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, 2022, the Company issued an earnings press release for the period ended June 30, 2022. The press release, including attachments, is furnished as Exhibit 99.1 to this report.
The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed “filed” with the Securities and Exchange Commission (the “SEC”) nor incorporated by reference in any registration statement filed by the Company under the Securities Act.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit No. |
|
Description |
99.1 |
|
|
104 |
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
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.
|
|
|
Fast Radius, Inc. |
|
|
|
|
Date: |
August 11, 2022 |
By: |
/s/ Pat McCusker |
|
|
|
Pat McCusker |
Fast Radius Reports Second Quarter 2022 Results
Revenue increase of 49% year-over-year
Chicago, IL – August 11, 2022 –– Fast Radius, Inc. (“Fast Radius”) (Nasdaq: FSRD), a cloud manufacturing and digital supply chain company, reported financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Financial Summary
Management Commentary
“In the second quarter, we grew revenue by 49% compared to the year ago period, while also taking significant measures to reduce our operating expenses,” said Lou Rassey, Co-Founder and CEO of Fast Radius.
“We have made progress in advancing our software tools and the quality of the customer experience in our Cloud Manufacturing Platform. Now with over 20,000 customers signed up and having launched Studio earlier this year, we continue to add features to help manufacturers better design, make, and manage new parts and supply chains. Additionally, we have onboarded a significant majority of our suppliers to our new Partner Portal. This is an important step in supporting the growth of our software-driven marketplace. We believe that creating a seamless, digital-driven experience for our customers and suppliers will help to shorten lead times, improve quality, and help us to expand our menu of manufacturing capabilities over time.”
“While we continue to make progress on our strategic priorities, the current macroeconomic headwinds such as rising inflation and global supply chain shortages continue to impact our business and the industry more broadly. As we move into the second half of 2022, we remain focused on the balance between controlling our costs while minimizing disruptions to our operational execution.”
2022 Revised Outlook
For the full year 2022, Fast Radius is decreasing its revenue guidance and expects revenue to be within the range of $27 million to $30 million. Adjusted EBITDA loss is expected to be within the range of $72 million to $65 million.
Conference Call
Fast Radius management will host a conference call for investors, followed by a question-and-answer session as follows:
Conference Call Details:
Date: Thursday, August 11, 2022
Time: 9:00 a.m. ET / 8:00 a.m. CT
Webcast Event: Link
Toll-Free Dial-in Number: (800) 715-9871
International Dial-in Number: (646) 307-1963
Conference ID: 5146031
The conference call and a supplemental slide presentation to accompany management’s prepared remarks will be available via the webcast link and for download via the investor relations section of Fast Radius’ website at ir.fastradius.com.
For the conference call, please dial-in 5-10 minutes prior to the start time and an operator will register your name and organization, or you can register here. If you have any difficulty connecting with the conference call, please contact Gateway at (949) 574-3860.
About Fast Radius, Inc.
Fast Radius, Inc. is a leading cloud manufacturing and digital supply chain company. The Fast Radius Cloud Manufacturing Platform™ provides software applications and manufacturing solutions that help engineers design, make, and fulfill commercial-grade parts, when and where they are needed. This enables companies to manufacture and ship parts easily, flexibly, and sustainably. Founded in 2017, Fast Radius, Inc. is headquartered in Chicago with offices in Atlanta, Louisville, and Singapore and microfactories in Chicago and at the UPS Worldport facility in Louisville, KY. To learn more about Fast Radius and how its digital manufacturing capabilities are helping companies, please visit www.fastradius.com or connect with us on LinkedIn at www.linkedin.com/company/fast-radius/ or Twitter @fastradius.
Non-GAAP Financial Measures
This press release and the accompanying tables contain financial measures that are not calculated in accordance with U.S. GAAP. The non-GAAP financial measures include EBITDA (earnings before interest, taxes, depreciation and amortization) and adjusted EBITDA. Adjusted EBITDA excludes special items. Special items are excluded because they are highly variable or unusual, and of a size that may substantially affect Fast Radius’ reported operations for a period.
