BLACKSKY TECHNOLOGY INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(unaudited) |
|||||||
(in thousands, except par value) |
|||||||
|
December 31, |
|
December 31, |
||||
|
2022 |
|
2021 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
34,181 |
|
|
$ |
165,586 |
|
Restricted cash |
|
2,835 |
|
|
|
2,518 |
|
Short-term investments |
|
37,982 |
|
|
|
— |
|
Accounts receivable, net of allowance of $0 and $39, respectively |
|
3,112 |
|
|
|
2,629 |
|
Prepaid expenses and other current assets |
|
4,713 |
|
|
|
6,264 |
|
Contract assets |
|
5,706 |
|
|
|
1,678 |
|
Total current assets |
|
88,529 |
|
|
|
178,675 |
|
Property and equipment - net |
|
71,584 |
|
|
|
70,551 |
|
Operating lease right of use assets - net |
|
3,586 |
|
|
|
— |
|
| Goodwill |
|
9,393 |
|
|
|
9,393 |
|
| Investment in equity method investees |
|
5,114 |
|
|
|
4,002 |
|
| Intangible assets - net |
|
1,918 |
|
|
|
2,480 |
|
| Satellite procurement work in process |
|
50,954 |
|
|
|
40,102 |
|
| Other assets |
|
2,841 |
|
|
|
560 |
|
| Total assets |
$ |
233,919 |
|
|
$ |
305,763 |
|
| Liabilities and stockholders’ equity |
|
|
|
||||
| Current liabilities: |
|
|
|
||||
| Accounts payable and accrued liabilities |
$ |
14,367 |
|
|
$ |
10,837 |
|
| Amounts payable to equity method investees |
|
3,728 |
|
|
|
5,613 |
|
| Contract liabilities - current |
|
6,783 |
|
|
|
11,266 |
|
| Other current liabilities |
|
2,048 |
|
|
|
2,819 |
|
| Total current liabilities |
|
26,926 |
|
|
|
30,535 |
|
| Liability for estimated contract losses |
|
714 |
|
|
|
6,054 |
|
| Long-term contract liabilities |
|
109 |
|
|
|
568 |
|
| Operating lease liabilities |
|
3,132 |
|
|
|
— |
|
| Derivative liabilities |
|
5,113 |
|
|
|
16,925 |
|
| Long-term debt - net of current portion |
|
76,219 |
|
|
|
71,408 |
|
| Other liabilities |
|
2 |
|
|
|
653 |
|
| Total liabilities |
|
112,215 |
|
|
|
126,143 |
|
| Stockholders’ equity: |
|
|
|
||||
| Class A common stock, $0.0001 par value-authorized, 300,000 shares; issued, 121,938 and 117,160 shares; outstanding, 119,508 shares and 114,452 shares as of December 31, 2022 and 2021, respectively. |
|
12 |
|
|
|
11 |
|
| Additional paid-in capital |
|
666,973 |
|
|
|
650,518 |
|
| Accumulated deficit |
|
(545,281 |
) |
|
|
(470,909 |
) |
| Total stockholders’ equity |
|
121,704 |
|
|
|
179,620 |
|
| Total liabilities and stockholders’ equity |
$ |
233,919 |
|
|
$ |
305,763 |
|
| BLACKSKY TECHNOLOGY INC. |
|||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
| (unaudited) |
|||||||
| (in thousands) |
|||||||
|
|
Years Ended December 31, |
||||||
|
|
2022 |
|
2021 |
||||
| Cash flows from operating activities: |
|
|
|
||||
| Net loss |
$ |
(74,342 |
) |
|
$ |
(245,643 |
) |
| Gain (loss) from discontinued operations, net of income taxes |
|
707 |
|
|
|
(1,650 |
) |
| Loss from continuing operations |
|
(75,049 |
) |
|
|
(243,993 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
| Depreciation and amortization expense |
|
35,661 |
|
|
|
14,306 |
|
| Operating lease right of use assets amortization |
|
1,640 |
|
|
|
— |
|
| Gain on debt extinguishment |
|
— |
|
|
|
(4,059 |
) |
| Bad debt (recovery) expense |
|
(22 |
) |
|
|
58 |
|
| Stock-based compensation expense |
|
20,025 |
|
|
|
42,571 |
|
| Loss on issuance of 2021 convertible Bridge Notes |
|
— |
|
|
|
99,669 |
|
| Issuance costs for derivative liabilities and debt carried at fair value |
|
— |
|
|
|
48,009 |
|
| Amortization of debt discount and issuance costs |
|
1,805 |
|
|
|
1,807 |
|
| Gain on equity method investment |
|
(1,916 |
) |
|
|
(1,027 |
) |
| Loss on disposal of property and equipment |
|
— |
|
|
|
24 |
|
| Gain on derivatives |
|
(11,812 |
) |
|
|
(23,885 |
) |
| Satellite impairment loss |
|
— |
|
|
|
18,407 |
|
| Interest income |
|
(656 |
) |
|
|
— |
|
| Other, net |
|
106 |
|
|
|
— |
|
| Changes in operating assets and liabilities: |
|
|
|
||||
| Accounts receivable |
|
(461 |
) |
|
|
216 |
|
| Contract assets - current and long-term |
|
(5,996 |
) |
|
|
2,118 |
|
| Prepaid expenses and other current assets |
|
1,413 |
|
|
|
