DESKTOP METAL, INC. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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|
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|
|
Years Ended December 31, |
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|
|
2023 |
|
2022 |
|
2021 |
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Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(323,271) |
|
$ |
(740,343) |
|
$ |
(240,334) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
53,632 |
|
|
50,767 |
|
|
24,854 |
Stock‑based compensation |
|
|
33,177 |
|
|
48,001 |
|
|
28,778 |
Impairment charges |
|
|
8,518 |
|
|
— |
|
|
— |
Goodwill impairment |
|
|
112,911 |
|
|
498,800 |
|
|
— |
Inventory write-off |
|
|
28,966 |
|
|
— |
|
|
— |
Change in fair value of warrant liability |
|
|
— |
|
|
— |
|
|
56,576 |
| Change in fair value of subscription agreement |
|
|
— |
|
|
— |
|
|
2,920 |
| Amortization of capitalized commissions |
|
|
318 |
|
|
— |
|
|
— |
| Amortization (accretion) of discount on investments |
|
|
(490) |
|
|
(888) |
|
|
3,021 |
| Amortization of debt financing cost |
|
|
— |
|
|
— |
|
|
9 |
| Amortization of deferred costs on convertible notes |
|
|
731 |
|
|
453 |
|
|
— |
| Provision for bad debt |
|
|
2,215 |
|
|
975 |
|
|
447 |
| Provision for slow-moving, obsolete, and lower of cost or net realizable value inventories, net |
|
|
17 |
|
|
(45) |
|
|
— |
| Acquired in-process research and development |
|
|
— |
|
|
— |
|
|
25,581 |
| Loss on disposal of property and equipment |
|
|
209 |
|
|
224 |
|
|
74 |
| Net increase (decrease) in accrued interest related to marketable securities |
|
|
238 |
|
|
847 |
|
|
(819) |
| Net unrealized (gain) loss on equity investment |
|
|
464 |
|
|
6,332 |
|
|
9,660 |
| Net unrealized (gain) loss on other investments |
|
|
- |
|
|
1,595 |
|
|
(130) |
| Deferred tax benefit |
|
|
(3,105) |
|
|
(1,498) |
|
|
(29,668) |
| Change in fair value of contingent consideration |
|
|
— |
|
|
(1,567) |
|
|
(429) |
| Foreign currency transaction (gain) loss |
|
|
(613) |
|
|
303 |
|
|
189 |
| Changes in operating assets and liabilities: |
|
|
— |
|
|
|
|
|
|
| Accounts receivable |
|
|
(1,297) |
|
|
6,737 |
|
|
(18,299) |
| Inventory |
|
|
(19,079) |
|
|
(28,183) |
|
|
(16,962) |
| Prepaid expenses and other current assets |
|
|
5,205 |
|
|
1,787 |
|
|
(8,937) |
| Other assets |
|
|
4,265 |
|
|
2,505 |
|
|
(3) |
| Accounts payable |
|
|
(6,894) |
|
|
(6,595) |
|
|
12,797 |
| Accrued expenses and other current liabilities |
|
|
1,966 |
|
|
(10,613) |
|
|
(8,761) |
| Customer deposits |
|
|
(6,169) |
|
|
(2,037) |
|
|
(2,569) |
| Current portion of deferred revenue |
|
|
(1,962) |
|
|
(4,749) |
|
|
5,989 |
| Change in right of use assets and lease liabilities, net |
|
|
(6,626) |
|
|
(4,298) |
|
|
(641) |
| Other liabilities |
|
|
1,679 |
|
|
(41) |
|
|
1,609 |
| Net cash used in operating activities |
|
|
(114,995) |
|
|
(181,531) |
|
|
(155,048) |
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
| Purchases of property and equipment |
|
|
(2,762) |
|
|
(11,517) |
|
|
(7,683) |
| Purchase of other investments |
|
|
— |
|
|
— |
|
|
(3,620) |
| Proceeds from other investments |
|
|
4,089 |
|
|
3,155 |
|
|
— |
| Purchase of equity investment |
|
|
— |
|
|
— |
|
|
(20,000) |
| Proceeds from sale of property and equipment |
|
|
9,942 |
|
|
6 |
|
|
44 |
| Proceeds from policy buyout |
|
|
— |
|
|
— |
|
|
333 |
| Purchase of marketable securities |
|
|
(4,973) |
|
|
(158,404) |
|
|
(330,873) |
| Proceeds from sales and maturities of marketable securities |
|
|
112,719 |
|
|
248,150 |
|
|
243,349 |
| Proceeds from capital grant |
|
|
— |
|
|
200 |
|
|
— |
| Cash paid to acquire in-process research and development |
