☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 85-2992192 | |||
(State or other jurisdiction of incorporation or organization) | ||||
( Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
The New York Stock Exchange | ||||
Warrants, each | The New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
No. | ||||||||||
3 | ||||||||||
Item 1. | 3 | |||||||||
3 | ||||||||||
4 | ||||||||||
5 | ||||||||||
6 | ||||||||||
8 | ||||||||||
Item 2. | ||||||||||
Item 3. | ||||||||||
Item 4. | ||||||||||
Item 1. | ||||||||||
Item 1A. | ||||||||||
Item 6. | ||||||||||
76 |
June 30, 2021 | December 31, 2020 | June 30, | December 31, | |||||||||||||
(Unaudited) | 2022 | 2021 | ||||||||||||||
Assets: | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 170 | $ | 1,569,739 | ||||||||||||
Prepaid assets | 711,544 | 770,285 | ||||||||||||||
Cash and cash equivalents | $ | 43,968 | $ | 399,025 | ||||||||||||
Short-term investments | 379,383 | 123,443 | ||||||||||||||
Accounts receivable | 1,782 | 707 | ||||||||||||||
Prepaid expenses and other current assets | 5,113 | 6,442 | ||||||||||||||
Total current assets | 711,714 | 2,340,024 | 430,246 | 529,617 | ||||||||||||
Investments held in Trust Account | 300,083,934 | 300,030,565 | ||||||||||||||
Long-term investments | 147,992 | 80,110 | ||||||||||||||
Property and equipment, net | 24,872 | 18,870 | ||||||||||||||
Operating lease right-of-use assets | 3,894 | 4,032 | ||||||||||||||
Intangible assets, net | 6,839 | 5,841 | ||||||||||||||
Other noncurrent assets | 3,149 | 3,558 | ||||||||||||||
Total Assets | $ | 300,795,648 | $ | 302,370,589 | $ | 616,992 | $ | 642,028 | ||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 313,509 | $ | 850,442 | $ | 3,680 | $ | 1,882 | ||||||||
Accrued expenses | 3,550,285 | 512,509 | 4,019 | 2,647 | ||||||||||||
Franchise tax payable | 100,050 | 58,132 | ||||||||||||||
Due to related parties | 156,366 | 31,366 | ||||||||||||||
Current portion of operating lease liabilities | 577 | 568 | ||||||||||||||
Unearned revenue | 4,885 | 3,430 | ||||||||||||||
Current portion of stock option early exercise liabilities | 1,130 | 1,164 | ||||||||||||||
Total current liabilities | 4,120,210 | 1,452,449 | 14,291 | 9,691 | ||||||||||||
Deferred underwriting commissions in connection with the initial public offering | 10,500,000 | 10,500,000 | ||||||||||||||
Derivative warrant liabilities | 40,600,000 | 34,885,000 | ||||||||||||||
Operating lease liabilities, net of current portion | 3,556 | 3,643 | ||||||||||||||
Unearned revenue, net of current portion | 616 | 1,533 | ||||||||||||||
Stock option early exercise liabilities, net of current portion | 1,404 | 1,969 | ||||||||||||||
Warrant liabilities | 4,447 | 33,962 | ||||||||||||||
Total liabilities | 55,220,210 | 46,837,449 | $ | 24,314 | $ | 50,798 | ||||||||||
Commitments and Contingencies (Note 5) | 0 | 0 | ||||||||||||||
Class A common stock, $0.0001 par value; 380,000,000 shares authorized; 24,057,543 and 25,053,313 shares subject to possible redemption at $10.00 per share as of June 30, 2021 and December 31, 2020, respectively | 240,575,430 | 250,533,130 | ||||||||||||||
Commitments and Contingencies (see Note 7) | 0 | 0 | ||||||||||||||
Stockholders’ Equity: | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding | 0 | 0 | ||||||||||||||
Class A common stock, $0.0001 par value; 380,000,000 shares authorized; 5,942,457 and 4,946,687 shares issued and outstanding (excluding 24,057,543 and 25,053,313 shares subject to possible redemption) as of June 30, 2021 and December 31, 2020, respectively | 594 | 495 | ||||||||||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 7,500,000 shares issued and outstanding | 750 | 750 | ||||||||||||||
Common stock $0.0001 par value per share; 1,000,000,000 shares authorized; 198,003,162 and 195,630,975 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 20 | 19 | ||||||||||||||
Additional paid-in capital | 31,170,964 | 21,213,363 | 751,259 | 737,150 | ||||||||||||