(5,207 |
) |
| Other assets |
|
(12 |
) |
|
|
(309 |
) |
| Accounts payable and accrued liabilities |
|
(75 |
) |
|
|
2,543 |
|
| Other current liabilities |
|
(1,180 |
) |
|
|
(2,680 |
) |
| Contract liabilities - current and long-term |
|
(4,942 |
) |
|
|
(5,262 |
) |
| Liability for estimated contract losses |
|
(5,340 |
) |
|
|
(198 |
) |
| Other liabilities |
|
2,355 |
|
|
|
3,020 |
|
| Net cash used in operating activities |
|
(44,456 |
) |
|
|
(53,872 |
) |
| Cash flows from investing activities: |
|
|
|
||||
| Purchase of property and equipment |
|
(11,677 |
) |
|
|
(1,266 |
) |
| Satellite procurement work in process |
|
(32,385 |
) |
|
|
(62,643 |
) |
| Purchase of short-term investments |
|
(50,343 |
) |
|
|
— |
|
| Proceeds from maturities of short-term investments |
|
13,000 |
|
|
|
— |
|
| Purchase of domain name |
|
— |
|
|
|
(7 |
) |
| Proceeds from equity method investment |
|
804 |
|
|
|
302 |
|
| Cash flows used in investing activities - continuing operations |
|
(80,601 |
) |
|
|
(63,614 |
) |
| Cash flows used in investing activities - discontinued operations |
|
(978 |
) |
|
|
— |
|
| Net cash used in investing activities |
|
(81,579 |
) |
|
|
(63,614 |
) |
| Cash flows from financing activities: |
|
|
|
||||
| Proceeds from recapitalization transaction, net of payment of equity issuance costs |
|
— |
|
|
|
244,880 |
|
| Payments of transaction costs related to Sponsor Shares |
|
— |
|
|
|
(291 |
) |
| Proceeds from issuance of debt |
|
— |
|
|
|
58,573 |
|
| Proceeds from options exercised |
|
47 |
|
|
|
130 |
|
| Proceeds from warrants exercised |
|
— |
|
|
|
163 |
|
| Capital lease payments |
|
— |
|
|
|
(2 |
) |
| Debt payments |
|
— |
|
|
|
(22,198 |
) |
| Payments for deferred offering costs |
|
(31 |
) |
|
|
— |
|
| Payments for debt issuance costs |
|
— |
|
|
|
(6,238 |
) |
| Withholding tax payments on vesting of restricted stock units |
|
(5,069 |
) |
|
|
— |
|
| Net cash (used in) provided by financing activities |
|
(5,053 |
) |
|
|
275,017 |
|
| Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
(131,088 |
) |
|
|
157,531 |
|
| Cash, cash equivalents, and restricted cash – beginning of year |
|
168,104 |
|
|
|
10,573 |
|
| Cash, cash equivalents, and restricted cash – end of period |
$ |
37,016 |
|
|
$ |
168,104 |
|
| BLACKSKY TECHNOLOGY INC. |
|||||||||||||||
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
|||||||||||||||
| (unaudited) |
|||||||||||||||
| (in thousands) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
| Net loss |
$ |
(14,975 |
) |
|
$ |
5,395 |
|
|
$ |
(74,342 |
) |
|
$ |
(245,643 |
) |
| Interest income |
|
(452 |
) |
|
|
— |
|
|
|
(1,116 |
) |
|
|
— |
|
| Interest expense |
|
1,669 |
|
|
|
1,502 |
|
|
|
5,425 |
|
|
|
5,165 |
|
| Depreciation and amortization |
|
9,495 |
|
|
|
4,502 |
|
|
|
35,661 |
|
|
|
14,306 |
|
| Loss on issuance of Bridge Notes, including debt issuance costs expensed for debt carried at fair value |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
147,387 |
|
| Stock-based compensation expense |
|
3,636 |
|
|
|
13,306 |
|
|
|
20,025 |
|
|
|
42,571 |
|
| Gain on derivatives |
|
(1,183 |
) |
|
|
(35,047 |
) |
|
|
(11,812 |
) |
|
|
(23,885 |
) |
| Satellite impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,407 |
|
| Proceeds from earn-out payment |
|
(2,000 |
) |
|
|
— |
|
|
|
(2,000 |
) |
|
|
— |
|
| Loss (gain) from discontinued operations, net of income taxes |
|
— |
|
|
|
628 |
|
|
|
(707 |
) |
|
|
1,650 |
|
| Severance |
|
435 |
|
|
|
— |
|
|
|
1,196 |
|
|
|
— |
|
| Income on equity method investment |
|
(1,222 |
) |
|
|
(234 |
) |
|
|
(1,916 |
) |
|
|
(1,027 |
) |
| Forgiveness of non-trade receivables |
|
— |
|
|
|
— |
|
|
|
106 |
|
|
|
— |
|
| Contingent legal liability |
|
— |
|
|
|
(301 |
) |
|
|
— |
|
|
|
399 |
|
| Transaction costs associated with derivative liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
291 |
|
| Gain on debt extinguishment |
|
— |
|
|
|
(4,134 |
) |
|
|
— |
|
|
|
(4,059 |
) |
| Adjusted EBITDA |
$ |
(4,597 |
) |
|
$ |
(14,383 |
) |
|
$ |
(29,480 |
) |
|
$ |
(44,438 |
) |
