EXHIBIT 99.1
FOR IMMEDIATE RELEASE
PRESS RELEASE 21-22
Starry Announces First Quarter 2022 Results
Starry continues to show strong momentum, posting 72% year-over-year growth in customer relationships
Boston, Mass. (May 12, 2022) – Starry Group Holdings, Inc. (NYSE: STRY) (the “Company” or “Starry”), a licensed fixed wireless technology developer and internet service provider, today reported results for the first quarter of 2022, which was the company’s first reporting of financial results since successfully completing its business combination and public listing process in March 2022. During the first quarter of 2022, Starry continued to successfully execute on its business plan, delivering a strong increase in customer relationships and driving an increase in penetration of homes serviceable, all while improving the operating leverage in the business.
Additionally, Starry continued to expand the reach of its digital equity program, Starry Connect, growing the program to reach more than 63,000 units of public and affordable housing, all of which are automatically eligible for participation in the federal government's Affordable Connectivity Program. Starry was also named to the second annual TIME100 Most Influential Companies list, which highlights 100 companies making an extraordinary impact around the world, in recognition of the Company’s digital equity work.
First Quarter of 2022 Highlights:
“Putting our company on a path to sustained growth requires consistent and disciplined execution, which our team routinely demonstrates,” said Chet Kanojia, Starry co-Founder and CEO. “We are attaining our customer growth targets while simultaneously building out our network and driving efficiencies in our business on both technology development and service operations. Our disciplined approach over the last year to our business has created a solid foundation upon which to steadily grow and accelerate the business, even amidst difficult macroeconomic headwinds. These are challenging times for consumers, but home broadband access remains essential, and our business and technology are strongly positioned to meet that need in our current and future markets.”
Operational Highlights:
“Our team’s performance in the first quarter demonstrates continued strong momentum across all aspects of our business: customer relationships, network deployment, customer satisfaction and our commitment to expanding digital access in underserved communities through Starry Connect,” said Alex Moulle-Berteaux, Starry Chief Operating Officer and co-Founder. “Our focus continues to be on efficient execution as we drive penetration in our current markets and expand to others. We are happy to see our team’s commitment to customer-first and ensuring equitable access to broadband was also recognized last quarter by TIME magazine in its naming of Starry as a TIME100 Most Influential Company for 2022.”
1 Adjusted EBITDA and Adjusted EBITDA margin are not measures of financial performance prepared in accordance with GAAP. See “Non-GAAP Financial Measures and Other Business Metrics” at the end of this release for more information and reconciliations to the most directly comparable GAAP financial measures.
Financial Highlights:
“Our team’s ability to execute on both technology development and service operations lays a strong foundation upon which we can continue to grow and scale the company and realize steady increases in revenue, net income and EBITDA,” said Komal Misra, Starry’s Chief Financial Officer. “We are a growth company and execution matters. This past quarter’s performance reflects our team’s continued laser focus on achieving our business goals and maintaining our strong growth momentum.”
Business Outlook
Based on information available as of today, Starry is issuing the following guidance for the full year 2022:
Conference Call
Starry will host a conference call to discuss its financial results for the first quarter of 2022 on Thursday, May 12, 2022 at 8:30 a.m. Eastern Time (ET).
Those parties interested in participating via telephone should dial one of the numbers below and enter the conference ID number 423679.
United States Toll Free: 1-844-200-6205
United States Local: 1-646-904 -5544
Other Locations: 1-929-526-1599
A live webcast of the conference call will be available on Starry’s Investor Relations website at https://investors.starry.com. A replay of the call will be available after 12:00 p.m. ET on the Investor Relations website. To automatically receive Starry financial news and updates, please subscribe to email alerts on the Investor Relations page.
2 A reconciliation of Adjusted EBITDA to Net Loss and Adjusted EBITDA margin to Net Loss margin on a forward-looking basis cannot be provided without unreasonable efforts, due to the inherent difficulty in forecasting and quantifying on a forward-looking basis the adjustments that are necessary for such reconciliations as a result of the high variability, low visibility and/or unpredictability of such amounts. See “Non-GAAP Financial Measures and Other Business Metrics” for more information.
