UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, Including Area Code: |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
|
|
Trading |
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On August 11, 2021, FTC Solar, Inc. (the "Company") issued a press release regarding its financial results for the second quarter ended June 30, 2021. A copy of the Company's press release is furnished herewith as Exhibit 99.1.
The information furnished in this Current Report under this Item 2.02 and the exhibit furnished herewith shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit No. |
|
Description |
||||||||||||
|
||||||||||||||
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
||||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
FTC SOLAR, INC. |
|
|
|
|
Date: |
August 11, 2021 |
By: |
/s/ Patrick M. Cook |
|
|
|
Patrick M. Cook, |
Exhibit 99.1
FTC Solar Announces Second Quarter 2021 Financial Results
Second Quarter Highlights and Recent Developments
• Second quarter revenue of $50.1 million; total 1H’21 revenue up 39% y/y;
• Added to executed contracts and awarded orders, now totaling $419 million YTD through Aug. 1*;
• Continuing to win new customers, including another top 5 construction firm/EPC;
• Recognized first revenue for our SunPath software solution;
• Sold stake in minority investment (Dimension Energy) for $22 million; and
• Targeting significant 2H’21 revenue growth, with increased logistics cost impact in Q3 followed by significant progress toward profitability in Q4
AUSTIN, Texas — August 11, 2021 – FTC Solar, Inc. (Nasdaq: FTCI), a fast-growing global provider of solar tracker systems, software and engineering services, today announced financial results for the second quarter ended June 30, 2021.
“Revenue for the second quarter came in above the high-end of our guidance range for the period, with lower-than-expected non-GAAP operating expenses,” said Tony Etnyre, FTC Solar President and Chief Executive Officer. “Despite an additional $10 million of expense incurred in a continued challenging and tightening global logistics environment, our Non-GAAP net loss was within our guidance range.”
“While the solar industry continues to contend with higher commodities and logistics pricing, FTC Solar has taken meaningful actions to mitigate the impact to our business, while providing compelling solutions for our customers. During this difficult time for the industry, we continue to work with our customers to limit the impact of these short-term cost disruptions, while at the same time developing innovative logistics solutions that provide price certainty for our customers and drive significant improvement towards profitability for Q4.
This approach has helped support a continued growth in demand for our products. This demand is reflected in growth of our contracted and awarded orders, which have grown 385% on a year-to-date basis through August 1, with another $203 million added since our last update as of June 1. Excluding the amount included in reported first-half revenue, executed contracts and awarded orders as of August 1 were $478 million, with expected delivery dates in 2021 and 2022.”
Summary Financial Performance: Q2 2021 and Q2 2020 (in thousands, except per share data and percentages)
|
|
GAAP |
|
|
Non-GAAP |
|
||||||||||
|
|
Three Months Ended June 30, |
|
|||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Revenue |
|
$ |
50,108 |
|
|
$ |
51,157 |
|
|
$ |
50,108 |
|
|
$ |
51,157 |
|
Gross margin |
|
|
-32.04 |
% |
|
|
-2.70 |
% |
|
|
-16.82 |
% |
|
|
-2.54 |
% |
Operating expense |
|
$ |
59,906 |
|
|
$ |
4,576 |
|
|
$ |
8,325 |
|
|
$ |
4,179 |
|
Operating loss |
|
$ |
(75,963 |
) |
|
$ |
(5,958 |
) |
|
$ |
(16,746 |
) |
|
$ |
(5,479 |
) |
Net loss |
|
$ |
(55,841 |
) |
|
$ |
(6,776 |
) |
|
$ |
(16,971 |
) |
|
$ |
(5,623 |
) |
Diluted EPS |
|
$ |
(0.70 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.08 |
) |
See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below.
*Includes amounts included in first and second quarter reported revenue. We define executed contracts and awarded orders as orders that have been documented and signed through a contract or where we are in the process of documenting a contract but for which a contract has not yet been signed. See press release text for current balance of executed contracts and awarded orders.
Second Quarter 2021 Results
Total second quarter revenue was $50.1 million, ahead of the company’s target range. This represents a decline of approximately 2% compared with the second quarter of 2020, on slightly lower product volume.
GAAP Gross loss was $16.1 million, up from $1.4 million in the prior year period, driven primarily by $10 million in increased logistics expense that was not passed along to customers, a strong ramp up in employee count and other overhead expenses to support the company’s strong growth trajectory, and a $7.2 million increase in stock-based compensation associated with the transition to a public company.
