining revenues. While we have operated with a working capital deficiency since our inception, this combined with declined profitability caused us to consume approximately $14.4 million in cash from operating activities during the nine months ended September 30, 2022. Since that time, the Company has recently experienced negative changes in its credit terms and/or credit limits and credit holds on its accounts imposed by key product vendors and credit card providers due to the Company's liquidity issues. These circumstances may adversely impact the Company's ability to maintain its contractual commitments, available supply of products and other customer and/or vendor relationships that are essential to the Company's operations.

In light of the Company's near-term liquidity needs, the Company is currently in ongoing discussions with its key vendors to work out terms so that the Company may continue to sell such vendors' products under revised credit terms. The Company has engaged external advisors to assist the Company in negotiating terms with its vendors. While the Company continues to explore potential alternative solutions to its liquidity needs, the Company cannot provide any assurances as to whether new terms will be definitively negotiated with its vendors, or whether the final terms of any revised agreements entered into with such vendors will be favorable to the Company. Therefore, there may be risks that our vendors cause a reduction in the Company's available product catalogue. The Company also cannot guarantee that sufficient financing sources in the near future may be available to the Company on reasonable terms or at all with respect to its ongoing operations.

In addition, as the Company continues to explore and evaluate strategic alternatives through its advisor, Canaccord Genuity, Inc., as previously disclosed, ongoing and recent shareholder litigation has presented challenges and made it more difficult for the Company to pursue these strategic alternatives and raise necessary additional capital. Our results of operations and financial condition may be further harmed to the extent we pay the costs of settlement and damage awards in connection with the shareholder litigation and any related indemnification claims.


                                       1

© Edgar Online, source Glimpses