Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 07, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Entity File Number | 001-38835 | |
Entity Registrant Name | DESKTOP METAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-2044042 | |
Entity Address, Address Line One | 63 3rd Avenue | |
Entity Address, City or Town | Burlington | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01803 | |
City Area Code | 978 | |
Local Phone Number | 224-1244 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 Par Value per Share | |
Trading Symbol | DM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 324,736,249 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001754820 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 107,432 | $ 76,291 |
Current portion of restricted cash | 841 | 4,510 |
Shortterm investments | 803 | 108,243 |
Accounts receivable | 40,088 | 38,481 |
Inventory | 107,196 | 91,736 |
Prepaid expenses and other current assets | 24,987 | 16,325 |
Assets held for sale | 830 | |
Total current assets | 281,347 | 336,416 |
Restricted cash, net of current portion | 612 | 1,112 |
Property and equipment, net | 38,387 | 56,271 |
Goodwill | 108,651 | 112,955 |
Intangible assets, net | 178,802 | 219,830 |
Other noncurrent assets | 36,465 | 27,763 |
Total Assets | 644,264 | 754,347 |
Current liabilities: | ||
Accounts payable | 32,114 | 25,105 |
Customer deposits | 6,918 | 11,526 |
Current portion of lease liability | 6,644 | 5,730 |
Accrued expenses and other current liabilities | 27,899 | 26,723 |
Current portion of deferred revenue | 17,015 | 13,719 |
Current portion of longterm debt | 368 | 584 |
Total current liabilities | 90,958 | 83,387 |
Long-term debt, net of current portion | 120 | 311 |
Convertible notes | 112,382 | 111,834 |
Lease liability, net of current portion | 23,680 | 17,860 |
Deferred revenue, net of current portion | 3,780 | 3,664 |
Deferred tax liability | 4,693 | 8,430 |
Other noncurrent liabilities | 3,077 | 1,359 |
Total liabilities | 238,690 | 226,845 |
Commitments and Contingencies (Note 17) | ||
Stockholders' Equity | ||
Preferred Stock, $0.0001 par value-authorized, 50,000,000 shares; no shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | ||
Common Stock, $0.0001 par value-500,000,000 shares authorized; 323,658,575 and 318,235,106 shares issued at September 30, 2023 and December 31, 2022, respectively, 323,642,480 and 318,133,434 shares outstanding at September 30, 2023 and December 31, 2022, respectively | 32 | 32 |
Additional paidin capital | 1,901,931 | 1,874,792 |
Accumulated deficit | (1,457,696) | (1,308,954) |
Accumulated other comprehensive loss | (38,693) | (38,368) |
Total Stockholders' Equity | 405,574 | 527,502 |
Total Liabilities and Stockholders' Equity | $ 644,264 | $ 754,347 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares, issued | 0 | 0 |
Preferred Stock, shares, outstanding | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 323,658,575 | 318,235,106 |
Common stock, shares, outstanding | 323,642,480 | 318,133,434 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Total revenues | $ 42,750 | $ 47,086 | $ 137,352 | $ 148,466 |
Cost of sales | ||||
Total cost of sales | 40,826 | 47,395 | 130,703 | 141,706 |
Gross profit (loss) | 1,924 | (309) | 6,649 | 6,760 |
Operating expenses | ||||
Research and development | 20,455 | 22,382 | 64,822 | 78,357 |
Sales and marketing | 8,549 | 16,204 | 28,596 | 56,299 |
General and administrative | 9,528 | 18,924 | 50,673 | 62,472 |
Impairment charges | 6,062 | 6,062 | ||
Goodwill impairment | 2,450 | 0 | 2,450 | 229,500 |
Total operating expenses | 47,044 | 57,510 | 152,603 | 426,628 |
Loss from operations | (45,120) | (57,819) | (145,954) | (419,868) |
Interest expense | (1,045) | (680) | (2,965) | (1,281) |
Interest and other expense, net | (349) | (1,677) | (498) | (8,443) |
Loss before income taxes | (46,514) | (60,176) | (149,417) | (429,592) |
Income tax benefit (expense) | 141 | (598) | 675 | 1,602 |
Net loss | $ (46,373) | $ (60,774) | $ (148,742) | $ (427,990) |
Net loss per share-Basic | $ (0.14) | $ (0.19) | $ (0.46) | $ (1.36) |
Net loss per share-Diluted | $ (0.14) | $ (0.19) | $ (0.46) | $ (1.36) |
Weighted average shares outstanding, basic | 323,187,608 | 316,007,716 | 321,328,016 | 313,901,704 |
Weighted average shares outstanding, diluted | 323,187,608 | 316,007,716 | 321,328,016 | 313,901,704 |
Products | ||||
Revenues | ||||
Total revenues | $ 37,502 | $ 42,937 | $ 121,597 | $ 135,085 |
Cost of sales | ||||
Total cost of sales | 37,175 | 43,639 | 119,290 | 130,454 |
Services | ||||
Revenues | ||||
Total revenues | 5,248 | 4,149 | 15,755 | 13,381 |
Cost of sales | ||||
Total cost of sales | $ 3,651 | $ 3,756 | $ 11,413 | $ 11,252 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | $ (46,373) | $ (60,774) | $ (148,742) | $ (427,990) |
Other comprehensive loss, net of taxes: | ||||
Unrealized gain (loss) on available-for-sale marketable securities, net | (211) | (389) | 126 | (418) |
Foreign currency translation adjustment | (684) | (15,866) | (451) | (54,324) |
Total comprehensive loss, net of taxes of $0 | $ (47,268) | $ (77,029) | $ (149,067) | $ (482,732) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Comprehensive loss income, net of taxes | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Total |
BALANCE at Dec. 31, 2021 | $ 31 | $ 1,823,344 | $ (568,611) | $ (6,414) | $ 1,248,350 |
BALANCE (in shares) at Dec. 31, 2021 | 311,473,950 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of Common Stock options | 3,035 | 3,035 | |||
Exercise of Common Stock options (in shares) | 2,168,289 | ||||
Vesting of restricted Common Stock (in shares) | 135,341 | ||||
Vesting of restricted stock units | $ 1 | 1 | |||
Vesting of restricted stock units (in shares) | 3,248,204 | ||||
Repurchase of shares for employee tax withholdings | (228) | (228) | |||
Repurchase of shares for employee tax withholdings (in shares) | (68,060) | ||||
Issuance of Common Stock related to settlement of contingent consideration | 500 | 500 | |||
Issuance of Common Stock related to settlement of contingent consideration (in shares) | 112,202 | ||||
Stock-based compensation expense | 37,826 | 37,826 | |||
Net loss | (427,990) | (427,990) | |||
Other comprehensive income (loss) | (54,742) | (54,742) | |||
BALANCE at Sep. 30, 2022 | $ 32 | 1,864,477 | (996,601) | (61,156) | 806,752 |
BALANCE (in shares) at Sep. 30, 2022 | 317,069,926 | ||||
BALANCE at Jun. 30, 2022 | $ 32 | 1,851,836 | (935,827) | (44,901) | 871,140 |
BALANCE (in shares) at Jun. 30, 2022 | 315,147,677 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of Common Stock options | 1,771 | 1,771 | |||
Exercise of Common Stock options (in shares) | 1,147,289 | ||||
Vesting of restricted Common Stock (in shares) | 21,786 | ||||
Vesting of restricted stock units (in shares) | 765,093 | ||||
Repurchase of shares for employee tax withholdings (in shares) | (11,919) | ||||
Net shares settlement related to employee tax withholdings upon vesting of restricted stock units | (39) | (39) | |||
Stock-based compensation expense | 10,909 | 10,909 | |||
Net loss | (60,774) | (60,774) | |||
Other comprehensive income (loss) | (16,255) | (16,255) | |||
BALANCE at Sep. 30, 2022 | $ 32 | 1,864,477 | (996,601) | (61,156) | 806,752 |
BALANCE (in shares) at Sep. 30, 2022 | 317,069,926 | ||||
BALANCE at Dec. 31, 2022 | $ 32 | 1,874,792 | (1,308,954) | (38,368) | 527,502 |
BALANCE (in shares) at Dec. 31, 2022 | 318,133,434 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of Common Stock options | 1,203 | 1,203 | |||
Exercise of Common Stock options (in shares) | 1,006,046 | ||||
Vesting of restricted Common Stock (in shares) | 85,372 | ||||
Vesting of restricted stock units (in shares) | 4,061,967 | ||||
Repurchase of shares for employee tax withholdings | (147) | (147) | |||
Repurchase of shares for employee tax withholdings (in shares) | (89,132) | ||||
Issuance of Common Stock related to settlement of contingent consideration | 797 | 797 | |||
Issuance of Common Stock related to settlement of contingent consideration (in shares) | 444,793 | ||||
Stock-based compensation expense | 25,286 | 25,286 | |||
Net loss | (148,742) | (148,742) | |||
Other comprehensive income (loss) | (325) | (325) | |||
BALANCE at Sep. 30, 2023 | $ 32 | 1,901,931 | (1,457,696) | (38,693) | 405,574 |
BALANCE (in shares) at Sep. 30, 2023 | 323,642,480 | ||||
BALANCE at Jun. 30, 2023 | $ 32 | 1,893,548 | (1,411,323) | (37,798) | 444,459 |
BALANCE (in shares) at Jun. 30, 2023 | 322,630,201 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of Common Stock options | 46 | 46 | |||
Exercise of Common Stock options (in shares) | 37,935 | ||||
Vesting of restricted Common Stock (in shares) | 9,779 | ||||
Vesting of restricted stock units (in shares) | 986,925 | ||||
Repurchase of shares for employee tax withholdings | (39) | (39) | |||
Repurchase of shares for employee tax withholdings (in shares) | (22,360) | ||||
Stock-based compensation expense | 8,376 | 8,376 | |||
Net loss | (46,373) | (46,373) | |||
Other comprehensive income (loss) | (895) | (895) | |||
BALANCE at Sep. 30, 2023 | $ 32 | $ 1,901,931 | $ (1,457,696) | $ (38,693) | $ 405,574 |
BALANCE (in shares) at Sep. 30, 2023 | 323,642,480 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||||
Net loss | $ (148,742) | $ (427,990) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 40,322 | 38,294 | |||
Stockbased compensation | 26,699 | 37,826 | |||
Goodwill impairment | $ 2,450 | $ 0 | 2,450 | 229,500 | $ 498,800 |
Amortization (accretion) of discount on investments | (490) | (305) | |||
Amortization of deferred costs on convertible notes | 548 | 276 | |||
Provision for bad debt | 640 | 1,038 | |||
Loss on disposal of property and equipment | 501 | 209 | |||
Net increase (decrease) in accrued interest related to marketable securities | 238 | 771 | |||
Net unrealized (gain) loss on equity investment | 286 | 6,172 | |||
Net unrealized (gain) loss on other investments | 745 | ||||
Deferred tax benefit | (675) | (1,602) | |||
Change in fair value of contingent consideration | (300) | (254) | |||
Foreign currency transaction loss | 392 | 1,202 | |||
Impairment charges | 6,062 | 6,062 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (2,446) | 3,166 | |||
Inventory | (16,052) | (31,195) | |||
Prepaid expenses and other current assets | (8,716) | (969) | |||
Other assets | 2,425 | 1,196 | |||
Accounts payable | 7,397 | (2,959) | |||
Accrued expenses and other current liabilities | 1,009 | (3,855) | |||
Customer deposits | (4,542) | 2,360 | |||
Deferred revenue | 3,590 | (1,589) | |||
Change in right of use assets and lease liabilities, net | (4,456) | (2,850) | |||
Other liabilities | 1,706 | 24 | |||
Net cash used in operating activities | (91,854) | (150,789) | |||
Cash flows from investing activities: | |||||
Purchases of property and equipment | (2,709) | (8,157) | |||
Proceeds from other investment | 3,155 | ||||
Proceeds from sale of property and equipment | 9,942 | 6 | |||
Purchase of marketable securities | (4,973) | (158,404) | |||
Proceeds from sales and maturities of marketable securities | 112,719 | 205,650 | |||
Proceeds from disposal of subsidiaries | 4,089 | ||||
Proceeds from capital grant | 200 | ||||
Cash paid for acquisitions, net of cash acquired | (500) | (23) | |||
Net cash provided by investing activities | 118,568 | 42,427 | |||
Cash flows from financing activities: | |||||
Proceeds from the exercise of stock options | 1,203 | 3,036 | |||
Payment of taxes related to net share settlement upon vesting of restricted stock units | (147) | (230) | |||
Repayment of loans | (337) | (421) | |||
Proceeds from issuance of convertible notes | 115,000 | ||||
Costs incurred in connection with the issuance of convertible notes | (3,619) | ||||
Net cash provided by financing activities | 719 | 113,766 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (461) | (1,491) | |||
Net increase in cash, cash equivalents, and restricted cash | 26,972 | 3,913 | |||
Cash, cash equivalents, and restricted cash at beginning of period | 81,913 | 68,258 | 68,258 | ||
Cash, cash equivalents, and restricted cash at end of period | 108,885 | 72,171 | 108,885 | 72,171 | 81,913 |
Supplemental disclosures of cash flow information | |||||
Cash and cash equivalents | 107,432 | 66,987 | 107,432 | 66,987 | 76,291 |
Restricted cash included in other current assets | 841 | 4,072 | 841 | 4,072 | |
Restricted cash included in other noncurrent assets | 612 | 1,112 | 612 | 1,112 | |
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 108,885 | $ 72,171 | 108,885 | 72,171 | $ 81,913 |
Noncash investing and financing activities: | |||||
Net unrealized (gain) loss on investments | (339) | 418 | |||
Common Stock issued for settlement of contingent consideration | 797 | 500 | |||
Deferred contract costs | 1,341 | ||||
Additions to right of use assets and lease liabilities | 11,443 | 10,742 | |||
Purchase of property and equipment included in accounts payable | 326 | 1,507 | |||
Purchase of property and equipment included in accrued expense | 90 | ||||
Transfers from property and equipment to inventory | 1,647 | 2,470 | |||
Transfers from inventory to property and equipment | $ 1,370 | $ 3,475 |
ORGANIZATION, NATURE OF BUSINES
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2023 | |
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES | |
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES | 1. ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES Organization and Nature of Business Desktop Metal, Inc. is a Delaware corporation headquartered in Burlington, Massachusetts. The company was founded in 2015 and is accelerating the transformation of manufacturing with 3D printing solutions for engineers, designers, and manufacturers. The Company designs, produces and markets 3D printing systems and services to a variety of end customers. On December 9, 2020 (the “Closing Date”), Trine Acquisition Corp. (“Trine”) consummated the previously announced merger pursuant to the Agreement and Plan of Merger, dated August 26, 2020, by and among Trine, Desktop Metal, Inc. and Sparrow Merger Sub, Inc., pursuant to which Sparrow Merger Sub, Inc. merged with and into Desktop Metal, Inc., with Desktop Metal, Inc. becoming our wholly owned subsidiary (the “Business Combination”). Upon the closing of the Business Combination, Trine changed its name to Desktop Metal, Inc. and Desktop Metal, Inc. changed its name to Desktop Metal Operating, Inc. Unless otherwise indicated or the context otherwise requires, references in this Quarterly Report on Form 10-Q to the “Company” and “Desktop Metal” refer to the consolidated operations of Desktop Metal, Inc., and its subsidiaries. References to “Trine” refer to the company prior to the consummation of the Business Combination and references to “Legacy Desktop Metal” refer to Desktop Metal Operating, Inc. prior to the consummation of the Business Combination. Risks and Uncertainties The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including, but not limited to, the need for successful development of products, the need for additional funding, competition from substitute products and services from larger companies, protection of proprietary technology, patent litigation, dependence on key individuals, and risks associated with changes in information technology. The Company has financed its operations to date primarily with proceeds from the sale of preferred stock, the Business Combination, and the sale of convertible senior notes due in 2027 (the “2027 Notes”) in May 2022. The Company’s long-term success is dependent upon its ability to successfully market its products and services; generate revenue; maintain or reduce its operating costs and expenses; meet its obligations; obtain additional capital when needed; and, ultimately, achieve profitable operations. Management believes that existing cash and short-term investments as of September 30, 2023 will be sufficient to fund operating and capital expenditure requirements through at least twelve months from the date of issuance of these condensed consolidated financial statements. Termination of Merger with Stratasys Ltd. On May 25, 2023, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among Stratasys Ltd. (“Stratasys”), Tetris Sub Inc., a Delaware corporation and a direct wholly owned subsidiary of Stratasys (“Merger Sub”), and the Company, pursuant to which Merger Sub was to merge with and into the Company, with the Company surviving the merger as a direct wholly owned subsidiary of Stratasys (the “Merger”). The Merger was subject to approval by shareholders of Stratsys and Desktop Metal. At an extraordinary general meeting of shareholders of Stratasys held on September 28, 2023, Stratasys shareholders did not approve the proposal related to the Merger Agreement. Accordingly, on September 28, 2023, Stratasys sent Desktop Metal a notice of termination of the Merger Agreement. As a result, and under the terms of the Merger Agreement, Stratasys paid $10.0 million to Desktop Metal for reimbursement of expenses, which is included in general and administrative expenses in the condensed consolidated statements of operations. The $10.0 million of reimbursement was equal the expenses previously incurred; therefore, there was no gain recorded related to this item. The termination fee was paid on October 6, 2023 and a receivable of $10.0 million was included in Prepaid expenses and other current assets in the condensed consolidated balance sheets as of September 30, 2023. