FTC Solar, Inc. (Nasdaq: FTCI), a fast-growing global provider of
solar tracker systems, software and engineering services, today
announced financial results for the first quarter
ended March 31, 2022.
“Our results for the quarter were generally
in-line with our expectations, net of the effects of a credit
reserve,” said Sean Hunkler, FTC Solar President and Chief
Executive Officer. “As we look at the current market environment,
conditions are increasingly uncertain in the wake of the AD/CVD
investigation announcement in the U.S. While customers increasingly
value our solutions and service and want us to be ready to execute
on projects quickly, the investigation has added to existing WRO
and module pricing concerns to compound customers’ difficulties in
procuring solar modules. This, in turn, is causing project
decisions and schedules to continue to get pushed out in time.
“Despite the near-term uncertainty, solar demand
over the long-term remains quite strong. In fact, our pipeline1 has
reached a new record high level, driven by more than 20% growth
year-to-date outside the U.S. The record high excludes our pending
acquisition of HX Tracker, an emerging China-based supplier of 1P
tracker systems, which we believe will further accelerate FTC
Solar’s international expansion with a complementary tracker
solution optimized for low labor cost markets. The acquisition
remains on track for a second-quarter close.
“In addition to pipeline growth, we’ve also made
nice progress bringing our executed contracts and awarded orders to
$664 million, with $112 million added in the past two months.
Almost half of the recent additions were international, showing our
strong organic growth outside the U.S. This includes our first
awards in three new countries: Kenya, South Africa, and
Malaysia.
“With a differentiated product, strong customer
adoption, significant cost reduction initiatives and operational
improvements, I believe FTC Solar is controlling what it can
control and positioning itself incredibly well for the future, and
to once again outperform once the module supply factors have been
resolved.”
Summary Financial Performance: Q1 2022
compared to Q1 2021
|
|
GAAP |
|
|
Non-GAAP |
|
|
|
Three months ended March 31, |
|
(in thousands, except per share data) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
49,553 |
|
|
$ |
65,707 |
|
|
$ |
49,553 |
|
|
$ |
65,707 |
|
Gross margin percentage |
|
|
(18.7 |
%) |
|
|
0.2 |
% |
|
|
(17.8 |
%) |
|
|
0.3 |
% |
Total operating expenses |
|
$ |
18,491 |
|
|
$ |
8,138 |
|
|
$ |
11,177 |
|
|
$ |
6,851 |
|
Loss from operations(a) |
|
$ |
(27,778 |
) |
|
$ |
(8,019 |
) |
|
$ |
(19,965 |
) |
|
$ |
(6,664 |
) |
Net loss |
|
$ |
(27,793 |
) |
|
$ |
(7,442 |
) |
|
$ |
(20,284 |
) |
|
$ |
(6,676 |
) |
Diluted loss per share |
|
$ |
(0.28 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.10 |
) |
(a) Adjusted EBITDA for Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
Total first quarter revenue was $49.6 million,
including a reserve associated with a potential customer credit
that resulted in a $5.0 million reduction to first quarter revenue
and gross margin. Net of this reserve, revenue was just shy of our
target range. This revenue level represents a decrease of 51%
compared to the prior quarter on lower volume and a lower ASP, and
a decrease of 25% year-over-year, driven by the inclusion of the
reserve and lower volume.
GAAP gross loss was $9.3 million, or 18.7%
of revenue, compared to $8.6 million, or 8.4% of revenue in the
prior quarter. Non-GAAP gross loss was $8.8 million or 17.8% of
revenue. The reduction in dollars quarter over quarter was due to
the credit reserve. The result for this quarter compares to a gross
profit of $0.1 million in the prior-year period, with the
difference driven primarily by the reserve and reduced production
volume vs. the prior year and an increase in employee count and
other overhead expenses to support the company’s growth
trajectory.
GAAP operating expenses were $18.5 million. On a
non-GAAP basis, excluding stock-based compensation and certain
other expenses, operating expenses were $11.2 million,
compared to $6.9 million in the year-ago
quarter. The year-over-year increase was driven primarily by
necessary growth in staffing and other public company
requirements.
GAAP net loss was $27.8 million or $0.28 per
share, compared to a loss of $23.9 million or $0.25 per share in
the prior quarter, and compared to a net loss of $7.4 million or
$0.11 per share in the year-ago quarter. Adjusted EBITDA loss,
which excludes $7.8 million of stock-based compensation expense,
certain consulting and legal fees, severance and other non-cash
items, was $20.0 million. Net of the reserve, this was just above
the mid-point of our guidance range. This result compares to an
Adjusted EBITDA loss of $16.4 million in the prior quarter and $6.7
million in the year-ago quarter.