About Starry Group Holdings, Inc.
At Starry (NYSE: STRY), we believe the future is built on connectivity and that connecting people and communities to high-speed, broadband internet should be simple and affordable. Using our innovative, wideband hybrid-fiber fixed wireless technology, Starry is deploying gigabit capable broadband to the home without bundles, data caps, or long-term contracts. Starry is a different kind of internet service provider. We’re building a platform for the future by putting our customers first, protecting their privacy, ensuring access to an open and neutral net, and making affordable connectivity and digital equity a priority. Headquartered in Boston, Starry is currently available in Boston, New York City, Los Angeles, Washington, DC, Denver and Columbus, OH. To learn more about Starry or to join our team and help us build a better internet, visit: https://starry.com.
Forward-Looking Statements
This press release includes statements that may constitute “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, express or implied forward-looking statements relating to our expectations regarding our strategy, competitive position and opportunities in the marketplace, and our anticipated business and financial performance. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include the risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities laws.
Investor Contact:
Ben Barrett, Starry
bbarrett@starry.com
investors@starry.com
Media Contact:
Mimi Ryals, Starry
mryals@starry.com
press@starry.com
STARRY GROUP HOLDINGS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except for share data)
|
|
Three Months Ended |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Revenues |
|
$ |
7,370 |
|
|
$ |
4,523 |
|
Cost of revenues |
|
|
(18,191 |
) |
|
|
(12,504 |
) |
Gross loss |
|
|
(10,821 |
) |
|
|
(7,981 |
) |
Operating expenses: |
|
|
|
|
|
|
||
Selling, general and administrative |
|
|
(25,090 |
) |
|
|
(14,210 |
) |
Research and development |
|
|
(8,227 |
) |
|
|
(5,942 |
) |
Total operating expenses |
|
|
(33,317 |
) |
|
|
(20,152 |
) |
Loss from operations |
|
|
(44,138 |
) |
|
|
(28,133 |
) |
Other income (expense): |
|
|
|
|
|
|
||
Interest expense |
|
|
(7,530 |
) |
|
|
(7,655 |
) |
Other income (expense), net |
|
|
(1,965 |
) |
|
|
(5,258 |
) |
Total other expense |
|
|
(9,495 |
) |
|
|
(12,913 |
) |
Net loss |
|
$ |
(53,633 |
) |
|
$ |
(41,046 |
) |
Net loss per share of voting and non-voting common stock, basic and diluted |
|
$ |
(1.29 |
) |
|
$ |
(1.13 |
) |
Weighted-average shares outstanding, basic and diluted |
|
|
41,633,152 |
|
|
|
36,239,733 |
|
STARRY GROUP HOLDINGS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except for share data)
|
|
March 31, |
|
|
December 31, |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
166,693 |
|
|
$ |
29,384 |
|
Accounts receivable, net |
|
|
395 |
|
|
|
380 |
|
Deferred costs |
|
|
— |
|
|
|
7,049 |
|
Prepaid expenses and other current assets |
|
|
6,358 |
|
|
|
7,079 |
|
Total current assets |
|
|
173,446 |
|
|
|
43,892 |
|
Property and equipment, net |
|
|
136,756 |
|
|
|
129,019 |
|
Intangible assets |
|
|
48,463 |
|
|
|
48,463 |
|
Restricted cash and other assets |
|
|
2,141 |
|
|
|
1,860 |
|
Total assets |
|
$ |
360,806 |
|
|
$ |
223,234 |
|
Liabilities, redeemable shares and stockholders’ equity (deficit) |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
7,401 |
|
|
$ |
6,832 |
|
Unearned revenue |
|
|
1,633 |
|
|
|
1,630 |
|
Current portion of debt |
|
|
1,498 |
|
|
|
1,504 |
|
Accrued expenses and other current liabilities |
|
|
30,099 |
|
|
|
23,177 |
|
Total current liabilities |
|
|
40,631 |
|
|
|
33,143 |
|
Debt, net of current portion |
|
|
211,306 |
|
|
|
191,596 |
|
Earnout liabilities |
|
|
20,881 |
|
|
|
— |
|
Warrant liabilities |
|
|
18,175 |
|
|
|
14,773 |
|
Asset retirement obligations |
|
|
2,621 |
|
|
|
2,387 |
|
Other liabilities |
|
|
15,454 |
|
|
|
12,412 |
|
Total liabilities |
|
|
309,068 |
|
|
|
254,311 |
|
Redeemable shares |
|
|
10,579 |
|