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The condensed consolidated financial statements include the Company’s accounts and those of its subsidiaries. In the opinion of the Company’s management, the financial information for the interim periods presented reflects all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. The results reported in these condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. In the unaudited condensed consolidated financial statements, certain balances have been reclassified to conform to the current year presentation. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The functional currency of all wholly owned subsidiaries is U.S. Dollars. All intercompany transactions and balances have been eliminated in consolidation. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to the financial statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. See the below discussion of changes to the Company’s policies for assets held for sale. There have been no other changes to the Company’s significant accounting policies during the first nine months of fiscal year 2023. Assets Held for Sale The Company classifies long-lived assets or asset groups the Company plans to sell as held for sale on our consolidated balance sheets only after certain criteria have been met including: (i) management has the authority and commits to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and the plan to sell the asset have been initiated, (iv) the sale of the asset is probable within 12 months, (v) the asset is being actively marketed at a reasonable sales price relative to its current fair value, and (vi) it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. The Company records assets or asset groups held for sale at the lower of their carrying value or fair value less costs to sell. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 30, 2023 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 3. REVENUE RECOGNITION Contract Balances The Company’s deferred revenue balance was $20.8 million and $17.4 million as of September 30, 2023 and December 31, 2022, respectively. During the three and nine months ended September 30, 2023, the Company recognized $1.4 million and $5.2 million of existing deferred revenue from 2022. During the three and nine months ended September 30, 2022, the Company recognized $3.6 million and $14.0 million of existing deferred revenue from 2021 Contract assets were not significant during the nine months ended September 30, 2023 and 2022. Remaining Performance Obligations At September 30, 2023, the Company had $20.8 million of remaining performance obligations, of which approximately $17.0 million is expected to be fulfilled over the next 12 months, notwithstanding uncertainty related to customer site readiness and unanticipated economic events, which could have an adverse effect on the timing of delivery and installation of products and/or services to customers. In addition, the Company also had customer deposits of $6.9 million at September 30, 2023. |
CASH EQUIVALENTS AND SHORT-TERM
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | |
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 4. CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The Company’s cash equivalents and short-term investments are invested in the following (in thousands): September 30, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 63,671 $ — $ — $ 63,671 Total cash equivalents 63,671 — — 63,671 Total short-term investments — — — — Total cash equivalents and short-term investments $ 63,671 $ — $ — $ 63,671 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 51,274 $ — $ — $ 51,274 Total cash equivalents 51,274 — — 51,274 Commercial paper 39,781 — — 39,781 Corporate bonds 28,970 — (156) 28,814 U.S. Treasury securities 19,896 — (78) 19,818 Government bonds 14,846 — (102) 14,744 Asset-backed securities 4,000 — (2) 3,998 Total short-term investments 107,493 — (338) 107,155 Total cash equivalents and short-term investments $ 158,767 $ — $ (338) $ 158,429 During the year ended December 31, 2021, the Company made a $20.0 million investment in equity securities of a publicly-traded company. The Company records this investment at fair value within short-term investments, which was $0.8 million as of September 30, 2023. During the three and nine months ended September 30, 2023, the Company recorded unrealized losses of $0.1 million and $0.3 million, respectively, due to the change in fair value of the equity securities. During the three and nine months ended September 30, 2022, the Company recorded unrealized losses due to the change in fair value of the equity securities of $0.3 million and $6.2 million, respectively, in interest and other (expense) income, net in the consolidated statements of operations. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS The Company uses the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring the fair values for certain of its assets and liabilities: Level 1 is based on observable inputs, such as quoted prices in active markets; Level 2 is based on inputs other than the quoted prices in active markets that are observable either directly or indirectly; and Level 3 is based on unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Items measured at fair value on a recurring basis include money market funds. The following fair value hierarchy table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): September 30, 2023 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 63,671 $ — $ — $ 63,671 Equity securities 803 — — 803 Other investments — — 2,000 2,000 Total assets $ 64,474 $ — $ 2,000 $ 66,474 December 31, 2022 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 51,274 $ — $ — $ 51,274 Commercial paper — 39,781 — 39,781 Corporate bonds — 28,814 — 28,814 U.S. Treasury securities — 19,818 — 19,818 Government bonds — 14,744 — 14,744 Asset-backed securities — 3,998 — 3,998 Equity securities 1,088 — — 1,088 Other investments — — 2,000 2,000 Total assets $ 52,362 $ 107,155 $ 2,000 $ 161,517 Liabilities: Contingent consideration $ — $ — $ 2,587 $ 2,587 Total liabilities $ — $ — $ 2,587 $ 2,587 The Company has determined that the estimated fair value of its commercial paper, corporate bonds, U.S. Treasury securities, government bonds, and asset-backed securities are reported as Level 2 financial assets as they are based on model-driven valuations in which all significant inputs are observable, or can be derived from or corroborated by observable market data for substantially the full term of the asset. Equity securities include investments made via publicly-traded securities. The Company has determined that the estimated fair value of its equity securities is reported as Level 1 financial assets as they are based on quoted market prices in active markets for identical assets. During the three and nine months ended September 30, 2023, the Company recorded unrealized losses of $0.1 million and $0.3 million, respectively, due to the change in fair value of the equity securities in interest and other (expense) income, net in the condensed consolidated statements of operations. During the three and nine months ended September 30, 2022, the Company recorded unrealized losses due to the change in fair value of the equity securities of $0.3 million and $6.2 million, respectively, in interest and other (expense) income, net in the condensed consolidated statements of operations. Other investments include investments made via convertible debt instruments totaling $2.0 million which is recorded in other noncurrent assets in the condensed consolidated balance sheets. The other investments are reported as a Level 3 financial asset because the methodology used to develop the estimated fair values includes significant unobservable inputs reflecting management’s own assumptions. Assumptions used in fair valuing convertible debt instruments include the rights and obligations of the notes the Company holds as well as the probability of a qualified financing event, acquisition, or change in control. During the three and nine months ended September 30, 2023, the Company did not recognize any gains or losses on convertible debt instruments. During the three months ended September 30, 2022, the Company did no t recognize any losses on convertible debt instruments. During the nine months ended September 30, 2022, the Company recognized losses on convertible debt instruments of $0.8 million in interest and other (expense) income, net in the condensed consolidated statements of operations. During the three and nine months ended September 30, 2022, $3.1 million of the outstanding convertible debt instruments was repaid in full. The Aerosint acquisition included contingent consideration related to revenue metrics and technical milestones, with a fair value of $6.1 million as of the date of acquisition and no remaining fair value as of September 30, 2023. The contingent consideration liability was valued using a Monte Carlo simulation in a risk-neutral framework as well as a scenario-based approach (both special cases of the income approach), based on key inputs that are not all observable in the market and is classified as a Level 3 liability. The Company assesses the fair value of the contingent consideration liability at each reporting period, with any subsequent changes to the fair value of the liability reflected in the condensed consolidated statement of operations until the liability is settled. During the three and nine months ended September 30, 2023, the Company derecognized the remaining contingent consideration of $0.2 million upon the sale of Aerosint. During the three and nine months ended September 30, 2022, the Company recognized a gain in fair value of contingent consideration of $0.3 million and $0.3 million, respectively. During the nine months ended September 30, 2023, the Company paid $1.6 million in cash and $0.8 million in shares to Aerosint in connection with the achievement of revenue and technical milestones. During the nine months ended September 30, 2022, based on the relevant revenues earned during the first year of the three-year contingent consideration period, the Company paid $1.0 million in cash and $0.5 million in shares to Aerosint. As of September 30, 2023, no contingent consideration is recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets. The 2027 Notes are valued as a single liability measured at amortized cost, as no other features require bifurcation and recognition as derivatives. There were no transfers between fair value measure levels during the nine months ended September 30, 2023 and 2022. The following table presents information about the Company’s movement in Level 3 assets measured at fair value (in thousands): Nine Months Ended September 30, 2023 2022 Balance at beginning of period $ 2,000 $ 6,750 Changes in fair value — (745) Disposals — (3,155) Balance at end of period $ 2,000 $ 2,850 The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): Nine Months Ended September 30, 2023 2022 Balance at beginning of period $ 2,587 $ 5,654 Payment of contingent consideration liability (2,390) (1,500) Sale of Aerosint (197) — Changes in fair value — (254) Balance at end of period $ — $ 3,900 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 9 Months Ended |
Sep. 30, 2023 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | 6. ACCOUNTS RECEIVABLE The components of accounts receivable are as follows (in thousands): September 30, December 31, 2023 2022 Trade receivables $ 42,368 $ 40,121 Allowance for doubtful accounts (2,280) (1,640) Total accounts receivable $ 40,088 $ 38,481 The following table summarizes activity in the allowance for doubtful accounts (in thousands): September 30, December 31, 2023 2022 Balance at beginning of period $ 1,640 $ 665 Provision for uncollectible accounts, net of recoveries 1,102 1,393 Uncollectible accounts written off (462) (418) Balance at end of period $ 2,280 $ 1,640 |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2023 | |
INVENTORY | |
INVENTORY | 7. INVENTORY Inventory consists of the following (in thousands): September 30, December 31, 2023 2022 Raw materials $ 50,738 $ 41,971 Work in process 9,737 11,936 Finished goods: Deferred cost of sales 7,433 3,602 Manufactured finished goods 39,288 34,227 Total finished goods 46,721 37,829 Total inventory $ 107,196 $ 91,736 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 8. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consists of the following (in thousands): September 30, December 31, 2023 2022 Prepaid operating expenses $ 8,463 $ 5,705 Prepaid dues and subscriptions 2,013 2,674 Prepaid insurance 1,300 798 Prepaid taxes 700 395 Prepaid rent 447 383 Government grants receivable — 429 Termination fee receivable 9,950 — Other 2,114 5,941 Total prepaid expenses and other current assets $ 24,987 $ 16,325 |
DIVESTITURES
DIVESTITURES | 9 Months Ended |
Sep. 30, 2023 | |
DIVESTITURES | |
DIVESTITURES | 9. DIVESTITURES During the year ended December 31, 2022, in connection with the Company’s strategic integration and cost optimization initiative (the “ Initiative”), as discussed in Note 24 . Restructuring Charges , the Company approved a plan to sell a facility in Troy, Michigan, as well as related equipment in the facility. in connection with the Initiative, the Company approved a plan to sell a facility in North Huntington, Pennsylvania The Company ceased recording depreciation on these assets upon meeting the held for sale criteria. As of December 31, 2022, the total carrying value of assets held for sale was $0.8 million. During the nine months ended September 30, 2023, the Company completed the sales of the Troy, Michigan and the North Huntington, Pennsylvania On September 29, 2023, the Company entered into a Stock Purchase Agreement with Industriewerk Shaeffler INA-Ingenieurdienst-, Gesellshaft mit beschrankter Haftung. (“Shaeffler”) related to the sale of Aerosint SA (“Aerosint”), a wholly owned subsidiary of the Company, for a $4.1 million all in cash selling price, net of cost of sell. The transaction was completed on September 29, 2023. Before measuring the fair value less costs to sell of the disposal group as a whole, the Company first reviewed individual assets and liabilities to determine if any fair value adjustments were required and concluded no individual asset impairments were required. Then, based on the purchase and sale agreement entered into by the Company and the Buyer, the Company determined the fair value of the disposal group to be equal to the selling price, less costs to sell. Based on this review, the Company recorded a non-cash goodwill impairment charge of $2.5 million reflected in the third quarter of 2023 as the sale was considered to be a triggering event to evaluate goodwill impairment. Additionally, the Company, recorded an impairment charge of |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2023 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 10. PROPERTY AND EQUIPMENT Property and equipment, net consists of the following (in thousands): September 30, December 31, 2023 2022 Equipment $ 46,829 $ 48,632 Leasehold improvements 19,131 18,527 Land and buildings 8,941 15,893 Construction in process 3,642 5,008 Furniture and fixtures 2,152 2,396 Software 2,077 2,183 Tooling 2,285 2,145 Computer equipment 2,474 2,076 Automobiles 1,044 1,180 Property and equipment, gross 88,575 98,040 Less: accumulated depreciation (50,188) (41,769) Total property and equipment, net $ 38,387 $ 56,271 Depreciation expense was $2.9 million and $8.8 million for three and nine months ended September 30, 2023. Depreciation expense was $3.1 million and $9.3 million for the three and nine months ended September 30, 2022. |