Contracted and awarded orders2 as of May 9 were
$664 million with expected delivery dates in 2022 and beyond. This
includes the addition of $112 million since the company's last
update on March 15, 2022.
Second Quarter and Full Year
2022 Outlook In our business update in January and our
last earnings release in March, we noted that the company’s 2022
outlook assumed an improvement in regulatory pressures on module
availability, primarily relating to WRO. We undertook to continue
to monitor these impacts, including impact on our outlook. Having
not seen the improvements we had hoped for, and actually seeing
increased impacts and uncertainties in the U.S. solar market with
the introduction of the AD/CVD investigation, we are withdrawing
our prior annual guidance for full year 2022, and instead moving
back to providing quarterly guidance and some qualitative
discussion beyond that.
Our revenue outlook for the second quarter of
2022 reflects delays by solar developers as they work to secure
modules for their projects. Our gross margin reflects this lower
revenue base to absorb overhead costs and a lower mix of new,
higher-margin projects. Given the significant advances with our DTV
initiatives, new projects we’re awarded carry significantly higher
product margins. Unfortunately, as these projects have pushed out,
that leaves primarily legacy projects in the second quarter. These
factors flow down to Adjusted EBITDA, offset to a degree by expense
reduction initiatives we are implementing as we await a resolution
to the AD/CVD and WRO industry impacts.
(in millions) |
|
1Q '22 Guidance |
|
1Q '22 Actual1 |
|
|
|
2Q '22 Guidance2 |
|
Revenue |
|
$55.0 - $65.0 |
|
|
$49.6 |
|
|
|
$30.0 - $35.0 |
|
Non-GAAP Gross Margin |
|
(7.0%) - 0.0% |
|
|
(17.8%) |
|
|
|
(29.0%)-(19.0%) |
|
Non-GAAP operating expenses |
|
$12.0 - $13.0 |
|
|
$11.2 |
|
|
|
$10.0 - $11.0 |
|
Non-GAAP adjusted EBITDA |
|
$(13.5) - $(17.5) |
|
|
$(20.0) |
|
|
|
$(19.7) - $(16.7) |
|
1 Includes
$5 million reduction to revenue, gross margin and Adjusted EBITDA
not included in Q1 guidance figures |
2 Guidance
figures for 2Q exclude the pending acquisition of HX Tracker |
Remainder of 2022 As we look to the remainder of
the year, while regulatory factors remain the largest wildcard, the
legacy, lower margin projects will largely roll off in Q3, and then
we should see significant improvement. As volume normalizes and
continues to grow, it will have an even greater positive impact on
our financials. We also expect to see incremental benefit from our
expense reduction initiatives.
Based on these factors and what we see today, we
believe that:
- Revenue for the second half of the
year will grow vs. the first half;
- Gross margin will improve sequentially
in the second half; and
- Non-GAAP operating expenses will
decline in the second half relative to the first3
All outlook figures and commentary exclude the
pending acquisition of HX Tracker. In addition, should there be
favorable resolution to module supply issues, including AD/CVD and
WRO, in the near-term, we believe we will be well positioned to
quickly respond to pent-up customer demand, benefit from the
continued strong growth in solar and resume our strong growth
trajectory.
First quarter 2022 Earnings Conference
Call FTC Solar’s senior management will host a conference
call for members of the investment community at 8:30 a.m. E.T.
today, during which the company will discuss its first quarter
results, its outlook and other business items. This call will be
webcast and can be accessed within the Investor Relations section
of FTC Solar's website at investor.ftcsolar.com. A replay of the
conference call will also be available on the website for 30 days
following the webcast.
1. The term ‘pipeline’ refers to the total
amount of uncontracted projects in the solar energy market to which
the company has visibility as a potential sale opportunity for its
trackers. The size of our pipeline does not guarantee future sales
results or revenues, which will depend on our ability to convert
pipeline opportunities to binding sales orders.