|
|
— |
|
Stockholders’ equity (deficit): |
|
|
|
|
|
|
||
Convertible preferred stock |
|
|
— |
|
|
|
453,184 |
|
Legacy common stock |
|
|
— |
|
|
|
4 |
|
Class A common stock |
|
|
16 |
|
|
|
— |
|
Class X common stock |
|
|
1 |
|
|
|
— |
|
Additional paid-in capital |
|
|
596,146 |
|
|
|
17,106 |
|
Accumulated deficit |
|
|
(555,004 |
) |
|
|
(501,371 |
) |
Total stockholders’ equity (deficit) |
|
|
41,159 |
|
|
|
(31,077 |
) |
Total liabilities, redeemable shares and stockholders’ equity (deficit) |
|
$ |
360,806 |
|
|
$ |
223,234 |
|
STARRY GROUP HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flow
(Unaudited)
(in thousands, except for share data)
|
|
Three Months Ended |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(53,633 |
) |
|
$ |
(41,046 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization expense |
|
|
9,332 |
|
|
|
6,095 |
|
Paid-in-kind interest on term loans, convertible notes payable and strategic |
|
|
5,879 |
|
|
|
4,230 |
|
Amortization of debt discount and deferred charges |
|
|
1,626 |
|
|
|
2,417 |
|
|
|
|
|
|
|
|
||
Conversion of debt discount |
|
|
— |
|
|
|
971 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
2,361 |
|
Fair value adjustment of derivative liabilities |
|
|
(1,923 |
) |
|
|
2,898 |
|
Recognition of distribution to non-redeeming shareholders |
|
|
3,888 |
|
|
|
— |
|
Loss on disposal of property and equipment |
|
|
722 |
|
|
|
478 |
|
Share-based compensation |
|
|
3,707 |
|
|
|
220 |
|
Transaction costs allocated to derivative instruments |
|
|
314 |
|
|
|
— |
|
Accretion of asset retirement obligations |
|
|
69 |
|
|
|
41 |
|
Provision for doubtful accounts |
|
|
13 |
|
|
|
23 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(29 |
) |
|
|
(78 |
) |
Prepaid expenses and other current assets |
|
|
742 |
|
|
|
(475 |
) |
Deferred cost |
|
|
(168 |
) |
|
|
(55 |
) |
Other assets |
|
|
(280 |
) |
|
|
(9 |
) |
Accounts payable |
|
|
391 |
|
|
|
2,729 |
|
Unearned revenue |
|
|
3 |
|
|
|
461 |
|
Accrued expenses and other current liabilities |
|
|
6,953 |
|
|
|
1,472 |
|
Other liabilities |
|
|
4 |
|
|
|
— |
|
Net cash used in operating activities |
|
|
(22,390 |
) |
|
|
(17,267 |
) |
Investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(16,750 |
) |
|
|
(10,016 |
) |
Net cash used in investing activities |
|
|
(16,750 |
) |
|
|
(10,016 |
) |
Financing activities: |
|
|
|
|
|
|
||
Proceeds from Business Combination, net of transaction costs |
|
|
163,775 |
|
|
|
— |
|
Repayment of note assumed in the Business Combination |
|
|
(1,200 |
) |
|
|
— |
|
Proceeds from the issuance of convertible notes payable and beneficial conversion |
|
|
— |
|
|
|
11,000 |
|
Proceeds from Strategic Partner Arrangement |
|
|
3,724 |
|
|
|
1,431 |
|
Proceeds from exercise of common stock options |
|
|
467 |
|
|
|
102 |
|
Proceeds from the issuance of Series E Preferred Stock, net of issuance costs |
|
|
— |
|
|
|
119,850 |
|
Proceeds from the issuance of term loans, net of issuance costs |
|
|
10,000 |
|
|
|
— |
|
Payments of third-party issuance costs in connection with Term Loans |
|
|
(47 |
) |
|
|
— |
|
Repayments of capital lease obligations, net |
|
|
(270 |
) |
|
|
(193 |
) |
Net cash provided by financing activities |
|
|
176,449 |
|
|
|
132,190 |
|
Net increase (decrease) in cash and cash equivalents and restricted cash: |
|
|
137,309 |
|
|
|
104,907 |
|
Cash and cash equivalents and restricted cash, beginning of period |
|
|
30,762 |
|
|
|
26,831 |
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
168,071 |
|
|
$ |
131,738 |
|
Non-GAAP Financial Measures and Other Business Metrics
To supplement our consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States (GAAP), we provide investors with certain non-GAAP financial measures and other business metrics, which we believe are helpful to our investors. We use these non-GAAP financial measures and other business metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures and other business metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.