For the quarter and six months ended June 30, 2022, special items include the change in fair value of warrant liabilities, the change in fair value of derivative liabilities, a common stock commitment fee, restructuring costs and transaction costs. These items are excluded because they are highly variable or unusual and of a size that may substantially impact Fast Radius’ reported operations for a period. Additionally, stock-based compensation expense is excluded as a special item to facilitate an evaluation of current and past operating performance and is consistent with how management and Fast Radius’ board of directors assess performance.
Non-GAAP financial measures may enhance an understanding of Fast Radius’ operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the reconciliations to corresponding U.S. GAAP financial measures, may enhance an investor’s overall understanding of Fast Radius’ past financial performance and prospects for the future. Accordingly, management uses these non-GAAP measures
internally in financial planning. This information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP.
Fast Radius is unable to present a quantitative reconciliation to the most directly comparable U.S. GAAP measure for the forward-looking non-GAAP financial measure used in this presentation without unreasonable effort as certain items that impact this measure, such as the potential impact of future business or asset acquisitions or dispositions, the changes in the fair value of financial instruments or other unusual or infrequently occurring items that may occur later in 2022 have not yet occurred, are sometimes out of Fast Radius’ control and cannot be predicted.
Total Bookings
Total Bookings is a metric Fast Radius uses to forecast long-term revenues and to measure the effectiveness of its sales and marketing initiatives. Total Bookings may be useful to an investor because it helps understand the potential growth trajectory of revenues. Total Bookings represents the anticipated contract value of goods and services to be delivered in the future under contracts (or purchase orders) which have been executed as well as contracts under negotiation that are priced, fully scoped, verbally awarded, and expected to be executed shortly. It is anticipated that the majority of goods or services included in each booking for a given fiscal quarter will be earned as revenues within the quarter or subsequent four fiscal quarters, with the specific timing determined by the nature and scope of each individual contract (or purchase order). However, in some cases, larger than average, long-term purchase orders may have a delivery schedule that spans beyond four quarters. Executed purchase orders also may be terminated or delayed at any time by Fast Radius’ customers for reasons beyond its control. To the extent projects are canceled or delayed, the anticipated timing of Fast Radius’ revenues could be materially adversely affected.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “scales,” “representative of,” “valuation,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risk that Fast Radius is unable to obtain additional funding on terms that are acceptable to Fast Radius or at all; (ii) the outcome of any legal proceedings that may be instituted against Fast Radius, including following the consummation of the business combination with ECP Environmental Growth Opportunities Corp. (the “Transaction”), (iii) the ability to maintain the listing of Fast Radius’ securities on a national securities exchange, (iv) changes in the competitive industries in which Fast Radius operates, variations in operating performance across competitors, changes in laws and regulations affecting Fast Radius’ business and changes in the combined capital structure, (v) the ability to implement business plans, forecasts, cost reduction actions and other expectations after the completion of the Transaction, including the restructuring actions, and the ability to identify and realize additional opportunities, (vi) risks related to the uncertainty of Fast Radius’ projected financial information, (vii) risks related to Fast Radius’ potential inability to become profitable and generate cash, (viii) current and future conditions in the global economy, including as a result of the impact of the COVID-19 pandemic or the armed conflict between Russia and Ukraine, (ix) the risk that demand for Fast Radius’ cloud manufacturing technology does not grow as expected, (x) the ability of Fast Radius to retain existing customers and attract new
customers, (xi) the potential inability of Fast Radius to manage growth effectively, (xii) the potential inability of Fast Radius to increase its cloud manufacturing capacity or to achieve efficiencies regarding its cloud manufacturing process or other costs, (xiii) the enforceability of Fast Radius’ intellectual property rights, including its copyrights, patents, trademarks and trade secrets, and the potential infringement on the intellectual property rights of others, (xiv) Fast Radius’ dependence on senior management and other key employees, (xv) the risk of downturns and a changing regulatory landscape in the highly competitive industry in which Fast Radius operates, (xvi) costs related to the Transaction and the failure to realize anticipated benefits of the Transaction or to realize estimated pro forma results and underlying assumptions, and (xvii) the ability of Fast Radius to execute its restructuring actions and achieve the anticipated benefits from such actions. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties more fully described in Fast Radius’ filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2021 and Forms 10-Q for the quarters ended March 31, 2022 and June 30, 2022 and other periodic reports. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Fast Radius assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Fast Radius does not give any assurance that it will achieve its expectations.