GOODWILL & INTANGIBLE ASSETS
GOODWILL & INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
GOODWILL & INTANGIBLE ASSETS | |
GOODWILL & INTANGIBLE ASSETS | 11. GOODWILL & INTANGIBLE ASSETS The carrying amount of goodwill at September 30, 2023 and December 31, 2022 was $108.7 million and $113.0 million respectively, and has been recorded in connection with the Company’s acquisitions. The goodwill activity is as follows (in thousands): September 30, December 31, 2023 2022 Balance, beginning of year $ 112,955 $ 639,301 Goodwill impairment (2,450) (498,800) Foreign currency translation adjustment (1,854) (26,940) Measurement period adjustments — (606) Balance, end of period $ 108,651 $ 112,955 During the three and nine months ended September 30, 2023, the Company recorded a goodwill impairment charge of $2.5 million related to the sale of Aerosint. During the three and nine months ended September 30, 2022, the Company recorded goodwill impairment charges of $0 and $229.5 million, respectively, in the condensed consolidated statements of operations. Due to sustained declines in the Company’s stock price and the stock prices of comparable companies, the Company performed interim quantitative assessments as of June 30, 2022 and December 31, 2022, utilizing a combination of the income and market approaches. The results of the quantitative analysis performed indicated that the carrying value of the reporting unit exceeded the fair value. As such, $498.8 million of goodwill impairment charges were recorded during the year ended December 31, 2022. The Company estimated the fair value using a weighted average of the income and market approaches. Specifically, the discounted cash flow method was used under the income approach and the guideline public company and guideline merged and acquired company methods were used under the market approach. The significant assumptions used under the income approach include management’s forecasts of future revenues and EBITDA margins used to calculate projected future cash flows, discount rates, and the terminal growth rate. The terminal value is based on an exit revenue multiple which requires significant assumptions regarding the selections of appropriate multiples that consider relevant market trading data. The Company bases its estimates and assumptions on its knowledge of the additive manufacturing industry, recent performance, expectations of future performance and other assumptions the Company believes to be reasonable. The significant assumptions used under the market approach include the control premium and selection of comparable companies and comparable transactions. Comparable companies and transactions are chosen based on factors including industry classification, geographic region, product offerings, earnings growth, and profitability. The measurement period adjustments of $0.6 million during 2022 represent the final measurement period adjustments related to the acquisition of May Dental Lab, Inc. in October 2021 and the acquisition of the ExOne Company in November 2021. Intangible assets consisted of the following (in thousands): September 30, 2023 December 31, 2022 Weighted Average Gross Net Gross Net Remaining Useful Carrying Accumulated Carrying Carrying Accumulated Carrying Lives (in years) Amount Amortization Amount Amount Amortization Amount Acquired technology 7.8 $ 185,669 $ 58,039 $ 127,630 $ 196,367 $ 36,919 $ 159,448 Trade name 9.9 12,297 3,545 8,752 12,459 2,374 10,085 Customer relationships 9.1 67,565 25,145 42,420 67,915 17,663 50,252 Capitalized software — 518 518 — 518 473 45 Total intangible assets $ 266,049 $ 87,247 $ 178,802 $ 277,259 $ 57,429 $ 219,830 During the three and nine months ended September 30, 2023 and 2022, the Company recognized the following amortization expense (in thousands): Statement of Three Months Ended September 30, Nine Months Ended September 30, Category Operations Line Item 2023 2022 2023 2022 Acquired technology Cost of Sales $ 6,889 $ 5,877 $ 20,744 $ 17,817 Acquired technology Research and Development 556 466 1,665 1,314 Trade name General and Administrative 416 424 1,249 1,267 Customer relationships Sales and Marketing 2,537 2,276 7,594 8,044 Capitalized software Research and Development 0 26 45 80 $ 10,398 $ 9,069 $ 31,297 $ 28,522 The Company expects to recognize the following amortization expense (in thousands): Amortization Expense 2023 (remaining 3 months) $ 10,148 2024 40,323 2025 37,476 2026 27,276 2027 19,296 2028 and after 44,283 Total intangible amortization $ 178,802 |
OTHER NONCURRENT ASSETS
OTHER NONCURRENT ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
OTHER NONCURRENT ASSETS | |
OTHER NONCURRENT ASSETS | 12. OTHER NONCURRENT ASSETS The following table summarizes the Company’s components of other noncurrent assets (in thousands): September 30, December 31, 2023 2022 Right of use asset $ 29,114 $ 22,147 Other investments 2,000 2,000 Long-term deposits 488 573 Other 4,863 3,043 Total other noncurrent assets $ 36,465 $ 27,763 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): September 30, December 31, 2023 2022 Compensation and benefits related $ 7,532 $ 8,058 Professional services 821 917 Warranty reserve 3,933 4,301 Franchise and royalty fees 2,154 1,448 Inventory purchases 1,159 925 Current portion of acquisition consideration 1,593 1,750 2027 Notes Interest 2,664 901 Income tax payable 1,220 761 Commissions 570 897 Sales and use and franchise taxes 558 286 Current portion of contingent consideration — 2,587 License fee payable 928 — Other 4,767 3,892 Total accrued expenses and other current liabilities $ 27,899 $ 26,723 The Company recorded warranty reserve as of September 30, 2023 and December 31, 2022, respectively, as follows (in thousands). September 30, December 31, 2023 2022 Warranty reserve, at the beginning of the period $ 4,301 $ 4,048 Additions to warranty reserve 1,489 4,484 Claims fulfilled (1,857) (4,231) Warranty reserve, at the end of the period $ 3,933 $ 4,301 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2023 | |
DEBT | |
DEBT | 14. DEBT 2027 Convertible Notes— The 2027 Notes are senior unsecured obligations. The 2027 Notes accrue interest at a rate of 6.0% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2022. The 2027 Notes will mature on May 15, 2027, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. Before November 15, 2026, holders of the 2027 Notes will have the right to convert their 2027 Notes only upon the occurrence of certain events and during specified periods, including: ● if the last reported sale price per share of the Company’s Common Stock, par value $0.0001 per share exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; ● if during the five consecutive business days immediately after any 10 consecutive trading day period (such 10 consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of 2027 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Company’s Common Stock on such trading day and the conversion rate on such trading day; ● upon the occurrence of certain corporate events or distributions on the Company’s Class A common stock; or ● if the Company calls the 2027 Notes for redemption. From and after November 15, 2026, holders of the 2027 Notes may convert their 2027 Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. The Company will settle conversions by paying or delivering cash and, if applicable, shares of its Class A common stock. The initial conversion rate is 601.5038 shares of Class A common stock per $1,000 principal amount of 2027 Notes, which represents an initial conversion price of approximately $1.66 per share of Class A common stock. The conversion rate is subject to customary adjustments for certain events as described in the indenture governing the 2027 Notes. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the indenture governing the 2027 Notes) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. The Company may redeem for cash all or any portion of the 2027 Notes, at the Company’s option, on or after May 20, 2025, and on or before the 40 th However, the Company may not redeem less than all of the outstanding 2027 Notes unless at least $100.0 million aggregate principal amount of 2027 Notes are outstanding and not called for redemption as of the time the Company sends the related redemption notice. The redemption price will be a cash amount equal to the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, calling any 2027 Note for redemption will constitute a Make-Whole Fundamental Change with respect to that 2027 Note, in which case the conversion rate applicable to the conversion of that 2027 Note will be increased in certain circumstances if it is converted after it is called for redemption. If certain corporate events that constitute a “Fundamental Change” (as defined in the indenture governing the 2027 Notes) occur, then, subject to a limited exception for certain cash mergers, holders of the 2027 Notes may require the Company to repurchase their 2027 Notes at a cash repurchase price equal to the principal amount of the 2027 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to the Company’s Class A common stock. The 2027 Notes are valued as a single liability measured at amortized cost, which approximates fair value, as no other features require bifurcation and recognition as derivatives. The following table presents the outstanding principal amount and carrying value of the 2027 Notes as of the date indicated (in thousands): September 30, December 31, 2023 2022 Principal $ 115,000 $ 115,000 Unamortized debt discount (2,069) (2,502) Unamortized debt issuance costs (549) (664) Net carrying value $ 112,382 $ 111,834 The annual effective interest rate for the 2027 Notes was approximately 6.1%. Interest expense related to the 2027 Notes for the periods presented below are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Coupon interest $ 1,763 $ 1,739 $ 5,232 $ 2,686 Amortization of debt discount 144 186 432 218 Amortization of transaction costs 38 50 114 58 Total interest expense $ 1,945 $ 1,975 $ 5,778 $ 2,962 Bank Debt— . Payments of principal and interest are made quarterly. During the three and nine months ended September 30, 2023, the Company paid |
OTHER NONCURRENT LIABILITIES
OTHER NONCURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
OTHER NONCURRENT LIABILITIES | |
OTHER NONCURRENT LIABILITIES | 15. OTHER NONCURRENT LIABILITIES The following table summarizes the Company’s components of other noncurrent liabilities (in thousands): September 30, December 31, 2023 2022 Taxes payable $ 1,034 $ 1,034 License fee payable, net of current 1,725 — Other 318 325 Total other noncurrent liabilities $ 3,077 $ 1,359 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
LEASES | |
LEASES | 16. LEASES Lessee At September 30, 2023, the Company recorded $29.1 million as a right of use asset and $30.3 million as a lease liability. At December 31, 2022, the Company recorded $22.1 million as a right of use asset and $23.6 million as a lease liability. The Company assesses its right of use asset and other lease-related assets for impairment. There were no impairments recorded related to these assets during the three and nine months ended September 30, 2023 and the year ended December 31, 2022. The Company reviews all supplier, vendor, and service provider contracts to determine whether any service arrangements contain a lease component. The Company identified two service agreements that contain an embedded lease. The agreements do not contain fixed or minimum payments, and the variable lease expense was immaterial during the three and nine months ended September 30, 2023 and 2022. Information about other lease-related balances is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Lease cost Operating lease cost $ 1,403 $ 1,507 $ 4,474 $ 4,286 Short‑term lease cost 80 31 174 101 Variable lease cost 36 54 106 176 Finance lease cost 45 22 91 64 Total lease cost $ 1,564 $ 1,614 $ 4,845 $ 4,627 Other Information Operating cash flows used in operating leases $ 1,388 $ 1,580 $ 4,859 $ 4,675 Operating cash flows used in finance leases 39 16 81 56 Weighted‑average remaining lease term—operating leases (years) 4.6 12.8 4.6 12.8 Weighted‑average remaining lease term—finance leases (years) 6.6 7.8 6.6 7.8 Weighted‑average discount rate—operating leases 5.8 % 4.5 % 5.8 % 4.5 % Weighted‑average discount rate—finance leases 3.1 % 3.1 % 3.1 % 3.1 % The rate implicit in the lease is not readily determinable in most of the Company’s leases, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. Future minimum lease payments under noncancelable operating leases, including immaterial future minimum lease payments under finance leases, at September 30, 2023, are as follows (in thousands): Operating Leases Finance Leases 2023 (remaining 6 months) $ 2,101 $ 20 2024 8,109 76 2025 7,646 75 2026 6,075 75 2027 4,985 75 2028 and after 5,082 308 Total lease payments 33,998 629 Less amount representing interest (4,231) (72) Total lease liability 29,767 557 Less current portion of lease liability (6,583) (61) Lease liability, net of current portion $ 23,184 $ 496 In February 2022, the Company amended its existing facility lease for the ExOne European headquarters and operating facility in Gersthofen, Germany, extending the lease term set to expire in December 2022 through December 2027, with the option to extend for two additional five-year extension periods. The rent is fixed through December 31, 2024, for an aggregate annual rent totaling $1.7 million, plus applicable taxes and is subject to adjustment on an annual basis thereafter (in accordance with the consumer price index for Germany) through December 31, 2027. In June 2023, the Company amended its existing facility lease for the headquarters and operating facility in Burlington, MA, extending the lease term set to expire in April 2024 through April 2029. The rent is not fixed and increases each year of the lease extension. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may face legal claims or actions in the normal course of business. At each reporting date, the Company evaluates whether a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any current legal proceedings will have a material adverse impact on the Company’s condensed consolidated financial statements. On October 20, 2023, purported stockholder Pietro Campanella filed an amendment to the November 21, 2021 class action complaint in Delaware Court of Chancery against Desktop Metal, Inc., and former directors and officers of The ExOne Company, alleging breach of fiduciary duty and aiding and abetting breach of fiduciary duty claims in connection with the ExOne Merger (Campanella v. Rockwell, et al., Case No. 2021-1013-LWW). In particular, Mr. Campanella alleges that ExOne’s proxy statement and supplemental disclosures did not adequately disclose information related to a whistleblower investigation at one of Desktop Metal’s subsidiaries, EnvisionTEC, and the resignation of EnvisionTEC’s CEO, prior to the ExOne stockholder vote. As previously disclosed, four alleged shareholders of Desktop Metal stock filed purported securities class action complaints in the United States District Court for the District of Massachusetts, alleging that Desktop Metal and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities and Exchange Act by making false or misleading statements regarding EnvisionTEC’s manufacturing and product compliance practices and procedures. Plaintiffs filed a Consolidated Complaint on December 19, 2022. The parties completed briefing on the motion to dismiss in May 2023, and Judge Indira Talwani held oral argument on September 13, 2023. The Court issued a decision dismissing the Consolidated Complaint with prejudice and entered Judgment for defendants on September 21, 2023. On October 13, 2023, Lead Plaintiff Sophia Zhou filed a Notice of Appeal. On June 6, 2023, alleged stockholder Building Trades Pension Fund of Western Pennsylvania filed a purported securities class action complaint and motion for expedited proceedings in Delaware Chancery Court (Building Trades Pension Fund of Western Pennsylvania v. Desktop Metal, et al., Case No. 2023-0597). The complaint generally alleged breach of fiduciary duties and aiding and abetting breach of fiduciary duties against certain of officers and directors of Desktop Metal in connection with Desktop Metal’s proposed merger with Stratasys Ltd. (“Stratasys”). The parties completed briefing on the motion to expedite in June 2023. Vice Chancellor J. Travis Laster held oral argument on July 5, 2023, and issued a decision denying the motion to expedite. Plaintiff voluntarily dismissed the complaint on July 14, 2023. On September 6, 2023, and September 11, 2023, purported stockholders Catherine Coffman, Ryan O’Dell, and Elaine Wang filed actions in the United States District Court for the Southern District of New York (Coffman v. Desktop Metal, et al., Case No. 1:23-cv-07900; O’Dell v. Desktop Metal, et al., Case No. 1:23-cv-07992; Wang v. Desktop Metal, et al., Case No. 1:23-cv-08041). On September 7, 2023, purported stockholder Michael Kent filed an action in the United States District Court for the District of Delaware (Kent v. Desktop Metal, et al., Case No. 1:23-cv-00991). The complaints generally allege that certain officers and directors of Desktop Metal violated Sections 14(a) and 20(a) of the Exchange Act by causing a materially incomplete and misleading registration statement to be filed with the SEC on June 20, 2023 in connection with Desktop Metal’s proposed merger with Stratasys. Ms. Coffman dismissed her complaint on October 2, 2023. Mr. Kent dismissed his complaint on October 5, 2023. Mr. O’Dell dismissed his complaint on October 18, 2023. Ms. Wang dismissed her complaint on October 19, 2023. The Company believes that these complaints are all without merit and intends to defend against them vigorously. Commitments The Company has entered into legally binding agreements with certain suppliers to purchase materials used in the manufacturing of the Company’s products. As of September 30, 2023, the Company had outstanding purchase orders with contract manufacturers in the amount of $24.3 million which are not included in the condensed consolidated balance sheets. The Company has an additional purchase commitment of $22.0 million through 2027 for equipment that it plans to lease to customers in connection with digital dentistry solution offerings related to the Desktop Labs platform. The Company has also entered into licensing and royalty agreements with certain manufacturing and software companies and universities related to the use of patented technology. Under the terms of each agreement, the Company has made initial, immaterial one-time payments and is obligated to pay a set percentage, ranging from 4% - 13%, of all consideration received by the Company for sales of related products and services, until the agreements are terminated. The Company’s aggregate minimum annual commitment under these contracts is $0.6 million. During the three and nine months ended September 30, 2023 and 2022, the Company recorded immaterial licensing and royalty fees. Within the Company’s normal course of operations, it issues short-term financial guarantees and letters of credit through a credit facility with a German bank to third parties in connection with certain commercial transactions requiring security. The credit facility provides a capacity amount of $5.3 million for the issuance of financial guarantees and letters of credit for commercial transactions requiring security. The credit facility does not require cash collateral for the issuance of financial guarantees and letters of credit for commercial transactions requiring security for amounts up to $1.1 million. Amounts in excess of $1.1 million require cash collateral under the credit facility. At September 30, 2023, total outstanding financial guarantees and letters of credit issued by the Company under the credit facility were $0.8 million, of which $0.4 million have expiration dates ranging from October 2023 to January 2024, and the remaining $0.4 million with no expiration date. At September 30, 2023, cash collateral of $0.8 million was required for financial guarantees and letters of credit issued under the credit facility, and is included in current portion of restricted cash in the condensed consolidated balance sheets. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | 18. INCOME TAXES The Company’s provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items arising in that quarter. The Company’s effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on its deferred tax assets as it is more likely than not that some or all of the Company’s deferred tax assets will not be realized. During the three and nine months ended September 30, 2023, the Company recorded a benefit of $0.1 million and $0.7 million, respectively. During the three and nine months ended September 30, 2022, the Company recorded an income tax expense of $0.6 million and an income tax benefit of $1.6 million, respectively. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s condensed consolidated financial statements and tax returns. Deferred tax assets and liabilities are determined based upon the differences between the condensed consolidated financial statements carrying amounts and the tax bases of existing assets and liabilities and for loss and credit carryforwards, using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. As a result of the fact that the Company has incurred tax losses from inception, the Company maintains that it is more likely than not that the Company would not realize the benefits of federal and state net deferred tax assets nor the benefits of deferred tax assets in certain non-U.S. jurisdictions. The Company provides reserves for potential payments of taxes to various tax authorities related to uncertain tax positions. Amounts recognized are based on a determination of whether a tax benefit taken by the Company in its tax filings or positions is “more likely than not” to be sustained on audit. The amount associated with uncertain tax positions are recorded as a component of income tax expense. As of September 30, 2023, the Company has accrued uncertain tax positions of approximately $1.0 million related to the EnvisionTEC acquisition. The amounts relate to U.S. state and foreign tax positions. Included in the balance of unrecognized tax benefits as of September 30, 2023 are amounts that, if recognized, would impact the effective tax rate. As of December 31, 2022, the Company recorded a liability of $1.0 million for uncertain tax positions acquired in various acquisitions during 2021. As of December 31, 2022, the Company had a balance in accrued interest and penalties related to uncertain tax positions of $0.2 million. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 19. STOCKHOLDERS’ EQUITY The Company’s authorized shares consist of 500,000,000 shares of Class A Common Stock, $0.0001 par value per share (the “Common Stock”) and 50,000,000 shares of Preferred Stock, $0.0001 par value per share (the “Preferred Stock”). |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | 20. STOCK BASED COMPENSATION In 2015, the Board of Directors approved the adoption of the 2015 stock incentive plan (the “2015 Plan”). The 2015 Plan allowed for the award of incentive and nonqualified stock options, restricted stock, and other stock-based awards to employees, officers, directors, consultants, and advisers of the Company. Awards could be made under the 2015 Plan for up to 26,283,789 shares of Common Stock. Option awards expire 10 years from the grant date and generally vest over four years; however, vesting conditions can vary at the discretion of our Board of Directors. As part of the acquisition of Make Composites, Inc. (“Make”) in 2019, the Company assumed the 2018 equity incentive plan of Make (the “Make Plan”). The Make Plan allows for the award of incentive and nonqualified stock options and warrants for those employees and contractors that were hired as part of the acquisition. The Make Plan allowed for 232,304 options and warrants to be issued, which were issued in 2019, with no additional options to be issued in the future. Option awards expire 10 years from the grant date and generally vest over four years; however, vesting conditions can vary at the discretion of our Board of Directors. In December 2020, the Board of Directors and stockholders of the Company approved the adoption of the 2020 Incentive Award Plan (the “2020 Plan” and together with the 2015 Plan and the Make Plan, the “Plans”), which became effective on the date of the Business Combination. Upon effectiveness of the 2020 Plan, the Company ceased granting new awards under the 2015 Plan. The 2020 Plan allows for the award of incentive and nonqualified stock options, restricted stock, and other stock-based awards to employees, officers, directors, consultants, and advisers of the Company. The number of shares of common stock initially available for issuance under the 2020 Plan was 12,400,813 shares of common stock plus the number of shares subject to awards outstanding under the 2015 Plan that expire, lapse, terminate, or are exchanged for cash, surrendered, repurchased, or canceled without having been fully exercised or forfeited. In addition, the number of shares of common stock available for issuance under the 2020 Plan is subject to an annual increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030 equal to the lesser of (i) 5% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Board of Directors. On January 1, 2023, 15,906,671 shares were added as available for issuance to the 2020 Plan. Stock Options The option activity of the Plans for the nine months ended September 30, 2023, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2023 8,423 $ 1.83 6.02 $ 922 Exercised (1,006) $ 1.20 Forfeited/expired (1,126) $ 2.41 Outstanding at September 30, 2023 6,291 $ 1.83 5.24 989 Options vested at September 30, 2023 5,693 $ 1.86 5.08 954 Options vested or expected to vest at September 30, 2023 6,287 $ 1.83 5.24 989 The aggregate intrinsic value of options exercised during the nine months ended September 30, 2023 and 2022, was $0.9 million and $4.6 million, respectively. The total stock-based compensation expense related to stock options was $0.3 million and $1.0 million during the three and nine months ended September 30, 2023, respectively, and $0.3 million and $2.2 million during the three and nine months ended September 30, 2022, respectively. Total unrecognized stock-based compensation expense related to unvested stock options at September 30, 2023 aggregated Performance-Based Stock Options (included above) During the year ended December 31, 2020, 560,256 performance-based stock options were granted to key employees of the Company. These awards vest upon the achievement of certain performance milestones by the Company and prescribed service milestones by the employee. During the year ended December 31, 2021, 83,958 performance-based stock options were forfeited due to employee termination. During the year ended December 31, 2022, 290,038 performance-based stock options were forfeited due to employee termination and the remaining 186,260 performance-based stock options outstanding expired without vesting as the performance milestones were not achieved by the Company, as such, there is no unrecognized compensation cost related to these awards. Restricted Stock Awards In connection with acquisitions, the Company has granted restricted stock awards (“RSAs”) that are considered post-combination expense and accounted for as stock-based compensation as the shares vest. The activity for stock subject to vesting as of September 30, 2023, is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2023 102 $ 8.78 Vested (85) $ 8.78 Balance of unvested shares as of September 30, 2023 17 $ 8.78 The total stock-based compensation expense related to RSAs was $0.1 million and $0.7 million during the three and nine months ended September 30, 2023, respectively, and $0.2 million and $0.8 million during the three and nine months ended September 30, 2022, respectively. At September 30, 2023, the total unrecognized stock-based compensation expense related to unvested RSAs is $0.1 million and is expected to be recognized over a weighted-average period of 0.4 years. Restricted Stock Units Restricted Stock Units (“RSUs”) awarded to employees and non-employees generally vest over four years from the anniversary date of the grant, with one-year cliff vesting and quarterly vesting thereafter, provided service with the Company is not terminated. The fair value of RSUs is equal to the estimated fair market value of the Company’s Common Stock on the date of grant. RSU activity under the 2020 Plan for the nine months ended September 30, 2023, is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2023 22,145 $ 4.15 Granted 9,677 $ 1.86 Vested (4,062) $ 5.28 Cancelled/Forfeited (2,278) $ 4.57 Balance of unvested shares as of September 30, 2023 25,482 $ 3.07 The total stock-based compensation expense related to RSUs was $7.3 million and $25.0 million during the three and nine months ended September 30, 2023, respectively, and $11.6 million and $38.2 million during the three and nine months ended September 30, 2022, respectively. Total unrecognized compensation costs related to unvested RSUs at September 30, 2023 is $59.0 million and is expected to be recognized over a period of 2.4 years. RSUs include awards that vest subject to certain performance and market-based criteria. Performance-Based Restricted Stock Units (included above) During the year ended December 31, 2021, 670,000 performance-based RSUs were granted to key employees of the Company. These awards vest upon the achievement of certain performance milestones by the Company and prescribed service milestones by the employee. No performance-based RSUs vested during the years ended December 31, 2022 and 2021. During the year ended December 31, 2021, 120,000 awards expired due to performance milestones not being achieved. During the year ended December 31, 2022, 400,000 performance-based RSUs were forfeited due to employee termination. During the three and nine months ended September 30, 2023, no performance-based RSUs vested or were forfeited. As of September 30, 2023, 150,000 performance-based RSUs remain outstanding. During the year ended December 31, 2020, 124,300 performance-based RSUs were granted to a key employee of the Company. This award vests upon the achievement of certain performance milestones by the Company and prescribed service milestones by the employee. No performance-based RSUs vested during the years ended December 31, 2022 and 2021, or during the three and nine months ended September 30, 2023. During the three and nine months ended September 30, 2023, 62,150 and 124,300 performance-based RSUs were forfeited, respectively. As of September 30, 2023, no performance-based RSUs remain outstanding. Market-Based Restricted Stock Units (included above) In October 2021 the Compensation Committee of the Company’s Board of Directors awarded certain executive officers a total of up to 9,070,269 market-based RSUs. These RSUs will vest and result in the