The presentation of non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
|
|
Three Months Ended |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Addressable Households |
|
|
9,691,029 |
|
|
|
9,691,029 |
|
Homes Serviceable |
|
|
5,473,341 |
|
|
|
4,544,723 |
|
Customer Relationships |
|
|
71,247 |
|
|
|
41,532 |
|
Penetration of Homes Serviceable |
|
|
1.30 |
% |
|
|
0.91 |
% |
Revenue (000s) |
|
$ |
7,370 |
|
|
$ |
4,523 |
|
Average Revenue Per User (“ARPU”) |
|
$ |
36.54 |
|
|
$ |
39.66 |
|
Net Loss (000s) |
|
$ |
(53,633 |
) |
|
$ |
(41,046 |
) |
Net Loss margin |
|
|
(728 |
)% |
|
|
(907 |
)% |
Adjusted EBITDA (000s) |
|
$ |
(27,812 |
) |
|
$ |
(21,818 |
) |
Adjusted EBITDA margin |
|
|
(377 |
)% |
|
|
(482 |
)% |
Reconciliations of Adjusted EBITDA and Adjusted EBITDA margin
We define Adjusted EBITDA as net loss, adjusted to exclude unusual or non-recurring items, non-cash items and other items that are not indicative of ongoing operations (including stock-based compensation expenses, loss on extinguishment of debt and the fair value adjustment of derivative liabilities). We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA margin are frequently used by management, research analysts, investors and other interested parties to evaluate companies. Adjusted EBITDA and Adjusted EBITDA margin are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, net loss or net loss margin, the most directly comparable GAAP financial measures, and may be different from similarly titled non-GAAP financial measures used by other companies.
($ in thousands) |
Three Months |
|
|
Three Months |
|
||||||||
Net Loss ($) and Net Loss margin (%) |
$ |
(53,633 |
) |
(728%) |
|
|
$ |
(41,046 |
) |
(907%) |
|
||
Adjustments: |
|
|
|
|
|
|
|
|
|
||||
Add: Interest expense, net |
|
7,530 |
|
102% |
|
|
|
7,654 |
|
169% |
|
||
Add: Depreciation and amortization expense |
|
9,332 |
|
127% |
|
|
|
6,095 |
|
135% |
|
||
Add: Non-recurring transaction related expenses (1) |
|
3,287 |
|
45% |
|
|
|
— |
|
|
— |
|
|
(Subtract)/Add: (Gain)/loss on fair value adjustment of derivative liabilities |
|
(1,923 |
) |
(26%) |
|
|
|
2,898 |
|
64% |
|
||
Add: Recognition of distribution to non-redeeming shareholders |
|
3,888 |
|
53% |
|
|
|
— |
|
|
— |
|
|
Add: Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
|
2,361 |
|
52% |
|
|
Add: Stock-based compensation |
|
3,707 |
|
50% |
|
|
|
220 |
|
5% |
|
||
Adjusted EBITDA ($) and Adjusted EBITDA margin (%) |
$ |
(27,812 |
) |
(377%) |
|
|
$ |
(21,818 |
) |
(482%) |
|
||
(1) We add back expenses that are related to transactions that occurred during the period that are expected to be non-recurring, including mergers and acquisitions and financings. Generally these expenses are included within selling, general and administrative expense in the statement of operations. For the three months ended March 31, 2022, such transactions comprised of the Business Combination, the sale of the PIPE shares and the sale of the Series Z Preferred Stock shares.
