Delaware | 4522 | 98-1550340 | ||
(State or Other Jurisdiction of Incorporation or Organization) | (Primary Standard Industrial Classification Code No.) | (I.R.S. Employer Identification No.) |
W. Stuart Ogg | Arjun Kampani | |
Goodwin Procter LLP | Senior Vice President, General Counsel and Secretary | |
601 Marshall Street | Rocket Lab USA, Inc. | |
Redwood City, CA 94063 | 3881 McGowen Street | |
(650) 752-3100 | Long Beach, CA 90808 | |
(714) 465-5737 |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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F-1 |
mandates and funding levels of such governmental entities and may be negatively or positively impacted by any change thereto. |
Issuer | Rocket Lab USA, Inc |
Shares of common stock offered by the Selling Securityholders | Up to 2,676,864 shares of common stock representing: |
Up to 956,023 PSC Earnout Shares. |
Shares of common stock outstanding as of |
Use of proceeds | We will not receive any proceeds from the sale of the common stock by the Selling Securityholders. |
The Selling Securityholders will determine when and how they will dispose of the shares of common stock registered under this prospectus for resale. |
Nasdaq symbols | Our common stock is listed on the Nasdaq under the symbol RKLB. |
Risk factors | See “ Risk Factors |
regulations, tariffs, or taxes and other trade barriers that reduce or restrict our ability to sell our products and services on a global basis, or by political and economic instability in the countries in which we conduct business. Any failure to comply with such regulatory requirements could also subject us to various penalties or sanctions. |
Three Months Ended March 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
$ | % | $ | % | |||||||||||||
Revenues | $ | 40,703 | 100.0 | % | $ | 18,192 | 100.0 | % | ||||||||
Cost of revenues | 36,968 | 90.8 | % | 16,781 | 92.2 | % | ||||||||||
Gross profit | 3,735 | 9.2 | % | 1,411 | 7.8 | % | ||||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | 13,477 | 33.1 | % | 7,078 | 38.9 | % | ||||||||||
Selling, general and administrative | 23,078 | 56.7 | % | 6,624 | 36.4 | % | ||||||||||
Total operating expenses | 36,555 | 89.8 | % | 13,702 | 75.3 | % | ||||||||||
Operating loss | (32,820 | ) | (80.6 | )% | (12,291 | ) | (67.5 | )% | ||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (2,989 | ) | (7.3 | )% | (127 | ) | (0.7 | )% | ||||||||
Loss on foreign exchange | (20 | ) | 0.0 | % | (279 | ) | (1.5 | )% | ||||||||
Change in fair value of liability classified warrants | 13,482 | 33.1 | % | (3,030 | ) | (16.7 | )% | |||||||||
Other income, net | 26 | 0.1 | % | 109 | 0.6 | % | ||||||||||
Total other income (expense), net | 10,499 | 25.9 | % | (3,327 | ) | (18.3 | )% | |||||||||
Loss before income taxes | (22,321 | ) | (54.7 | )% | (15,618 | ) | (85.8 | )% | ||||||||
Provision for income taxes | (4,388 | ) | (10.8 | )% | (264 | ) | (1.5 | )% | ||||||||
Net loss | $ | (26,709 | ) | (65.5 | )% | $ | (15,882 | ) | (87.3 | )% | ||||||
Three Months Ended March 31, | ||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | ||||||||||||
Revenues | $ | 40,703 | $ | 18,192 | $ | 22,511 | 124 | % |
Three Months Ended March 31, | ||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | ||||||||||||
Cost of revenues | $ | 36,968 | $ | 16,781 | $ | 20,187 | 120 | % |
Three Months Ended March 31, | ||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | ||||||||||||
Research and development, net | $ | 13,477 | $ | 7,078 | $ | 6,399 | 90 | % |
Three Months Ended March 31, | ||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | ||||||||||||
Selling, general and administrative | $ | 23,078 | $ | 6,624 | $ | 16,454 | 248 | % |
Three Months Ended March 31, | ||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | ||||||||||||
Interest expense, net | $ | (2,989 | ) | $ | (127 | ) | $ | (2,862 | ) | 2,254 | % |
Three Months Ended March 31, | ||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | ||||||||||||
Loss on foreign exchange | $ | (20 | ) | $ | (279 | ) | $ | 259 | (93 | )% |
Three Months Ended March 31, | ||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | ||||||||||||
Change in fair value of liability classified warrants | $ | 13,482 | $ | (3,030 | ) | $ | 16,512 | (545 | )% |
Three Months Ended March 31, | ||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | ||||||||||||
Other income, net | $ | 26 | $ | 109 | $ | (83 | ) | (76 | )% |
Three Months Ended March 31, | ||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | ||||||||||||
Provision for income taxes | $ | (4,388 | ) | $ | (264 | ) | $ | (4,124 | ) | 1,562 | % |
Years Ended December 31, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
$ | % | $ | % | |||||||||||||
Revenues | $ | 62,237 | 100.0 | % | $ | 35,160 | 100.0 | % | ||||||||
Cost of revenues | 64,130 | 103.0 | % | 46,977 | 133.6 | % | ||||||||||
Gross loss | (1,893 | ) | (3.0 | )% | (11,817 | ) | (33.6 | )% | ||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | 41,765 | 67.1 | % | 19,142 | 54.4 | % | ||||||||||
Selling, general and administrative | 58,395 | 93.8 | % | 23,993 | 68.2 | % | ||||||||||
Total operating expenses | 100,160 | 160.9 | % | 43,135 | 122.6 | % | ||||||||||
Operating loss | (102,053 | ) | (163.9 | )% | (54,952 | ) | (156.2 | )% | ||||||||
Other income (expense): | ||||||||||||||||
Interest income (expense), net | (6,128 | ) | (9.8 | )% | 224 | 0.6 | % | |||||||||
Gain (loss) on foreign exchange | (567 | ) | (0.9 | )% | 2,420 | 6.9 | % | |||||||||
Change in fair value of liability classified warrants | (15,294 | ) | (24.6 | )% | (2,417 | ) | (6.9 | )% | ||||||||
Other income (expense), net | (798 | ) | (1.3 | )% | 187 | 0.5 | % | |||||||||
Total other income (expense), net | (22,787 | ) | (36.6 | )% | 414 | 1.1 | % | |||||||||
Loss before income taxes | (124,840 | ) | (200.5 | )% | (54,538 | ) | (155.1 | )% | ||||||||
Benefit (provision) for income taxes | 7,520 | 12.1 | % | (467 | ) | (1.3 | )% | |||||||||
Net loss | $ | (117,320 | ) | (188.4 | )% | $ | (55,005 | ) | (156.4 | )% | ||||||
Years Ended December 31, | ||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Revenues | $ | 62,237 | $ | 35,160 | $ | 27,077 | 77 | % |
Years Ended December 31, | ||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Cost of revenues | $ | 64,130 | $ | 46,977 | $ | 17,153 | 37 | % |
Years Ended December 31, | ||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Research and development, net | $ | 41,765 | $ | 19,142 | $ | 22,623 | 118 | % |
Years Ended December 31, | ||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Selling, general and administrative | $ | 58,395 | $ | 23,993 | $ | 34,402 | 143 | % |
Years Ended December 31, | ||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Interest income (expense), net | $ | (6,128 | ) | $ | 224 | $ | (6,352 | ) | (2,836 | )% |
Years Ended December 31, | ||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Gain (loss) on foreign exchange | $ | (567 | ) | $ | 2,420 | $ | (2,987 | ) | (123 | )% |
Years Ended December 31, | ||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Change in fair value of liability classified warrants | $ | (15,294 | ) | $ | (2,417 | ) | $ | (12,877 | ) | 533 | % |
Years Ended December 31, | ||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Other income (expense), net | $ | (798 | ) | $ | 187 | $ | (985 | ) | (527 | )% |
Years Ended December 31, | ||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ Change | % Change | ||||||||||||
Benefit (provision) for income taxes | $ | 7,520 | $ | (467 | ) | $ | 7,987 | (1,710 | )% |
Years Ended December 31, | Three Months Ended March 31, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Net cash provided by (used in): | ||||||||||||||||
Operating activities | $ | (71,791 | ) | $ | (27,757 | ) | $ | (26,339 | ) | $ | (15,479 | ) | ||||
Investing activities | (92,134 | ) | (37,329 | ) | (71,830 | ) | (4,046 | ) | ||||||||
Financing activities | 799,939 | 21,478 | 14,444 | 414 | ||||||||||||
Effect of exchange rate changes | 2,128 | (153 | ) | (574 | ) | 517 | ||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | $ | 638,142 | $ | (43,761 | ) | |||||||||||
Net decrease in cash, cash equivalents, and restricted cash | $ | (84,299 | ) | $ | (18,594 | ) | ||||||||||
Years Ended December 31, | ||||||||
(in thousands) | 2021 | 2020 | ||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | (71,791 | ) | $ | (27,757 | ) | ||
Investing activities | (92,134 | ) | (37,329 | ) | ||||
Financing activities | 799,939 | 21,478 | ||||||
Effect of exchange rate changes | 2,128 | (153 | ) | |||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | $ | 638,142 | $ | (43,761 | ) | |||
Name | Age | Position(s) | ||||
Executive Officers | ||||||
Peter Beck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 45 | President, Chief Executive Officer and Chairman | ||||
Adam Spice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 53 | Chief Financial Officer | ||||
Shaun O’Donnell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 44 | Executive Vice President, Global Operations | ||||
Arjun Kampani. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 50 | Senior Vice President and General Counsel and Corporate Secretary | ||||
Non-Employee Directors | ||||||
Alex Slusky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | Director | |||||
David Cowan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 56 | Director | ||||
Michael Griffin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 72 | Director | ||||
Sven Strohband . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | Director | |||||
Matt Ocko . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 53 | Director | ||||
Merline Saintil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 45 | Director | ||||
Jon Olson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 68 | Director |
Annual Retainer for Board Membership | ||||
Annual service on the board of directors | $ | 35,000 | ||
Additional retainer for annual service as non-executive chairperson | $ | 27,500 | ||
Additional retainer for annual service as a lead director of the board of directors | $ | 17,000 | ||
Additional Annual Retainer for Committee Membership | ||||
Annual service as audit committee chairperson | $ | 20,000 | ||
Annual service as member of the audit committee (other than chair) | $ | 10,000 | ||
Annual service as compensation committee chairperson | $ | 14,000 | ||
Annual service as member of the compensation committee (other than chair) | $ | 6,000 | ||
Annual service as nominating and governance committee chairperson | $ | 8,000 | ||
Annual service as member of the nominating and governance committee (other than chair) | $ | 4,000 |