2. We define executed contracts and awarded
orders as orders that have been documented and signed through a
contract, where we are in the process of documenting a contract but
for which a contract has not yet been signed, or that have been
awarded in writing or verbally with a mutual understanding that the
order will be contracted in the future. In the case of certain
projects, including those that are scheduled for delivery on later
dates, we have not locked in binding pricing with customers and we
instead use estimated average selling price to calculate the
revenue included in our executed contracts and awarded orders for
such projects. Actual revenue for these projects could differ once
contracts with binding pricing are executed, and there is also a
risk that a contract may never be executed for an awarded but
uncontracted project, thus reducing anticipated revenues. Please
refer to our SEC filings, including our Form 10-K, for more
information on our contracted and awarded orders, including risk
factors.
3. Assumes no near-term resolution to the module
supply/AD/CVD constraints.
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.
With respect to the proposed acquisition discussed in this press
release, these risks, uncertainties and assumptions include risks
related to (1) the occurrence of any event, change or other
circumstances that could give rise to the termination of the
negotiations and of the definitive agreement with respect to the
proposed acquisition, (2) the inability to complete the proposed
acquisition, including due to failure to satisfy the closing
conditions, (3) the impact of the ongoing COVID-19 pandemic on the
parties’ ability to conduct diligence, negotiate and consummate the
proposed acquisition, (4) the disruption of our current plans and
operations as a result of time and effort necessary to consummate
the proposed acquisition, (5) costs related to the proposed
acquisition, (6) the inability to successfully merge goals and
technology with the proposed acquisition company, if the
acquisition is consummated, (7) the ability to recognize the
anticipated benefits of the proposed acquisition (including
expected orders and revenues for the proposed acquisition company,
the expected EBITDA accretion and pipeline opportunities provided
by the proposed acquisition company, which are based on our
reasonable due diligence of such company and the information and
representations that such company has made to us), which may be
affected by, among other things, competition, brand recognition,
the ability of the combined companies to grow and manage growth
profitably and retain their key employees, (8) the failure of the
combined companies to effectively scale tracker systems and
solutions in certain international markets and (9) changes in
applicable laws or regulations that impact the feasibility of the
acquisition or the operations of the combined companies. 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 above and 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.
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 (unaudited)
|
|
Three months ended March 31, |
|
(in thousands, except shares and per share
data) |
|
2022 |
|
|
2021 |
|
Revenue: |
|
|
|
|
|
|
Product |
|
$ |
30,968 |
|
|
$ |
56,462 |
|
Service |
|
|
18,585 |
|
|
|
9,245 |
|
Total revenue |
|
|
49,553 |
|
|
|
65,707 |
|
Cost of revenue: |
|
|
|
|
|
|
Product |
|
|
34,963 |
|
|
|
54,996 |
|
Service |
|
|
23,877 |
|
|
|
10,592 |
|
Total cost of revenue |
|
|
58,840 |
|
|
|
65,588 |
|
Gross profit (loss) |
|
|
(9,287 |
) |
|
|
119 |
|
Operating expenses |
|
|
|
|
|
|
Research and development |
|
|
2,701 |
|
|
|
1,954 |
|
Selling and marketing |
|
|
1,972 |
|
|
|
1,100 |
|
General and administrative |
|
|
13,818 |
|
|
|
5,084 |
|
Total operating expenses |
|
|
18,491 |
|
|
|
8,138 |
|
Loss from operations |
|
|
(27,778 |
) |
|
|
(8,019 |
) |
Interest expense, net |
|
|
(295 |
) |
|
|
(14 |
) |
Gain from disposal of investment in unconsolidated subsidiary |
|
|
337 |
|
|
|