2021 Unaudited Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
|
|
Three Months Ended |
|
|||||||||||||
|
|
March 31, 2021 |
|
|
June 30, 2021 |
|
|
September 30, 2021 |
|
|
December 31, 2021 |
|
||||
Revenues |
|
$ |
4,523 |
|
|
$ |
5,091 |
|
|
$ |
5,871 |
|
|
$ |
6,778 |
|
Cost of revenues |
|
|
(12,504 |
) |
|
|
(13,318 |
) |
|
|
(15,784 |
) |
|
|
(16,757 |
) |
Gross loss |
|
|
(7,981 |
) |
|
|
(8,227 |
) |
|
|
(9,913 |
) |
|
|
(9,979 |
) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
(14,210 |
) |
|
|
(16,028 |
) |
|
|
(17,170 |
) |
|
|
(19,721 |
) |
Research and development |
|
|
(5,942 |
) |
|
|
(6,476 |
) |
|
|
(7,064 |
) |
|
|
(6,826 |
) |
Total operating expenses |
|
|
(20,152 |
) |
|
|
(22,504 |
) |
|
|
(24,234 |
) |
|
|
(26,547 |
) |
Loss from operations |
|
|
(28,133 |
) |
|
|
(30,731 |
) |
|
|
(34,147 |
) |
|
|
(36,526 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(7,655 |
) |
|
|
(4,926 |
) |
|
|
(5,192 |
) |
|
|
(6,966 |
) |
Other income (expense), net |
|
|
(5,258 |
) |
|
|
(2,897 |
) |
|
|
(436 |
) |
|
|
(3,678 |
) |
Total other expense |
|
|
(12,913 |
) |
|
|
(7,823 |
) |
|
|
(5,628 |
) |
|
|
(10,644 |
) |
Net loss |
|
$ |
(41,046 |
) |
|
$ |
(38,554 |
) |
|
$ |
(39,775 |
) |
|
$ |
(47,170 |
) |
Net loss per share of voting and non-voting common stock, basic and diluted |
|
$ |
(1.13 |
) |
|
$ |
(1.06 |
) |
|
$ |
(1.09 |
) |
|
$ |
(1.27 |
) |
Weighted-average shares outstanding, basic and diluted |
|
|
36,239,733 |
|
|
|
36,410,177 |
|
|
|
36,521,158 |
|
|
|
37,082,973 |
|
2021 Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
|
|
March 31, |
|
|
June 30, |
|
|
September 30, |
|
|
December 31, |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
130,501 |
|
|
$ |
84,820 |
|
|
$ |
42,155 |
|
|
$ |
29,384 |
|
Restricted cash |
|
|
110 |
|
|
|
30 |
|
|
|
— |
|
|
|
— |
|
Accounts receivable, net |
|
|
319 |
|
|
|
368 |
|
|
|
293 |
|
|
|
380 |
|
Deferred costs |
|
|
55 |
|
|
|
453 |
|
|
|
918 |
|
|
|
7,049 |
|
Prepaid expenses and other current assets |
|
|
2,315 |
|
|
|
3,981 |
|
|
|
4,300 |
|
|
|
7,079 |
|
Total current assets |
|
|
133,300 |
|
|
|
89,652 |
|
|
|
47,666 |
|
|
|
43,892 |
|
Property and equipment, net |
|
|
95,432 |
|
|
|
105,024 |
|
|
|
117,013 |
|
|
|
129,019 |
|
Intangible assets |
|
|
48,463 |
|
|
|
48,463 |
|
|
|
48,463 |
|
|
|
48,463 |
|
Restricted cash and other assets |
|
|
1,369 |
|
|
|
1,374 |
|
|
|
1,366 |
|
|
|
1,860 |
|
Total assets |
|
$ |
278,564 |
|
|
$ |
244,513 |
|
|
$ |
214,508 |
|
|
$ |
223,234 |
|
Liabilities and stockholders’ equity (deficit) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts payable |
|
$ |
13,650 |
|
|
$ |
7,489 |
|
|
$ |
6,535 |
|
|
$ |
6,832 |
|
Unearned revenue |
|
|
1,630 |
|
|
|
1,710 |
|
|
|
1,580 |
|
|
|
1,630 |
|
Current portion of debt |
|
|
727 |
|
|
|
1,258 |
|