GAAP operating expenses were $59.9 million, including $49.0 million in stock-based compensation as a result of the company’s IPO, relating to one-time or catch-up charges for prior-issued stock. On a non-GAAP basis, excluding stock-based compensation and certain other expenses, operating expenses were $8.3 million, better than the company’s original guidance range due to timing between quarters, which compares to $4.2 million in the year-ago quarter. The year-over-year increase was driven primarily by necessary growth in staffing and other public-company preparations.
GAAP net loss was $55.8 million, or $0.70 per share, compared to a net loss of $6.8 million, or $0.09 per share in the year-ago quarter. Non-GAAP net loss, which excludes a $20.6 million gain from the sale of a minority investment in Dimension Energy, and a $56.2 million impact of stock-based compensation, IPO related expenses and consulting fees and other non-cash items, was $17.0 million, or $0.21 per share. This was also within the company’s guidance range, despite absorbing an additional $10 million in logistics expense in the quarter as the global logistics environment worsened, and not all of these costs were able to be passed along to customers. This result compares to a non-GAAP net loss of $5.6 million, or $0.08 per share in the year-ago quarter.
Second Half 2021 Outlook
Looking ahead, the company expects to see sequential revenue growth for the remainder of the year. The third quarter should see improved revenue; however, a continued worsening of logistics costs will delay improvement in profitability until the fourth quarter. In the fourth quarter, the company expects to see significant sequential revenue growth and a transition toward profitability, driven by the timing of deliveries on contracted projects, cost-saving initiatives and the implementation in the quarter of alternative shipping methods.
Several factors are included in FTC Solar’s outlook for the second half of 2021, including:
Based on these and other factors, including our current backlog and forecasts, and accounting for direct cost uncertainty for the third quarter, the company expects:
($ in millions) |
2Q 2021 Actual |
3Q 2021 |
Revenue |
$50.1 |
$56.0-$62.0 |
Non-GAAP Operating Expenses |
$8.3 |
$8.7-$9.7 |
Adjusted EBITDA |
$(16.7) |
$(19.7)-$(14.7) |
For the fourth quarter the company currently expects a significant increase in revenue relative to the third quarter. With the partial implementation of our new logistics methods beginning to take effect in the quarter, as well as our cost roadmap reduction initiatives, we are targeting significant progress toward profitability on an Adjusted EBITDA basis.
For the full year 2021, we expect revenue to exceed $310 million.
This outlook would result in full-year revenue growth in excess of 65% which is anticipated to be substantially faster than overall market growth expectations.
Second Quarter 2021 Earnings Conference Call
FTC Solar’s senior management will host a conference call for members of the investment community that will be held at 8:30 a.m. E.T. today, during which the company will discuss its second quarter results, its outlook and other business items. This call will be webcast and can be accessed within the Investor Relations section of the FTC Solar website at investor.ftcsolar.com. A replay of the conference call will also be available on the website for 30 days following the webcast.
About FTC Solar Inc.
Founded in 2017 by a group of renewable energy industry veterans, FTC Solar is a fast-growing, global provider of solar tracker systems, technology, software, and engineering services. Solar trackers significantly increase energy production at solar power installations by dynamically optimizing solar panel orientation to the sun. FTC Solar’s innovative tracker designs provide compelling performance and reliability, with an industry-leading installation cost-per-watt advantage.
Forward-Looking Statements
This press release contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. You should not rely on our forward-looking statements as predictions of future events, as actual results may differ materially from those in the forward-looking statements because of several factors, including those described in more detail in our filings with the U.S. Securities and Exchange Commission, including the section entitled “Risk Factors” contained therein. FTC Solar undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.
Source: FTC Solar, Inc.