Contacts
Fast Radius Investor Relations
Cody Slach, Alex Thompson
(949) 574-3860
FastRadius@GatewayIR.com
Fast Radius Public Relations
Morgan Scott
(312) 465-6345
PR@FastRadius.com
Fast Radius, Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands)
|
|
June 30, 2022 |
|
|
December 31, 2021 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
37,864 |
|
|
$ |
8,702 |
|
Accounts receivable, net of allowances for doubtful accounts |
|
|
7,753 |
|
|
|
7,015 |
|
Inventories |
|
|
555 |
|
|
|
449 |
|
Prepaid production costs |
|
|
965 |
|
|
|
987 |
|
Prepaid expenses and other current assets |
|
|
7,323 |
|
|
|
4,422 |
|
Total current assets |
|
|
54,460 |
|
|
|
21,575 |
|
Non-current assets: |
|
|
|
|
|
|
||
Property and equipment, net |
|
|
11,523 |
|
|
|
9,528 |
|
Other non-current assets |
|
|
3,346 |
|
|
|
535 |
|
Total assets |
|
$ |
69,329 |
|
|
$ |
31,638 |
|
|
|
|
|
|
|
|
||
Liabilities and stockholders' equity (deficit) |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
6,292 |
|
|
$ |
3,987 |
|
Accrued compensation |
|
|
2,833 |
|
|
|
3,097 |
|
Accrued and other liabilities |
|
|
12,614 |
|
|
|
11,610 |
|
Advances from customers |
|
|
175 |
|
|
|
258 |
|
Accrued liabilities - related parties |
|
|
3,350 |
|
|
|
2,513 |
|
Warrant liability |
|
|
- |
|
|
|
2,968 |
|
Current portion of term loans |
|
|
23,071 |
|
|
|
13,266 |
|
Total current liabilities |
|
|
48,335 |
|
|
|
37,699 |
|
Other long-term liabilities |
|
|
53 |
|
|
|
396 |
|
Warrant liability |
|
|
1,175 |
|
|
|
- |
|
Term loans - net of current portion and debt issuance costs |
|
|
5,649 |
|
|
|
16,776 |
|
Related party convertible notes and derivative liability |
|
|
- |
|
|
|
16,857 |
|
Total liabilities |
|
|
55,212 |
|
|
|
71,728 |
|
|
|
|
|
|
|
|
||
Commitment and contingencies (Note 6) |
|
|
|
|
|
|
||
Stockholders' equity (deficit) |
|
|
|
|
|
|
||
Common stock, $0.0001 par value, authorized 350,000,000 shares; issued 75,535,463 and 39,656,951 shares as of June 30, 2022 and December 31, 2021, respectively |
|
|
8 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
229,230 |
|
|
|
83,399 |
|
Accumulated Deficit |
|
|
(215,121 |
) |
|
|
(123,493 |
) |
Total stockholders’ equity (deficit) |
|
|
14,117 |
|
|
|
(40,090 |
) |
|
|
|
|
|
|
|
||
Total liabilities and stockholders' equity (deficit) |
|
$ |
69,329 |
|
|
$ |
31,638 |
|
Fast Radius, Inc.