|
|
1,340 |
|
|
|
1,504 |
|
Accrued expenses and other current liabilities |
|
|
15,817 |
|
|
|
15,564 |
|
|
|
19,103 |
|
|
|
23,177 |
|
Total current liabilities |
|
|
31,824 |
|
|
|
26,021 |
|
|
|
28,558 |
|
|
|
33,143 |
|
Debt, net of current portion |
|
|
140,099 |
|
|
|
144,823 |
|
|
|
150,654 |
|
|
|
191,596 |
|
Asset retirement obligations |
|
|
1,648 |
|
|
|
1,858 |
|
|
|
2,145 |
|
|
|
2,387 |
|
Warrant liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,773 |
|
Other liabilities |
|
|
5,966 |
|
|
|
10,864 |
|
|
|
11,463 |
|
|
|
12,412 |
|
Total liabilities |
|
|
179,537 |
|
|
|
183,566 |
|
|
|
192,820 |
|
|
|
254,311 |
|
Stockholders’ equity (deficit): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Seed series convertible preferred stock |
|
|
6,990 |
|
|
|
6,990 |
|
|
|
6,990 |
|
|
|
6,990 |
|
Series A convertible preferred stock |
|
|
25,946 |
|
|
|
25,946 |
|
|
|
25,946 |
|
|
|
25,946 |
|
Series B convertible preferred stock |
|
|
29,910 |
|
|
|
29,910 |
|
|
|
29,910 |
|
|
|
29,910 |
|
Series C convertible preferred stock |
|
|
99,989 |
|
|
|
99,989 |
|
|
|
99,989 |
|
|
|
99,989 |
|
Series D convertible preferred stock |
|
|
124,915 |
|
|
|
124,915 |
|
|
|
124,915 |
|
|
|
124,915 |
|
Series E convertible preferred stock |
|
|
165,434 |
|
|
|
165,434 |
|
|
|
165,434 |
|
|
|
165,434 |
|
Common stock |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
21,711 |
|
|
|
22,185 |
|
|
|
22,701 |
|
|
|
17,106 |
|
Accumulated deficit |
|
|
(375,872 |
) |
|
|
(414,426 |
) |
|
|
(454,201 |
) |
|
|
(501,371 |
) |
Total stockholders’ equity (deficit) |
|
|
99,027 |
|
|
|
60,947 |
|
|
|
21,688 |
|
|
|
(31,077 |
) |
Total liabilities and stockholders’ equity (deficit) |
|
$ |
278,564 |
|
|
$ |
244,513 |
|
|
$ |
214,508 |
|
|
$ |
223,234 |
|
2021 Unaudited Condensed Consolidated Statements of Cash Flow
(in thousands, except share and per share data)
|
|
Three Months Ended |
|
|||||||||||||
|
|
March 31, 2021 |
|
|
June 30, 2021 |
|
|
September 30, 2021 |
|
|
December 31, 2021 |
|
||||
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
|
$ |
(41,046 |
) |
|
$ |
(38,554 |
) |
|
$ |
(39,775 |
) |
|
$ |
(47,170 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization expense |
|
|
6,095 |
|
|
|
6,878 |
|
|
|
7,773 |
|
|
|
8,717 |
|
Paid-in-kind interest on term loans, convertible notes payable and strategic |
|
|
4,230 |
|
|
|
4,139 |
|
|
|
4,300 |
|
|
|
5,534 |
|
Amortization of debt discount and deferred charges |
|
|
2,417 |
|
|
|
733 |
|
|
|
806 |
|
|
|
1,482 |
|
Conversion of debt discount |
|
|
971 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on extinguishment of debt |
|
|
2,361 |
|
|
|
— |
|
|
|
— |
|
|
|
1,366 |
|
Fair value adjustment of derivative liabilities |
|
|
2,898 |
|
|
|
2,898 |
|
|
|
454 |
|
|
|
2,312 |
|
Loss on disposal of property and equipment |