Accumulated deficit | (26,172,300 | ) | (16,214,598 | ) | (151,672 | ) | (145,791 | ) | ||||||||
Accumulated other comprehensive loss | (6,929 | ) | (148 | ) | ||||||||||||
Total stockholders’ equity | 5,000,008 | 5,000,010 | 592,678 | 591,230 | ||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 300,795,648 | $ | 302,370,589 | $ | 616,992 | $ | 642,028 | ||||||||
For the three months ended | For the six months ended | |||||||
June 30, 2021 | June 30, 2021 | |||||||
General and administrative expenses | $ | 376,809 | $ | 4,194,577 | ||||
Franchise tax expense | 50,000 | 101,531 | ||||||
Loss from operations | (426,809 | ) | (4,296,108 | ) | ||||
Interest income earned in operating account | 4 | 37 | ||||||
Gain on marketable securities (net), dividends and interest, held in Trust Account | 6,545 | 53,369 | ||||||
Change in fair value of derivative warrant liabilities | (7,510,000 | ) | (5,715,000 | ) | ||||
Net loss | $ | (7,930,260 | ) | $ | (9,957,702 | ) | ||
Weighted average shares outstanding of Class A common stock | 30,000,000 | 30,000,000 | ||||||
Basic and diluted net income per share, Class A common stock | $ | 0 | $ | 0 | ||||
Weighted average shares outstanding of Class B common stock | 7,500,000 | 7,500,000 | ||||||
Basic and diluted net loss per share, Class B common stock | $ | (1.06) | $ | (1.33) | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue | $ | 2,608 | $ | 93 | $ | 4,561 | $ | 218 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 742 | 327 | 1,310 | 508 | ||||||||||||
Research and development | 9,653 | 5,477 | 16,990 | 9,131 | ||||||||||||
Sales and marketing | 2,132 | 871 | 4,002 | 1,098 | ||||||||||||
General and administrative | 7,558 | 2,904 | 16,752 | 5,860 | ||||||||||||
Depreciation and amortization | 1,451 | 502 | 2,717 | 947 | ||||||||||||
Total operating costs and expenses | 21,536 | 10,081 | 41,771 | 17,544 | ||||||||||||
Loss from operations | (18,928 | ) | (9,988 | ) | (37,210 | ) | (17,326 | ) | ||||||||
Change in fair value of warrant liabilities | 16,061 | — | 29,509 | — | ||||||||||||
Interest income, net | 1,259 | — | 1,867 | — | ||||||||||||
Other income (expense), net | (46 | ) | 2 | (47 | ) | 5 | ||||||||||
Loss before benefit for income taxes | (1,654 | ) | (9,986 | ) | (5,881 | ) | (17,321 | ) | ||||||||
Benefit for income taxes | — | — | — | — | ||||||||||||
Net loss | $ | (1,654 | ) | $ | (9,986 | ) | $ | (5,881 | ) | $ | (17,321 | ) | ||||
Net loss per share attributable to common stockholders - basic and diluted | $ | (0.01 | ) | $ | (0.08 | ) | $ | (0.03 | ) | $ | (0.15 | ) | ||||
Weighted average shares used in computing net loss per share attributable to common stockholders - basic and diluted | 197,214,022 | 119,253,873 | 196,708,008 | 118,991,152 | ||||||||||||
Common Stock | Total | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-In | Accumulated | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||
Balance - December 31, 2020 | 4,946,687 | $ | 495 | 7,500,000 | $ | 750 | $ | 21,213,363 | $ | (16,214,598 | ) | $ | 5,000,010 | |||||||||||||||
Common stock subject to possible redemption | 202,744 | 20 | — | — | 2,027,420 | — | 2,027,440 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (2,027,442 | ) | (2,027,442 | ) | |||||||||||||||||||
Balance - March 31, 2021 (Unaudited) | 5,149,431 | $ | 515 | 7,500,000 | $ | 750 | $ | 23,240,783 | $ | (18,242,040 | ) | $ | 5,000,008 | |||||||||||||||
Common stock subject to possible redemption | 793,026 | 79 | — | — | 7,930,181 | — | 7,930,260 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (7,930,260 | ) | (7,930,260 | ) | |||||||||||||||||||
Balance - June 30, 2021 (Unaudited) | 5,942,457 | $ | 594 | 7,500,000 | $ | 750 | $ | 31,170,964 | $ | (26,172,300 | ) | $ | 5,000,008 | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net loss | $ | (1,654 | ) | $ | (9,986 | ) | $ | (5,881 | ) | $ | (17,321 | ) | ||||
Other comprehensive loss, net of reclassification adjustments: | ||||||||||||||||
Change in unrealized loss on available-for-sale securities | (2,241 | ) | — | (6,781 | ) | — | ||||||||||