Name | Fees Paid or Earned in Cash ($) | Stock Awards ($) (1) | Total ($) | |||||||||
David Cowan (2) | 13,677 | — | 13,677 | |||||||||
Michael Griffin (3) | 43,321 | — | 43,321 | |||||||||
Matt Ocko (4) | — | — | — | |||||||||
Jon Olson (5) | 37,868 | 2,792,800 | 2,830,668 | |||||||||
Merline Saintil (6) | 41,956 | 2,792,800 | 2,834,756 | |||||||||
Alex Slusky (7) | 13,677 | — | 13,677 | |||||||||
Sven Strohband (8) | — | — | — |
(1) | The amounts reported represent the aggregate grant date fair value of the restricted stock units granted to our directors during 2021, calculated in accordance with FASB ASC Topic 718, assuming that the liquidity- based vesting condition was satisfied. Such grant date fair values do not take into account any estimated forfeitures. Assumptions used in the calculation of these amounts are included in Note 2 to our financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. These amounts do not reflect the actual economic value that may be realized by the directors upon the vesting or settlement of the restricted stock units, or the sale of the common stock underlying such awards. |
(2) | As of December 31, 2021, Mr. Cowan did not hold any outstanding equity awards. |
(3) | As of December 31, 2021, Dr. Griffin held 608,256 restricted stock units. |
(4) | As of December 31, 2021, Mr. Ocko did not hold any outstanding equity awards. |
(5) | Mr. Olson joined our Board on in June 2021. As of December 31, 2021, Mr. Olson held 362,386 restricted stock units. |
(6) | Ms. Saintil joined our Board in June 2021. As of December 31, 2021, Ms. Saintil held 362,386 restricted stock units. |
(7) | Mr. Slusky joined our Board in connection with the consummation of the Business Combination. As of December 31, 2021, Mr. Slusky did not hold any outstanding equity awards. |
(8) | As of December 31, 2021, Dr. Strohband did not hold any outstanding equity awards. |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($) | All Other Compensation ($) | Total ($) | |||||||||||||||||||||
Peter Beck President Chief Executive Officer and Chairman | 2021 | 306,459 | — | — | — | 18,788 | (1) | 325,246 | ||||||||||||||||||||
| 2020 | | 327,000 | — | — | — | 46,434 | 373,434 | ||||||||||||||||||||
Adam Spice Chief Financial Officer | 2021 | 315,774 | — | — | 4,707,448 | (2) | 6,168 | (3) | 5,029,390 | |||||||||||||||||||
2020 | 309,000 | 123,600 | — | — | 6,747 | 439,347 | ||||||||||||||||||||||
Shaun O’Donnell Executive Vice President, Global Operations | 2021 | 232,580 | — | 4,934,039 | (4) | — | — | 5,166,619 | ||||||||||||||||||||
| 2020 | | 248,000 | 99,280 | — | — | — | 347,280 |
(1) | Represents the incremental cost to us of Mr. Beck’s personal use of a Company car ($17,609) and cell phone reimbursements ($1,179). |
(2) | Represents the incremental fair value, calculated in accordance with FASB ASC Topic 718, resulting from the modification to Mr. Spice’s options to purchase 558,769 shares of Company common stock to provide for cash settlement in connection with the Business Combinations and the management redemptions, as described in more detail below under Narrative Disclosure to the Summary Compensation Table – Equity Incentive Compensation. |
(3) | Represents the Company’s matching contributions to Mr. Spice’s 401(k) account. |
(4) | Represents the incremental fair value, calculated in accordance with FASB ASC Topic 718, resulting from the modification to Mr. O’Donnell’s 498,177 shares of Company common stock to provide for cash settlement in connection with the Business Combinations and the management redemptions, as described in more detail below under Narrative Disclosure to the Summary Compensation Table – Equity Incentive Compensation. |
Option Awards (1) | Stock Awards (1) | |||||||||||||||||||||||||||
Name | Vesting Commencement Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) (2) | |||||||||||||||||||||
Peter Beck | — | — | — | — | — | — | — | |||||||||||||||||||||
Adam Spice | 5/25/2018 | 4,529,938 | 591,714 | (3) | 1.09 | 8/03/2028 | ||||||||||||||||||||||
Shaun O’Donnell | 8/03/2018 | 1,436,590 | 287,318 | (4) | 1.09 | 8/03/2028 | 724,772 | (5) | 8,900,200 |
(1) | Each equity award is subject to the terms of our 2013 Plan. The equity awards are subject to certain acceleration of vesting provisions pursuant to the Executive Severance Plan, as applicable. |
(2) | Based on the closing market price of a share of our common stock on December 31, 2021, which was $12.28. |
(3) | 1/4 of the shares subject to the stock option vest on the one year anniversary of the vesting commencement date, and 1/48 of the shares subject to the stock option vest on a monthly basis each month thereafter, in each case, subject to the NEO’s continuous service relationship with Rocket Lab through each applicable vesting date. |
(4) | 1/48 of the shares subject to the stock option vest on a monthly basis each month following the first anniversary of the vesting commencement date, subject to the NEO’s continuous service relationship with us through each applicable vesting date. |
(5) | The restricted stock units are subject to both a time-based vesting condition and a liquidity-based vesting condition, both of which must be satisfied prior to the expiration date before the restricted stock units will be deemed vested. The time-based vesting condition is satisfied as follows: 25% of the restricted stock units shall satisfy the Time Condition on the first March 1st, May 22nd, August 22nd or November 22nd (each, a vesting date) following the first anniversary of the vesting commencement date, subject to the NEO’s continuous service relationship with Rocket Lab through each applicable vesting date. Thereafter, the remaining 75% of the restricted stock units satisfy the time-based vesting condition in 12 equal quarterly installments on each vesting date thereafter, in each case subject to the NEO’s continuous service relationship with us through each applicable vesting date. The restricted stock units will satisfy the liquidity based vesting condition on the first to occur of (i) a sale event (as defined in the 2013 Plan) or (ii) Rocket Lab’s initial public offering (as defined in the 2013 Plan), in either case, prior to the expiration date. As of December 31, 2021, the liquidity-based vesting condition had not been satisfied. |
Name and Address of Beneficial Owner (1) | Number of Shares | % of Voting Power | ||||||
Directors and Executive Officers: | ||||||||
Peter Beck (2) | 54,551,250 | 11.8 | % | |||||
Adam Spice (3) | 5,121,651 | 1.1 | % | |||||
Shaun O’Donnell (4) | 1,832,791 | * | ||||||
Matt Ocko (5) | 10,132,385 | 2.2 | % | |||||
David Cowan (6) | 383,149 | * | ||||||
Michael Griffin (7) | — | — | ||||||
Sven Strohband (8) | 67,552 | * | ||||||
Jon Olson (7) | — | — | ||||||
Merline Saintil (7) | — | — | ||||||
Alex Slusky (9) | — | — | ||||||
All directors and executive officers as a group | 72,088,778 | 15.3 | % | |||||
Five Percent Holders: | ||||||||
Entities Affiliated with Khosla Ventures (10) | 106,863,617 | 23.0 | % | |||||
Entities Affiliated with Bessemer Venture Partners (11) | 73,308,472 | 15.8 | % | |||||
Future Fund Investment Company No. 5 (12) | 42,364,939 | 9.1 | % |
* | Less than 1% |
(1) | Unless otherwise noted, the business address of each of the directors and officers is 3881 McGowen Street, Long Beach, CA 90808. |
(2) | Represents shares held by Equatorial Trust, which is a family trust established by Peter Beck. Peek Street Equatorial Trustee Limited is sole trustee of Equatorial Trust and Peter Beck, Kerryn Beck and Warren Butler are the directors of Peek Street Equatorial Trustee Limited. Equatorial Trust and Peek Street Equatorial Trustee Limited each possess sole voting and investment power and Peter Beck, Kerryn Beck and Warren Butler each possess shared voting and investment power over the shares held by Equatorial Trust and, accordingly, also have beneficial ownership of such shares. |
(3) | Represents shares of common stock issuable upon exercise of stock options exercisable within 60 days of |
(4) | Includes 1,652,078 shares of common stock issuable upon exercise of stock options exercisable within 60 days of |
(5) | Matt Ocko, a member of our Board, is a partner at DCVC. DCVC’s holdings consist of (i) 2,929,350 shares of common stock issued in the Business Combination upon the conversion of shares of Rocket Lab stock held by Data Collective IV, L.P., or DCVC IV, and (ii) 7,203,035 shares of common stock issued in the Business Combination upon the conversion of shares of Rocket Lab stock held by DCVC Opportunity Fund II, L.P., or DCVC Opportunity Fund II. Data Collective IV GP, LLC, or DCVC IV GP, is the general partner of DCVC IV, and DCVC Opportunity Fund II GP, LLC, or DCVC Opportunity Fund II GP, is the general partner of DCVC Opportunity Fund II. Zachary Bogue and Matt Ocko are the managing members of each of DCVC IV GP and DCVC Opportunity Fund II GP and share voting and dispositive power over the shares held by DCVC IV and DCVC Opportunity Fund II. Mr. Ocko disclaims beneficial ownership interest of the securities held by DCVC IV and DCVC Opportunity Fund II except to the extent of his pecuniary interest therein, if any. The address of the entities listed herein is 270 University Avenue, Palo Alto, California 94301. |
(6) | David Cowan, a member of our Board, is a partner at Bessemer Venture Partners. Mr. Cowan disclaims beneficial ownership interest of the securities held by the Bessemer Entities (as defined below) referred to in footnote 12 below, except to the extent of his pecuniary interest, if any, in such securities by virtue of his interest in Deer VIII L.P. (as defined below) and his indirect limited partnership interest in the Bessemer Entities. |
(7) | Excludes shares of common stock issuable upon settlement of restricted stock units where settlement remains contingent upon satisfaction of a liquidity based vesting condition. |
(8) | Shares held in a trust for the benefit of Sven Strohband and his family. Dr Strohband, a member of our Board, is a partner at Khosla Ventures. Dr. Strohband received such shares in a distribution by Khosla Ventures V, L.P., Khosla Ventures Seed B, L.P. and Khosla Ventures Seed B (CF), L.P. to the limited and general partners. |
(9) | Does not include any shares that may be deemed to be indirectly owned by Mr. Slusky because of his indirect ownership interest in the Sponsor or in Vector Acquisition Partners Aggregator, L.L.C. |