Category: Financial News
FTC Solar Investor Contact:
Bill Michalek
Vice President, Investor Relations
FTC Solar
T: (737) 241-8618
E: IR@FTCSolar.com
FTC Solar Media Contact:
Scott Deitz
On behalf of FTC Solar
T: (336) 908-7759
# # #
FTC Solar, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(in thousands, except share and per share data)
(unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product |
|
$ |
35,755 |
|
|
$ |
42,849 |
|
|
$ |
92,217 |
|
|
$ |
73,318 |
|
Service |
|
|
14,353 |
|
|
|
8,308 |
|
|
|
23,598 |
|
|
|
10,215 |
|
Total revenue |
|
|
50,108 |
|
|
|
51,157 |
|
|
|
115,815 |
|
|
|
83,533 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product |
|
|
43,885 |
|
|
|
44,623 |
|
|
|
98,881 |
|
|
|
68,370 |
|
Service |
|
|
22,280 |
|
|
|
7,916 |
|
|
|
32,872 |
|
|
|
9,565 |
|
Total cost of revenue |
|
|
66,165 |
|
|
|
52,539 |
|
|
|
131,753 |
|
|
|
77,935 |
|
Gross profit (loss) |
|
|
(16,057 |
) |
|
|
(1,382 |
) |
|
|
(15,938 |
) |
|
|
5,598 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
|
5,585 |
|
|
|
1,515 |
|
|
|
7,539 |
|
|
|
2,609 |
|
Selling and marketing |
|
|
3,258 |
|
|
|
818 |
|
|
|
4,358 |
|
|
|
1,333 |
|
General and administrative (Note. 9) |
|
|
51,063 |
|
|
|
2,243 |
|
|
|
56,147 |
|
|
|
4,718 |
|
Total operating expenses |
|
|
59,906 |
|
|
|
4,576 |
|
|
|
68,044 |
|
|
|
8,660 |
|
Loss from operations |
|
|
(75,963 |
) |
|
|
(5,958 |
) |
|
|
(83,982 |
) |
|
|
(3,062 |
) |
Interest expense |
|
|
(200 |
) |
|
|
(121 |
) |
|
|
(214 |
) |
|
|
(233 |
) |
Gain from disposal in equity investment |
|
|
20,619 |
|
|
|
- |
|
|
|
20,619 |
|
|
|
- |
|
Gain (loss) on extinguishment of debt |
|
|
- |
|
|
|
(41 |
) |
|
|
790 |
|
|
|
(41 |
) |
Other expense |
|
|
(46 |
) |
|
|
- |
|
|
|
(46 |
) |
|
|
- |
|
Loss before income taxes |
|
|
(55,590 |
) |
|
|
(6,120 |
) |
|
|
(62,833 |
) |
|
|
(3,336 |
) |
(Expense) benefit from income taxes |
|
|
(115 |
) |
|
|
(19 |
) |
|
|
(96 |
) |
|
|
139 |
|
Loss from unconsolidated subsidiary |
|
|
(136 |
) |
|
|
(637 |
) |
|
|
(354 |
) |
|
|
(159 |
) |
Net loss |
|
$ |
(55,841 |
) |
|
$ |
(6,776 |
) |
|
$ |
(63,283 |
) |
|
$ |
(3,356 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustments |
|
|
7 |
|
|
|
(16 |
) |
|
|
6 |
|
|
|
(8 |
) |
Comprehensive loss |
|
$ |
(55,834 |
) |
|
$ |
(6,792 |
) |
|
$ |
(63,277 |
) |
|
$ |
(3,364 |
) |
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.70 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.87 |
) |
|
$ |
(0.05 |
) |
Diluted |
|
$ |
(0.70 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.87 |
) |
|
$ |
(0.05 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
79,229,174 |
|
|
|
74,612,811 |
|
|
|
73,106,935 |
|
|
|
70,994,078 |
|
Diluted |
|
|
79,229,174 |
|
|
|
74,612,811 |
|
|
|
73,106,935 |
|
|
|
70,994,078 |
|
FTC Solar, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
|
|
June 30, |
|
|
December 31, |
|
||
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
||
Cash |
|
$ |
149,672 |
|
|
$ |
32,359 |
|
Restricted cash |
|
|
— |
|
|
|
1,014 |
|
Accounts receivable, net |
|
|
46,981 |
|
|
|
23,734 |
|
Inventories |
|
|
7,810 |
|
|
|
1,686 |
|
Prepaid and other current assets |
|
|
30,950 |
|
|
|
6,924 |
|
Total current assets |
|
|
235,413 |
|
|
|
65,717 |
|
Investments in unconsolidated subsidiary |
|
|
— |
|
|
|
1,857 |
|
Other assets |
|
|
5,252 |
|
|
|
3,819 |
|
Total assets |
|
$ |
240,665 |
|
|
$ |
71,393 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
27,620 |
|
|
$ |
17,127 |
|
Line of credit |
|
|
— |
|
|
|
1,000 |
|
