Electric Generator Startup Faces Financial Woes
Moxion Power Co., a San Francisco Bay Area-based electric generator startup backed by Amazon, has filed for Chapter 7 liquidation in Delaware with estimated liabilities ranging from $100 million to $500 million. This news comes on the heels of the company’s announcement of significant layoffs, which were revealed in late June.
Mass Layoffs and Financial Struggles
According to a mass layoff notice submitted to California’s labor department, Moxion Power Co. warned that it would be laying off 101 employees. The company’s bankruptcy petition, filed on Monday, lists liabilities totaling $86.9 million, including:
- $53.5 million in nonpriority unsecured claims
- $371,450 in priority unsecured claims
- Nearly $33.1 million in secured claims
Assets and Debts
Moxion Power Co. has listed $118.2 million in assets, which include its innovative zero-emissions mobile power units. These electric batteries are designed to replace diesel generators and can be towed behind a pickup truck. The company’s assets also comprise:
- Over 200 mobile power units valued at $140,688 each, totaling $28.7 million
- Other assets, including equipment, intellectual property, and inventory
Silicon Valley Bank holds a possible $33 million claim secured by all of Moxion’s goods, accounts, equipment, intellectual property, and inventory. JR Automation Technologies is the largest unsecured creditor, with a $13.6 million claim.
Rise and Fall of Moxion Power Co.
Moxion Power Co. had been experiencing rapid growth, announcing a new lease for 100,000 square feet of space in Richmond, California, in January. The company’s innovative technology had also gained traction, with its mobile power units being used to power a music festival north of San Francisco in May and a PGA event in Georgia last year.
However, despite its successes, Moxion Power Co. reported a $28 million net operating loss in 2022, according to its petition. The company’s financial struggles ultimately led to its decision to file for Chapter 7 bankruptcy.
Case Details
The case is In re: Moxion Power Co., case number 24-11835, in the U.S. Bankruptcy Court for the District of Delaware. The debtor is represented by Ericka F. Johnson of Bayard PA.
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