Total other comprehensive loss | (2,241 | ) | — | (6,781 | ) | — | ||||||||||
Total comprehensive loss | $ | (3,895 | ) | $ | (9,986 | ) | $ | (12,662 | ) | $ | (17,321 | ) | ||||
Stockholders’ Equity | ||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balance, March 31, 2022 | 196,393,948 | $ | 20 | $ | 744,469 | $ | (150,018 | ) | $ | (4,688 | ) | $ | 589,783 | |||||||||||
Net loss | — | — | — | (1,654 | ) | — | (1,654 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | — | (2,241 | ) | (2,241 | ) | ||||||||||||||||
Stock options exercised | 1,219,451 | — | 435 | — | — | 435 | ||||||||||||||||||
Vesting of restricted common stock | 125,341 | — | 282 | — | — | 282 | ||||||||||||||||||
Issuance of common stock from the settlement of restricted stock units | 264,422 | — | 473 | — | — | 473 | ||||||||||||||||||
Stock-based compensation | — | — | 5,600 | — | — | 5,600 | ||||||||||||||||||
Balance, June 30, 2022 | 198,003,162 | $ | 20 | $ | 751,259 | $ | (151,672 | ) | $ | (6,929 | ) | $ | 592,678 | |||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balance, March 31, 2021 | 119,027,058 | $ | 3 | $ | 96,803 | $ | (46,940 | ) | $ | — | $ | 49,866 | ||||||||||||
Net loss | — | — | — | (9,986 | ) | — | (9,986 | ) | ||||||||||||||||
Equity instruments issued in consideration for intellectual property and research and development arrangements | 385,797 | — | 737 | — | — | 737 | ||||||||||||||||||
Stock options exercised | 101,484 | — | 29 | — | — | 29 | ||||||||||||||||||
Vesting of restricted common stock | 144,667 | — | 231 | — | — | 231 | ||||||||||||||||||
Stock-based compensation | — | — | 2,532 | — | — | 2,532 | ||||||||||||||||||
�� | ||||||||||||||||||||||||
Balance, June 30, 2021 | 119,659,006 | $ | 3 | $ | 100,332 | $ | (56,926 | ) | $ | — | $ | 43,409 | ||||||||||||
For the six months ended | ||||
June 30, 2021 | ||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (9,957,702 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of derivative warrant liabilities | 5,715,000 | |||
Gain on marketable securities (net), dividends and interest, held in Trust Account | (53,369 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | 58,741 | |||
Accounts payable | (536,933 | ) | ||
Accrued expenses | 3,037,776 | |||
Franchise tax payable | 41,918 | |||
Net cash used in operating activities | (1,694,569 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from advances from related party | 125,000 | |||
Net cash provided by financing activities | 125,000 | |||
Net decrease in cash | (1,569,569 | ) | ||
Cash - beginning of the period | 1,569,739 | |||
Cash - end of the period | $ | 170 | ||
Supplemental disclosure of noncash activities: | ||||
Change value of Class A common stock subject to possible redemption | $ | 9,957,700 |
Stockholders’ Equity | ||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balance, December 31, 2021 | 195,630,975 | $ | 19 | $ | 737,150 | $ | (145,791 | ) | $ | (148 | ) | $ | 591,230 | |||||||||||
Net loss | — | — | — | (5,881 | ) | — | (5,881 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | — | (6,781 | ) | (6,781 | ) | ||||||||||||||||
Stock options exercised | 1,672,676 | 1 | 566 | — | — | 567 | ||||||||||||||||||
Vesting of restricted common stock | 264,852 | — | 598 | — | — | 598 | ||||||||||||||||||
Issuance of common stock from the settlement of restricted stock units | 433,172 | — | 473 | — | — | 473 | ||||||||||||||||||
Stock-based compensation | — | — | 12,448 | — | — | 12,448 | ||||||||||||||||||
Warrants exercised | 1,487 | — | 24 | — | — | 24 | ||||||||||||||||||
Balance, June 30, 2022 | 198,003,162 | $ | 20 | $ | 751,259 | $ | (151,672 | ) | $ | (6,929 | ) | $ | 592,678 | |||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balance, December 31, 2020 | 118,146,795 | $ | 3 | $ | 93,305 | $ | (39,605 | ) | $ | — | $ | 53,703 | ||||||||||||
Net loss | — | — | — | (17,321 | ) | — | (17,321 | ) | ||||||||||||||||
Equity instruments issued in consideration for intellectual property and research and development arrangements | 385,797 | — | 2,381 | — | — | 2,381 | ||||||||||||||||||
