Desktop Metal Announces Fourth Quarter and Full Year 2021 Financial Results and Initiates 2022 Guidance

 

DESKTOP METAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

December 31,

 

 

2021

 

2020

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

65,017

 

$

483,525

Current portion of restricted cash

 

 

2,129

 

 

Short‑term investments

 

 

204,569

 

 

111,867

Accounts receivable

 

 

46,687

 

 

6,516

Inventory

 

 

65,399

 

 

9,708

Prepaid expenses and other current assets

 

 

16,207

 

 

976

Total current assets

 

 

400,008

 

 

612,592

Restricted cash, net of current portion

 

 

1,112

 

 

612

Property and equipment, net

 

 

58,710

 

 

12,160

Goodwill

 

 

639,301

 

 

2,252

Intangible assets, net

 

 

261,984

 

 

9,414

Other noncurrent assets

 

 

25,480

 

 

4,879

Total Assets

 

$

1,386,595

 

$

641,909

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

29,557

 

$

7,591

Customer deposits

 

 

14,137

 

 

1,480

Current portion of lease liability

 

 

5,527

 

 

868

Accrued expenses and other current liabilities

 

 

33,829

 

 

7,565

Current portion of deferred revenue

 

 

18,189

 

 

3,004

Current portion of long‑term debt, net of deferred financing costs

 

 

825

 

 

9,991

Total current liabilities

 

 

102,064

 

 

30,499

Long-term debt, net of current portion

 

 

548

 

 

Warrant liability

 

 

 

 

93,328

Contingent consideration, net of current portion

 

 

4,183

 

 

Lease liability, net of current portion

 

 

13,077

 

 

2,157

Deferred revenue, net of current portion

 

 

4,508

 

 

Deferred tax liability

 

 

10,695

 

 

Other noncurrent liabilities

 

 

3,170

 

 

Total liabilities

 

 

138,245

 

 

125,984

Commitments and Contingences (Note 16)

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

Preferred Stock, $0.0001 par value—authorized, 50,000,000 shares; no shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively

 

 

 

 

Common Stock, $0.0001 par value—500,000,000 shares authorized; 311,737,858 and 226,756,733 shares issued at December 31, 2021 and December 31, 2020, respectively, 311,473,950 and 224,626,597 shares outstanding at December 31, 2021 and December 31, 2020, respectively

 

 

31

 

 

23

Additional paid‑in capital

 

 

1,823,344

 

 

844,188

Accumulated deficit

 

 

(568,611)

 

 

(328,277)

Accumulated other comprehensive income (loss)

 

 

(6,414)

 

 

(9)

Total Stockholders’ Equity

 

 

1,248,350

 

 

515,925

Total Liabilities and Stockholders’ Equity

 

$

1,386,595

 

$

641,909

 

DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

2021

 

2020

Revenues

 

 

 

 

 

 

Products

 

$

105,994

 

$

13,718

Services

 

 

6,414

 

 

2,752

Total revenues

 

 

112,408

 

 

16,470

Cost of sales

 

 

 

 

 

 

Products

 

 

87,450

 

 

26,945

Services

 

 

6,665

 

 

4,574

Total cost of sales

 

 

94,115

 

 

31,519

Gross profit/(loss)

 

 

18,293

 

 

(15,049)

Operating expenses

 

 

 

 

 

 

Research and development

 

 

68,125

 

 

43,136

Sales and marketing

 

 

47,995

 

 

13,136

General and administrative

 

 

78,041

 

 

20,734

In-process research and development assets acquired

 

 

25,587

 

 

Total operating expenses

 

 

219,748

 

 

77,006

Loss from operations

 

 

(201,455)

 

 

(92,055)

Change in fair value of warrant liability

 

 

(56,576)

 

 

56,417

Interest expense

 

 

(149)

 

 

(328)

Interest and other (expense) income, net

 

 

(11,822)

 

 

1,011

Loss before income taxes

 

 

(270,002)

 

 

(34,955)

Income tax benefit

 

 

29,668

 

 

940

Net loss

 

$

(240,334)

 

$

(34,015)

Net loss per share—basic and diluted

 

$

(0.92)

 

$

(0.22)

Weighted average shares outstanding, basic and diluted

 

 

260,770

 

 

157,906

 

DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

2021

 

2020

Net loss

 

 

$

(240,334)

 

$

(34,015)

Other comprehensive (loss) income, net of taxes:

 

 

 

 

 

Unrealized gain (loss) on available-for-sale marketable securities, net

 

 

 

(40)

 

 

(84)

Foreign currency translation adjustment

 

 

 

(6,365)

 

 

Total comprehensive loss, net of taxes of $0

 

 

$

(246,739)