(10) | Consists of (i) 2,746,629 shares of common stock held by Khosla Ventures Seed B CF L.P., (ii) 48,386,526 shares of common stock held by Khosla Ventures Seed B L.P., (iii) 52,371,162 shares of common stock held by Khosla Ventures V L.P. and (iv) 3,359,300 shares of common stock held by VK Services, LLC. Khosla Ventures Seed Associates B, LLC (“KVA Seed B”) is the general partner of Khosla Ventures Seed B (CF), L.P. (“KV Seed B (CF)”) and Khosla Ventures Seed B, L.P. (“KV Seed B”). Vinod Khosla is the managing member of VK Services, LLC (“VK Services”), which is the sole manager of KVA Seed B (CF). Each of KVA Seed B, VK Services and Vinod Khosla may be deemed to possess voting and investment control over such securities held by KV Seed B (CF) and KV Seed B, and each of KVA Seed B, VK Services and Vinod Khosla may be deemed to have indirect beneficial ownership of such securities held by KV Seed B (CF) and KV Seed B. Each of KVA Seed B, VK Services and Vinod Khosla disclaims beneficial ownership of such shares, except to the extent of his or its respective pecuniary interests therein. Khosla Ventures Associates V, LLC (“KVA V”) is the general partner of Khosla Ventures V, L.P. (“KV V”). Vinod Khosla is the managing member of VK Services, which is the sole manager of KVA V. Each of KVA V, VK Services and Vinod Khosla may be deemed to possess voting and investment control over such securities held by KV V, and each of KVA V, VK Services and Vinod Khosla may be deemed to have indirect beneficial ownership of such securities held by KV V. Each of KVA V, VK Services and Vinod Khosla disclaims beneficial ownership of such shares, except to the extent of his or its respective pecuniary interests therein. Sven Strohband, a member of our Board, is a partner at Khosla Ventures. The principal business address of the entities is c/o Khosla Ventures, 2128 Sand Hill Road, Menlo Park, CA 94025. |
(11) | Consists of (i) 40,026,429 shares of common stock held by Bessemer Venture Partners VIII Institutional L.P. (“Bessemer VIII Institutional”), and (ii) 33,282,043 shares of common stock held by Bessemer Venture Partners VIII L.P. (“Bessemer VIII” and, together with Bessemer VIII Institutional, the “Bessemer Entities”). Deer VIII & Co. L.P. (“Deer VIII L.P.”) is the general partner of the Bessemer Entities. Deer VIII & Co. Ltd. (“Deer VIII Ltd.”) is the general partner of Deer VIII L.P. Robert P. Goodman, David Cowan, Jeremy Levine, Byron Deeter and Robert M. Stavis are the directors of Deer VIII Ltd. and hold the voting and dispositive power for the Bessemer Entities. Investment and voting decisions with respect to the shares held by the Bessemer Entities are made by the directors of Deer VIII Ltd. acting as an investment committee. The address for each of the Bessemer Entities is c/ o Bessemer Venture Partners, 1865 Palmer Avenue, Suite 104, Larchmont, NY 10538. |
(12) | Consists of 42,364,939 shares of common stock held by the Northern Trust Company. Shares are held by The Northern Trust Company in its capacity as custodian for Future Fund Investment Company No.5 Pty Ltd (ABN 134 338 926) (FFIC 5). FFIC 5 is a wholly owned subsidiary of the Future Fund Board of Guardians. Investment and voting decisions for the Future Fund are made by the Future Fund Board of Guardians, which is governed by a non-executive board comprised of three or more individuals, and therefore no individual is the beneficial owner of the shares held by Future Fund. The principal business address of the Future Fund is Level 14, 447 Collins Street, Melbourne VIC 3000. |
Selling Securityholders | Shares of Common Stock Beneficially Owned Prior to this Offering | Earnout Shares** | Number of Shares of Common Stock Being Offered | Shares of Common Stock Beneficially Owned After the Offered Shares of Common Stock are Sold | Shares of Common Stock Beneficially Owned Prior to this Offering | Earnout Shares* | Number of Shares of Common Stock Being Offered | Shares of Common Stock Beneficially Owned After the Offered Shares of Common Stock are Sold | ||||||||||||||||||||||||||||||
Number | Percentage | Number | Percentage | |||||||||||||||||||||||||||||||||||
Donald Gibbons (1) | 17,243 | 9,579 | 26,822 | — | * | 17,243 | 9,579 | 26,822 | — | — | ||||||||||||||||||||||||||||
Francis Bradford Haughey (2) | 17,243 | 9,579 | 26,822 | — | * | 17,243 | 9,579 | 26,822 | — | — | ||||||||||||||||||||||||||||
Kathleen Holemans (3) | 68,971 | 38,318 | 107,289 | — | * | 68,971 | 38,318 | 107,289 | — | — | ||||||||||||||||||||||||||||
Walter Holemans (4) | 905,252 | 502,918 | 1,408,170 | — | * | 905,252 | 502,918 | 1,408,170 | — | — | ||||||||||||||||||||||||||||
Donald Kruelski (5) | 17,243 | 9,579 | 26,822 | — | * | 17,243 | 9,579 | 26,822 | — | — | ||||||||||||||||||||||||||||
J. (John) Bruce McKissock (6) | 396,587 | 220,326 | 616,913 | — | * | 396,587 | 220,326 | 616,913 | — | — | ||||||||||||||||||||||||||||
Joseph Reid (7) | 212,088 | 117,827 | 329,915 | — | * | 212,088 | 117,827 | 329,915 | — | — | ||||||||||||||||||||||||||||
Michael Whalen (8) | 86,214 | 47,897 | 134,111 | — | * | 86,214 | 47,897 | 134,111 | — | — |
represents the PSC Earnout Shares. |
1. | The principal business address of this individual is 620 Old San Francisco Rd., Sunnyvale, CA 94086. |
2. | The principal business address of this individual is 4424 Ridge Street, Chevy Chase, MD 20815. |
3. | The principal business address of this individual is 226 N. Columbus Street, Arlington, VA 22203. |
4. | The principal business address of this individual is 4826 Alton Place NW, Washington, DC 20016. |
5. | The principal business address of this individual is 944 Barton Oaks Place, Herndon, VA 20170. |
6. | The principal business address of this individual is 74 North Clinton Street, Doylestown, PA 18901. |
7. | The principal business address of this individual is 822 S. Arlington Mill Dr., Apt 204, Arlington, VA 22204. |
8. | The principal business address of this individual is 17700 Kirk Lane, Rockville, MD 20853. |
Stockholder | Shares of Series E-1 Convertible Preferred Stock | Total Purchase Price | ||||||
Khosla Ventures (1)(2) | 63,428 | $ | 1,999,986 | |||||
DCVC (3) | 31,714 | $ | 999,993 | |||||
Bessemer Ventures Partners (4)(5) | 47,571 | $ | 1,499,989 |
(1) | Affiliates of Khosla Ventures holding Rocket Lab securities, whose shares are aggregated for purposes of reporting the above share ownership information, are Khosla Ventures Seed B, LP, Khosla Ventures Seed B (CF), LP, and Khosla Ventures V, LP. Affiliates of Khosla Ventures beneficially own approximately 31.7% of our outstanding capital stock as of June 7, 2021. |
(2) | Sven Strohband, a member of our Board, is a partner at Khosla Ventures. |
(3) | Matt Ocko, a member of our Board, is a senior managing partner at DCVC. |
(4) | Affiliates of Bessemer Ventures Partners holding Rocket Lab securities, whose shares are aggregated for purposes of reporting the above share ownership information, are Bessemer Venture Partners VIII Institutional L.P. and Bessemer Venture Partners VIII L.P. Affiliates of Bessemer Venture Partners beneficially own approximately 22.5% of our outstanding capital stock as of June 7, 2021. |
(5) | David Cowan, a member of our Board, is a partner at Bessemer Venture Partners. |
shelf registration statement available for the resale of holders’ registrable securities at such time. |
Condensed Consolidated Financial Statements | ||||
F-2 | ||||
F-3 | ||||
F-4 | ||||
F-5 | ||||
F-6 |
Consolidated Financial Statements | ||||
March 31, 2022 | December 31, 2021 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 603,144 | $ | 690,959 | ||||
Accounts receivable, net | 32,990 | 13,957 | ||||||
Contract assets | 5,853 | 2,490 | ||||||
Inventories | 77,888 | 47,904 | ||||||
Prepaids and other current assets | 26,307 | 19,454 | ||||||
Total current assets | 746,182 | 774,764 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 99,554 | 65,339 | ||||||
Intangible assets, net | 87,617 | 57,487 | ||||||
Goodwill | 58,767 | 43,308 | ||||||
Right-of-use | 33,448 | 28,424 | ||||||
Right-of-use | 16,073 | — | ||||||
Restricted cash | 4,632 | 1,116 | ||||||
Deferred income tax assets, net | 7,221 | 5,859 | ||||||
Other non-current assets | 3,990 | 4,550 | ||||||
Total assets | $ | 1,057,484 | $ | 980,847 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Trade payables | $ | 15,106 | $ | 3,489 | ||||
Accrued expenses | 17,051 | 10,977 | ||||||
Employee benefits payable | 22,958 | 8,266 | ||||||
Contract liabilities | 97,116 | 59,749 | ||||||
Current installments of long-term borrowings | 2,846 | 2,827 | ||||||
Other current liabilities | 18,307 | 10,999 | ||||||
Total current liabilities | 173,384 | 96,307 | ||||||
Non-current liabilities: | ||||||||
Long-term borrowings, excluding current installments | 97,967 | 97,297 | ||||||
Non-current operating lease liabilities | 32,303 | 28,302 | ||||||
Non-current finance lease liabilities | 15,825 | — | ||||||
Deferred tax liabilities | 509 | 466 | ||||||
Public and private warrant liabilities | — | 58,227 | ||||||
Other non-current liabilities | 4,901 | 1,800 | ||||||
Total liabilities | 324,889 | 282,399 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 14) | ||||||||
Stockholders’ equity: | ||||||||
Common stock, $0.0001 par value; authorized shares: 2,500,000,000; issued and outstanding shares: 462,742,812 and 450,180,479 at March 31, 2022 and December 31, 2021, respectively | 46 | 45 | ||||||
Additional paid-in capital | 1,062,085 | 1,002,106 | ||||||
Accumulated deficit | (331,720 | ) | (305,011 | ) | ||||
Accumulated other comprehensive income | 2,184 | 1,308 | ||||||
Total stockholders’ equity | 732,595 | 698,448 | ||||||
Total liabilities and stockholders’ equity | $ | 1,057,484 | $ | 980,847 |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenues | $ | 40,703 | $ | 18,192 | ||||
Cost of revenues | 36,968 | 16,781 | ||||||
Gross profit | 3,735 | 1,411 | ||||||
Operating expenses: | ||||||||
Research and development, net | 13,477 | 7,078 | ||||||
Selling, general and administrative | 23,078 | 6,624 | ||||||
Total operating expenses | 36,555 | 13,702 | ||||||
Operating loss | (32,820 | ) | (12,291 | ) | ||||
Other income (expense): | ||||||||
Interest expense, net | (2,989 | ) | (127 | ) | ||||
Loss on foreign exchange | (20 | ) | (279 | ) | ||||
Change in fair value of liability classified warrants | 13,482 | (3,030 | ) | |||||
Other income, net | 26 | 109 | ||||||
Total other income (expense), net | 10,499 | (3,327 | ) | |||||
Loss before income taxes | (22,321 | ) | (15,618 | ) | ||||
Provision for income taxes | (4,388 | ) | (264 | ) | ||||
Net loss | $ | (26,709 | ) | $ | (15,882 | ) | ||
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation income | 876 | 741 | ||||||
Comprehensive loss | $ | (25,833 | ) | $ | (15,141 | ) | ||
Net loss per share attributable to Rocket Lab USA, Inc.: | ||||||||
Basic and diluted | $ | (0.06 | ) | $ | (0.20 | ) | ||