Stock options exercised | 904,555 | — | 223 | — | — | 223 | ||||||||||||||||||
Vesting of restricted common stock | 221,859 | — | 416 | — | — | 416 | ||||||||||||||||||
Stock-based compensation | — | — | 4,007 | — | — | 4,007 | ||||||||||||||||||
Balance, June 30, 2021 | 119,659,006 | $ | 3 | $ | 100,332 | $ | (56,926 | ) | $ | — | $ | 43,409 | ||||||||||||
Six Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (5,881 | ) | $ | (17,321 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 2,717 | 947 | ||||||
Non-cash research and development arrangements | 260 | 1,001 | ||||||
Amortization of customer warrant | — | 125 | ||||||
Stock-based compensation | 12,556 | 3,874 | ||||||
Change in fair value of warrant liabilities | (29,509 | ) | — | |||||
Other, net | (1,618 | ) | 122 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (801 | ) | (30 | ) | ||||
Prepaid expenses and other current assets | 3,576 | (2,710 | ) | |||||
Accounts payable | 1,156 | 3,025 | ||||||
Accrued expenses | 484 | 913 | ||||||
Unearned revenue | 264 | 275 | ||||||
Other assets and liabilities | (133 | ) | (42 | ) | ||||
Net cash used in operating activities | (16,929 | ) | (9,821 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (7,022 | ) | (2,994 | ) | ||||
Capitalized software development costs | (982 | ) | (764 | ) | ||||
Intangible asset acquisition costs | (370 | ) | (241 | ) | ||||
Purchases of available-for-sale securities | (403,899 | ) | — | |||||
Maturities and sales of available-for-sale securities | 73,090 | — | ||||||
Net cash used in investing activities | (339,183 | ) | (3,999 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from stock options exercised | 567 | 5,392 | ||||||
Tax withholding receipts related to vested and released restricted stock units | 472 | — | ||||||
Proceeds from public warrants exercised | 16 | — | ||||||
Net cash provided by financing activities | 1,055 | 5,392 | ||||||
Net change in cash and cash equivalents | (355,057 | ) | (8,428 | ) | ||||
Cash and cash equivalents at the beginning of the period | 399,025 | 36,120 | ||||||
Cash and cash equivalents at the end of the period | $ | 43,968 | $ | 27,692 | ||||
Supplemental disclosures of non-cash investing and financing transactions: | ||||||||
Issuance of common stock for intellectual property | $ | — | $ | 1,567 | ||||
Issuance of common stock for research and development arrangement | $ | — | $ | 815 | ||||
Property and equipment purchases in accounts payable and accrued expenses | $ | 1,284 | $ | 1,121 | ||||
Intangible asset purchases in accounts payable and accrued expenses | $ | 73 | $ | 121 | ||||
Noncash reclassification of warrant liabilities to equity upon exercise | $ | 8 | $ | — | ||||
Bonus settled in restricted stock units | $ | 473 | $ | — |
June 30, 2022 | December 31, 2021 | |||||||
Billed accounts receivable | $ | 794 | $ | 261 | ||||
Unbilled accounts receivable | 988 | 446 | ||||||
Total accounts receivable | $ | 1,782 | $ | 707 | ||||
1. | Identify the contract with the customer |
For the Three Months Ended June 30, 2021 | For the Six Months Ended June 30, 2021 | |||||||
Class A common stock | ||||||||
Numerator: Income allocable to Class A common stock | ||||||||
Income from investments held in Trust Account | $ | 6,545 | $ | 53,369 | ||||
Less: Company’s portion available to be withdrawn to pay taxes | (6,545 | ) | (53,369 | ) | ||||
Net income attributable to Class A common stock | $ | 0 | $ | 0 | ||||
Denominator: Weighted average Class A common stock | ||||||||
Basic and diluted weighted average shares outstanding, Class A common stock | 30,000,000 | 30,000,000 | ||||||
Basic and diluted net income per share, Class A common stock | $ | 0 | $ | 0 | ||||
Class B common stock | ||||||||
Numerator: Net loss minus net income attributable to Class A common stock | ||||||||
Net loss | $ | (7,930,260 | ) | $ | (9,957,702 | ) | ||
Net income attributable to Class A common stock | 0 | 0 | ||||||