— |
|
Gain (loss) on extinguishment of debt |
|
|
— |
|
|
|
790 |
|
Other income (expense) |
|
|
19 |
|
|
|
— |
|
Income (loss) from unconsolidated subsidiary |
|
|
— |
|
|
|
(218 |
) |
Loss before income taxes |
|
|
(27,717 |
) |
|
|
(7,461 |
) |
(Provision) benefit for income taxes |
|
|
(76 |
) |
|
|
19 |
|
Net loss |
|
|
(27,793 |
) |
|
|
(7,442 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
57 |
|
|
|
(1 |
) |
Comprehensive loss |
|
$ |
(27,736 |
) |
|
$ |
(7,443 |
) |
Net loss per share: |
|
|
|
|
|
|
Basic |
|
$ |
(0.28 |
) |
|
$ |
(0.11 |
) |
Diluted |
|
$ |
(0.28 |
) |
|
$ |
(0.11 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
99,211,792 |
|
|
|
66,875,469 |
|
Diluted |
|
|
99,211,792 |
|
|
|
66,875,469 |
|
|
|
|
|
|
|
|
|
|
FTC Solar, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except shares and per share
data) |
|
March 31, 2022 |
|
|
December 31, 2021 |
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
49,383 |
|
|
$ |
102,185 |
|
Accounts receivable, net |
|
|
132,230 |
|
|
|
107,548 |
|
Inventories |
|
|
8,918 |
|
|
|
8,860 |
|
Prepaid and other current assets |
|
|
13,762 |
|
|
|
17,186 |
|
Total current assets |
|
|
204,293 |
|
|
|
235,779 |
|
Operating lease right-of-use assets |
|
|
1,622 |
|
|
|
1,733 |
|
Property and equipment, net |
|
|
1,564 |
|
|
|
1,582 |
|
Other assets |
|
|
3,929 |
|
|
|
3,926 |
|
Total assets |
|
$ |
211,408 |
|
|
$ |
243,020 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
46,102 |
|
|
$ |
39,264 |
|
Accrued expenses |
|
|
30,648 |
|
|
|
47,860 |
|
Income taxes payable |
|
|
87 |
|
|
|
47 |
|
Deferred revenue |
|
|
3,100 |
|
|
|
1,421 |
|
Other current liabilities |
|
|
4,523 |
|
|
|
4,656 |
|
Total current liabilities |
|
|
84,460 |
|
|
|
93,248 |
|
Operating lease liability, net of current portion |
|
|
1,190 |
|
|
|
1,340 |
|
Other non-current liabilities |
|
|
5,590 |
|
|
|
5,566 |
|
Total liabilities |
|
|
91,240 |
|
|
|
100,154 |
|
Commitments and contingencies |
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
Preferred stock par value of $0.0001 per share, 10,000,000 shares
authorized; none issued as of March 31, 2022 and December 31,
2021 |
|
|
— |
|
|
|
— |
|
Common stock par value of $0.0001 per share, 850,000,000 shares
authorized; 99,724,843 and 92,619,641 shares issued and outstanding
as of March 31, 2022 and December 30, 2021 |
|
|
10 |
|
|
|
9 |
|
Treasury stock, at cost; 10,762,566 shares as of March 31, 2022 and
December 31, 2021 |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
297,119 |
|
|
|
292,082 |
|
Accumulated other comprehensive income (loss) |
|
|
64 |
|
|
|
7 |
|
Accumulated deficit |
|
|
(177,025 |
) |
|
|
(149,232 |
) |
Total stockholders’ equity |
|
|
120,168 |
|
|
|
142,866 |
|
Total liabilities and stockholders’ equity |
|
$ |
211,408 |
|
|
$ |
243,020 |
|
|
|
|
|
|
|
|
|
|
FTC Solar, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
|
|
Three months ended March 31, |
|
(in thousands) |
|
2022 |
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(27,793 |
) |
|
$ |
(7,442 |
) |
Adjustments
to reconcile net loss to cash used in operating activities: |
|
|
|
|
|
|
Stock-based compensation |
|
|
4,610 |
|
|
|
449 |
|
Depreciation |
|
|
121 |
|
|
|
9 |
|
Amortization of debt issue costs |
|
|
173 |
|
|
|
— |
|
Loss from unconsolidated subsidiary |
|
|
— |
|
|
|
218 |
|
Gain from disposal of investment in unconsolidated subsidiary |
|
|
(337 |
) |
|
|
— |
|
(Gain) loss on extinguishment of debt |
|
|
— |
|
|
|
(790 |
) |
Warranty provision |
|
|
516 |
|
|
|
1,554 |
|
Warranty recoverable from manufacturer |
|
|
(205 |
) |
|
|
328 |
|
Bad debt expense (credit) |
|
|
(30 |
) |
|
|
58 |
|
Deferred income taxes |
|
|
— |
|
|
|
(20 |
) |
Lease expense and other non-cash items |
|
|
198 |
|
|
|
— |
|
Impact on
cash from changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
(24,652 |
) |
|
|
(20,230 |
) |
Inventories |
|
|
(58 |
) |
|
|
(2,587 |
) |
Prepaid and other current assets |
|
|
3,440 |
|
|
|
(2,887 |
) |
Other assets |
|
|
(40 |
) |
|