Weighted-average common shares outstanding: | ||||||||
Basic and diluted | 456,495,288 | 78,826,075 |
Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Other Comprehensive Income | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||
December 31, 2021 | — | $ | — | 450,180,479 | $ | 45 | $ | 1,002,106 | $ | (305,011 | ) | $ | 1,308 | $ | 698,448 | |||||||||||||||||
Net loss | — | — | — | — | — | (26,709 | ) | — | (26,709 | ) | ||||||||||||||||||||||
Issuance of common stock under equity plans | — | — | 7,883,569 | 1 | 1,019 | — | — | 1,020 | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 14,116 | — | — | 14,116 | ||||||||||||||||||||||||
Common stock issued upon exercise of Public and Private Warrants | — | — | 4,554,830 | — | 44,844 | — | — | 44,844 | ||||||||||||||||||||||||
Issuance of common stock for acquisition | — | — | 123,934 | — | — | — | — | — | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 876 | 876 | ||||||||||||||||||||||||
March 31, 2022 | — | $ | — | 462,742,812 | $ | 46 | $ | 1,062,085 | $ | (331,720 | ) | $ | 2,184 | $ | 732,595 |
Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Other Comprehensive Income | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||
December 31, 2020 | 31,330,513 | $ | 274,960 | 8,654,869 | $ | — | $ | 19,928 | $ | (187,691 | ) | $ | 1,055 | $ | (166,708 | ) | ||||||||||||||||
Retroactive application of Exchange Ratio | 252,513,251 | — | 69,755,293 | 8 | (8 | ) | — | — | — | |||||||||||||||||||||||
December 31, 2020 as adjusted | 283,843,764 | 274,960 | 78,410,162 | 8 | 19,920 | (187,691 | ) | 1,055 | (166,708 | ) | ||||||||||||||||||||||
Net loss | — | — | — | — | — | (15,882 | ) | — | (15,882 | ) | ||||||||||||||||||||||
Exercise of stock options | — | — | 545,527 | — | 542 | — | — | 542 | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,102 | — | — | 1,102 | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 741 | 741 | ||||||||||||||||||||||||
March 31, 2021 | 283,843,764 | $ | 274,960 | 78,955,689 | $ | 8 | $ | 21,564 | $ | (203,573 | ) | $ | 1,796 | $ | (180,205 | ) |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (26,709 | ) | $ | (15,882 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 6,088 | 2,397 | ||||||
Stock-based compensation expense | 11,958 | 1,090 | ||||||
Loss on disposal of assets | 5 | — | ||||||
Amortization of debt issuance costs and discount | 690 | — | ||||||
Noncash lease expense | 731 | 505 | ||||||
Noncash (income) expense associated with liability-classified warrants | (13,482 | ) | 3,382 | |||||
Change in the fair value of contingent consideration | 2,500 | — | ||||||
Deferred income taxes | (1,558 | ) | (42 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (5,644 | ) | 611 | |||||
Contract assets | (3,668 | ) | (246 | ) | ||||
Inventories | (9,132 | ) | 70 | |||||
Prepaids and other current assets | (1,071 | ) | 1,286 | |||||
Other non-current assets | 772 | — | ||||||
Trade payables | 805 | 638 | ||||||
Accrued expenses | (3,245 | ) | 552 | |||||
Employee benefits payables | 475 | 115 | ||||||
Contract liabilities | 10,652 | (9,945 | ) | |||||
Other current liabilities | 4,266 | 95 | ||||||
Non-current lease liabilities | (783 | ) | (517 | ) | ||||
Other non-current liabilities | 11 | 412 | ||||||
Net cash used in operating activities | (26,339 | ) | (15,479 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, equipment and software | (6,242 | ) | (4,046 | ) | ||||
Cash paid for acquisition, net of acquired cash and restricted cash | (65,588 | ) | — | |||||
Net cash used in investing activities | (71,830 | ) | (4,046 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from the exercise of stock options and public warrants | 1,379 | 554 | ||||||
Proceeds from Employee Stock Purchase Plan | 1,025 | — | ||||||
Proceeds from sale of employees restricted stock units to cover taxes | 20,841 | — | ||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (8,756 | ) | — | |||||
Finance lease principal payments | (45 | ) | — | |||||
Payment of deferred transaction costs associated with planned reverse recapitalization transaction | — | (140 | ) | |||||
Net cash provided by financing activities | 14,444 | 414 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (574 | ) | 517 | |||||
Net decrease in cash and cash equivalents and restricted cash | (84,299 | ) | (18,594 | ) | ||||
Cash and cash equivalents, and restricted cash, beginning of period | 692,075 | 53,933 | ||||||
Cash and cash equivalents, and restricted cash, end of period | $ | 607,776 | $ | 35,339 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid for interest | $ | 2,292 | $ | — | ||||
Cash paid for income taxes | 2,248 | — | ||||||
Unpaid purchases of property, equipment and software | 1,417 | 342 | ||||||
Deferred transaction costs in accrued expenses | — | 1,371 | ||||||
Right-of-use | 3,783 | — | ||||||
Net exercise of public and private warrants into common stock | 44,739 | — | ||||||
Issuance of common stock for payment of accrued bonus | 1,441 | — |
1. | DESCRIPTION OF THE BUSINESS |
2. | SIGNIFICANT ACCOUNTING POLICIES |
3. | REVENUES |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenues by recognition model | ||||||||
Point-in-time | $ | 28,237 | $ | 17,035 | ||||
Over-time | 12,466 | 1,157 | ||||||
Total revenue by recognition model | $ | 40,703 | $ | 18,192 |
March 31, 2022 | December 31, 2021 | |||||||
Contract balances | ||||||||
Accounts receivable | $ | 32,990 | $ | 13,957 | ||||
Contract assets | 5,853 | 2,490 | ||||||
Contract liabilities | (97,116 | ) | (59,749 | ) |
Contract liabilities, at December 31, 2021 | $ | 59,749 | ||
Contract liabilities assumed at acquisition | 26,714 | |||
Customer advances received | 22,673 | |||
Recognition of unearned revenue | (12,020 | ) | ||
Contract liabilities, at March 31, 2022 | $ | 97,116 |
4. | BUSINESS COMBINATIONS |
Description | Amount | |||
Cash and cash equivalents | $ | 2,245 | ||
Accounts receivable | 1,920 | |||
Intangible assets | 15,900 | |||
Employee benefits payable | (1,310 | ) | ||
Other assets and liabilities, net | 21 | |||
Identifiable net assets acquired | 18,776 | |||
Goodwill | 16,659 | |||
Total purchase price | $ | 35,435 |
Type | Estimated Life in Years | Fair Value | ||||||
Developed technology | 7 | $ | 11,400 | |||||
In-process technology | N/A | 300 | ||||||
Customer relationships | 10 | 3,100 | ||||||
Trademark and tradenames | 7 | 1,100 | ||||||
Total identifiable intangible assets acquired | $ | 15,900 |
Description | Amount | |||
Cash and cash equivalents | $ | 3,655 | ||
Accounts receivable | 2,543 | |||
Inventories | 7,088 | |||
Intangible assets | 33,000 | |||
Employee benefits payable | (1,212 | ) | ||
Contract liabilities (1) | (5,352 | ) | ||
Other current liabilities | (1,683 | ) | ||
Non-current deferred tax liabilities | (6,762 | ) | ||
Other assets and liabilities, net | 1,040 | |||
Identifiable net assets acquired | 32,317 | |||
Goodwill | 23,451 | |||
Total purchase price | $ | 55,768 |
(1) | Contract liabilities was recorded under ASC 606 in accordance with ASU No. 2021-08; therefore a reduction in contract liabilities related to the estimated fair values of the acquired contract liabilities was not required. |
Type | Estimated Life in Years | Fair Value | ||||||
Developed technology | 8 | $ | 23,500 | |||||
In-process technology | N/A | 1,500 | ||||||
Customer relationships | 15 | 3,400 | ||||||
Backlog | 1 | 400 | ||||||
Trademark and tradenames | 15 | 4,200 | ||||||
Total identifiable intangible assets acquired | $ | 33,000 |
Description | Amount | |||
Cash and cash equivalents | $ | 7,815 | ||
Accounts receivable | 12,322 | |||
Inventories | 19,614 | |||
Prepaids and other current assets | 2,475 | |||
Property and equipment | 29,822 | |||
Intangible assets, net | 32,900 | |||
Right-of-use | 1,128 | |||
Right-of-use | 16,174 | |||
Restricted cash | 3,293 | |||
Trade payables | (10,432 | ) | ||
Accrued expenses | (9,154 | ) | ||
Contract liabilities (1) | (26,714 | ) | ||
Non-current operating lease liabilities | (1,128 | ) | ||
Non-current finance lease liabilities | (15,874 | ) | ||
Other assets and liabilities, net | (1,033 | ) | ||
Identifiable net assets acquired | 61,208 | |||
Goodwill | 15,488 | |||
Total purchase price | $ | 76,696 |
(1) | Contract liabilities was recorded under ASC 606 in accordance with ASU No. 2021-08; therefore a reduction in contract liabilities related to the estimated fair values of the acquired contract liabilities was not required. |
Type | Estimated Life in Years | Fair Value | ||||||
Developed technology | 14 | $ | 10,000 | |||||
In-process technology | N/A | 800 | ||||||
Capitalized software | 3 | 5,400 | ||||||
Customer relationships | 12 | 9,000 | ||||||
Trademark and tradenames | 12 | 4,700 | ||||||
Backlog | 2 | 3,000 | ||||||
Total identifiable intangible assets acquired | $ | 32,900 |
As Reported | Acquisitions Pro-Forma (Unaudited) | Consolidated Pro-Forma (Unaudited) | ||||||||||
Three Months Ended March 31, 2022 | ||||||||||||
Revenues | $ | 40,703 | $ | 2,454 | $ | 43,157 | ||||||
Net loss | (26,709 | ) | (1,062 | ) | (27,771 | ) | ||||||
Three Months Ended March 31, 2021 | ||||||||||||
Revenues | $ | 18,192 | $ | 24,579 | $ | 42,771 | ||||||
Net loss | (15,882 | ) | (3,431 | ) | (19,313 | ) |
5. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
March 31, 2022 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market accounts | $ | 542,406 | $ | — | $ | — | $ | 542,406 | ||||||||
Total | $ | 542,406 | $ | — | $ | — | $ | 542,406 | ||||||||
Liabilities: | ||||||||||||||||
Other current liabilities: | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 5,500 | $ | 5,500 | ||||||||
Other non-current liabilities: | ||||||||||||||||
Contingent consideration | — | — | 4,300 | 4,300 | ||||||||||||
Total | $ | — | $ | — | $ | 9,800 | $ | 9,800 | ||||||||
December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market accounts | $ | 635,269 | $ | — | $ | — | $ | 635,269 | ||||||||
Total | $ | 635,269 | $ | — | $ | — | $ | 635,269 | ||||||||
Liabilities: | ||||||||||||||||
Other non-current liabilities: | ||||||||||||||||
Public and Private Warrants (Note 11) | $ | 58,227 | $ | — | $ | — | $ | 58,227 | ||||||||
Total | $ | 58,227 | $ | — | $ | — | $ | 58,227 |
6. | INVENTORIES |
March 31, 2022 | December 31, 2021 | |||||||
Raw materials | $ | 25,691 | $ | 21,517 | ||||
Work in process | 48,826 | 24,166 | ||||||
Finished goods | 3,371 | 2,221 | ||||||
Total inventories | $ | 77,888 | $ | 47,904 |
7. | PREPAIDS AND OTHER CURRENT ASSETS |
March 31, 2022 | December 31, 2021 | |||||||
Prepaid expenses | $ | 17,906 | $ | 14,787 | ||||
Government grant receivables | 3,635 | 2,563 | ||||||
Other current assets | 4,766 | 2,104 | ||||||