 

$

(34,099)

 

DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Comprehensive

 

Total

 

 

Legacy Convertible Preferred Stock

 

 

Common Stock

 

Paid‑in

 

Accumulated

 

(Loss)

 

Stockholders’

 

 

Shares

 

Amount

 

 

Shares

 

Amount

 

Capital

 

Deficit

 

Income

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE—January 1, 2020

 

100,038,109

 

$

436,553

 

 

26,813,113

 

$

3

 

$

16,722

 

$

(294,262)

 

$

75

 

$

(277,462)

Retroactive application of recapitalization (Note 1)

 

(100,038,109)

 

 

(436,553)

 

 

128,100,821

 

 

13

 

 

436,520

 

 

 

 

 

 

436,533

Adjusted balance, beginning of period

 

 

 

 

 

 

154,913,934

 

 

16

 

 

453,242

 

 

(294,262)

 

 

75

 

 

159,071

Exercise of Common Stock options

 

 

 

 

 

521,925

 

 

 

 

325

 

 

 

 

 

 

325

Vesting of restricted Common Stock

 

 

 

 

 

5,307,357

 

 

1

 

 

6

 

 

 

 

 

 

7

Issuance of Common Stock in connection with acquisitions

 

 

 

 

 

61,060

 

 

 

 

500

 

 

 

 

 

 

500

Repurchase of shares for employee tax withholdings

 

 

 

 

 

(9,308)

 

 

 

 

(101)

 

 

 

 

 

 

(101)

Stock‑based compensation expense

 

 

 

 

 

 

 

 

 

8,006

 

 

 

 

 

 

8,006

Common Stock warrants issued and exercised

 

 

 

 

 

692,366

 

 

 

 

1,915

 

 

 

 

 

 

1,915

Reverse recapitalization, net of transaction costs

 

 

 

 

 

63,139,263

 

 

6

 

 

380,295

 

 

 

 

 

 

380,301

Net loss

 

 

 

 

 

 

 

 

 

 

 

(34,015)

 

 

 

 

(34,015)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

(84)

 

 

(84)

BALANCE—December 31, 2020

 

 

 

 

 

224,626,597

 

$

23

 

$

844,188

 

$

(328,277)

 

$

(9)

 

$

515,925

Exercise of Common Stock options

 

 

 

 

 

5,732,247

 

 

1

 

 

6,425

 

 

 

 

 

 

6,426

Vesting of restricted Common Stock

 

 

 

 

 

491,293

 

 

 

 

 

 

 

 

 

 

Repurchase of shares for employee tax withholdings - RSA

 

 

 

 

 

(109,150)

 

 

 

 

(958)

 

 

 

 

 

 

(958)

Vesting of restricted share units

 

 

 

 

 

650,777

 

 

 

 

 

 

 

 

 

 

Repurchase of shares for employee tax withholdings - RSU

 

 

 

 

 

(61,498)

 

 

 

 

(541)

 

 

 

 

 

 

(541)

Issuance of Common Stock in connection with acquisitions

 

 

 

 

 

57,267,401

 

 

5

 

 

620,585

 

 

 

 

 

 

620,590

Issuance of Common Stock in connection with acquired in-process research and development

 

 

 

 

 

334,370

 

 

 

 

4,300

 

 

 

 

 

 

4,300

Stock‑based compensation expense

 

 

 

 

 

 

 

 

 

28,778

 

 

 

 

 

 

28,778

Vesting of Trine Founder Shares

 

 

 

 

 

1,850,938

 

 

 

 

 

 

 

 

 

 

Common Stock issued in connection with warrants exercised

 

 

 

 

 

20,690,975

 

 

2

 

 

320,567

 

 

 

 

 

 

320,569

Net loss

 

 

 

 

 

 

 

 

 

 

 

(240,334)

 

 

 

 

(240,334)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,405)

 

 

(6,405)

BALANCE—December 31, 2021

 

 

 

 

 

311,473,950

 

$

31

 

$

1,823,344

 

$

(568,611)

 

$

(6,414)

 

$

1,248,350

 

DESKTOP METAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

2021

 

2020

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(240,334)

 

$

(34,015)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

24,854

 

 

8,589

Stock‑based compensation

 

 

28,778

 

 

8,006

Change in fair value of warrant liability

 

 

56,576

 

 

(56,417)

Change in fair value of subscription agreement

 

 

2,920

 

 

Expense related to Common Stock warrants issued

 

 

-

 

 

1,915

Amortization (accretion) of discount on investments

 

 

3,021

 

 

75

Amortization of debt financing cost

 

 

9

 

 

19

Provision for bad debt

 

 

168

 

 

377

Acquired in-process research and development

 

 