issuance of shares of Common Stock based on continuing employment and the achievement of certain market conditions set by the Company. During the year ended December 31, 2021, one of the executive officers resigned from the Company, forfeiting his market-based RSUs. As the service condition was not met prior to his resignation, no stock-based compensation expense was recorded for this award. No market-based RSUs vested or were forfeited during the year ended December 31, 2022 or during the three and nine months ended September 30, 2023. As of September 30, 2023, 6,802,702 market-based RSUs remain outstanding. Bonus Program The Company’s bonus program allows the bonus to be paid out in RSUs, cash, or a combination. The Company’s 2022 bonus program was granted in dollar bonus amounts, which were paid out in RSUs during the three months ended March 31, 2023. The number of RSUs awarded was determined using the closing price of the Company's Common Stock on the date of the Board's final certification of the Company's performance attainment and awards to be issued to each employee. The Company accounted for these awards as liability-based awards until the awards were achieved, at which point the Company accounted for these awards as equity-based awards. The Company’s 2023 bonus program (“2023 Bonus Program”) is expected to be paid out in RSUs determined using the closing price of the Company's Common Stock on the date of the Board's final certification of the Company's performance attainment and awards to be issued to each employee. The Company has accounted for these awards as liability-based awards, since the monetary value of the obligation associated with the award is based predominantly on a fixed monetary amount known at inception, and it has an unconditional obligation that it must or may settle by issuing a variable number of its equity shares. The Company will recognize stock-based compensation expense over the employees’ requisite service period, based on the expected attainment of the Company-wide targets. As of September 30, 2023, the Company has accrued $2.2 million associated with these awards, which is recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets. Stock-Based Compensation Expense Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the condensed consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Research and development $ 3,662 $ 4,355 $ 12,612 $ 21,872 General and administrative expense 2,802 3,899 10,419 11,681 Sales and marketing expense 702 3,052 1,881 5,725 Cost of sales 517 734 1,787 1,892 Total stock-based compensation expense $ 7,683 $ 12,040 $ 26,699 $ 41,170 During the three and nine months ended September 30, 2023, the Company recognized ($0.7 ) million and $2.2 million of stock-based compensation expense associated with liability classified awards related to the 2023 Bonus Program. During the three and nine months ended September 30, 2022, the Company recognized $1.2 million and $3.4 million of stock-based compensation expense associated with liability classified awards related to the 2022 Bonus Program. There were 27,336,014 shares available for award under the 2020 Plan at September 30, 2023. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 21. RELATED PARTY TRANSACTIONS As a result of acquisitions, the Company assumed lease agreements with related parties for facilities across the United States which extend through 2029. As of September 30, 2023 The Company sells products to Lightforce Orthodontics which is affiliated with a member of the Company’s Board of Directors. Management believes the sales were conducted on terms equivalent to those prevailing in an arm’s-length transaction. During the three and nine months ended September 30, 2023, the Company recognized $0.2 million and $0.9 million, respectively, of revenue from Lightforce Orthodontics. During the three and nine months ended September 30, 2022, the Company recognized $0.3 million and $0.9 million of revenue, respectively. The Company sells products to Bloom Energy which is affiliated with a member of the Company’s Board of Directors. Management believes the sales were conducted on terms equivalent to those prevailing in an arm’s-length transaction. During the three and nine months ended September 30, 2023, the Company recognized an immaterial amount of revenue and $0.5 million of revenue, respectively, from Bloom Energy. As of September 30, 2023, the Company has an immaterial account receivable balance with Bloom Energy. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 22. SEGMENT INFORMATION In its operation of the business, management, including the Company’s chief operating decision maker, who is also Chief Executive Officer, reviews the business as one segment. The Company currently ships its product to markets in the Americas, Europe Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”). Disaggregated revenue data for those markets is as follows (in thousands): Revenue for the three months ended September 30, 2023 Americas EMEA APAC Total Products $ 25,630 $ 7,980 $ 3,892 $ 37,502 Services 2,826 2,081 341 5,248 Total $ 28,456 $ 10,061 $ 4,233 $ 42,750 Revenue for the three months ended September 30, 2022 Americas EMEA APAC Total Products $ 29,615 $ 9,105 $ 4,217 $ 42,937 Services 2,457 1,279 413 4,149 Total $ 32,072 $ 10,384 $ 4,630 $ 47,086 Revenue for the nine months ended September 30, 2023 Americas EMEA APAC Total Products $ 79,233 $ 30,634 $ 11,730 $ 121,597 Services 8,719 5,875 1,161 15,755 Total $ 87,952 $ 36,509 $ 12,891 $ 137,352 Revenue for the nine months ended September 30, 2022 Americas EMEA APAC Total Products $ 94,958 $ 29,017 $ 11,110 $ 135,085 Services 8,001 4,427 953 13,381 Total $ 102,959 $ 33,444 $ 12,063 $ 148,466 During the three and nine months ended September 30, 2023 and 2022, the Company recognized the following revenue from service contracts and cloud-based software licenses over time, and hardware and consumable product shipments and subscription software at a point in time (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenue recognized at a point in time $ 37,502 $ 42,937 $ 121,597 $ 135,085 Revenue recognized over time 5,248 4,149 15,755 13,381 Total $ 42,750 $ 47,086 $ 137,352 $ 148,466 The Company’s operations are principally in the United States. The locations of long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, are summarized as follows (in thousands): September 30, December 31, 2023 2022 Americas $ 48,294 $ 56,145 EMEA 13,588 16,399 APAC 5,619 5,874 Total long-lived assets $ 67,501 $ 78,418 |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
NET LOSS PER SHARE | |
NET LOSS PER SHARE | 23. NET LOSS PER SHARE The Company computes basic loss per share using net loss attributable to Common Stockholders and the weighted-average number of Common Stock shares outstanding during each period. Diluted earnings per share include shares issuable upon exercise of outstanding stock options and stock-based awards where the conversion of such instruments would be dilutive. Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2023 2022 2023 2022 Numerator for basic and diluted net loss per share: Net loss $ (46,373) $ (60,774) $ (148,742) $ (427,990) Denominator for basic and diluted net loss per share: Weighted-average shares 323,188 316,008 321,328 313,902 Net loss per share—Basic and Diluted $ (0.14) $ (0.19) $ (0.46) $ (1.36) The Company’s potential dilutive securities, which include outstanding Common Stock options, unvested restricted stock units, unvested restricted stock awards and outstanding Common Stock warrants, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding as of September 30, 2023 and 2022, from the computation of diluted net loss per share attributable to common stockholders because including them would have an anti-dilutive effect (in thousands): Nine Months Ended September 30, 2023 2022 Common Stock options outstanding 6,291 9,020 Unvested restricted stock units outstanding 25,482 19,032 Unvested restricted stock awards outstanding 17 123 6.0% Convertible Senior Notes due 2027 86,466 86,466 Total shares 118,256 114,641 The dilution table above excludes RSUs to be awarded under the Company's 2023 Bonus Program, which is expected to have an impact on its outstanding awards in the first quarter of 2024. Refer to Note 20. Stock-Based Compensation |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 9 Months Ended |
Sep. 30, 2023 | |
RESTRUCTURING CHARGES. | |
RESTRUCTURING CHARGES | 24. RESTRUCTURING CHARGES In June 2022, the Board of Directors approved a strategic integration and cost optimization initiative that includes a global workforce reduction, facilities consolidation, and other operational savings measures. As part of the facilities consolidation, the Company approved plans to sell two facilities and relocate operations from those locations to existing facilities. The purpose of the Initiative is to streamline the Company’s operational structure, reducing its operating expenses and managing its cash flows. In January 2023, the Company committed to additional actions to continue and expand the Initiative, resulting in an estimated $19.6 million to $26.0 million of total restructuring costs. During the nine months ended September 30, 2023 and 2022, the Company recorded the following activity related to the Initiative in accrued expenses and other current liabilities on the balance sheet (in thousands): Nine Months Ended September 30, 2023 2022 Accrued expenses, beginning of period $ 1,095 $ — Restructuring charges 6,610 12,782 Cash payments (2,317) (1,478) Stock-based compensation — (7,313) Inventory write-off (2,484) (3,085) Accrued expenses, end of period $ 2,904 $ 906 During the three and nine months ended September 30, 2023, the Company recorded restructuring charges of $0.1 million and $6.6 million, respectively, related to employee severance, benefits and related costs, inventory write-offs, royalty expenses associated with discontinued product offerings, and facility consolidations which were expensed as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 16 $ 3,085 $ 3,221 $ 3,126 Research and development 187 — 3,085 8,117 Sales and marketing (62) — 68 667 General and administrative 1 — 236 489 Interest and other (expense) income, net — — — 383 Total restructuring charges $ 142 $ 3,085 $ 6,610 $ 12,782 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The condensed consolidated financial statements include the Company’s accounts and those of its subsidiaries. In the opinion of the Company’s management, the financial information for the interim periods presented reflects all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. The results reported in these condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. In the unaudited condensed consolidated financial statements, certain balances have been reclassified to conform to the current year presentation. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The functional currency of all wholly owned subsidiaries is U.S. Dollars. All intercompany transactions and balances have been eliminated in consolidation. |
Significant Accounting Policies | Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to the financial statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. See the below discussion of changes to the Company’s policies for assets held for sale. There have been no other changes to the Company’s significant accounting policies during the first nine months of fiscal year 2023. |
Assets Held for Sale | Assets Held for Sale The Company classifies long-lived assets or asset groups the Company plans to sell as held for sale on our consolidated balance sheets only after certain criteria have been met including: (i) management has the authority and commits to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and the plan to sell the asset have been initiated, (iv) the sale of the asset is probable within 12 months, (v) the asset is being actively marketed at a reasonable sales price relative to its current fair value, and (vi) it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. The Company records assets or asset groups held for sale at the lower of their carrying value or fair value less costs to sell. |
CASH EQUIVALENTS AND SHORT-TE_2
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | |
Schedule of cash equivalents and short-term investments | The Company’s cash equivalents and short-term investments are invested in the following (in thousands): September 30, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 63,671 $ — $ — $ 63,671 Total cash equivalents 63,671 — — 63,671 Total short-term investments — — — — Total cash equivalents and short-term investments $ 63,671 $ — $ — $ 63,671 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 51,274 $ — $ — $ 51,274 Total cash equivalents 51,274 — — 51,274 Commercial paper 39,781 — — 39,781 Corporate bonds 28,970 — (156) 28,814 U.S. Treasury securities 19,896 — (78) 19,818 Government bonds 14,846 — (102) 14,744 Asset-backed securities 4,000 — (2) 3,998 Total short-term investments 107,493 — (338) 107,155 Total cash equivalents and short-term investments $ 158,767 $ — $ (338) $ 158,429 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets measured at fair value on a recurring basis | The following fair value hierarchy table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): September 30, 2023 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 63,671 $ — $ — $ 63,671 Equity securities 803 — — 803 Other investments — — 2,000 2,000 Total assets $ 64,474 $ — $ 2,000 $ 66,474 December 31, 2022 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 51,274 $ — $ — $ 51,274 Commercial paper — 39,781 — 39,781 Corporate bonds — 28,814 — 28,814 U.S. Treasury securities — 19,818 — 19,818 Government bonds — 14,744 — 14,744 Asset-backed securities — 3,998 — 3,998 Equity securities 1,088 — — 1,088 Other investments — — 2,000 2,000 Total assets $ 52,362 $ 107,155 $ 2,000 $ 161,517 Liabilities: Contingent consideration $ — $ — $ 2,587 $ 2,587 Total liabilities $ — $ — $ 2,587 $ 2,587 |
Schedule of Level 3 assets measured at fair value | Nine Months Ended September 30, 2023 2022 Balance at beginning of period $ 2,000 $ 6,750 Changes in fair value — (745) Disposals — (3,155) Balance at end of period $ 2,000 $ 2,850 |
Schedule of Level 3 liabilities measured at fair value | The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): Nine Months Ended September 30, 2023 2022 Balance at beginning of period $ 2,587 $ 5,654 Payment of contingent consideration liability (2,390) (1,500) Sale of Aerosint (197) — Changes in fair value — (254) Balance at end of period $ — $ 3,900 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
ACCOUNTS RECEIVABLE | |
Schedule of accounts receivable | The components of accounts receivable are as follows (in thousands): September 30, December 31, 2023 2022 Trade receivables $ 42,368 $ 40,121 Allowance for doubtful accounts (2,280) (1,640) Total accounts receivable $ 40,088 $ 38,481 |
Schedule of allowance for doubtful accounts | The following table summarizes activity in the allowance for doubtful accounts (in thousands): September 30, December 31, 2023 2022 Balance at beginning of period $ 1,640 $ 665 Provision for uncollectible accounts, net of recoveries 1,102 1,393 Uncollectible accounts written off (462) (418) Balance at end of period $ 2,280 $ 1,640 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
INVENTORY | |
Schedule of Inventory | Inventory consists of the following (in thousands): September 30, December 31, 2023 2022 Raw materials $ 50,738 $ 41,971 Work in process 9,737 11,936 Finished goods: Deferred cost of sales 7,433 3,602 Manufactured finished goods 39,288 34,227 Total finished goods 46,721 37,829 Total inventory $ 107,196 $ 91,736 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consists of the following (in thousands): September 30, December 31, 2023 2022 Prepaid operating expenses $ 8,463 $ 5,705 Prepaid dues and subscriptions 2,013 2,674 Prepaid insurance 1,300 798 Prepaid taxes 700 395 Prepaid rent 447 383 Government grants receivable — 429 Termination fee receivable 9,950 — Other 2,114 5,941 Total prepaid expenses and other current assets $ 24,987 $ 16,325 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment-net | Property and equipment, net consists of the following (in thousands): September 30, December 31, 2023 2022 Equipment $ 46,829 $ 48,632 Leasehold improvements 19,131 18,527 Land and buildings 8,941 15,893 Construction in process 3,642 5,008 Furniture and fixtures 2,152 2,396 Software 2,077 2,183 Tooling 2,285 2,145 Computer equipment 2,474 2,076 Automobiles 1,044 1,180 Property and equipment, gross 88,575 98,040 Less: accumulated depreciation (50,188) (41,769) Total property and equipment, net $ 38,387 $ 56,271 |