Total prepaids and other current assets | $ | 26,307 | $ | 19,454 |
8. | PROPERTY, PLANT AND EQUIPMENT, NET |
March 31, 2022 | December 31, 2021 | |||||||
Buildings and improvements | $ | 36,126 | $ | 25,075 | ||||
Machinery, equipment, vehicles and office furniture | 50,594 | 24,848 | ||||||
Computer equipment, hardware and software | 6,970 | 5,617 | ||||||
Launch site assets | 12,212 | 9,611 | ||||||
Construction in process | 19,276 | 22,379 | ||||||
Property, plant and equipment—gross | 125,178 | 87,530 | ||||||
Less accumulated depreciation and amortization | (25,624 | ) | (22,191 | ) | ||||
Property, plant and equipment—net | $ | 99,554 | $ | 65,339 |
Three Months Ended March 31, | ||||||||
Depreciation expense | 2022 | 2021 | ||||||
Cost of revenues | $ | 2,506 | $ | 1,361 | ||||
Research and development | 245 | 96 | ||||||
Selling, general and administrative | 342 | 300 | ||||||
Total depreciation expense | $ | 3,093 | $ | 1,757 |
9. | GOODWILL AND INTANGIBLE ASSETS, NET |
Balance at December 31, 2021 | $ | 43,308 | ||
Acquisition | 15,488 | |||
Goodwill adjustment on acquisition | (29 | ) | ||
Balance at March 31, 2022 | $ | 58,767 |
March 31, 2022 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Finite-Lived Intangible Assets | ||||||||||||
Developed Technology | $ | 55,065 | $ | (4,661 | ) | $ | 50,404 | |||||
Capitalized software | 9,240 | (3,346 | ) | 5,894 | ||||||||
Customer relationships | 16,173 | (779 | ) | 15,394 | ||||||||
Non-compete | 224 | (108 | ) | 116 | ||||||||
Capitalized intellectual property | 375 | (93 | ) | 282 | ||||||||
Trademarks and tradenames | 10,112 | (305 | ) | 9,807 | ||||||||
Backlog | 3,491 | (475 | ) | 3,016 | ||||||||
Patents | 104 | — | 104 | |||||||||
Indefinite-Lived Intangible Assets | ||||||||||||
In-process Technology | 2,600 | — | 2,600 | |||||||||
Total | $ | 97,384 | $ | (9,767 | ) | $ | 87,617 |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cost of revenues | $ | 610 | $ | 116 | ||||
Research and development | 1,654 | 366 | ||||||
Selling, general and administrative | 631 | 158 | ||||||
Total amortization expense | $ | 2,895 | $ | 640 |
2022 (for the remaining period) | $ | 9,956 | ||
2023 | 12,567 | |||
2024 | 10,942 | |||
2025 | 9,072 | |||
2026 | 8,903 | |||
Thereafter | 33,577 | |||
Total | $ | 85,017 |
10. | LOAN AGREEMENT |
11. | PUBLIC AND PRIVATE WARRANTS |
12. | STOCK-BASED COMPENSATION |
Three Months Ended March 31, | ||||||||
Stock-based compensation | 2022 | 2021 | ||||||
Cost of revenues | $ | 3,335 | $ | 299 | ||||
Research and development | 5,026 | 392 | ||||||
Selling, general and administrative | 3,597 | 399 | ||||||
Total stock-based compensation expense | $ | 11,958 | $ | 1,090 |
13. | LEASES |
14. | COMMITMENTS AND CONTINGENCIES |
15. | INCOME TAXES |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Income tax provision | $ | (4,388 | ) | $ | (264 | ) | ||
Effective tax rate | (19.7 | )% | (1.7 | )% |
16. | NET LOSS PER SHARE |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Numerator | ||||||||
Net loss attributable to common stockholders-basic and diluted | $ | (26,709 | ) | $ | (15,882 | ) | ||
Denominator | ||||||||
Weighted average common shares outstanding-basic and diluted | 456,495,288 | 78,826,075 | ||||||
Net loss per share attributable to common stockholders-basic and diluted | $ | (0.06 | ) | $ | (0.20 | ) |
March 31, | ||||||||
2022 | 2021 | |||||||
Legacy Rocket Lab preferred stock | — | 283,843,764 | ||||||
Legacy Rocket Lab preferred stock warrants | — | 1,123,959 | ||||||
Legacy Rocket Lab common stock warrants | — | 585,399 | ||||||
Stock options and restricted stock units | 30,144,103 | 21,052,981 |
17. | SEGMENTS |
Three Months Ended March 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Launch Services | Space Systems | Launch Services | Space Systems | |||||||||||||
Revenues | $ | 6,576 | $ | 34,127 | $ | 16,462 | $ | 1,730 | ||||||||
Cost of revenues | 7,344 | 29,624 | 15,866 | 915 | ||||||||||||
Gross profit (loss) | $ | (768 | ) | $ | 4,503 | $ | 596 | $ | 815 |
18. | RELATED PARTY TRANSACTIONS |
December 31, | December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 690,959 | $ | 52,792 | $ | 690,959 | $ | 52,792 | ||||||||
Accounts receivable, net | 13,957 | 2,730 | 13,957 | 2,730 | ||||||||||||
Contract assets | 2,490 | 2,045 | 2,490 | 2,045 | ||||||||||||
Inventories | 47,904 | 26,135 | 47,904 | 26,135 | ||||||||||||
Prepaids and other current assets | 19,454 | 9,412 | 19,454 | 9,412 | ||||||||||||
Total current assets | 774,764 | 93,114 | 774,764 | 93,114 | ||||||||||||
Non-current assets: | ||||||||||||||||
Property, plant and equipment, net | 65,339 | 49,832 | 65,339 | 49,832 | ||||||||||||
Intangible assets, net | 57,487 | 11,349 | 57,487 | 11,349 | ||||||||||||
Goodwill | 43,308 | 3,133 | 43,308 | 3,133 | ||||||||||||
Right-of-use | 28,424 | 26,902 | 28,424 | 26,902 | ||||||||||||
Restricted cash | 1,116 | 1,141 | 1,116 | 1,141 | ||||||||||||
Deferred income tax assets, net | 5,859 | 2,398 | 5,859 | 2,398 | ||||||||||||
Other non-current assets | 4,550 | 0 | 4,550 | — | ||||||||||||
Total assets | $ | 980,847 | $ | 187,869 | $ | 980,847 | $ | 187,869 | ||||||||
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Trade payables | $ | 3,489 | $ | 3,368 | $ | 3,489 | $ | 3,368 | ||||||||
Accrued expenses | 10,977 | 6,571 | 10,977 | 6,571 | ||||||||||||
Employee benefits payable | 8,266 | 4,582 | 8,266 | 4,582 | ||||||||||||
Contract liabilities | 59,749 | 26,132 | 59,749 | 26,132 | ||||||||||||
Current installments of long-term borrowings | 2,827 | 0 | 2,827 | — | ||||||||||||
Other current liabilities | 10,999 | 7,766 | 10,999 | 7,766 | ||||||||||||
Total current liabilities | 96,307 | 48,419 | 96,307 | 48,419 | ||||||||||||
Non-current liabilities: | ||||||||||||||||
Long-term borrowings, excluding current installments | 97,297 | 0 | 97,297 | — | ||||||||||||
Non-current lease liabilities | 28,302 | 27,299 | 28,302 | 27,299 | ||||||||||||
Deferred tax liabilities | 466 | 0 | 466 | — | ||||||||||||
Public and private warrant liabilities | 58,227 | 0 | 58,227 | — | ||||||||||||
Other non-current liabilities | 1,800 | 3,899 | 1,800 | 3,899 | ||||||||||||
Total liabilities | 282,399 | 79,617 | 282,399 | 79,617 | ||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 16) | 0 | 0 | 0 | 0 | ||||||||||||
Redeemable convertible preferred stock (1) | ||||||||||||||||
Series A Preferred stock, $0.0001 par value; authorized, issued and outstanding shares: 0 and 62,496,074 at December 31, 2021 and 2020, respectively | 0— | 5,500 | 0— | 5,500 | ||||||||||||
Series B Preferred stock, $0.0001 par value; authorized shares: 0 and 108,599,827 at December 31, 2021 and 2020 respectively; issued and outstanding shares: 0 and 108,293,846 at December 31, 2021 and 2020, respectively | 0— | 21,503 | 0— | 21,503 | ||||||||||||
Series C Preferred stock, $0.0001 par value; authorized shares: 0 and 44,394,177 at December 31, 2021 and 2020 respectively; issued and outstanding shares: 0 and 44,275,586 at December 31, 2021 and 2020, respectively | 0— | 16,471 | 0— | 16,471 | ||||||||||||
Series D Preferred stock, $0.0001 par value; authorized shares: 0 and 24,012,173 at December 31, 2021 and 2020 respectively; issued and outstanding shares: 0 and 23,312,786 at December 31, 2021 and 2020, respectively | 0— | 73,364 | 0— | 73,364 | ||||||||||||
Series E Preferred stock, $0.0001 par value; authorized, issued and outstanding shares: 0 and 39,575,426 at December 31, 2021 and 2020, respectively | 0— | 137,622 | 0— | 137,622 | ||||||||||||
Series E-1 Preferred stock, $0.0001 par value; authorized, issued and outstanding shares: 0 and 5,890,047 at December 31, 2021 and 2020, respectively | 0— | 20,500 | 0— | 20,500 | ||||||||||||
Stockholders’ equity (deficit): | ||||||||||||||||
Common stock, $0.0001 par value; authorized shares: 2,500,000,000 and 416,744,314 at December 31, 2021 and 2020, respectively; issued and outstanding shares: 450,180,479 and 78,410,162 at December 31, 2021 and 2020, respectively (1) | 45 | 8 | 45 | 8 | ||||||||||||
Additional paid-in capital | 1,002,106 | 19,920 | 1,002,106 | 19,920 | ||||||||||||
Accumulated deficit | (305,011 | ) | (187,691 | ) | (305,011 | ) | (187,691 | ) | ||||||||
Accumulated other comprehensive income | 1,308 | 1,055 | 1,308 | 1,055 | ||||||||||||
Total stockholders’ equity (deficit) | 698,448 | (166,708 | ) | 698,448 | (166,708 | ) | ||||||||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) | $ | 980,847 | $ | 187,869 | $ | 980,847 | $ | 187,869 | ||||||||
(1) | Shares outstanding for all periods reflect the adjustment for the Exchange Ratio as a result of the Business Combination. See Note 1, Description of Business |
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenues | $ | 62,237 | $ | 35,160 | ||||
Cost of revenues | 64,130 | 46,977 | ||||||
Gross loss | (1,893 | ) | (11,817 | ) | ||||
Operating expenses: | ||||||||
Research and development, net | 41,765 | 19,142 | ||||||
Selling, general and administrative | 58,395 | 23,993 | ||||||
Total operating expenses | 100,160 | 43,135 | ||||||
Operating loss | (102,053 | ) | (54,952 | ) | ||||
Other income (expense): | ||||||||
Interest income (expense), net | (6,128 | ) | 224 | |||||
Gain (loss) on foreign exchange | (567 | ) | 2,420 | |||||
Change in fair value of liability classified warrants | (15,294 | ) | (2,417 | ) | ||||
Other income (expense), net | (798 | ) | 187 | |||||
Total other income (expense), net | (22,787 | ) | 414 | |||||
Loss before income taxes | (124,840 | ) | (54,538 | ) | ||||
Benefit (provision) for income taxes | 7,520 | (467 | ) | |||||
Net loss | $ | (117,320 | ) | $ | (55,005 | ) | ||
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation income | 253 | 1,134 | ||||||
Comprehensive loss | $ | (117,067 | ) | $ | (53,871 | ) | ||
Net loss per share attributable to Rocket Lab USA, Inc.: | ||||||||
Basic and diluted | $ | (0.56 | ) | $ | (0.73 | ) | ||
Weighted-average common shares outstanding: | ||||||||
Basic and diluted | 209,895,135 | 75,414,888 |
Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Other Comprehensive Income (Loss) | Total | Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | 30,680,373 | $ | 254,460 | 8,076,275 | $ | 0 | $ | 14,236 | $ | (132,686 | ) | $ | (79 | ) | $ | (118,529 | ) | 30,680,373 | $ | 254,460 | 8,076,275 | $ | — | $ | 14,236 | $ | (132,686 | ) | $ | (79 | ) | $ | (118,529 | ) | ||||||||||||||||||||||||||||||