Net loss attributable to Class B common stock | $ | (7,930,260 | ) | $ | (9,957,702 | ) | ||
Denominator: Weighted average Class B common stock | ||||||||
Basic and diluted weighted average shares outstanding, Class B common stock | 7,500,000 | 7,500,000 | ||||||
Basic and diluted net loss per share, Class B common stock | $ | (1.06 | ) | $ | (1.33 | ) | ||
2. | Identify the performance obligations |
3. | Determine the transaction price |
4. | Allocate the transaction price to the performance obligations |
5. | Recognize revenue when (or as) the entity satisfies a performance obligation |
Total | ||||
Balance as of December 31, 2021 | $ | 4,963 | ||
Revenue recognized | (2,663 | ) | ||
Payments from customers, net | 3,201 | |||
Balance as of June 30, 2022 | $ | 5,501 | ||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Numerator: | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net loss available to common stockholders | $ | (1,654 | ) | $ | (9,986 | ) | $ | (5,881 | ) | $ | (17,321 | ) | ||||
Denominator: | ||||||||||||||||
Weighted average shares used in computing net loss per share attributable to common stockholders – basic and diluted | 197,214,022 | 119,253,873 | 196,708,008 | 118,991,152 | ||||||||||||
Net loss per share attributable to common stockholders – basic and diluted | $ | (0.01 | ) | $ | (0.08 | ) | $ | (0.03 | ) | $ | (0.15 | ) | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Common stock options outstanding | 20,918,181 | 24,884,016 | 21,011,863 | 24,375,498 | ||||||||||||
Warrants to purchase common stock | 8,301,202 | 8,301,202 | 8,301,202 | 8,301,202 | ||||||||||||
Public warrants | 5,231,531 | — | 5,231,999 | — | ||||||||||||
Unvested restricted stock units | 2,635,880 | — | 1,970,311 | — | ||||||||||||
Unvested common stock | 1,218,477 | 2,170,715 | 1,285,399 | 1,527,769 | ||||||||||||
Total | 38,305,271 | 35,355,933 | 37,800,774 | 34,204,469 | ||||||||||||
As of June 30, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
Cash and money market funds | $ | 43,968 | $ | — | $ | — | $ | 43,968 | $ | 123,690 | $ | — | $ | — | $ | 123,690 | ||||||||||||||||
Commercial paper | 203,133 | — | (924 | ) | 202,209 | 203,628 | — | (21 | ) | 203,607 | ||||||||||||||||||||||
Corporate notes and bonds | 236,142 | — | (4,846 | ) | 231,296 | 80,060 | 2 | (109 | ) | 79,953 | ||||||||||||||||||||||
Municipal bonds | 11,846 | — | (213 | ) | 11,633 | 2,000 | — | — | 2,000 | |||||||||||||||||||||||
US government and agency | 83,183 | — | (946 | ) | 82,237 | 193,347 | 1 | (20 | ) | 193,328 | ||||||||||||||||||||||
Total cash equivalents and investments | $ | 578,272 | $ | — | $ | (6,929 | ) | $ | 571,343 | $ | 602,725 | $ | 3 | $ | (150 | ) | $ | 602,578 | ||||||||||||||
1 Year or Less | 1 Year or Greater | Total | ||||||||||
Cash and money market funds | $ | 43,968 | $ | — | $ | 43,968 | ||||||
Commercial paper | 202,209 | — | 202,209 | |||||||||
Corporate notes and bonds | 102,099 | 129,197 | 231,296 | |||||||||
Municipal bonds | 1,997 | 9,636 | 11,633 | |||||||||
US government and agency | 73,078 | 9,159 | 82,237 | |||||||||
Total | $ | 423,351 | $ | 147,992 | $ | 571,343 | ||||||
Fair Value Measured as of | ||||||||||||||||
June 30, 2022 | ||||||||||||||||
Assets: | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents: | ||||||||||||||||
Cash and money market funds (1) | $ | 43,968 | $ | — | $ | — | $ | 43,968 | ||||||||
Total cash equivalents | 43,968 | — | — | 43,968 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 202,209 | — | 202,209 | ||||||||||||
Corporate notes and bonds | — | 102,099 | — | 102,099 | ||||||||||||
Municipal bonds | — | 1,997 | — | 1,997 | ||||||||||||
US government and agency | — | 73,078 | — | 73,078 | ||||||||||||
Total short-term investments | — | 379,383 | — | 379,383 | ||||||||||||
Long-term investments | ||||||||||||||||
Corporate notes and bonds | — | 129,197 | — | 129,197 | ||||||||||||
Municipal bonds | — | 9,636 | — | 9,636 | ||||||||||||
US government and agency | — | 9,159 | — | 9,159 | ||||||||||||