Accrued expenses and other liabilities |
|
|
19,525 |
|
|
|
18,495 |
|
Accrued interest – related party |
|
|
— |
|
|
|
207 |
|
Deferred revenue |
|
|
8,201 |
|
|
|
22,980 |
|
Total current liabilities |
|
|
55,346 |
|
|
|
59,809 |
|
Long-term debt and other borrowings |
|
|
— |
|
|
|
784 |
|
Other non-current liabilities |
|
|
4,547 |
|
|
|
3,349 |
|
Total liabilities |
|
|
59,893 |
|
|
|
63,942 |
|
Commitments and contingencies (Note 8) |
|
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
|
||
Preferred stock par value of $0.0001 per share, 10,000,000 shares |
|
|
— |
|
|
|
— |
|
Common stock par value of $0.0001 per share, 850,000,000 shares |
|
|
8 |
|
|
|
1 |
|
Treasury stock, at cost; 9,896,666 and 10,762,566 shares as of December 31, 2020 and June 30, 2021 |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
286,687 |
|
|
|
50,096 |
|
Accumulated other comprehensive income (loss) |
|
|
3 |
|
|
|
(3 |
) |
Accumulated deficit |
|
|
(105,926 |
) |
|
|
(42,643 |
) |
Total stockholders’ equity |
|
|
180,772 |
|
|
|
7,451 |
|
Total liabilities and stockholders’ equity |
|
$ |
240,665 |
|
|
$ |
71,393 |
|
FTC Solar, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
|
Six Months Ended June 30, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net loss |
|
$ |
(63,283 |
) |
|
$ |
(3,356 |
) |
Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
|
|
|
||
Stock-based compensation |
|
|
56,641 |
|
|
|
933 |
|
Depreciation and amortization |
|
|
42 |
|
|
|
40 |
|
Loss from unconsolidated subsidiary |
|
|
354 |
|
|
|
160 |
|
Gain from disposal of equity investment |
|
|
(20,619 |
) |
|
|
— |
|
(Gain) loss on extinguishment of debt |
|
|
(790 |
) |
|
|
41 |
|
Warranty provision |
|
|
1,627 |
|
|
|
4,091 |
|
Warranty asset |
|
|
(511 |
) |
|
|
(447 |
) |
Bad debt expense |
|
|
23 |
|
|
|
— |
|
Deferred income taxes |
|
|
— |
|
|
|
(2 |
) |
Other non-cash items |
|
|
— |
|
|
|
32 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
(23,270 |
) |
|
|
(29,067 |
) |
Inventories |
|
|
(6,123 |
) |
|
|
4,121 |
|
Prepaid and other current assets |
|
|
(23,892 |
) |
|
|
(6,191 |
) |
Other assets |
|
|
678 |
|
|
|
(137 |
) |
Accounts payable |
|
|
9,719 |
|
|
|
149 |
|
Accruals and other current liabilities |
|
|
190 |
|
|
|
16,684 |
|
Accrued interest – related party debt |
|
|
(207 |
) |
|
|
(153 |
) |
Deferred revenue |
|
|
(14,779 |
) |
|
|
(9,836 |
) |
Other non-current liabilities |
|
|
224 |
|
|
|
424 |
|
Other, net |
|
|
(319 |
) |
|
|
(401 |
) |
Net cash used in operating activities |
|
|
(84,295 |
) |
|
|
(22,915 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(293 |
) |
|
|
— |
|
Proceeds from disposal of equity method investment |
|
|
22,122 |
|
|
|
— |
|
Net cash provided by investing activities: |
|
|
21,829 |
|
|
|
— |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from borrowings |
|
|
— |
|
|
|
784 |
|
Repayments of borrowings |
|
|
(1,000 |
) |
|
|
(2,000 |
) |
Repurchase and retirement of common stock |
|
|
(54,155 |
) |
|
|
— |
|
Offering costs paid |
|
|
(5,334 |
) |
|
|
— |
|
Deferred financing costs for revolving credit facility |
|
|
(1,959 |
) |
|
|
— |
|
Proceeds from stock issuance |
|
|
241,207 |
|
|
|
30,000 |
|
Net cash provided by financing activities |
|
|
178,759 |
|
|
|
28,784 |
|
Effect of exchange rate changes on cash and restricted cash |
|
|
6 |
|
|
|
(8 |
) |
Net increase in cash and restricted cash |
|
|
116,299 |
|
|
|
5,861 |
|
Cash and restricted cash at beginning of period |
|
|
33,373 |
|
|
|
8,235 |
|
Cash and restricted cash at end of period |