Retroactive application of Exchange Ratio | 247,273,344 | — | 65,092,022 | 7 | (7 | ) | — | — | — | 247,273,344 | — | 65,092,022 | 7 | (7 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 as adjusted | 277,953,717 | 254,460 | 73,168,297 | 7 | 14,229 | (132,686 | ) | (79 | ) | (118,529 | ) | 277,953,717 | 254,460 | 73,168,297 | 7 | 14,229 | (132,686 | ) | (79 | ) | (118,529 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (55,005 | ) | — | (55,005 | ) | — | — | — | — | — | (55,005 | ) | — | (55,005 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | 2,771,051 | 1 | 977 | — | — | 978 | — | — | 2,771,051 | 1 | 977 | — | — | 978 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 4,218 | — | — | 4,218 | — | — | — | — | 4,218 | — | — | 4,218 | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series E-1 redeemable preferred stock for cash | 5,890,047 | 20,500 | — | — | — | — | — | — | 5,890,047 | 20,500 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock for acquisition | — | — | 2,470,814 | — | — | — | — | — | — | — | 2,470,814 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock warrant | — | — | — | — | 496 | — | — | 496 | — | — | — | — | 496 | — | — | 496 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 1,134 | 1,134 | — | — | — | — | — | — | 1,134 | 1,134 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | 283,843,764 | 274,960 | 78,410,162 | 8 | 19,920 | (187,691 | ) | 1,055 | (166,708 | ) | 283,843,764 | 274,960 | 78,410,162 | 8 | 19,920 | (187,691 | ) | 1,055 | (166,708 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (117,320 | ) | — | (117,320 | ) | — | — | — | — | — | (117,320 | ) | — | (117,320 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | 3,688,836 | — | 3,122 | — | — | 3,122 | — | — | 3,688,836 | — | 3,122 | — | — | 3,122 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 33,108 | — | — | 33,108 | — | — | — | — | 33,108 | — | — | 33,108 | ||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of preferred stock warrants | 817,981 | — | — | — | 6,514 | — | — | 6,514 | 817,981 | — | — | — | 6,514 | — | — | 6,514 | ||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of preferred stock warrants for common stock warrants | — | — | — | — | 2,975 | — | — | 2,975 | — | — | — | — | 2,975 | — | — | 2,975 | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of public warrants for common stock | — | — | 2,180 | — | 35 | — | — | 35 | — | — | 2,180 | — | 35 | — | — | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of redeemable convertible preferred stock to common stock | (284,661,745 | ) | (274,960 | ) | 284,661,745 | 29 | 274,932 | — | — | 274,961 | (284,661,745 | ) | (274,960 | ) | 284,661,745 | 29 | 274,932 | — | — | 274,961 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock for acquisition | — | — | 853,306 | — | 11,568 | — | — | 11,568 | — | — | 853,306 | — | 11,568 | — | — | 11,568 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reverse recapitalization, net of transaction costs | — | — | 81,685,363 | 8 | 649,932 | — | — | 649,940 | — | — | 81,685,363 | 8 | 649,932 | — | — | 649,940 | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon exercise of warrants | — | — | 878,887 | — | — | — | — | — | — | — | 878,887 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 253 | 253 | — | — | — | — | — | — | 253 | 253 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | 0 | $ | 0 | 450,180,479 | $ | 45 | $ | 1,002,106 | $ | (305,011 | ) | $ | 1,308 | $ | 698,448 | — | $ | — | 450,180,479 | $ | 45 | $ | 1,002,106 | $ | (305,011 | ) | $ | 1,308 | $ | 698,448 | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (117,320 | ) | $ | (55,005 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 10,851 | 9,339 | ||||||
Stock compensation expense | 32,557 | 4,218 | ||||||
Amortization of inventory step-up | 616 | 0— | ||||||
Loss on disposal of assets | 156 | 1,473 | ||||||
Loss on debt extinguishment | 496 | 0— | ||||||
Amortization of debt issuance costs and discount | 1,546 | 0— | ||||||
Noncash lease expense | 2,010 | 1,533 | ||||||
Noncash expense associated with liability-classified warrants | 15,294 | 2,615 | ||||||
Deferred income taxes | (9,979 | ) | (713 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (7,789 | ) | (522 | ) | ||||
Contract assets | 1,816 | 5,019 | ||||||
Inventories | (12,688 | ) | (11,260 | ) | ||||
Prepaids and other current assets | (10,504 | ) | (2,375 | ) | ||||
Other non-current assets | (4,548 | ) | 0— | |||||
Trade payables | (4,517 | ) | (1,603 | ) | ||||
Accrued expenses | 3,074 | 4,104 | ||||||
Employee benefits payables | (326 | ) | 1,538 | |||||
Contract liabilities | 28,057 | 15,921 | ||||||
Other current liabilities | 838 | (832 | ) | |||||
Non-current lease liabilities | (1,801 | ) | (965 | ) | ||||
Other non-current liabilities | 370 | (242 | ) | |||||
Net cash used in operating activities | (71,791 | ) | (27,757 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, equipment and software | (25,699 | ) | (25,121 | ) | ||||
Cash paid for acquisitions, net of acquired cash | (66,435 | ) | (12,208 | ) | ||||
Net cash used in investing activities | (92,134 | ) | (37,329 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from the exercise of stock options and public warrants | 3,147 | 978 | ||||||
Proceeds from long-term revolving line of credit | 15,000 | 0— | ||||||
Proceeds from long-term secured term loan | 98,895 | 0— | ||||||
Repayments on long-term revolving line of credit | (15,000 | ) | 0— | |||||
Net Proceeds from issuance of Series E-1 Preferred Stock | 0— | 20,500 | ||||||
Proceeds from Business Combination and PIPE Investment, net of transaction costs | 728,255 | 0— | ||||||
Repurchase of shares and options from management | (30,358 | ) | 0— | |||||
Net cash provided by financing activities | 799,939 | 21,478 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 2,128 | (153 | ) | |||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 638,142 | (43,761 | ) | |||||
Cash and cash equivalents, and restricted cash, beginning of period | 53,933 | 97,694 | ||||||
Cash and cash equivalents, and restricted cash, end of period | $ | 692,075 | $ | 53,933 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid for interest | $ | 3,991 | $ | 0— | ||||
Cash refunds/(paid) for income taxes | (1,842 | ) | 300 | |||||
Unpaid purchases of property, equipment and software | 938 | 2,090 | ||||||
Issuance of common stock warrants and accrued issuance costs in connection with loan and security agreement | 0— | 677 | ||||||
Unpaid transaction costs | 27 | 0— | ||||||
Right-of-use | 3,916 | 2,410 | ||||||
Issuance of common stock in connection with acquisition, at fair value | 11,568 | 0— | ||||||
Contingent consideration assumed at acquisitions | 7,300 | 0— | ||||||
Warrants assumed as part of Business Combination | 48,149 | 0— | ||||||
Prepaid expenses assumed as part of Business Combination | 219 | 0— |
1. | DESCRIPTION OF THE BUSINESS |
initial public offering, calculated as of two business days prior to the consummation of the Business Combination, which was approximately $10.00 per share, or $9,686 in the aggregate. The remaining 31,031,383 shares of Vector Class A common stock automatically converted to an equal number of shares of common stock in the Post Combination Company. |
Cash - Vector Trust and cash, net of redemptions | $ | 310,330 | ||
Cash - PIPE Investment | 467,000 | |||
Less: transaction costs and advisory fees paid | (49,075 | ) | ||
Net proceeds from Rocket Lab Business Combination | 728,255 | |||
Less: Accrued transaction costs | (27 | ) | ||
Plus: Prepaid expenses assumed as part of Business Combination | 219 | |||
Less: Warrants assumed as part of Business Combination | (48,149 | ) | ||
Less: Repurchase of Management Shares | (30,358 | ) | ||
Reverse recapitalization, net of transaction costs | $ | 649,940 | ||
2. | SIGNIFICANT ACCOUNTING POLICIES |
Asset Category | Estimated Useful Lives | |
Buildings and improvements | 15 to 30 years | |
Machinery, equipment, vehicles and office furniture | 2 to 12 years | |
Computer equipment, hardware and software | 3 to 5 years | |
Launch site assets | 3 to 10 years | |
Leasehold improvements | Shorter of remaining lease term or estimated useful life |
3. | REVENUES |
Year Ended December 31, 2021 | ||||||||||||
Launch Services | Space Systems | Total | ||||||||||
Revenues by recognition model | ||||||||||||
Point-in-time | $ | 36,576 | $ | 12,578 | $ | 49,154 | ||||||
Over-time | 2,395 | 10,688 | 13,083 | |||||||||
Total revenue by recognition model | $ | 38,971 | $ | 23,266 | $ | 62,237 | ||||||
Year Ended December 31, 2020 | ||||||||||||
Launch Services | Space Systems | Total | ||||||||||
Revenues by recognition model | ||||||||||||
Point-in-time | $ | 31,993 | $ | 1,910 | $ | 33,903 | ||||||
Over-time | 1,092 | 165 | 1,257 | |||||||||
Total revenue by recognition model | $ | 33,085 | $ | 2,075 | $ | 35,160 | ||||||
December 31, | ||||||||
2021 | 2020 | |||||||
Contract balances | ||||||||
Accounts receivable | $ | 13,957 | $ | 2,730 | ||||
Contract assets | 2,490 | 2,045 | ||||||
Contract liabilities | 59,749 | 26,132 |
2021 | 2020 | 2021 | 2020 | |||||||||||||
Contract liabilities, beginning of year | $ | 26,132 | $ | 10,211 | $ | 26,132 | $ | 10,211 | ||||||||
Contract liabilities assumed at acquisition | 5,560 | 0 | 5,560 | — | ||||||||||||
Customer advances received | 41,614 | 24,694 | 41,614 | 24,694 | ||||||||||||
Recognition of unearned revenue | (13,557 | ) | (8,773 | ) | (13,557 | ) | (8,773 | ) | ||||||||
Contract liabilities, end of year | $ | 59,749 | $ | 26,132 | $ | 59,749 | $ | 26,132 | ||||||||
4. | BUSINESS COMBINATIONS |
Description | Amount | |||
Cash and cash equivalents | $ | 132 | ||
Accounts receivable | 1,024 | |||
Intangible assets, net | 10,250 | |||
Other current liabilities | (2,494 | ) | ||
Other assets and liabilities, net | 533 | |||
Identifiable net assets acquired | 9,445 | |||
Goodwill | 2,895 | |||
Total purchase price | $ | 12,340 | ||
Type | Estimated Life in Years | Fair Value | ||||||
Developed technology | 7 | $ | 9,200 | |||||
In-process technology | N/A | 100 | ||||||
Customer relationships | 3 | 600 | ||||||
Backlog | 0.7 | 50 | ||||||
Trademark and tradenames | 3 | 100 | ||||||
Non-compete agreement | 4 | 200 | ||||||
Total identifiable intangible assets acquired | $ | 10,250 | ||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
Acquisition stock-based compensation | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Shares issued in conjunction with the acquisition | $ | 1,402 | $ | 934 | $ | 1,402 | $ | 934 | ||||||||
Earnout share achievement | 1,630 | 0 | 1,630 | — | ||||||||||||
Total stock compensation related to the acquisition | $ | 3,032 | $ | 934 | $ | 3,032 | $ | 934 | ||||||||
Description | Amount | |||
Cash and cash equivalents | $ | 2,245 | ||
Accounts receivable | 1,920 | |||
Intangible assets | 15,900 | |||
Employee benefits payable | (1,310 | ) | ||
Other assets and liabilities, net | 21 | |||
Identifiable net assets acquired | 18,776 | |||