Total long-term investments | — | 147,992 | — | 147,992 | ||||||||||||
Total Assets | $ | 43,968 | $ | 527,375 | $ | — | $ | 571,343 | ||||||||
Liabilities: | ||||||||||||||||
Public warrants | $ | 4,447 | $ | — | $ | — | $ | 4,447 | ||||||||
Fair Value Measured as of | ||||||||||||||||
December 31, 2021 | ||||||||||||||||
Assets: | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents: | ||||||||||||||||
Cash and money market funds (1) | $ | 123,690 | $ | — | $ | — | $ | 123,690 | ||||||||
Commercial paper | — | 125,335 | — | 125,335 | ||||||||||||
US government and agency | — | 150,000 | — | 150,000 | ||||||||||||
Total cash equivalents | 123,690 | 275,335 | — | 399,025 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 78,272 | — | 78,272 | ||||||||||||
Corporate notes and bonds | — | 14,818 | — | 14,818 | ||||||||||||
Municipal bonds | — | 2,000 | — | 2,000 | ||||||||||||
US government and agency | — | 28,353 | — | 28,353 | ||||||||||||
Total short-term investments | — | 123,443 | — | 123,443 | ||||||||||||
Long-term investments | ||||||||||||||||
Corporate notes and bonds | — | 65,135 | — | 65,135 | ||||||||||||
US government and agency | — | 14,975 | — | 14,975 | ||||||||||||
Total long-term investments | — | 80,110 | — | 80,110 | ||||||||||||
Total Assets | $ | 123,690 | $ | 478,888 | $ | — | $ | 602,578 | ||||||||
Liabilities: | ||||||||||||||||
Public warrants | $ | 33,962 | $ | — | $ | — | $ | 33,962 | ||||||||
(1) | Includes money market funds associated with the Company’s overnight investment sweep account. |
June 30, 2022 | December 31, 2021 | |||||||
Computer equipment and acquired computer software | $ | 1,474 | $ | 840 | ||||
Machinery, equipment, furniture, and fixtures | 7,688 | 5,497 | ||||||
Leasehold improvements | 958 | 827 | ||||||
Quantum computing systems | 20,222 | 15,151 | ||||||
Gross property and equipment | 30,342 | 22,315 | ||||||
Less: accumulated depreciation | (5,470 | ) | (3,445 | ) | ||||
Property and equipment, net | $ | $ | 18,870 | |||||
�� |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Risk-Free Interest Rate | 2.72 | % | — | % | 2.12 | % | 0.96 | % | ||||||||
Expected Term (in years) | 5.50 | — | 5.58 | 6.26 | ||||||||||||
Expected Volatility | 78.40 | % | — | % | 77.82 | % | 77.04 | % | ||||||||
Dividend Yield | — | % | — | % | — | % | — | % |
Number of Option Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | |||||||||||||
Outstanding as of December 31, 2021 | 22,133,210 | $ | 0.64 | 7.84 | $ | 377.58 | ||||||||||
Granted | 1,544,470 | 11.98 | ||||||||||||||
Exercised | (1,672,676 | ) | 0.34 | |||||||||||||
Cancelled/Forfeited | (103,540 | ) | 0.73 | |||||||||||||
Outstanding as of June 30, 2022 | 21,901,464 | $ | 1.46 | 7.54 | $ | 75.63 | ||||||||||
Exercisable as of June 30, 2022 | 11,278,172 | $ | 0.75 | 7.16 | $ | 41.34 | ||||||||||
Exercisable and expected to vest as of June 30, 2022 | 21,901,464 | $ | 1.46 | 7.54 | $ | 75.63 | ||||||||||
Number of Option Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value (in millions) | |||||||||||||
Outstanding as of December 31, 2020 | 21,863,368 | $ | 0.34 | 8.67 | $ | 44.79 | ||||||||||
Granted | 6,492,540 | 2.39 | ||||||||||||||
Exercised | (3,239,136 | ) | 1.66 | |||||||||||||
Cancelled/ Forfeited | (342,191 | ) | 0.70 | |||||||||||||
Outstanding as of June 30, 2021 | 24,774,581 | $ | 0.70 | 8.44 | $ | 204.88 | ||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Total intrinsic value of options exercised | $ | 4.9 | $ | 0.9 | $ | 6.8 | $ | 23.7 | ||||||||
Aggregate grant-date fair value of options vested | $ | 2.7 | $ | 1.2 | $ | 4.9 | $ | 1.9 | ||||||||
Weighted-average grant-date fair value per share for options granted | $ | 3.82 | $ | — | $ | 8.10 | $ | 5.83 |
Number of RSUs | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (Years) | Aggregate Fair Value (in millions) | |||||||||||||
Outstanding as of December 31, 2021 | — | $ | — | — | $ | — | ||||||||||
Granted | 4,021,559 | 9.58 | ||||||||||||||
Vested | (433,172 | ) | 11.16 | |||||||||||||