GOODWILL & INTANGIBLE ASSETS (T
GOODWILL & INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
GOODWILL & INTANGIBLE ASSETS | |
Schedule of goodwill activity | The goodwill activity is as follows (in thousands): September 30, December 31, 2023 2022 Balance, beginning of year $ 112,955 $ 639,301 Goodwill impairment (2,450) (498,800) Foreign currency translation adjustment (1,854) (26,940) Measurement period adjustments — (606) Balance, end of period $ 108,651 $ 112,955 |
Schedule of intangible assets | Intangible assets consisted of the following (in thousands): September 30, 2023 December 31, 2022 Weighted Average Gross Net Gross Net Remaining Useful Carrying Accumulated Carrying Carrying Accumulated Carrying Lives (in years) Amount Amortization Amount Amount Amortization Amount Acquired technology 7.8 $ 185,669 $ 58,039 $ 127,630 $ 196,367 $ 36,919 $ 159,448 Trade name 9.9 12,297 3,545 8,752 12,459 2,374 10,085 Customer relationships 9.1 67,565 25,145 42,420 67,915 17,663 50,252 Capitalized software — 518 518 — 518 473 45 Total intangible assets $ 266,049 $ 87,247 $ 178,802 $ 277,259 $ 57,429 $ 219,830 |
Schedule of amortization expenses | During the three and nine months ended September 30, 2023 and 2022, the Company recognized the following amortization expense (in thousands): Statement of Three Months Ended September 30, Nine Months Ended September 30, Category Operations Line Item 2023 2022 2023 2022 Acquired technology Cost of Sales $ 6,889 $ 5,877 $ 20,744 $ 17,817 Acquired technology Research and Development 556 466 1,665 1,314 Trade name General and Administrative 416 424 1,249 1,267 Customer relationships Sales and Marketing 2,537 2,276 7,594 8,044 Capitalized software Research and Development 0 26 45 80 $ 10,398 $ 9,069 $ 31,297 $ 28,522 |
Schedule of future amortization expense | The Company expects to recognize the following amortization expense (in thousands): Amortization Expense 2023 (remaining 3 months) $ 10,148 2024 40,323 2025 37,476 2026 27,276 2027 19,296 2028 and after 44,283 Total intangible amortization $ 178,802 |
OTHER NONCURRENT ASSETS (Tables
OTHER NONCURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
OTHER NONCURRENT ASSETS | |
Schedule of components of other non current assets | The following table summarizes the Company’s components of other noncurrent assets (in thousands): September 30, December 31, 2023 2022 Right of use asset $ 29,114 $ 22,147 Other investments 2,000 2,000 Long-term deposits 488 573 Other 4,863 3,043 Total other noncurrent assets $ 36,465 $ 27,763 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): September 30, December 31, 2023 2022 Compensation and benefits related $ 7,532 $ 8,058 Professional services 821 917 Warranty reserve 3,933 4,301 Franchise and royalty fees 2,154 1,448 Inventory purchases 1,159 925 Current portion of acquisition consideration 1,593 1,750 2027 Notes Interest 2,664 901 Income tax payable 1,220 761 Commissions 570 897 Sales and use and franchise taxes 558 286 Current portion of contingent consideration — 2,587 License fee payable 928 — Other 4,767 3,892 Total accrued expenses and other current liabilities $ 27,899 $ 26,723 |
Schedule of warranty reserve | The Company recorded warranty reserve as of September 30, 2023 and December 31, 2022, respectively, as follows (in thousands). September 30, December 31, 2023 2022 Warranty reserve, at the beginning of the period $ 4,301 $ 4,048 Additions to warranty reserve 1,489 4,484 Claims fulfilled (1,857) (4,231) Warranty reserve, at the end of the period $ 3,933 $ 4,301 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
DEBT | |
Schedule of debt instruments | The 2027 Notes are valued as a single liability measured at amortized cost, which approximates fair value, as no other features require bifurcation and recognition as derivatives. The following table presents the outstanding principal amount and carrying value of the 2027 Notes as of the date indicated (in thousands): September 30, December 31, 2023 2022 Principal $ 115,000 $ 115,000 Unamortized debt discount (2,069) (2,502) Unamortized debt issuance costs (549) (664) Net carrying value $ 112,382 $ 111,834 |
Schedule of interest expense on debt | The annual effective interest rate for the 2027 Notes was approximately 6.1%. Interest expense related to the 2027 Notes for the periods presented below are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Coupon interest $ 1,763 $ 1,739 $ 5,232 $ 2,686 Amortization of debt discount 144 186 432 218 Amortization of transaction costs 38 50 114 58 Total interest expense $ 1,945 $ 1,975 $ 5,778 $ 2,962 |
OTHER NONCURRENT LIABILITIES (T
OTHER NONCURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
OTHER NONCURRENT LIABILITIES | |
Components of other noncurrent liabilities | The following table summarizes the Company’s components of other noncurrent liabilities (in thousands): September 30, December 31, 2023 2022 Taxes payable $ 1,034 $ 1,034 License fee payable, net of current 1,725 — Other 318 325 Total other noncurrent liabilities $ 3,077 $ 1,359 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
LEASES | |
Schedule of other lease related balances | Information about other lease-related balances is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Lease cost Operating lease cost $ 1,403 $ 1,507 $ 4,474 $ 4,286 Short‑term lease cost 80 31 174 101 Variable lease cost 36 54 106 176 Finance lease cost 45 22 91 64 Total lease cost $ 1,564 $ 1,614 $ 4,845 $ 4,627 Other Information Operating cash flows used in operating leases $ 1,388 $ 1,580 $ 4,859 $ 4,675 Operating cash flows used in finance leases 39 16 81 56 Weighted‑average remaining lease term—operating leases (years) 4.6 12.8 4.6 12.8 Weighted‑average remaining lease term—finance leases (years) 6.6 7.8 6.6 7.8 Weighted‑average discount rate—operating leases 5.8 % 4.5 % 5.8 % 4.5 % Weighted‑average discount rate—finance leases 3.1 % 3.1 % 3.1 % 3.1 % |
Schedule of future minimum operating lease payments | Future minimum lease payments under noncancelable operating leases, including immaterial future minimum lease payments under finance leases, at September 30, 2023, are as follows (in thousands): Operating Leases Finance Leases 2023 (remaining 6 months) $ 2,101 $ 20 2024 8,109 76 2025 7,646 75 2026 6,075 75 2027 4,985 75 2028 and after 5,082 308 Total lease payments 33,998 629 Less amount representing interest (4,231) (72) Total lease liability 29,767 557 Less current portion of lease liability (6,583) (61) Lease liability, net of current portion $ 23,184 $ 496 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
STOCK BASED COMPENSATION | |
Schedule of option activity | The option activity of the Plans for the nine months ended September 30, 2023, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2023 8,423 $ 1.83 6.02 $ 922 Exercised (1,006) $ 1.20 Forfeited/expired (1,126) $ 2.41 Outstanding at September 30, 2023 6,291 $ 1.83 5.24 989 Options vested at September 30, 2023 5,693 $ 1.86 5.08 954 Options vested or expected to vest at September 30, 2023 6,287 $ 1.83 5.24 989 |
Schedule of RSU activity under the Plan | The activity for stock subject to vesting as of September 30, 2023, is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2023 102 $ 8.78 Vested (85) $ 8.78 Balance of unvested shares as of September 30, 2023 17 $ 8.78 |
Schedule of RSU activity | RSU activity under the 2020 Plan for the nine months ended September 30, 2023, is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2023 22,145 $ 4.15 Granted 9,677 $ 1.86 Vested (4,062) $ 5.28 Cancelled/Forfeited (2,278) $ 4.57 Balance of unvested shares as of September 30, 2023 25,482 $ 3.07 |
Schedule of stock-based compensation expense | Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the condensed consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Research and development $ 3,662 $ 4,355 $ 12,612 $ 21,872 General and administrative expense 2,802 3,899 10,419 11,681 Sales and marketing expense 702 3,052 1,881 5,725 Cost of sales 517 734 1,787 1,892 Total stock-based compensation expense $ 7,683 $ 12,040 $ 26,699 $ 41,170 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
SEGMENT INFORMATION | |
Schedule of disaggregation of revenue by geographic areas | Revenue for the three months ended September 30, 2023 Americas EMEA APAC Total Products $ 25,630 $ 7,980 $ 3,892 $ 37,502 Services 2,826 2,081 341 5,248 Total $ 28,456 $ 10,061 $ 4,233 $ 42,750 Revenue for the three months ended September 30, 2022 Americas EMEA APAC Total Products $ 29,615 $ 9,105 $ 4,217 $ 42,937 Services 2,457 1,279 413 4,149 Total $ 32,072 $ 10,384 $ 4,630 $ 47,086 Revenue for the nine months ended September 30, 2023 Americas EMEA APAC Total Products $ 79,233 $ 30,634 $ 11,730 $ 121,597 Services 8,719 5,875 1,161 15,755 Total $ 87,952 $ 36,509 $ 12,891 $ 137,352 Revenue for the nine months ended September 30, 2022 Americas EMEA APAC Total Products $ 94,958 $ 29,017 $ 11,110 $ 135,085 Services 8,001 4,427 953 13,381 Total $ 102,959 $ 33,444 $ 12,063 $ 148,466 |
Schedule of disaggregation of revenue | Americas EMEA APAC Total Products $ 94,958 $ 29,017 $ 11,110 $ 135,085 Services 8,001 4,427 953 13,381 Total $ 102,959 $ 33,444 $ 12,063 $ 148,466 |
Schedule of long lived assets | The Company’s operations are principally in the United States. The locations of long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, are summarized as follows (in thousands): September 30, December 31, 2023 2022 Americas $ 48,294 $ 56,145 EMEA 13,588 16,399 APAC 5,619 5,874 Total long-lived assets $ 67,501 $ 78,418 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
NET LOSS PER SHARE | |
Schedule of Net Loss Per Share, Basic and Diluted | Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2023 2022 2023 2022 Numerator for basic and diluted net loss per share: Net loss $ (46,373) $ (60,774) $ (148,742) $ (427,990) Denominator for basic and diluted net loss per share: Weighted-average shares 323,188 316,008 321,328 313,902 Net loss per share—Basic and Diluted $ (0.14) $ (0.19) $ (0.46) $ (1.36) |
Schedule of antidilutive securities excluded from computation of earnings per share | The Company excluded the following potential common shares, presented based on amounts outstanding as of September 30, 2023 and 2022, from the computation of diluted net loss per share attributable to common stockholders because including them would have an anti-dilutive effect (in thousands): Nine Months Ended September 30, 2023 2022 Common Stock options outstanding 6,291 9,020 Unvested restricted stock units outstanding 25,482 19,032 Unvested restricted stock awards outstanding 17 123 6.0% Convertible Senior Notes due 2027 86,466 86,466 Total shares 118,256 114,641 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
RESTRUCTURING CHARGES. | |
Schedule of employee severance, benefits and related costs | During the nine months ended September 30, 2023 and 2022, the Company recorded the following activity related to the Initiative in accrued expenses and other current liabilities on the balance sheet (in thousands): Nine Months Ended September 30, 2023 2022 Accrued expenses, beginning of period $ 1,095 $ — Restructuring charges 6,610 12,782 Cash payments (2,317) (1,478) Stock-based compensation — (7,313) Inventory write-off (2,484) (3,085) Accrued expenses, end of period $ 2,904 $ 906 |
Schedule of restructuring and related costs | During the three and nine months ended September 30, 2023, the Company recorded restructuring charges of $0.1 million and $6.6 million, respectively, related to employee severance, benefits and related costs, inventory write-offs, royalty expenses associated with discontinued product offerings, and facility consolidations which were expensed as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 16 $ 3,085 $ 3,221 $ 3,126 Research and development 187 — 3,085 8,117 Sales and marketing (62) — 68 667 General and administrative 1 — 236 489 Interest and other (expense) income, net — — — 383 Total restructuring charges $ 142 $ 3,085 $ 6,610 $ 12,782 |
ORGANIZATION, NATURE OF BUSIN_2
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2023 | Sep. 30, 2023 | |
Number of months cash and investments sufficient to fund operating and capital expenditure | 12 months | |
Termination fee receivable | $ 9,950 | |
Stratasys Ltd | ||
Payment Received For Reimbursement Of Expenses Upon Termination Of Merger Agreement | $ 10,000 | |
Gain (Loss) On Termination Of Merger Agreement | $ 0 | |
Termination fee receivable | $ 10,000 |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
REVENUE RECOGNITION | |||||
Deferred revenue | $ 20.8 | $ 20.8 | $ 17.4 | ||
Revenue recognized from existing deferred revenue | $ 1.4 | $ 3.6 | $ 5.2 | $ 14 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
REVENUE RECOGNITION | ||
Revenue remaining performance obligation | $ 20,800 | |
Customer deposits | 6,918 | $ 11,526 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
REVENUE RECOGNITION | ||
Revenue remaining performance obligation | $ 17,000 | |
Expected timing of satisfaction period | 12 months |
CASH EQUIVALENTS AND SHORT-TE_3
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Cash equivalents | $ 63,671 | $ 51,274 |
Amortized Cost | 107,493 | |
Unrealized Losses | (338) | |
Fair Value | 107,155 | |
Total cash equivalents and short-term investments, Amortized Cost | 63,671 | 158,767 |
Total cash equivalents and short-term investments, Fair Value | 63,671 | 158,429 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 39,781 | |
Fair Value | 39,781 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,970 | |
Unrealized Losses | (156) | |
Fair Value | 28,814 | |
U.S Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,896 | |
Unrealized Losses | (78) | |
Fair Value | 19,818 | |
Government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,846 | |
Unrealized Losses | (102) | |
Fair Value | 14,744 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,000 | |
Unrealized Losses | (2) | |
Fair Value | 3,998 | |
Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash equivalents | $ 63,671 | $ 51,274 |
CASH EQUIVALENTS AND SHORT-TE_4
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Equity investment | $ 20,000 | ||||
Fair value of investments | $ 800 | $ 800 | |||
Unrealized gain (loss) due to change in fair value of equity securities | (286) | $ (6,172) | |||
Interest and other (expense) income, net | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Unrealized gain (loss) due to change in fair value of equity securities | $ (100) | $ (300) | $ (300) | $ (6,200) |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liability Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Total assets | $ 66,474 | $ 161,517 |
Total liabilities | 2,587 | |
Contingent Consideration | ||
Assets | ||
Total liabilities | 2,587 | |
Money market funds | ||
Assets | ||
Total assets | 63,671 | 51,274 |
Commercial paper | ||
Assets | ||
Total assets | 39,781 | |
Corporate bonds | ||
Assets | ||
Total assets | 28,814 | |
U.S Treasury securities | ||
Assets | ||
Total assets | 19,818 | |
Government bonds | ||
Assets | ||
Total assets | 14,744 | |
Asset-backed securities | ||
Assets | ||
Total assets | 3,998 | |
Equity securities | ||
Assets | ||
Total assets | 803 | 1,088 |
Other investments | ||
Assets | ||
Total assets | 2,000 | 2,000 |
Level 1 | ||
Assets | ||
Total assets | 64,474 | 52,362 |
Level 1 | Money market funds | ||
Assets | ||
Total assets | 63,671 | 51,274 |
