Desktop Metal Announces Fourth Quarter and Full Year 2021

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	$	—

« Previous Page 1 | 2 | 3 | 4 Next Page »