Forfeited | (27,838 | ) | 12.77 | |||||||||||||
Outstanding as of June 30, 2022 | 3,560,549 | $ | 9.36 | 3.25 | $ | 33.33 | ||||||||||
Expected to vest after June 30, 2022 | 3,499,049 | $ | 9.30 | 3.31 | $ | 32.54 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cost of revenue | $ | 247 | $ | 31 | $ | 351 | $ | 31 | ||||||||
Research and development | 2,368 | 717 | 4,066 | 1,170 | ||||||||||||
Sales and marketing | 503 | 25 | 576 | 25 | ||||||||||||
General and administrative | 2,766 | 1,670 | 7,563 | 2,648 | ||||||||||||
Stock-based compensation, net of amounts capitalized | 5,884 | 2,443 | 12,556 | 3,874 | ||||||||||||
Capitalized stock-based compensation - Intangibles and fixed assets | 471 | 89 | 647 | 133 | ||||||||||||
Total stock-based compensation | $ | 6,355 | $ | 2,532 | $ | 13,203 | $ | 4,007 |
Unrecognized Expense | Weighted- Average Amortization Period (Years) | |||||||
Restricted stock units | $ | 30.1 | 1.7 | |||||
Stock options | $ | 37.1 | 1.8 |
June 30, 2022 | December 31, 2021 | |||||||
Accrued payroll expenses and related benefits | $ | 2,219 | $ | 1,025 | ||||
Accrued expenses - other | 1,800 | 1,622 | ||||||
Total accrued expenses | $ | $ | 2,647 | |||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue | $ | 1,002 | $ | — | $ | 1,994 | $ | — | ||||||||
Cost of revenue | 12 | — | 26 | — | ||||||||||||
Research and development (1) | 269 | 796 | 540 | 1,336 | ||||||||||||
Sales and marketing | 37 | — | 69 | — | ||||||||||||
General and administrative | 29 | 61 | 58 | 130 |
(1) | Included in research and development expenses is non-cash amortization associated with the Exclusive Option Agreements with UMD and Duke of $0.2million and $0.7 million for the three months ended June 30, 2022 and 2021, respectively, and $0.3 million and $1.0 million for the six months ended June 30, 2022 and 2021, respectively. Also included in research and development expenses is $0.1 million in allocated rent expense for each of the three months ended June 30, 2022 and 2021, and $0.3 million in allocated rent expense for each of the six months ended June 30, 2022 and 2021. |
June 30, 2022 | December 31, 2021 | |||||||
Assets | ||||||||
Prepaid expenses and other current assets | $ | 562 | $ | 612 | ||||
Operating lease right-of-use asset | 3,894 | 4,032 | ||||||
Other noncurrent assets | 1,585 | 1,845 | ||||||
Liabilities | ||||||||
Accounts payable | 2 | 54 | ||||||
Current operating lease liabilities | 577 | 568 | ||||||
Unearned revenue | 3,302 | 2,821 | ||||||
Non-current operating lease liabilities | 3,556 | 3,643 |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account - U.S. Treasury Securities (1) | $ | 300,083,544 | $ | 0— | $ | 0— | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities | $ | 24,000,000 | $ | 0 | $ | 16,600,000 |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account - U.S. Treasury Securities (1) | $ | 300,029,996 | $ | 0— | $ | 0— | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities | $ | 0 | $ | 0 | $ | 34,885,000 |
As of December 31, 2020 | As of June 30, 2021 | |||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock price | $ | 10.84 | $ | 10.69 | ||||
Volatility | 22.7% / 44.3% | | 40.5% / 45.2% | | ||||
Term | 6.42 | 5.25 | ||||||
Risk-free rate | 0.57 | % | 0.91 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
Level 3 - Derivative warrant liabilities at December 31, 2020 | $ | 34,885,000 | ||
Transfer to Level 1 | (16,725,000 | ) | ||
Change in fair value of derivative warrant liabilities | (1,560,000 | ) | ||
Level 3 - Derivative warrant liabilities at June 30, 2021 | $ | 16,600,000 | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 2,608 | $ | 93 | $ | 4,561 | $ | 218 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) (1) | 742 | 327 | 1,310 | 508 | ||||||||||||
Research and development (1) | 9,653 | 5,477 | 16,990 | 9,131 | ||||||||||||
Sales and marketing (1) | 2,132 | 871 | 4,002 | 1,098 | ||||||||||||
General and administrative (1) | 7,558 | 2,904 | 16,752 | 5,860 | ||||||||||||