Level 1 | Equity securities | ||
Assets | ||
Total assets | 803 | 1,088 |
Level 2 | ||
Assets | ||
Total assets | 107,155 | |
Level 2 | Commercial paper | ||
Assets | ||
Total assets | 39,781 | |
Level 2 | Corporate bonds | ||
Assets | ||
Total assets | 28,814 | |
Level 2 | U.S Treasury securities | ||
Assets | ||
Total assets | 19,818 | |
Level 2 | Government bonds | ||
Assets | ||
Total assets | 14,744 | |
Level 2 | Asset-backed securities | ||
Assets | ||
Total assets | 3,998 | |
Level 3 | ||
Assets | ||
Total assets | 2,000 | 2,000 |
Total liabilities | 2,587 | |
Level 3 | Contingent Consideration | ||
Assets | ||
Total liabilities | 2,587 | |
Level 3 | Other investments | ||
Assets | ||
Total assets | $ 2,000 | $ 2,000 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 24, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss) due to change in fair value of equity securities | $ (286,000) | $ (6,172,000) | |||
Other investments in convertible debt instruments | $ 2,000,000 | 2,000,000 | |||
Recognized gains on convertible debt instruments | 0 | $ 0 | 0 | 800,000 | |
Change in fair value of contingent consideration | 300,000 | 254,000 | |||
Transfers from Level 1 to Level 2 | 0 | 0 | 0 | 0 | |
Transfers from Level 2 to Level 1 | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | |||
Transfer out of Level 3 | 0 | 0 | |||
Repayments of Debt | 337,000 | 421,000 | |||
Business Combination, Consideration Transferred [Abstract] | |||||
Current portion of contingent consideration | 2,587,000 | 2,587,000 | |||
Convertible Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Repayments of Debt | 3,100,000 | 3,100,000 | |||
Interest and other (expense) income, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss) due to change in fair value of equity securities | (100,000) | $ (300,000) | (300,000) | (6,200,000) | |
Aerosint | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Change in fair value of contingent consideration | 0 | ||||
Remaining contingent consideration | 200,000 | 200,000 | |||
Business Combination, Consideration Transferred [Abstract] | |||||
Fair value of contingent consideration | $ 6,100,000 | ||||
Amount paid on achievement of technical milestones | 1,600,000 | 1,000,000 | |||
Value of shares paid on achievement of technical milestones | $ 800,000 | $ 500,000 | |||
Period to achieve revenue metrics and technical milestone | 3 years | ||||
Current portion of contingent consideration | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Movem
FAIR VALUE MEASUREMENTS - Movements of Level 3 Assets (Details) - Level 3 - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Level 3 assets measured at fair value | ||
Balance at beginning of period | $ 2,000 | $ 6,750 |
Changes in fair value | 0 | (745) |
Disposals | (3,155) | |
Balance at end of period | $ 2,000 | $ 2,850 |
FAIR VALUE MEASUREMENTS - Mov_2
FAIR VALUE MEASUREMENTS - Movements of Level 3 Liabilities (Details) - Level 3 - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Level 3 liabilities measured at fair value | ||
Balance at beginning of period | $ 2,587 | $ 5,654 |
Payment of contingent consideration liability | (2,390) | (1,500) |
Sale of Aerosint | $ (197) | |
Changes in fair value | (254) | |
Balance at end of period | $ 3,900 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
ACCOUNTS RECEIVABLE | |||
Trade receivables | $ 42,368 | $ 40,121 | |
Allowance for doubtful accounts | (2,280) | (1,640) | $ (665) |
Total accounts receivable | $ 40,088 | $ 38,481 |
ACCOUNTS RECEIVABLE - Allowance
ACCOUNTS RECEIVABLE - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE | ||
Balance at beginning of period | $ 1,640 | $ 665 |
Provision for uncollectible accounts, net of recoveries | 1,102 | 1,393 |
Uncollectible accounts written off | (462) | (418) |
Balance at end of period | $ 2,280 | $ 1,640 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
INVENTORY | ||
Raw materials | $ 50,738 | $ 41,971 |
Work in process | 9,737 | 11,936 |
Finished goods: | ||
Deferred cost of sales | 7,433 | 3,602 |
Manufactured finished goods | 39,288 | 34,227 |
Total finished goods | 46,721 | 37,829 |
Total inventory | $ 107,196 | $ 91,736 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Prepaid operating expenses | $ 8,463 | $ 5,705 |
Prepaid dues and subscriptions | 2,013 | 2,674 |
Prepaid insurance | 1,300 | 798 |
Prepaid taxes | 700 | 395 |
Prepaid rent | 447 | 383 |
Government grants receivable | 429 | |
Termination fee receivable | 9,950 | |
Other | 2,114 | 5,941 |
Total prepaid expenses and other current assets | $ 24,987 | $ 16,325 |
DIVESTITURES (Details)
DIVESTITURES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 29, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets held for sale | $ 830 | |||||
Proceeds from sale of property and equipment | $ 9,942 | $ 6 | ||||
Proceeds from disposal of subsidiaries | $ 4,100 | 4,089 | ||||
Goodwill impairment | $ 2,450 | $ 0 | 2,450 | $ 229,500 | 498,800 | |
Impairment charge related to asset group value | $ 6,062 | 6,062 | ||||
Cumulative foreign currency translation adjustment included in impairment charges | 2,600 | |||||
Assets Held-for-sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets held for sale | $ 800 | |||||
North Huntington facility | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of property and equipment | $ 6,900 |
PROPERTY AND EQUIPMENT - Proper
PROPERTY AND EQUIPMENT - Property and Equipment - Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 88,575 | $ 98,040 | $ 88,575 | $ 98,040 | |
Less: accumulated depreciation | (50,188) | (41,769) | (50,188) | (41,769) | |
Total property and equipment, net | 38,387 | 56,271 | 38,387 | 56,271 | $ 56,271 |
Depreciation expense | 2,900 | 3,100 | 8,800 | 9,300 | |
Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 46,829 | 48,632 | 46,829 | 48,632 | |
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 19,131 | 18,527 | 19,131 | 18,527 | |
Land and buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 8,941 | 15,893 | 8,941 | 15,893 | |
Construction in process | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 3,642 | 5,008 | 3,642 | 5,008 | |
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,152 | 2,396 | 2,152 | 2,396 | |
Software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,077 | 2,183 | 2,077 | 2,183 | |
Tooling | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,285 | 2,145 | 2,285 | 2,145 | |
Computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,474 | 2,076 | 2,474 | 2,076 | |
Automobiles | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 1,044 | $ 1,180 | $ 1,044 | $ 1,180 |
GOODWILL & INTANGIBLE ASSETS -
GOODWILL & INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
GOODWILL & INTANGIBLE ASSETS | |||||
Goodwill, Ending Balance | $ 108,651 | $ 112,955 | $ 108,651 | $ 112,955 | $ 112,955 |
Goodwill impairment | $ (2,450) | $ 0 | (2,450) | (229,500) | (498,800) |
Foreign currency translation adjustment | (1,854) | (26,940) | |||
Measurement period adjustments | (606) | ||||
Goodwill, Beginning Balance | $ 112,955 | $ 639,301 | $ 639,301 |
GOODWILL & INTANGIBLE ASSETS _2
GOODWILL & INTANGIBLE ASSETS - Components (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 266,049 | $ 277,259 |
Accumulated Amortization | 87,247 | 57,429 |
Total intangible amortization | $ 178,802 | 219,830 |
Acquired technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives (in years) | 7 years 9 months 18 days | |
Gross Carrying Amount | $ 185,669 | 196,367 |
Accumulated Amortization | 58,039 | 36,919 |
Total intangible amortization | $ 127,630 | 159,448 |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives (in years) | 9 years 10 months 24 days | |
Gross Carrying Amount | $ 12,297 | 12,459 |
Accumulated Amortization | 3,545 | 2,374 |
Total intangible amortization | $ 8,752 | 10,085 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives (in years) | 9 years 1 month 6 days | |
Gross Carrying Amount | $ 67,565 | 67,915 |
Accumulated Amortization | 25,145 | 17,663 |
Total intangible amortization | $ 42,420 | 50,252 |
Capitalized software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Lives (in years) | 0 years | |
Gross Carrying Amount | $ 518 | 518 |
Accumulated Amortization | $ 518 | 473 |
Total intangible amortization | $ 45 |
GOODWILL & INTANGIBLE ASSETS _3
GOODWILL & INTANGIBLE ASSETS - Amortization Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 10,398 | $ 9,069 | $ 31,297 | $ 28,522 |
Acquired technology | Cost of sales | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 6,889 | 5,877 | 20,744 | 17,817 |
Acquired technology | Research and development | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 556 | 466 | 1,665 | 1,314 |
Trade name | General and administrative | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 416 | 424 | 1,249 | 1,267 |
Customer relationships | Sales and marketing | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 2,537 | 2,276 | 7,594 | 8,044 |
Capitalized software | Research and development | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 0 | $ 26 | $ 45 | $ 80 |
GOODWILL & INTANGIBLE ASSETS _4
GOODWILL & INTANGIBLE ASSETS - Expected Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Expected amortization expense | ||
2023 (remaining 3 months) | $ 10,148 | |
2024 | 40,323 | |
2025 | 37,476 | |
2026 | 27,276 | |
2027 | 19,296 | |
2028 and after | 44,283 | |
Total intangible amortization | $ 178,802 | $ 219,830 |
OTHER NONCURRENT ASSETS - Compo
OTHER NONCURRENT ASSETS - Components of Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
OTHER NONCURRENT ASSETS | |||
Right of use asset | $ 29,114 | $ 22,100 | $ 22,147 |
Other investments | 2,000 | 2,000 | |
Long-term deposits | 488 | 573 | |
Other | 4,863 | 3,043 | |
Total other noncurrent assets | $ 36,465 | $ 27,763 | $ 27,763 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||
Compensation and benefits related | $ 7,532 | $ 8,058 | ||
Professional services | 821 | 917 | ||
Warranty reserve | 3,933 | $ 4,301 | 4,301 | $ 4,048 |
Franchise and royalty fees | 2,154 | 1,448 | ||
Inventory purchases | 1,159 | 925 | ||
Current portion of acquisition consideration | 1,593 | 1,750 | ||
2027 Notes Interest | 2,664 | 901 | ||
Income tax payable | 1,220 | 761 | ||
Commissions | 570 | 897 | ||
Sales and use and franchise taxes | 558 | 286 | ||
Current portion of contingent consideration | 2,587 | |||
License fee payable | 928 | |||
Other | 4,767 | 3,892 | ||
Total accrued expenses and other current liabilities | $ 27,899 | $ 26,723 | $ 26,723 |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Movement of Warranty Reserve (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Warranty reserve, at the beginning of the period | $ 4,301 | $ 4,048 |
Additions to warranty reserve | 1,489 | 4,484 |
Claims fulfilled | (1,857) | (4,231) |
Warranty reserve, at the end of the period | $ 3,933 | $ 4,301 |
DEBT (Details)
DEBT (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2022 USD ($) item $ / shares | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) loan $ / shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares | |
DEBT | ||||||
Proceeds from convertible debt | $ 115,000 | |||||
Accrued interest rate | 6% | 6% | 6% | 6% | ||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Current portion of long term debt | $ 368 | $ 368 | $ 584 | |||
AIDRO | ||||||
DEBT | ||||||
Number of bank loans acquired | loan | 3 | |||||
Loan acquired | 1,100 | $ 1,100 | ||||
Term of loan | 4 years 6 months | |||||
Bank loan paid | 100 | $ 100 | $ 200 | $ 300 | ||
Outstanding amount | 400 | 400 | ||||
Current portion of long term debt | 300 | 300 | ||||
Long-term debt, net of current portion | $ 100 | $ 100 | ||||
AIDRO | Minimum | ||||||
DEBT | ||||||
Accrued interest rate | 1.70% | 1.70% | ||||
AIDRO | Maximum | ||||||
DEBT | ||||||
Accrued interest rate | 2.10% | 2.10% | ||||
2027 Convertible Notes | ||||||
DEBT | ||||||
Nominal amount | $ 115,000 | $ 115,000 | $ 115,000 | 115,000 | ||
Debt instrument principal amount under initial placement | 100,000 | |||||
Debt instrument principal amount under over allotment | 15,000 | |||||
Proceeds from convertible debt | $ 111,400 | |||||
Accrued interest rate | 6% | |||||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | |||||
Debt instrument convertible threshold percentage of stock price trigger | 130% | |||||
Debt instrument convertible threshold trading days | item | 20 | |||||
Debt instrument convertible threshold consecutive trading days | item | 30 | |||||
Debt instrument convertible threshold consecutive business days | item | 5 | |||||
Debt instrument convertible threshold consecutive trading day period | item | 10 | |||||
Debt instrument convertible threshold sale price of common stock conversion rate product percentage maximum | 98% | |||||
Debt Instrument convertible conversion Ratio | 601.5038 | |||||
Debt instrument convertible conversion price | $ / shares | $ 1.66 | |||||
Debt instrument redemption price percentage | 130% | |||||
Interest rate | 6.10% | |||||
Outstanding amount | $ 112,382 | $ 112,382 | $ 111,834 | |||
2027 Convertible Notes | Maximum | ||||||
DEBT | ||||||
Debt instrument convertible threshold consecutive trading days | item | 20 |
DEBT - Net carrying value (Deta
DEBT - Net carrying value (Details) - 2027 Convertible Notes - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | May 31, 2022 |
DEBT | |||
Principal | $ 115,000 | $ 115,000 | $ 115,000 |
Unamortized debt discount | (2,069) | (2,502) | |
Unamortized debt issuance costs | (549) | (664) | |
Net carrying value | $ 112,382 | $ 111,834 |
DEBT - Interest expense (Detail
DEBT - Interest expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest expense | ||||
Coupon interest | $ 1,763 | $ 1,739 | $ 5,232 | $ 2,686 |
Amortization of debt discount | 144 | 186 | 432 | 218 |
Amortization of transaction costs | 38 | 50 | 114 | 58 |
Total interest expense | $ 1,945 | $ 1,975 | $ 5,778 | $ 2,962 |
OTHER NONCURRENT LIABILITIES -
OTHER NONCURRENT LIABILITIES - Summary of Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
OTHER NONCURRENT LIABILITIES | ||
Taxes payable | $ 1,034 | $ 1,034 |
License fee payable, net of current | 1,725 | |
Other | 318 | 325 |
Total other noncurrent liabilities | $ 3,077 | $ 1,359 |
LEASES - Lessee (Details)
LEASES - Lessee (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Feb. 28, 2022 USD ($) period | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) agreement | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Leases | |||||
Right of use asset | $ 29,114 | $ 29,114 | $ 22,100 | $ 22,147 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent | ||
Total lease liability | $ 30,300 | $ 30,300 | $ 23,600 | ||
Impairments | $ 0 | $ 0 | $ 0 | ||
Number of service agreements contained embedded lease | agreement | 2 | ||||
ExOne Company | |||||
Leases | |||||
Number of additional extensions | period | 2 | ||||
Extension lease term | 5 years | ||||
Annual rent | $ 1,700 |
LEASES - Other Lease Related Ba
LEASES - Other Lease Related Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lease cost | ||||
Operating lease cost | $ 1,403 | $ 1,507 | $ 4,474 | $ 4,286 |
Short-term lease cost | 80 | 31 | 174 | 101 |
Variable lease cost | 36 | 54 | 106 | 176 |
Finance lease cost | 45 | 22 | 91 | 64 |
Total lease cost | 1,564 | 1,614 | 4,845 | 4,627 |
Operating cash flows used in operating leases | 1,388 | 1,580 | 4,859 | 4,675 |
Operating cash flows used in finance leases | $ 39 | $ 16 | $ 81 | $ 56 |
Weighted-average remaining lease term-operating leases (years) | 4 years 7 months 6 days | 12 years 9 months 18 days | 4 years 7 months 6 days | 12 years 9 months 18 days |
Weighted-average remaining lease term-finance leases (years) | 6 years 7 months 6 days | 7 years 9 months 18 days | 6 years 7 months 6 days | 7 years 9 months 18 days |
Weighted-average discount rate-operating leases | 5.80% | 4.50% | 5.80% | 4.50% |
Weighted-average discount rate- finance leases | 3.10% | 3.10% | 3.10% | 3.10% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Operating Leases | |
2023 (remaining 6 months) | $ 2,101 |
2024 | 8,109 |
2025 | 7,646 |
2026 | 6,075 |
2027 | 4,985 |