|
|
— |
|
|
— |
|
|
(21,220) |
| Cash paid for acquisitions, net of cash acquired |
|
|
(1,750) |
|
|
(23) |
|
|
(287,624) |
| Net cash provided by (used in) investing activities |
|
|
117,265 |
|
|
81,567 |
|
|
(427,294) |
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
| Proceeds from reverse recapitalization, net of issuance costs |
|
|
— |
|
|
— |
|
|
— |
| Proceeds from the exercise of stock options |
|
|
1,203 |
|
|
3,190 |
|
|
6,426 |
| Proceeds from the exercise of stock warrants |
|
|
— |
|
|
— |
|
|
170,665 |
| Payment of taxes related to net share settlement upon vesting of restricted stock units |
|
|
(250) |
|
|
(243) |
|
|
(541) |
| Repayment of loans |
|
|
(419) |
|
|
(542) |
|
|
— |
| Proceeds from issuance of convertible notes |
|
|
— |
|
|
115,000 |
|
|
— |
| Costs incurred in connection with the issuance of convertible notes |
|
|
— |
|
|
(3,619) |
|
|
— |
| Repayment of term loan |
|
|
— |
|
|
— |
|
|
(10,000) |
| Net cash provided by financing activities |
|
|
534 |
|
|
113,786 |
|
|
166,550 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(27) |
|
|
(167) |
|
|
(87) |
| Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
2,777 |
|
|
13,655 |
|
|
(415,879) |
| Cash, cash equivalents, and restricted cash at beginning of period |
|
|
81,913 |
|
|
68,258 |
|
|
484,137 |
| Cash, cash equivalents, and restricted cash at end of period |
|
$ |
84,690 |
|
$ |
81,913 |
|
$ |
68,258 |
|
|
|
|
|
|
|
|
|
|
|
| Supplemental disclosures of cash flow information |
|
|
|
|
|
|
|
|
|
| Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows: |
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
83,845 |
|
$ |
76,291 |
|
$ |
65,017 |
| Restricted cash included in other current assets |
|
|
233 |
|
|
4,510 |
|
|
2,129 |
| Restricted cash included in other noncurrent assets |
|
|
612 |
|
|
1,112 |
|
|
1,112 |
| Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows |
|
$ |
84,690 |
|
$ |
81,913 |
|
$ |
68,258 |
|
|
|
|
|
|
|
|
|
|
|
| Supplemental cash flow information: |
|
|
|
|
|
|
|
|
|
| Interest paid |
|
$ |
6,900 |
|
$ |
3,488 |
|
$ |
148 |
| Taxes paid |
|
$ |
— |
|
$ |
— |
|
$ |
150 |
|
|
|
|
|
|
|
|
|
|
|
| Non‑cash investing and financing activities: |
|
|
|
|
|
|
|
|
|
| Net unrealized (gain) loss on investments |
|
$ |
(339) |
|
$ |
290 |
|
$ |
40 |
| Exercise of private placement warrants |
|
$ |
— |
|
$ |
— |
|
$ |
149,904 |
| Common Stock issued for acquisitions |
|
$ |
— |
|
$ |
— |
|
$ |
620,590 |
| Common Stock issued for acquisition of in-process research and development |
|
$ |
— |
|
$ |
— |
|
$ |
4,300 |
| Common Stock issued for settlement of contingent consideration |
|
$ |
797 |
|
$ |
500 |
|
$ |
— |
| Accrued purchase price related to acquisitions |
|
$ |
— |
|
$ |
— |
|
$ |
1,800 |
| Additions to right of use assets and lease liabilities |
|
$ |
13,926 |
|
$ |
10,812 |
|
$ |
5,582 |
| Purchase of property and equipment included in accounts payable |
|
$ |
239 |
|
$ |
516 |
|
$ |
90 |
| Purchase of property and equipment included in accrued expense |
|
$ |
31 |
|
$ |
— |
|
$ |
38 |
| Transfers from property and equipment to inventory |
|
$ |
2,214 |
|
$ |
4,993 |
|
$ |
1,068 |
| Transfers from inventory to property and equipment |
|
$ |
1,566 |
|
$ |
4,513 |
|
$ |
1,435 |
| Accrued contingent consideration in connection with acquisitions |
|
$ |
— |
|
$ |
— |
|
$ |
6,083 |
| Taxes related to net share settlement upon vesting of restricted stock awards in accrued expense |
|
$ |
— |
|
$ |
— |
|
$ |
958 |
| Deferred contract costs |
|
$ |
— |
|
$ |
1,341 |
|
$ |
— |
| Equipment financing |
|
$ |
— |
|
$ |
175 |
|
$ |
— |
See notes to consolidated financial statements.