Depreciation and amortization | 1,451 | 502 | 2,717 | 947 | ||||||||||||
Total operating costs and expenses | 21,536 | 10,081 | 41,771 | 17,544 | ||||||||||||
Loss from operations | (18,928 | ) | (9,988 | ) | (37,210 | ) | (17,326 | ) | ||||||||
Change in fair value of warrant liabilities | 16,061 | — | 29,509 | — | ||||||||||||
Interest income, net | 1,259 | — | 1,867 | — | ||||||||||||
Other income (expense), net | (46 | ) | 2 | (47 | ) | 5 | ||||||||||
Loss before benefit for income taxes | (1,654 | ) | (9,986 | ) | (5,881 | ) | (17,321 | ) | ||||||||
Benefit for income taxes | — | — | — | — | ||||||||||||
Net loss | $ | (1,654 | ) | $ | (9,986 | ) | $ | (5,881 | ) | $ | (17,321 | ) | ||||
(1) | Cost of revenue, research and development, sales and marketing, and general and administrative expenses for the periods include stock-based compensation expense as follows: |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenue | $ | 247 | $ | 31 | $ | 351 | $ | 31 | ||||||||
Research and development | 2,368 | 717 | 4,066 | 1,170 | ||||||||||||
Sales and marketing | 503 | 25 | 576 | 25 | ||||||||||||
General and administrative | 2,766 | 1,670 | 7,563 | 2,648 |
Three Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 2,608 | $ | 93 | $ | 2,515 | 2,704 | % |
Three Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 742 | $ | 327 | $ | 415 | 127 | % |
Three Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Research and development | $ | 9,653 | $ | 5,477 | $ | 4,176 | 76 | % |
Three Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Sales and marketing | $ | 2,132 | $ | 871 | $ | 1,261 | 145 | % |
Three Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
General and administrative | $ | 7,558 | $ | 2,904 | $ | 4,654 | 160 | % |
Three Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Depreciation and amortization | $ | 1,451 | $ | 502 | $ | 949 | 189 | % |
Three Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Change in fair value of warrant liabilities | $ | 16,061 | $ | — | $ | 16,061 | NM |
Three Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Interest income, net | $ | 1,259 | $ | — | $ | 1,259 | NM |
Six Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 4,561 | $ | 218 | $ | 4,343 | 1,992 | % |
Six Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 1,310 | $ | 508 | $ | 802 | 158 | % |
Six Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Research and development | $ | 16,990 | $ | 9,131 | $ | 7,859 | 86 | % |
Six Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Sales and marketing | $ | 4,002 | $ | 1,098 | $ | 2,904 | 264 | % |
Six Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
General and administrative | $ | 16,752 | $ | 5,860 | $ | 10,892 | 186 | % |
Six Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Depreciation and amortization | $ | 2,717 | $ | 947 | $ | 1,770 | 187 | % |
Six Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Change in fair value of warrant liabilities | $ | 29,509 | $ | — | $ | 29,509 | NM |
Six Months Ended June 30, | $ | % | ||||||||||||||
2022 | 2021 | Change | Change | |||||||||||||
(in thousands) | ||||||||||||||||
Interest income, net | $ | 1,867 | $ | — | $ | 1,867 | NM |
Six Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Net cash used in operating activities | $ | (16,929 | ) | $ | (9,821 | ) | ||
Net cash used in investing activities | $ | (339,183 | ) | $ | (3,999 | ) | ||
Net cash provided by financing activities | $ | 1,055 | $ | 5,392 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 6. | Exhibits. |
+ | Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601. The Registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request. |
# | Indicates a management contract or compensatory plan, contract or arrangement. |
* | Furnished herewith and not deemed to be “filed” for purposes of Section 18 of the Exchange Act and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act (whether made before or after the date of this Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing. |
76 |