|
|
149,672 |
|
|
|
14,096 |
|
|
|
|
|
|
|
|
||
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Purchase of property and equipment included in accounts payable |
|
$ |
154 |
|
|
$ |
— |
|
Unpaid offering costs included in accounts payable |
|
$ |
619 |
|
|
$ |
— |
|
Non-cash gain on extinguishment of debt from PPP loan forgiveness |
|
$ |
(790 |
) |
|
$ |
— |
|
Cash paid during the period for interest |
|
$ |
247 |
|
|
$ |
378 |
|
|
|
|
|
|
|
|
||
Reconciliation of cash and restricted cash at period end |
|
June 30,2021 |
|
|
December 31, 2020 |
|
||
Cash |
|
|
149,672 |
|
|
|
32,359 |
|
Restricted cash |
|
|
— |
|
|
|
1,014 |
|
Total cash and restricted cash |
|
$ |
149,672 |
|
|
$ |
33,373 |
|
Because of these limitations, Non-GAAP Gross Margin, Non-GAAP Operating Expense, Non-GAAP Net Loss and Adjusted Non-GAAP Net Loss Per Share (Adjusted EPS) should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP and you should not rely on any single financial measure to evaluate our business. These Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure as disclosed below.
The following table reconciles Non-GAAP Gross Margin for the three and six months ended June 30, 2021 and 2020, respectively:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
GAAP gross profit (loss) |
|
$ |
(16,057 |
) |
|
$ |
(1,382 |
) |
|
|
(15,938 |
) |
|
$ |
5,598 |
|
Stock-based compensation |
|
|
7,170 |
|
|
|
82 |
|
|
|
7,236 |
|
|
|
164 |
|
Other costs |
|
|
460 |
|
|
|
- |
|
|
|
460 |
|
|
|
- |
|
Non-GAAP gross profit (loss) |
|
|
(8,427 |
) |
|
|
(1,300 |
) |
|
|
(8,242 |
) |
|
|
5,762 |
|
Non-GAAP revenue |
|
$ |
50,108 |
|
|
$ |
51,157 |
|
|
|
115,815 |
|
|
$ |
83,533 |
|
Non-GAAP gross margin |
|
|
-16.82 |
% |
|
|
-2.54 |
% |
|
|
-7.12 |
% |
|
|
6.90 |
% |
The following table reconciles GAAP Operating Expense to Non-GAAP Operating Expense for the three and six months ended June 30, 2021 and 2020, respectively:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
GAAP Operating expense |
|
$ |
59,906 |
|
|
$ |
4,576 |
|
|
$ |
68,044 |
|
|
$ |
8,660 |
|
Depreciation expense |
|
|
(19 |
) |
|
|
(4 |
) |
|
|
(28 |
) |
|
|
(7 |
) |
Amortization of intangibles |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(33 |
) |
Stock-based compensation |
|
|
(49,022 |
) |
|
|
(393 |
) |
|
|
(49,405 |
) |
|
|
(769 |
) |
Other costs |
|
|
(2,540 |
) |
|
$ |
- |
|
|
|
(3,437 |
) |
|
$ |
- |
|
Non-GAAP Operating expense |
|
$ |
8,325 |
|
|
$ |
4,179 |
|
|
$ |
15,174 |
|
|
$ |
7,851 |
|
The following table reconciles GAAP Operating Loss to Non-GAAP Operating Loss for the three and six months ended June 30, 2021 and 2020, respectively:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
GAAP Operating loss |
|
$ |
(75,963 |
) |
|
$ |
(5,958 |
) |
|
$ |
(83,982 |
) |
|
$ |
(3,062 |
) |
Depreciation expense |
|
|
33 |
|
|
|
4 |
|
|
|
42 |
|
|
|
7 |
|
Amortization of intangibles |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
33 |
|
Stock-based compensation |
|
|
56,192 |
|
|
|
475 |
|
|
|
56,641 |
|
|
|
933 |
|
Other costs |
|
|
2,992 |
|
|
$ |
- |
|
|
|
3,889 |
|
|
$ |
- |
|
Non-GAAP Operating loss |
|
$ |
(16,746 |
) |
|
$ |
(5,479 |
) |
|
$ |
(23,410 |
) |
|
$ |
(2,089 |
) |
The following table reconciles Net Loss to Adjusted Non-GAAP Net Loss and Adjusted EPS for the three and six months ended June 30, 2021 and 2020, respectively. All shares and per share amounts have been adjusted for a 8.25-for-1 share forward stock split which took effect on April 27, 2021:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2021 |