Goodwill | 16,659 | |||
Total purchase price | $ | 35,435 | ||
Type | Estimated Life in Years | Fair Value | ||||||
Developed technology | 7 | $ | 11,400 | |||||
In-process technology | N/A | 300 | ||||||
Customer relationships | 10 | 3,100 | ||||||
Trademark and tradenames | 7 | 1,100 | ||||||
Total identifiable intangible assets acquired | $ | 15,900 | ||||||
Description | Amount | |||
Cash and cash equivalents | $ | 3,655 | ||
Accounts receivable | 2,543 | |||
Inventories | 7,088 | |||
Intangible assets | 33,000 | |||
Employee benefits payable | (1,212 | ) | ||
Contract liabilities (1) | (5,352 | ) | ||
Other current liabilities | (1,683 | ) | ||
Non-current deferred tax liabilities | (6,762 | ) | ||
Other assets and liabilities, net | 1,040 | |||
Identifiable net assets acquired | 32,317 | |||
Goodwill | 23,451 | |||
Total purchase price | $ | 55,768 | ||
(1) | Contract liabilities was recorded under ASC 606 in accordance with ASU No. 2021-08; therefore a reduction in contract liabilities related to the estimated fair values of the acquired contract liabilities was not required. |
Type | Estimated Life in Years | Fair Value | ||||||
Developed technology | 8 | $ | 23,500 | |||||
In-process technology | N/A | 1,500 | ||||||
Customer relationships | 15 | 3,400 | ||||||
Backlog | 1 | 400 | ||||||
Trademark and tradenames | 15 | 4,200 | ||||||
Total identifiable intangible assets acquired | $ | 33,000 | ||||||
As Reported | Acquisitions Pro-Forma (Unaudited) | Consolidated Pro-Forma (Unaudited) | ||||||||||
2021 | ||||||||||||
Revenues | $ | 62,237 | $ | 21,629 | $ | 83,866 | ||||||
Net (loss) income | (117,320 | ) | 6,377 | (110,943 | ) | |||||||
2020 | ||||||||||||
Revenues | $ | 35,160 | $ | 21,525 | $ | 56,685 | ||||||
Net (loss) income | (55,005 | ) | 6,664 | (48,341 | ) |
5. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||||||||
Money market accounts | $ | 635,269 | $ | 0 | $ | — | $ | 635,269 | $ | 635,269 | $ | — | $ | — | $ | 635,269 | ||||||||||||||||
Total | $ | 635,269 | $ | 0 | $ | — | $ | 635,269 | $ | 635,269 | $ | — | $ | — | $ | 635,269 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Other non-current liabilities: | ||||||||||||||||||||||||||||||||
Public and Private Warrants (Note 11) | $ | 58,227 | $ | 0 | $ | 0 | $ | 58,227 | $ | 58,227 | $ | — | $ | — | $ | 58,227 | ||||||||||||||||
Total | $ | 58,227 | $ | 0 | $ | 0 | $ | 58,227 | $ | 58,227 | $ | — | $ | — | $ | 58,227 | ||||||||||||||||
December 31, 2020 | December 31, 2020 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||||||||
Money market accounts | $ | 49,869 | $ | — | $ | — | $ | 49,869 | $ | 49,869 | $ | — | $ | — | $ | 49,869 | ||||||||||||||||
Total | $ | 49,869 | $ | — | $ | — | $ | 49,869 | $ | 49,869 | $ | — | $ | — | $ | 49,869 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Other non-current liabilities: | ||||||||||||||||||||||||||||||||
Warrants-preferred stock (Note 11) | $ | 0— | $ | — | $ | 3,899 | $ | 3,899 | $ | 0— | $ | — | $ | 3,899 | $ | 3,899 | ||||||||||||||||
Total | $ | 0 | $ | — | $ | 3,899 | $ | 3,899 | $ | — | $ | — | $ | 3,899 | $ | 3,899 | ||||||||||||||||
Balance, at January 1, 2020 | $ | 1,284 | ||
Cost of warrants vesting during the year | 198 | |||
Change in fair value included in earnings | 2,417 | |||
Balance, at December 31, 2020 | 3,899 | |||
Cost of warrants vesting during the period | 352 | |||
Change in fair value included in earnings | 5,238 | |||
Exercise of warrants to purchase Legacy Rocket Lab Series C and D preferred stock | (6,514 | ) | ||
Exchange of warrants to purchase Legacy Rocket Lab Series B preferred stock to common stock warrants | (2,975 | ) | ||
Balance, at December 31, 2021 | $ | 0— | ||
6. | INVENTORIES |
December 31, | ||||||||
2021 | 2020 | |||||||
Raw materials | $ | 21,517 | $ | 14,023 | ||||
Work in process | 24,166 | 12,112 | ||||||
Finished goods | 2,221 | — | ||||||
Total inventories | $ | 47,904 | $ | 26,135 | ||||
7. | PREPAIDS AND OTHER CURRENT ASSETS |
December 31, | ||||||||
2021 | 2020 | |||||||
Prepaid expenses | $ | 14,787 | $ | 2,628 | ||||
Government grant receivables | 2,563 | 5,870 | ||||||
Other current assets | 2,104 | 914 | ||||||
Total prepaids and other current assets | $ | 19,454 | $ | 9,412 | ||||
8. | PROPERTY, PLANT AND EQUIPMENT, NET |
December 31, | ||||||||
2021 | 2020 | |||||||
Buildings and improvements | $ | 25,075 | $ | 20,330 | ||||
Machinery, equipment, vehicles and office furniture | 24,848 | 23,755 | ||||||
Computer equipment, hardware and software | 5,617 | 3,836 | ||||||
Launch site assets | 9,611 | 7,582 | ||||||
Construction in process | 22,379 | 10,177 | ||||||
Property, plant and equipment—gross | 87,530 | 65,680 | ||||||
Less accumulated depreciation and amortization | (22,191 | ) | (15,848 | ) | ||||
Property, plant and equipment—net | $ | 65,339 | $ | 49,832 | ||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cost of revenues | $ | 4,608 | $ | 4,527 | ||||
Research and development, net | 585 | 416 | ||||||
Selling, general and administrative | 2,337 | 1,591 | ||||||
Total depreciation expense | $ | 7,530 | $ | 6,534 | ||||
9. | GOODWILL AND INTANGIBLE ASSETS, NET |
Launch Services | Space Systems | Total | Launch Services | Space Systems | Total | |||||||||||||||||||
Balance at December 31, 2019 | $ | 0 | $ | 0 | $ | 0 | $ | — | $ | — | $ | — | ||||||||||||
Acquisitions | 0 | 2,895 | 2,895 | — | 2,895 | 2,895 | ||||||||||||||||||
Foreign currency translation adjustment | 0 | 238 | 238 | — | 238 | 238 | ||||||||||||||||||
Balance at December 31, 2020 | 0 | 3,133 | 3,133 | — | 3,133 | 3,133 | ||||||||||||||||||
Acquisitions | 0 | 40,110 | 40,110 | — | 40,110 | 40,110 | ||||||||||||||||||
Foreign currency translation adjustment | 0 | 65 | 65 | — | 65 | 65 | ||||||||||||||||||
Balance at December 31, 2021 | $ | 0 | $ | 43,308 | $ | 43,308 | $ | — | $ | 43,308 | $ | 43,308 | ||||||||||||
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Finite-Lived Intangible Assets | ||||||||||||||||||||||||
Developed Technology | $ | 45,066 | $ | (3,039 | ) | $ | 42,027 | $ | 45,066 | $ | (3,039 | ) | $ | 42,027 | ||||||||||
Capitalized software | 3,769 | (2,893 | ) | 876 | 3,769 | (2,893 | ) | 876 | ||||||||||||||||
Customer relationships | 7,163 | (458 | ) | 6,705 | 7,163 | (458 | ) | 6,705 | ||||||||||||||||
Non-compete | 221 | (93 | ) | 128 | 221 | (93 | ) | 128 | ||||||||||||||||
Capitalized intellectual property | 374 | (80 | ) | 294 | 374 | (80 | ) | 294 | ||||||||||||||||
Trademarks and tradenames | 5,411 | (120 | ) | 5,291 | 5,411 | (120 | ) | 5,291 | ||||||||||||||||
Backlog | 455 | (89 | ) | 366 | 455 | (89 | ) | 366 | ||||||||||||||||
Indefinite-Lived Intangible Assets | ||||||||||||||||||||||||
In-process Technology | 1,800 | 0 | 1,800 | 1,800 | — | 1,800 | ||||||||||||||||||
Total | $ | 64,259 | $ | (6,772 | ) | $ | 57,487 | $ | 64,259 | $ | (6,772 | ) | $ | 57,487 | ||||||||||
December 31, 2020 | December 31, 2020 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Finite-Lived Intangible Assets | ||||||||||||||||||||||||
Developed technology | $ | 10,090 | $ | (973 | ) | $ | 9,117 | $ | 10,090 | $ | (973 | ) | $ | 9,117 | ||||||||||
Capitalized software | 3,541 | (2,379 | ) | 1,162 | 3,541 | (2,379 | ) | 1,162 | ||||||||||||||||
Customer relationships | 658 | (148 | ) | 510 | 658 | (148 | ) | 510 | ||||||||||||||||
Non-compete agreement | 219 | (37 | ) | 182 | 219 | (37 | ) | 182 | ||||||||||||||||
Capitalized intellectual property | 199 | (51 | ) | 148 | 199 | (51 | ) | 148 | ||||||||||||||||
Trademarks and tradenames | 149 | (29 | ) | 120 | 149 | (29 | ) | 120 | ||||||||||||||||
Backlog | 55 | (55 | ) | 0 | 55 | (55 | ) | — | ||||||||||||||||
Indefinite-Lived Intangible Assets | ||||||||||||||||||||||||
In-process research and development | 110 | 0 | 110 | 110 | — | 110 | ||||||||||||||||||
Total | $ | 15,021 | $ | (3,672 | ) | $ | 11,349 | $ | 15,021 | $ | (3,672 | ) | $ | 11,349 | ||||||||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cost of revenues | $ | 559 | $ | 1,289 | ||||
Research and development | 2,088 | 6 | ||||||
Selling, general and administrative | 674 | 927 | ||||||
Total amortization expense | $ | 3,321 | $ | 2,222 | ||||
2022 | $ | 8,118 | ||
2023 | 7,371 | |||
2024 | 7,161 | |||
2025 | 7,066 | |||
2026 | 7,037 | |||
Thereafter | 18,934 | |||
Total | �� | $ | 55,687 | |
10. | LOAN AND SECURITY AGREEMENT |
11. | WARRANTS |
12. | CAPITALIZATION |
Preferred Stock | Dividend Rate | Issue Price | ||||||
Series A | $ | 0.01 | $ | 0.09 | ||||
Series B | $ | 0.01 | $ | 0.20 | ||||
Series C | $ | 0.02 | $ | 0.37 | ||||
Series D | $ | 0.19 | $ | 3.15 | ||||
Series E | $ | 0.21 | $ | 3.48 | ||||
Series E-1 | $ | 0.21 | $ | 3.48 |
13. | STOCK-BASED COMPENSATION |
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cost of revenues | $ | 10,996 | $ | 1,400 | ||||
Research and development | 9,973 | 1,183 | ||||||
Selling, general and administrative | 11,588 | 1,635 | ||||||
Total stock-based compensation expense | $ | 32,557 | $ | 4,218 | ||||
Options to Purchase Common Stock | Weighted- Average Exercise Price per Share | Weighted- Average Grant Date Fair Value per Share | Weighted- Average Remaining Contract Life (In Years) | Aggregate Intrinsic Value | Options to Purchase Common Stock | Weighted- Average Exercise Price per Share | Weighted- Average Grant Date Fair Value per Share | Weighted- Average Remaining Contract Life (In Years) | Aggregate Intrinsic Value | |||||||||||||||||||||||||||||||
Outstanding — at January 1, 2020 | 27,263,775 | $ | 0.97 | $ | 0.50 | 7.95 | $ | 11,941 | 27,263,775 | $ | 0.97 | $ | 0.50 | 7.95 | $ | 11,941 | ||||||||||||||||||||||||
Granted | 90,597 | 1.41 | 0.78 | 90,597 | 1.41 | 0.78 | ||||||||||||||||||||||||||||||||||
Exercised | (2,771,051 | ) | 0.36 | 3.21 | 2,565 | (2,771,051 | ) | 0.36 | 3.21 | 2,565 | ||||||||||||||||||||||||||||||
Forfeited | (1,508,243 | ) | 1.26 | (1,508,243 | ) | 1.26 | ||||||||||||||||||||||||||||||||||
Expired | (986,352 | ) | 1.05 | (986,352 | ) | 1.05 | ||||||||||||||||||||||||||||||||||
Outstanding — at December 31, 2020 | 22,088,726 | $ | 1.03 | $ | 0.53 | 7.12 | $ | 85,853 | 22,088,726 | $ | 1.03 | $ | 0.53 | 7.12 | $ | 85,853 | ||||||||||||||||||||||||
Granted | 0 | 0— | 0— | 0— | 0 | — | 0— | 0— | 0— | — | ||||||||||||||||||||||||||||||
Exercised | (3,708,786 | ) | 1.00 | 0.51 | 4.32 | 41,822 | (3,708,786 | ) | 1.00 | 0.51 | 4.32 | 41,822 | ||||||||||||||||||||||||||||
Forfeited | (857,579 | ) | 1.21 | 0.60 | 0.01 | 9,131 | (857,579 | ) | 1.21 | 0.60 | 0.01 | 9,131 | ||||||||||||||||||||||||||||
Expired | (177,033 | ) | 1.16 | 0.31 | 0— | 1,969 | (177,033 | ) | 1.16 | 0.31 | 0— | 1,969 | ||||||||||||||||||||||||||||