|
(3,649 |
) |
Accounts payable |
|
|
7,258 |
|
|
|
13,997 |
|
Accruals and other current liabilities |
|
|
(17,044 |
) |
|
|
10,379 |
|
Accrued interest – related party debt |
|
|
— |
|
|
|
(207 |
) |
Deferred revenue |
|
|
1,679 |
|
|
|
(14,797 |
) |
Other non-current liabilities |
|
|
(752 |
) |
|
|
(206 |
) |
Lease payments and other, net |
|
|
(190 |
) |
|
|
(81 |
) |
Net cash used in operating activities |
|
|
(53,106 |
) |
|
|
(25,904 |
) |
Cash
flows from investing activities: |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(523 |
) |
|
|
(85 |
) |
Proceeds from disposal of investment in unconsolidated
subsidiary |
|
|
337 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(186 |
) |
|
|
(85 |
) |
Cash
flows from financing activities: |
|
|
|
|
|
|
Repayments of borrowings |
|
|
— |
|
|
|
(1,000 |
) |
Offering costs paid |
|
|
— |
|
|
|
(1,084 |
) |
Proceeds from stock issuance |
|
|
— |
|
|
|
39 |
|
Proceeds from stock option exercises |
|
|
428 |
|
|
|
— |
|
Net cash provided by (used in) financing activities |
|
|
428 |
|
|
|
(2,045 |
) |
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
|
62 |
|
|
|
1 |
|
Net decrease
in cash, cash equivalents and restricted cash |
|
|
(52,802 |
) |
|
|
(28,033 |
) |
Cash, cash
equivalents and restricted cash at beginning of period |
|
|
102,185 |
|
|
|
33,373 |
|
Cash, cash
equivalents and restricted cash at end of period |
|
$ |
49,383 |
|
|
$ |
5,340 |
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
|
|
|
Purchases of property and equipment included in ending accounts
payable and accruals |
|
$ |
59 |
|
|
|
67 |
|
Offering costs in period end accruals |
|
$ |
— |
|
|
|
45 |
|
Commencement of new operating leases |
|
$ |
— |
|
|
|
246 |
|
Cash paid during the period for third party interest |
|
$ |
128 |
|
|
|
40 |
|
Cash paid during the period for related party interest |
|
$ |
— |
|
|
|
207 |
|
Cash paid during the period for taxes |
|
$ |
7 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Notes to Reconciliations of Non-GAAP
Financial Measures to Nearest Comparable GAAP Measures
We present Non-GAAP gross profit (loss),
Non-GAAP operating expense, Adjusted EBITDA, Adjusted 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 of our investment in an
unconsolidated subsidiary, (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 of our investment in an
unconsolidated subsidiary, (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 our
weighted average basic and diluted shares outstanding. Non-GAAP
gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA,
Adjusted 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 these non-GAAP measures, many of which are
commonly used by investors and analysts, because we believe they
assist those investors and analysts in comparing our performance
across reporting periods and on an ongoing basis, as well as
against other entities, 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.
Non-GAAP gross profit (loss), Non-GAAP operating
expense, Adjusted EBITDA, Adjusted net loss and 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
profit (loss) to the most closely related GAAP measure for the
three months ended March 31, 2022 and 2021, respectively:
|
|
Three months ended March 31, |
|
(in thousands, except percentages) |
|
2022 |
|
|
2021 |
|
GAAP revenue |
|
$ |
49,553 |
|
|
$ |
65,707 |
|
GAAP
gross profit (loss) |
|
$ |
(9,287 |
) |
|
$ |
119 |
|
Depreciation expense |
|
|
69 |
|
|
|
2 |
|
Stock-based compensation |
|
|
309 |
|
|
|
66 |
|
Severance |
|
|
— |
|
|
|
— |
|
Other costs |
|
|
102 |
|
|
|
— |
|
Non-GAAP gross profit (loss) |
|
$ |
(8,807 |
) |
|
$ |
187 |
|
Non-GAAP gross margin percentage |
|
|
(17.8 |
%) |
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
The following table reconciles Non-GAAP
operating expenses to the most closely related GAAP measure for the
three months ended March 31, 2022 and 2021, respectively:
|
|
Three months ended March 31, |
|
(in thousands) |
|
2022 |
|
|
2021 |
|
GAAP operating expenses |
|
$ |
18,491 |