|
|
478 |
|
|
|
745 |
|
|
|
633 |
|
|
|
360 |
|
Share-based compensation |
|
|
220 |
|
|
|
358 |
|
|
|
389 |
|
|
|
343 |
|
Accretion of asset retirement obligations |
|
|
41 |
|
|
|
48 |
|
|
|
54 |
|
|
|
62 |
|
Provision for doubtful accounts |
|
|
23 |
|
|
|
(21 |
) |
|
|
19 |
|
|
|
133 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(78 |
) |
|
|
(28 |
) |
|
|
56 |
|
|
|
(220 |
) |
Prepaid expenses and other current assets |
|
|
(475 |
) |
|
|
(1,666 |
) |
|
|
(319 |
) |
|
|
(2,780 |
) |
Deferred cost |
|
|
(55 |
) |
|
|
(398 |
) |
|
|
(465 |
) |
|
|
918 |
|
Other assets |
|
|
(9 |
) |
|
|
(5 |
) |
|
|
9 |
|
|
|
(243 |
) |
Accounts payable |
|
|
2,729 |
|
|
|
(3,499 |
) |
|
|
(30 |
) |
|
|
(449 |
) |
Unearned revenue |
|
|
461 |
|
|
|
80 |
|
|
|
(130 |
) |
|
|
50 |
|
Accrued expenses and other current liabilities |
|
|
1,472 |
|
|
|
1 |
|
|
|
2,029 |
|
|
|
(25 |
) |
Other liabilities |
|
|
— |
|
|
|
2,000 |
|
|
|
145 |
|
|
|
(1,363 |
) |
Net cash used in operating activities |
|
|
(17,267 |
) |
|
|
(26,291 |
) |
|
|
(24,052 |
) |
|
|
(30,973 |
) |
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchases of property and equipment |
|
|
(10,016 |
) |
|
|
(19,969 |
) |
|
|
(19,292 |
) |
|
|
(19,626 |
) |
Net cash used in investing activities |
|
|
(10,016 |
) |
|
|
(19,969 |
) |
|
|
(19,292 |
) |
|
|
(19,626 |
) |
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from the issuance of convertible notes payable and beneficial conversion |
|
|
11,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Proceeds from Strategic Partner Arrangement |
|
|
1,431 |
|
|
|
563 |
|
|
|
711 |
|
|
|
637 |
|
Proceeds from exercise of common stock options |
|
|
102 |
|
|
|
116 |
|
|
|
127 |
|
|
|
407 |
|
Proceeds from the issuance of Series E Preferred Stock, net of issuance costs |
|
|
119,850 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Proceeds from the issuance of term loans, net of issuance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
38,500 |
|
Payments of third-party issuance costs in connection with Term Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(264 |
) |
Payments of deferred transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(975 |
) |
Repayments of capital lease obligations, net |
|
|
(193 |
) |
|
|
(180 |
) |
|
|
(188 |
) |
|
|
(227 |
) |
Net cash provided by financing activities |
|
|
132,190 |
|
|
|
499 |
|
|
|
650 |
|
|
|
38,078 |
|
Net increase (decrease) in cash and cash equivalents and restricted cash: |
|
|
104,907 |
|
|
|
(45,761 |
) |
|
|
(42,694 |
) |
|
|
(12,521 |
) |
Cash and cash equivalents and restricted cash, beginning of period |
|
|
26,831 |
|
|
|
131,738 |
|
|
|
85,977 |
|
|
|
43,283 |
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
131,738 |
|
|
$ |
85,977 |
|
|
$ |
43,283 |
|
|
$ |
30,762 |
|