Outstanding — at December 31, 2021 | 17,345,328 | $ | 1.03 | $ | 0.54 | 6.03 | $ | 195,111 | 17,345,328 | $ | 1.03 | $ | 0.54 | 6.03 | $ | 195,111 | ||||||||||||||||||||||||
Options vested and exercisable — at December 31, 2021 | 15,112,440 | $ | 1.01 | $ | 0.52 | 5.90 | $ | 170,320 | 15,112,440 | $ | 1.01 | $ | 0.52 | 5.90 | $ | 170,320 | ||||||||||||||||||||||||
Options vested and exercisable — at December 31, 2020 | 14,739,214 | $ | 0.97 | $ | 0.49 | 6.83 | $ | 57,660 | 14,739,214 | $ | 0.97 | $ | 0.49 | 6.83 | $ | 57,660 |
2021 | 2020 | 2021 | 2020 | |||||||||||||
Fair value per share of common stock | $ | 0 | $ | 1.41 | $ | — | $ | 1.41 | ||||||||
Expected volatility | 0 | % | 60.0 | % | — | % | 60.0 | % | ||||||||
Risk-free interest rate | 0 | % | 0.6 | % | — | % | 0.6 | % | ||||||||
Expected life (years) | 0— | 6.25 | 0— | 6.25 | ||||||||||||
Dividend rate | NaN | NaN | NaN | NaN |
Number of Units | Weighted- Average Grant Date Fair Value | |||||||
Outstanding — at January 1, 2020 | 6,818,453 | $ | 1.41 | |||||
Granted | 5,954,361 | 1.25 | ||||||
Forfeited | (941,759 | ) | 1.40 | |||||
Outstanding — at December 31, 2020 | 11,831,055 | 1.33 | ||||||
Granted | 6,542,426 | 9.68 | ||||||
Forfeited | (1,426,559 | ) | 2.10 | |||||
Outstanding — at December 31, 2021 | 16,946,922 | $ | 4.49 | |||||
Units expected to vest — at December 31, 2021 | 16,946,922 | $ | 4.49 | |||||
Units expected to vest — at December 31, 2020 | 0— | $ | 0— |
14. | EMPLOYEE BENEFITS |
15. | LEASES |
December 31, | ||||||||||
Liabilities | Presentation | 2021 | 2020 | |||||||
Current: | ||||||||||
Operating lease liabilities | Other current liabilities | $ | 2,383 | $ | 1,670 | |||||
Non-current: | ||||||||||
Operating lease liabilities | Non-current lease liabilities | 28,302 | 27,299 | |||||||
Total lease liabilities | $ | 30,685 | $ | 28,969 | ||||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Operating lease costs | $ | 3,356 | $ | 2,552 | ||||
Finance lease costs: | ||||||||
Amortization of right-of-use | $ | — | $ | 583 | ||||
Interest on lease liabilities | — | 95 | ||||||
Total finance lease costs | $ | — | $ | 678 | ||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating cash flows from operating leases | $ | 3,051 | $ | 2,080 | $ | 3,051 | $ | 2,080 | ||||||||
Operating cash flows from finance leases | 0 | 95 | — | 95 | ||||||||||||
Right-of-use | ||||||||||||||||
Operating leases | $ | 3,916 | $ | 2,410 | $ | 3,916 | $ | 2,410 |
Operating Leases | ||||
2022 | $ | 3,799 | ||
2023 | 4,076 | |||
2024 | 3,984 | |||
2025 | 3,728 | |||
2026 | 3,790 | |||
Thereafter | 21,636 | |||
Total lease payments | 41,013 | |||
Less imputed interest | (10,328 | ) | ||
Total | $ | 30,685 | ||
16. | COMMITMENTS AND CONTINGENCIES |
17. | INCOME TAXES |
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
US loss before income taxes | $ | (132,585 | ) | $ | (56,439 | ) | ||
Foreign income before income taxes | 7,745 | 1,901 | ||||||
Pretax loss from operations | $ | (124,840 | ) | $ | (54,538 | ) | ||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Current: | ||||||||||||||||
Federal | $ | 0 | 0 | $ | — | — | ||||||||||
State | 2 | 0 | 2 | — | ||||||||||||
Foreign | 2,377 | 1,410 | 2,377 | 1,410 | ||||||||||||
Total | 2,379 | 1,410 | 2,379 | 1,410 | ||||||||||||
Deferred: | ||||||||||||||||
Federal | (5,957 | ) | 0 | (5,957 | ) | — | ||||||||||
State | (339 | ) | 0 | (339 | ) | — | ||||||||||
Foreign | (3,603 | ) | (943 | ) | (3,603 | ) | (943 | ) | ||||||||
Total | (9,899 | ) | (943 | ) | (9,899 | ) | (943 | ) | ||||||||
(Benefit) provision for income taxes | $ | (7,520 | ) | $ | 467 | $ | (7,520 | ) | $ | 467 | ||||||
Years Ended December 31, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
Federal statutory rate | $ | (26,216 | ) | 21.00 | % | $ | (11,453 | ) | 21.00 | % | ||||||
Adjustments for tax effects of: | ||||||||||||||||
Permanent differences and other | (477 | ) | 0.38 | % | 634 | (1.16 | )% | |||||||||
Warrants | 2,421 | (1.94 | )% | 200 | (0.37 | )% | ||||||||||
Stock-based compensation | (2,399 | ) | 1.92 | % | (203 | ) | 0.37 | % | ||||||||
Increase in valuation allowance | 19,151 | (15.34 | )% | 11,289 | (20.70 | )% | ||||||||||
(Benefit) provision for income taxes | $ | (7,520 | ) | 6.02 | % | $ | 467 | (0.86 | )% | |||||||
December 31, | December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Accrued expenses | $ | 2,105 | $ | 1,969 | $ | 2,105 | $ | 1,969 | ||||||||
Inventories | 409 | 353 | 409 | 353 | ||||||||||||
Deferred revenue | 14,160 | 5,503 | 14,160 | 5,503 | ||||||||||||
Lease liability | 7,244 | 7,426 | 7,244 | 7,426 | ||||||||||||
Stock options | 7,950 | 2,082 | 7,950 | 2,082 | ||||||||||||
Warrants | 0 | 519 | — | 519 | ||||||||||||
Interest expense | 1,075 | 0 | 1,075 | — | ||||||||||||
Net operating losses | 41,688 | 30,264 | 41,688 | 30,264 | ||||||||||||
Tax credits | 898 | 923 | 898 | 923 | ||||||||||||
Other | 0 | 4 | — | 4 | ||||||||||||
Total deferred tax assets | 75,529 | 49,043 | 75,529 | 49,043 | ||||||||||||
Valuation allowance | (58,235 | ) | (39,084 | ) | (58,235 | ) | (39,084 | ) | ||||||||
Total deferred tax assets, net | 17,294 | 9,959 | 17,294 | 9,959 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Right of use asset | (6,723 | ) | (6,954 | ) | (6,723 | ) | (6,954 | ) | ||||||||
Depreciation and amortization | (5,160 | ) | 0 | (5,160 | ) | — | ||||||||||
Other | (18 | ) | 0 | (18 | ) | — | ||||||||||
Unrealized gain | 0 | (757 | ) | — | (757 | ) | ||||||||||
Total deferred tax liabilities | (11,901 | ) | (7,711 | ) | (11,901 | ) | (7,711 | ) | ||||||||
Net deferred tax assets | $ | 5,393 | $ | 2,248 | $ | 5,393 | $ | 2,248 | ||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Balance at beginning of year | $ | 800 | $ | 800 | $ | 800 | $ | 800 | ||||||||
Increase related to current year tax position | 35 | 0 | 35 | — | ||||||||||||
Balance at end of year | $ | 835 | $ | 800 | $ | 835 | $ | 800 | ||||||||
18. | NET LOSS PER SHARE |
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Numerator | ||||||||
Net loss attributable to common shareholders-basic and diluted | $ | (117,320 | ) | $ | (55,005 | ) | ||
Denominator | ||||||||
Weighted average common shares outstanding-basic and diluted | 209,895,135 | 75,414,888 | ||||||
Net loss per share attributable to common stockholders-basic and diluted | $ | (0.56 | ) | $ | (0.73 | ) |
December 31, | December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Legacy Rocket Lab preferred stock | 0 | 283,843,764 | — | 283,843,764 | ||||||||||||
Legacy Rocket Lab preferred stock warrants | 0 | 1,123,959 | — | 1,123,959 | ||||||||||||
Legacy Rocket Lab common stock warrants | 0 | 585,399 | — | 585,399 | ||||||||||||
Stock options and restricted stock units | 34,292,250 | 22,088,726 | 34,292,250 | 22,088,726 | ||||||||||||
Public and Private Warrants | 16,264,516 | 0 | 16,264,516 | — |
19. | SEGMENTS |
Years Ended December 31, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
Launch Services | Space Systems | Launch Services | Space Systems | |||||||||||||
Revenues | $ | 38,971 | $ | 23,266 | $ | 33,085 | $ | 2,075 | ||||||||
Cost of revenues | 53,827 | 10,303 | 45,872 | 1,105 | ||||||||||||
�� | ||||||||||||||||
Gross profit (loss) | $ | (14,856 | ) | $ | 12,963 | $ | (12,787 | ) | $ | 970 | ||||||
20. | CONCENTRATION OF CREDIT RISK, SIGNIFICANT CUSTOMERS AND GEOGRAPHIC INFORMATION |
December 31, | ||||||||
2021 | 2020 | |||||||
U.S. commercial customer A | 18 | % | 62 | % | ||||
U.S. commercial customer B | * | 13 | % | |||||
International customer C | * | 12 | % | |||||
Commercial customer G | 23 | % | * |
* | Accounts receivable was less than 10 % |
December 31, | ||||||||
2021 | 2020 | |||||||
U.S. government customer D | * | 21 | % | |||||
International customer E | * | 18 | % | |||||
U.S. commercial customer F | * | 15 | % | |||||
Commercial customer G | 40 | % | 14 | % | ||||
Commercial customer H | 16 | % | * |
* | Revenue was less than 10% |
2021 | 2020 | |||||||||||||||
Amount | % of total revenues | Amount | % of total revenues | |||||||||||||
United States | $ | 45,750 | 74 | % | $ | 25,881 | 74 | % | ||||||||
Japan | 769 | 1 | % | 6,498 | 18 | % | ||||||||||
Germany | 9,770 | 16 | % | — | — | % | ||||||||||
Rest of world | 5,948 | 9 | % | 2,781 | 8 | % | ||||||||||
Total | $ | 62,237 | 100 | % | $ | 35,160 | 100 | % | ||||||||
December 31, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
Amount | % of Long- Lived Assets | Amount | % of Long- Lived Assets | |||||||||||||
United States | $ | 148,248 | 76 | % | $ | 34,303 | 38 | % | ||||||||
New Zealand | 45,050 | 23 | % | 43,323 | 47 | % | ||||||||||
Canada | 1,260 | 1 | % | 13,590 | 15 | % | ||||||||||
Total | $ | 194,558 | 100 | % | $ | 91,216 | 100 | % | ||||||||
21. | RELATED PARTY TRANSACTIONS |
22. | SUBSEQUENT EVENTS |
Amount* | ||||
SEC registration fee | $ | 1,702.28 | ||
Legal fees and expenses | 80,000 | |||
Accounting fees and expenses | 15,000 | |||
Printing, transfer agent and miscellaneous fees | 5,000 | |||
Total | $ | 101,702.28 | * |
* | All amounts other than SEC registration fee are estimates |
* | Filed herewith |
** | Previously filed |
+ | Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request. |
†† | Certain confidential portions (indicated by brackets and asterisks) have been omitted from this exhibit pursuant to Item 601(b)(10)(iv). |
Management contract or compensatory plan or arrangement. |
(i) | to include any prospectus required by Section 10(a)(3) of the Securities Act; |
(ii) | to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
(iii) | to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; provided, however, that paragraphs (i), (ii) and (iii) do not apply if the registration statement is on Form S-1 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement; |
(a) | any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
(b) | any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
(c) | the portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of an undersigned registrant; and |
(d) | any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
ROCKET LAB USA, INC. | ||
By: | /s/ Peter Beck | |
Name: | Peter Beck | |
Title: | President, Chief Executive Officer and | |
Chairman |
NAME | POSITION | DATE | ||
/s/ Peter Beck Peter Beck | President, Chief Executive Officer and Chairman ( Principal Executive Officer | May | ||
/s/ Adam Spice Adam Spice | Chief Financial Officer ( Principal Financial Officer and Accounting Officer | May | ||
David Cowan | Director | May | ||
Michael Griffin | Director | May | ||
Matthew Ocko | Director | May | ||
Jon Olson | Director | May |
Merline Saintil | Director | May | ||||
Alex Slusky | Director | May | ||||
Sven Strohband | Director | May |
*By: /s/ Peter Beck |
Peter Beck As Attorney-in-Fact |