|
|
2020 |
2021 |
|
|
2020 |
|
||||||
|
|
(in thousands, except per share data) |
|
|||||||||||||
Net loss |
|
$ |
(55,841 |
) |
|
$ |
(6,776 |
) |
|
$ |
(63,283 |
) |
|
$ |
(3,356 |
) |
Amortization of intangibles |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
Amortization of debt issuance costs |
|
|
115 |
|
|
|
— |
|
|
|
115 |
|
|
|
— |
|
Stock-based compensation |
|
|
56,192 |
|
|
|
475 |
|
|
|
56,641 |
|
|
|
933 |
|
(Gain) loss on extinguishment of debt |
|
|
— |
|
|
|
41 |
|
|
|
(790 |
) |
|
|
41 |
|
(Gain) from disposal of equity investment |
|
|
(20,619 |
) |
|
|
— |
|
|
|
(20,619 |
) |
|
|
— |
|
Non-routine legal fees |
|
|
775 |
|
|
|
— |
|
|
|
775 |
|
|
|
— |
|
Severance |
|
|
295 |
|
|
|
— |
|
|
|
295 |
|
|
|
— |
|
Other costs |
|
|
1,968 |
|
|
|
— |
|
|
|
2,865 |
|
|
|
— |
|
Loss from unconsolidated subsidiary |
|
|
136 |
|
|
|
637 |
|
|
|
354 |
|
|
|
159 |
|
Income tax expense of adjustments (a) |
|
|
8 |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
Adjusted Non-GAAP net loss |
|
$ |
(16,971 |
) |
|
$ |
(5,623 |
) |
|
$ |
(23,647 |
) |
|
$ |
(2,193 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted Non-GAAP net loss per share (Adjusted EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.21 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.03 |
) |
Diluted |
|
$ |
(0.21 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average Non-GAAP common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
79,229,174 |
|
|
|
74,612,811 |
|
|
|
73,106,935 |
|
|
|
70,994,078 |
|
Diluted |
|
|
79,229,174 |
|
|
|
74,612,811 |
|
|
|
73,106,935 |
|
|
|
70,994,078 |
|
(a) Represents incremental tax expense of adjustments made to reconcile Net Loss to Adjusted Non-GAAP Net Loss driven from loss from unconsolidated subsidiary.
Notes to Reconciliations of Non-GAAP Financial Measures to Nearest Comparable GAAP Measures
We present Adjusted EBITDA, Adjusted Non-GAAP Net Loss and Adjusted EPS as supplemental measures of our performance. We define Adjusted EBITDA as net loss plus (i) income tax (benefit) or expense, (ii) interest expense, (iii) depreciation expense, (iv) amortization of intangibles, (v) amortization of debt issuance costs, (vi) stock-based compensation (vii) gain on extinguishment of debt, (viii) gain from disposal in equity investment, (ix) non-routine legal fees, (x) severance, (xi) other costs and (xii) loss from unconsolidated subsidiary. We define Adjusted Net Loss as net loss plus (i) amortization of intangibles, (ii) amortization of debt issuance costs (iii) stock-based compensation, (iv) gain on extinguishment of debt, (v) gain from disposal in equity investment, (vi) non-routine legal fees, (vii) severance, (viii) other costs, (ix) loss from unconsolidated subsidiary and (x) income tax expense of adjustments. Adjusted EPS is defined as Adjusted Non-GAAP Net Loss Per Share using the weighted average basic and diluted shares outstanding.
Adjusted EBITDA, Adjusted Non-GAAP Net Loss and Adjusted EPS are intended as supplemental measures of performance that are neither required by, nor presented in accordance with, U.S. generally accepted accounting principles (“GAAP”). We present Adjusted EBITDA, Adjusted Non-GAAP Net Loss and Adjusted EPS because we believe they assist investors and analysts in comparing our performance across reporting periods on an ongoing basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA, Adjusted Non-GAAP Net Loss and Adjusted EPS to evaluate the effectiveness of our business strategies.