25,581

 

 

Loss on disposal of property and equipment

 

 

74

 

 

18

Foreign exchange (gains) losses on intercompany transactions, net

 

 

182

 

 

Net increase in accrued interest related to marketable securities

 

 

(819)

 

 

(3)

Net unrealized (gain) loss on equity investment

 

 

9,660

 

 

Net unrealized (gain) loss on other investments

 

 

(130)

 

 

Deferred tax benefit

 

 

(29,668)

 

 

(940)

Change in fair value of contingent consideration

 

 

(429)

 

 

Foreign currency transaction (gain) loss

 

 

7

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(18,021)

 

 

(2,370)

Inventory

 

 

(16,962)

 

 

(1,303)

Prepaid expenses and other current assets

 

 

(6,936)

 

 

901

Other assets

 

 

(3)

 

 

Accounts payable

 

 

10,796

 

 

(2,637)

Accrued expenses and other current liabilities

 

 

(8,761)

 

 

(2,391)

Customer deposits

 

 

(2,569)

 

 

(845)

Current portion of deferred revenue

 

 

5,989

 

 

774

Change in right of use assets and lease liabilities, net

 

 

(641)

 

 

(328)

Other liabilities

 

 

1,609

 

 

 

Net cash used in operating activities

 

 

(155,049)

 

 

(80,575)

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(7,683)

 

 

(1,429)

Purchase of other investments

 

 

(3,620)

 

 

(3,000)

Purchase of equity investment

 

 

(20,000)

 

 

Proceeds from sale of property and equipment

 

 

44

 

 

Proceeds from policy buyout

 

 

333

 

 

Purchase of marketable securities

 

 

(330,873)

 

 

(136,286)

Proceeds from sales and maturities of marketable securities

 

 

243,349

 

 

109,016

Cash paid to acquire in-process research and development

 

 

(21,220)

 

 

Cash paid for acquisitions, net of cash acquired

 

 

(287,624)

 

 

(5,284)

Net cash used in investing activities

 

 

(427,294)

 

 

(36,983)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from reverse recapitalization, net of issuance costs

 

 

 

 

534,597

Proceeds from the exercise of stock options

 

 

6,424

 

 

325

Proceeds from the exercise of stock warrants

 

 

170,665

 

 

Payment of taxes related to net share settlement upon vesting of restricted stock units

 

 

(540)

 

 

Proceeds from PPP loan

 

 

 

 

5,379

Repayment of PPP loan

 

 

 

 

(5,379)

Repayment of term loan

 

 

(10,000)

 

 

Deferred financing costs paid

 

 

 

 

Net cash provided by financing activities

 

 

166,549

 

 

534,922

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(85)

 

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

 

(415,879)

 

 

417,364

Cash, cash equivalents, and restricted cash at beginning of period

 

 

484,137

 

 

66,773

Cash, cash equivalents, and restricted cash at end of period

 

$

68,258

 

$

484,137

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total shown in the condensed consolidated statements of cash flows:

 

 

 

 

 

 

Cash and cash equivalents

 

$

65,017

 

$

483,525

Restricted cash included in other current assets

 

 

2,129

 

 

Restricted cash included in other noncurrent assets

 

 

1,112

 

 

612

Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows

 

$

68,258

 

$

484,137

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

Interest paid

 

$

148

 

$

322

Taxes paid

 

$

150

 

$

 

 

 

 

 

 

 

Non‑cash investing and financing activities:

 

 

 

 

 

 

Net liabilities assumed from Trine Business Combination

 

$

 

$

152,395

Accrued reverse recapitalization transaction costs

 

$

 

$

1,901

Net unrealized (gain) loss on investments

 

$

40

 

$

Exercise of private placement warrants

 

$

149,904

 

$

Common Stock issued for acquisitions

 

$

620,590

 

$

500

Common Stock issued for acquisition of in-process research and development

 

$

4,300

 

$

Accrued purchase price for asset acquisition

 

$

1,800

 

$

200

Additions to right of use assets and lease liabilities

 

$

5,582

 

$

Purchase of property and equipment included in accounts payable

 

$

90

 

$

Purchase of property and equipment included in accrued expenses and other current liabilities

 

$

38

 

$

Transfers from property and equipment to inventory

 

$

1,068

 

$

Transfers from inventory to property and equipment

 

$

1,435

 

$

Accrued contingent consideration in connection with acquisitions

 

$

6,083

 

$

Tax liabilities related to withholdings on Common Stock issued in connection with acquisitions

 

$

 

$

102

Taxes related to net share settlement upon vesting of restricted stock awards in accrued expense

 

$

958

 

$

Forgiveness of PPP Loan

 

$

3,687

 

$

 

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