|
|
$ |
8,138 |
|
Depreciation expense |
|
|
(52 |
) |
|
|
(7 |
) |
Stock-based compensation |
|
|
(4,301 |
) |
|
|
(383 |
) |
Non-routine legal fees |
|
|
(1,078 |
) |
|
|
(15 |
) |
Severance |
|
|
(615 |
) |
|
|
— |
|
Other (costs) credits |
|
|
(1,268 |
) |
|
|
(882 |
) |
Non-GAAP operating expenses |
|
$ |
11,177 |
|
|
$ |
6,851 |
|
|
|
|
|
|
|
|
|
|
The following table reconciles Non-GAAP Adjusted
EBITDA to the related GAAP measure of loss from operations for the
three months ended March 31, 2022 and 2021, respectively:
|
|
Three months ended March 31, |
|
(in thousands) |
|
2022 |
|
|
2021 |
|
GAAP loss from operations |
|
$ |
(27,778 |
) |
|
$ |
(8,019 |
) |
Depreciation expense |
|
|
121 |
|
|
|
9 |
|
Stock-based compensation |
|
|
4,610 |
|
|
|
449 |
|
Non-routine legal fees |
|
|
1,078 |
|
|
|
15 |
|
Severance |
|
|
615 |
|
|
|
— |
|
Other costs |
|
|
1,370 |
|
|
|
882 |
|
Other income (expense) |
|
|
19 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(19,965 |
) |
|
$ |
(6,664 |
) |
|
|
|
|
|
|
|
|
|
The following table reconciles Non-GAAP Adjusted
EBITDA, Adjusted net loss and Adjusted EPS to the related GAAP
measure of net loss for the three months ended March 31, 2022
and 2021, respectively:
|
|
Three months ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
(in thousands, except shares and per share
data) |
|
Adjusted EBITDA |
|
|
Adjusted Net Loss |
|
|
Adjusted EBITDA |
|
|
Adjusted Net Loss |
|
Net loss per GAAP |
|
$ |
(27,793 |
) |
|
$ |
(27,793 |
) |
|
$ |
(7,442 |
) |
|
$ |
(7,442 |
) |
Reconciling items - |
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
76 |
|
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
Interest expense, net |
|
|
295 |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
Amortization of debt issue costs in interest expense |
|
|
— |
|
|
|
173 |
|
|
|
— |
|
|
|
— |
|
Depreciation expense |
|
|
121 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
Stock-based compensation |
|
|
4,610 |
|
|
|
4,610 |
|
|
|
449 |
|
|
|
449 |
|
(Gain) from disposal of investment in unconsolidated
subsidiary(d) |
|
|
(337 |
) |
|
|
(337 |
) |
|
|
— |
|
|
|
— |
|
(Gain) loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(790 |
) |
|
|
(790 |
) |
Non-routine legal fees(a) |
|
|
1,078 |
|
|
|
1,078 |
|
|
|
15 |
|
|
|
15 |
|
Severance(b) |
|
|
615 |
|
|
|
615 |
|
|
|
— |
|
|
|
— |
|
Other costs(c) |
|
|
1,370 |
|
|
|
1,370 |
|
|
|
882 |
|
|
|
882 |
|
(Income) loss from unconsolidated subsidiary(d) |
|
|
— |
|
|
|
— |
|
|
|
218 |
|
|
|
218 |
|
Income tax expense of adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
Adjusted Non-GAAP amounts |
|
$ |
(19,965 |
) |
|
$ |
(20,284 |
) |
|
$ |
(6,664 |
) |
|
$ |
(6,676 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP net loss per share (Adjusted
EPS): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
N/A |
|
|
$ |
(0.20 |
) |
|
N/A |
|
|
$ |
(0.10 |
) |
Diluted |
|
N/A |
|
|
$ |
(0.20 |
) |
|
N/A |
|
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
N/A |
|
|
|
99,211,792 |
|
|
N/A |
|
|
|
66,875,469 |
|
Diluted |
|
N/A |
|
|
|
99,211,792 |
|
|
N/A |
|
|
|
66,875,469 |
|
(a) Non-routine legal fees represent legal fees
incurred for matters that were not ordinary or routine to the
operations of the business. (b) Severance costs were incurred
related to agreements with certain executive due to restructuring
changes. (c) Other costs in 2022 include certain costs attributable
to accelerated vesting of stock-based compensation awards resulting
from our IPO and shareholder follow on registration costs pursuant
to our IPO. Other costs in 2021 include consulting fees in
connection with operations and finance. (d) Our management excludes
the gain from current year collections of contingent contractual
amounts arising from the sale in 2021 of our unconsolidated
subsidiary when evaluating our operating performance, as well as
the income (loss) from operations of our unconsolidated subsidiary
prior to the sale.
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