Consolidated Statements of Net Loss
(Unaudited)
(in thousands, except share data)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Revenues |
|
$ |
7,275 |
|
|
$ |
4,867 |
|
|
$ |
13,537 |
|
|
$ |
8,663 |
|
Cost of revenues |
|
|
7,015 |
|
|
|
4,062 |
|
|
|
12,644 |
|
|
|
7,028 |
|
Gross Profit |
|
|
260 |
|
|
|
805 |
|
|
|
893 |
|
|
|
1,635 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing |
|
|
5,877 |
|
|
|
5,283 |
|
|
|
12,213 |
|
|
|
8,752 |
|
General and administrative |
|
|
14,717 |
|
|
|
8,783 |
|
|
|
52,942 |
|
|
|
16,495 |
|
Research and development |
|
|
1,897 |
|
|
|
1,541 |
|
|
|
5,229 |
|
|
|
2,687 |
|
Total operating expenses |
|
|
22,491 |
|
|
|
15,607 |
|
|
|
70,384 |
|
|
|
27,934 |
|
Loss from Operations |
|
|
(22,231 |
) |
|
|
(14,802 |
) |
|
|
(69,491 |
) |
|
|
(26,299 |
) |
Change in fair value of warrants |
|
|
1,326 |
|
|
|
201 |
|
|
|
6,621 |
|
|
|
(1,052 |
) |
Change in fair value of derivatives |
|
|
- |
|
|
|
6 |
|
|
|
30 |
|
|
|
6 |
|
Interest income and other income (expense), net |
|
|
31 |
|
|
|
(6 |
) |
|
|
30 |
|
|
|
3 |
|
Interest expense, including amortization of debt issuance costs |
|
|
(1,313 |
) |
|
|
(504 |
) |
|
|
(3,977 |
) |
|
|
(549 |
) |
Loss before income taxes |
|
|
(22,187 |
) |
|
|
(15,105 |
) |
|
|
(66,787 |
) |
|
|
(27,891 |
) |
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net Loss |
|
$ |
(22,187 |
) |
|
$ |
(15,105 |
) |
|
$ |
(66,787 |
) |
|
$ |
(27,891 |
) |
Net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and Diluted |
|
$ |
(0.29 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and Diluted |
|
|
75,635,501 |
|
|
|
41,586,759 |
|
|
|
69,082,330 |
|
|
|
41,165,974 |
|
Fast Radius, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Measures
(Unaudited)
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
(in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net loss |
|
$ |
(22,187 |
) |
|
$ |
(15,105 |
) |
|
$ |
(66,787 |
) |
|
$ |
(27,891 |
) |
Interest expense |
|
|
1,313 |
|
|
|
504 |
|
|
|
3,977 |
|
|
|
549 |
|
Income tax expense (benefit), net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Depreciation and amortization |
|
|
714 |
|
|
|
302 |
|
|
|
1,368 |
|
|
|
533 |
|
EBITDA |
|
|
(20,160 |
) |
|
|
(14,299 |
) |
|
|
(61,442 |
) |
|
|
(26,809 |
) |
Stock compensation expense |
|
|
2,562 |
|
|
|
207 |
|
|
|
22,930 |
|
|
|
461 |
|
Change in fair value of warrant liability |
|
|
(1,326 |
) |
|
|
(201 |
) |
|
|
(6,621 |
) |
|
|
1,052 |
|
Change in fair value of derivative liability |
|
|
- |
|
|
|
(6 |
) |
|
|
(30 |
) |
|
|
(6 |
) |
Common stock commitment fee |
|
|
452 |
|
|
|
- |
|
|
|
452 |
|
|
|
- |
|
Restructuring costs |
|
|
598 |
|
|
|
- |
|
|
|
598 |
|
|
|
- |
|
Transaction costs |
|
|
570 |
|
|
|
773 |
|
|
|
5,564 |
|
|
|
3,549 |
|
Adjusted EBITDA |
|
|
(17,304 |
) |
|
|
(13,526 |
) |
|
|
(38,549 |
) |
|
|
(21,753 |
) |
-8?20$3;
M8T.P6BP^0"X99K>]9!:G