2028 and after | 5,082 |
Total lease payments | 33,998 |
Less amount representing interest | (4,231) |
Total lease liability | $ 29,767 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Lease Liability Current, Lease Liability Non Current |
Less current portion of lease liability | $ (6,583) |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease Liability Current |
Lease liability, net of current portion | $ 23,184 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease Liability Non Current |
Finance Leases | |
2023 (remaining 6 months) | $ 20 |
2024 | 76 |
2025 | 75 |
2026 | 75 |
2027 | 75 |
2028 and after | 308 |
Total lease payments | 629 |
Less amount representing interest | (72) |
Total lease liability | $ 557 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Lease Liability Current, Lease Liability Non Current |
Less current portion of lease liability | $ (61) |
Less current portion of lease liability | Current portion of lease liability |
Lease liability, net of current portion | $ 496 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease Liability Non Current |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Nov. 12, 2021 | |
COMMITMENTS AND CONTINGENCIES | ||
Purchase orders with contract manufacturers | $ 24.3 | |
Additional purchase commitment | 22 | |
Minimum annual commitment | 0.6 | |
Letter of Credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Line of credit facility, borrowing capacity | $ 5.3 | |
Line of credit facility, collateral amount | $ 1.1 | |
Total outstanding financial guarantees and letters of credit | 0.8 | |
Letter of Credit | Restricted Cash | ||
COMMITMENTS AND CONTINGENCIES | ||
Line of credit facility, Cash collateral | 0.8 | |
Letter Of Credit, Expiring from August 2022 to March 2023 | ||
COMMITMENTS AND CONTINGENCIES | ||
Total outstanding financial guarantees and letters of credit | 0.4 | |
Letter Of Credit, With No Expiration Date | ||
COMMITMENTS AND CONTINGENCIES | ||
Total outstanding financial guarantees and letters of credit | $ 0.4 | |
Minimum | ||
COMMITMENTS AND CONTINGENCIES | ||
Obligation to pay (as percentage) | 4% | |
Maximum | ||
COMMITMENTS AND CONTINGENCIES | ||
Obligation to pay (as percentage) | 13% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
INCOME TAXES | |||||
Income tax benefit | $ (141) | $ 598 | $ (675) | $ (1,602) | |
Unrecognized tax liability acquired through purchase accounting | $ 1,000 | $ 1,000 | |||
Accrued interest and penalties | $ 200 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Convertible Preferred Stock and Stockholders' Equity | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common Class A | ||
Convertible Preferred Stock and Stockholders' Equity | ||
Common stock, shares authorized | 500,000,000 | |
Common stock par value (in dollars per share) | $ 0.0001 | |
Preferred Stock | ||
Convertible Preferred Stock and Stockholders' Equity | ||
Preferred stock, shares authorized | 50,000,000 | |
Preferred stock par value (in dollars per share) | $ 0.0001 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Incentive Plan (Details) - shares | 1 Months Ended | 12 Months Ended | ||
Jan. 01, 2023 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | |
2015 stock incentive plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Awards made under the plan | 26,283,789 | |||
Expiration period | 10 years | |||
Vesting period | 4 years | |||
Make Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Expiration period | 10 years | |||
Vesting period | 4 years | |||
Options and warrants to be issued | 232,304 | |||
Granted (in shares) | 0 | |||
2020 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Common stock available for future issuance | 12,400,813 | |||
Percentage of stock outstanding | 5% | |||
Additional shares added to the plan | 15,906,671 |
STOCK BASED COMPENSATION - Opti
STOCK BASED COMPENSATION - Option activity of the Plan (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Number of Shares | |||||
Outstanding at beginning of period (in shares) | 8,423 | ||||
Exercised (in shares) | (1,006) | ||||
Forfeited/expired (in shares) | (1,126) | ||||
Outstanding at end of period (in shares) | 6,291 | 6,291 | 8,423 | ||
Options vested at end of period (in shares) | 5,693 | ||||
Options vested or expected to vest at end of period (in shares) | 6,287 | 6,287 | |||
Weighted-Average Exercise Price per share | |||||
Outstanding at beginning of period (in dollars per share) | $ 1.83 | ||||
Exercised (in dollars per share) | 1.20 | ||||
Forfeited/expired (in dollars per share) | 2.41 | ||||
Outstanding at end of period (in dollars per share) | $ 1.83 | 1.83 | $ 1.83 | ||
Options vested at end of period (in dollars per share) | 1.86 | ||||
Options vested or expected to vest at end of period | $ 1.83 | ||||
Weighted-average remaining contractual term (in years) | 5 years 2 months 26 days | 6 years 7 days | |||
Options vested at end of period (in years) | 5 years 29 days | ||||
Options vested or expected to vest at end of period (in years) | 5 years 2 months 26 days | ||||
Aggregate intrinsic value of options outstanding | $ 989 | $ 989 | $ 922 | ||
Aggregate intrinsic value of options vested | 954 | 954 | |||
Aggregate intrinsic value of options vested or expected to vest | 989 | 989 | |||
Aggregate intrinsic value of options exercised | 900 | $ 4,600 | |||
Stock-based compensation expense | 7,683 | $ 12,040 | 26,699 | 41,170 | |
Unrecognized stock-based compensation expense, stock options | 1,100 | 1,100 | |||
Employee Stock Option [Member] | |||||
Weighted-Average Exercise Price per share | |||||
Stock-based compensation expense | $ 300 | $ 300 | $ 1,000 | $ 2,200 | |
Weighted-average period | 10 months 24 days |
STOCK BASED COMPENSATION - Perf
STOCK BASED COMPENSATION - Performance-Based Stock Options (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Options forfeited (in shares) | 1,126,000 | |||
Unrecognized stock-based compensation expense, stock options | $ 1,100,000 | |||
Performance-Based Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Options forfeited (in shares) | 290,038 | 83,958 | ||
Number of non-vested options expired | 186,260 | |||
Unrecognized stock-based compensation expense, stock options | $ 0 | |||
Performance-Based Stock Options | Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Granted (in shares) | 560,256 |
STOCK BASED COMPENSATION - Rest
STOCK BASED COMPENSATION - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Weighted Average Grant Date Fair Value | ||||
Total stock based compensation expenses | $ 7,683 | $ 12,040 | $ 26,699 | $ 41,170 |
Restricted Stock awards | ||||
Shares Subject to Vesting | ||||
Balance at beginning of period, unvested shares (in shares) | 102 | |||
Vested (in shares) | (85) | |||
Balance at end of period, unvested shares (in shares) | 17 | 17 | ||
Weighted Average Grant Date Fair Value | ||||
Balance at beginning of Period, unvested shares (in dollars per share) | $ 8.78 | |||
Vested (in dollars per share) | 8.78 | |||
Balance at end of Period, unvested shares (in dollars per share) | $ 8.78 | $ 8.78 | ||
Total stock based compensation expenses | $ 100 | $ 200 | $ 700 | $ 800 |
Unrecognized stock-based compensation expense | $ 100 | $ 100 | ||
Weighted-average period | 4 months 24 days |
STOCK BASED COMPENSATION - Re_2
STOCK BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Weighted Average Grant Date Fair Value | ||||
Stock-based compensation expense | $ 7,683 | $ 12,040 | $ 26,699 | $ 41,170 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 4 years | |||
Cliff Vesting Period | 1 year | |||
Unrecognized compensation costs, non-vested RSUs | $ 59,000 | $ 59,000 | ||
Weighted-average period | 2 years 4 months 24 days | |||
Shares Subject to Vesting | ||||
Balance at beginning of period, unvested shares (in shares) | 22,145 | |||
Granted (in shares) | 9,677 | |||
Vested (in shares) | (4,062) | |||
Cancelled/Forfeited (in shares) | (2,278) | |||
Balance at end of period, unvested shares (in shares) | 25,482 | 25,482 | ||
Weighted Average Grant Date Fair Value | ||||
Balance at beginning of Period, unvested shares (in dollars per share) | $ 4.15 | |||
Granted (in dollars per share) | 1.86 | |||
Vested (in dollars per share) | 5.28 | |||
Cancelled/Forfeited (in dollars per share) | 4.57 | |||
Balance at end of Period, unvested shares (in dollars per share) | $ 3.07 | $ 3.07 | ||
Stock-based compensation expense | $ 7,300 | $ 11,600 | $ 25,000 | $ 38,200 |
STOCK BASED COMPENSATION - Pe_2
STOCK BASED COMPENSATION - Performance-Based Restricted Stock Units (Details) - Performance-Based Restricted Stock Units - 2020 Plan - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vested (in shares) | 0 | 0 | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | 400,000 | 120,000 | |
Awards Granted During 2020 | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vested (in shares) | 0 | 0 | 0 | 0 | |
Forfeited (in shares) | 62,150 | 124,300 | |||
Outstanding (in shares) | 0 | 0 | |||
Awards Granted During 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Outstanding (in shares) | 150,000 | 150,000 | |||
Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Granted (in shares) | 670,000 | 124,300 |
STOCK BASED COMPENSATION - Mark
STOCK BASED COMPENSATION - Market-Based Restricted Stock Units (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Total stock based compensation expenses | $ 7,683,000 | $ 12,040,000 | $ 26,699,000 | $ 41,170,000 | |||
Market Based Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Vested (in shares) | 0 | 0 | 0 | ||||
Forfeited (in shares) | 0 | 0 | 0 | ||||
Outstanding (in shares) | 6,802,702 | 6,802,702 | |||||
Market Based Restricted Stock Units | Mr. Sibalani | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Total stock based compensation expenses | $ 0 | ||||||
Market Based Restricted Stock Units | Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | 9,070,269 |
STOCK BASED COMPENSATION - Liab
STOCK BASED COMPENSATION - Liability-Classified Share-Based Arrangement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Accrued stock based compensation expense | $ 27,899 | $ 26,723 | $ 27,899 | $ 26,723 | $ 26,723 |
Stock-based compensation expense | 7,683 | 12,040 | 26,699 | 41,170 | |
2023 Bonus Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Accrued stock based compensation expense | 2,200 | 2,200 | |||
Stock-based compensation expense | $ (700) | $ 1,200 | $ 2,200 | $ 3,400 |
STOCK BASED COMPENSATION - St_2
STOCK BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock based compensation expenses | $ 7,683 | $ 12,040 | $ 26,699 | $ 41,170 |
Restructuring Charges | $ 142 | 3,085 | $ 6,610 | 12,782 |
2020 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares available for grant | 27,336,014 | 27,336,014 | ||
2023 Bonus Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock based compensation expenses | $ (700) | 1,200 | $ 2,200 | 3,400 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock based compensation expenses | 3,662 | 4,355 | 12,612 | 21,872 |
Restructuring Charges | 187 | 3,085 | 8,117 | |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock based compensation expenses | 2,802 | 3,899 | 10,419 | 11,681 |
Restructuring Charges | 1 | 236 | 489 | |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock based compensation expenses | 702 | 3,052 | 1,881 | 5,725 |
Restructuring Charges | (62) | 68 | 667 | |
Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total stock based compensation expenses | 517 | 734 | 1,787 | 1,892 |
Restructuring Charges | $ 16 | $ 3,085 | $ 3,221 | $ 3,126 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |||||
Lease liability | $ 29,767 | $ 29,767 | |||
Right of use asset | 29,114 | $ 22,147 | 29,114 | $ 22,147 | $ 22,100 |
Lightforce Orthodontics | |||||
RELATED PARTY TRANSACTIONS | |||||
Accounts receivable, related parties | 200 | 200 | |||
Other Acquisitions with Related Parties | |||||
RELATED PARTY TRANSACTIONS | |||||
Lease liability | 4,300 | 4,300 | |||
Right of use asset | 4,300 | 4,300 | |||
Annual commitment | 800 | 800 | |||
Affiliated Entity | Lightforce Orthodontics | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenues, related parties | 200 | 300 | 900 | 900 | |
Affiliated Entity | Bloom Energy | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenues, related parties | 500 | 500 | |||
Affiliated Entity | Other Acquisitions with Related Parties | |||||
RELATED PARTY TRANSACTIONS | |||||
Lease expense paid | $ 200 | $ 100 | $ 600 | $ 600 |
SEGMENT INFORMATION - Revenue (
SEGMENT INFORMATION - Revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Information | |||||
Number of segments | segment | 1 | ||||
Revenue | $ 42,750 | $ 47,086 | $ 137,352 | $ 148,466 | |
Total long-lived assets | 67,501 | 67,501 | $ 78,418 | ||
Revenue recognized at a point in time | |||||
Segment Information | |||||
Revenue | 37,502 | 42,937 | 121,597 | 135,085 | |
Revenue recognized over time | |||||
Segment Information | |||||
Revenue | 5,248 | 4,149 | 15,755 | 13,381 | |
Products | |||||
Segment Information | |||||
Revenue | 37,502 | 42,937 | 121,597 | 135,085 | |
Services | |||||
Segment Information | |||||
Revenue | 5,248 | 4,149 | 15,755 | 13,381 | |
Americas | |||||
Segment Information | |||||
Revenue | 28,456 | 32,072 | 87,952 | 102,959 | |
Total long-lived assets | 48,294 | 48,294 | 56,145 | ||
Americas | Products | |||||
Segment Information | |||||
Revenue | 25,630 | 29,615 | 79,233 | 94,958 | |
Americas | Services | |||||
Segment Information | |||||
Revenue | 2,826 | 2,457 | 8,719 | 8,001 | |
EMEA | |||||
Segment Information | |||||
Revenue | 10,061 | 10,384 | 36,509 | 33,444 | |
Total long-lived assets | 13,588 | 13,588 | 16,399 | ||
EMEA | Products | |||||
Segment Information | |||||
Revenue | 7,980 | 9,105 | 30,634 | 29,017 | |
EMEA | Services | |||||
Segment Information | |||||
Revenue | 2,081 | 1,279 | 5,875 | 4,427 | |
APAC | |||||
Segment Information | |||||
Revenue | 4,233 | 4,630 | 12,891 | 12,063 | |
Total long-lived assets | 5,619 | 5,619 | $ 5,874 | ||
APAC | Products | |||||
Segment Information | |||||
Revenue | 3,892 | 4,217 | 11,730 | 11,110 | |
APAC | Services | |||||
Segment Information | |||||
Revenue | $ 341 | $ 413 | $ 1,161 | $ 953 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator for basic and diluted net loss per share: | ||||
Net loss | $ (46,373) | $ (60,774) | $ (148,742) | $ (427,990) |
Denominator for basic and diluted net loss per share: | ||||
Weighted-average shares basic | 323,187,608 | 316,007,716 | 321,328,016 | 313,901,704 |
Weighted-average shares diluted | 323,187,608 | 316,007,716 | 321,328,016 | 313,901,704 |
Net loss per share-Basic | $ (0.14) | $ (0.19) | $ (0.46) | $ (1.36) |
Net loss per share-Diluted | $ (0.14) | $ (0.19) | $ (0.46) | $ (1.36) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities Excluded from Computation of Earnings per Share (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded | 118,256 | 114,641 |
Interest rate | 6% | 6% |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded | 6,291 | 9,020 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded | 25,482 | 19,032 |
Restricted Stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded | 17 | 123 |
6.0% Convertible Senior Notes due 2027 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded | 86,466 | 86,466 |
RESTRUCTURING CHARGES - Employe
RESTRUCTURING CHARGES - Employee Severance Benefits and Related Costs (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 facility | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
RESTRUCTURING CHARGES | |||||
Number of facilities to be sold | facility | 2 | ||||
Restructuring charges | $ 142 | $ 3,085 | $ 6,610 | $ 12,782 | |
Employee Severance | |||||
RESTRUCTURING CHARGES | |||||
Accrued expenses, beginning of period | 1,095 | ||||
Restructuring charges | 100 | 6,610 | 12,782 | ||
Cash payments | (2,317) | (1,478) | |||
Stock-based compensation | (7,313) | ||||
Inventory write-off | (2,484) | (3,085) | |||
Accrued expenses, end of period | $ 2,904 | $ 906 | $ 2,904 | $ 906 |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
RESTRUCTURING CHARGES | |||||
Restructuring charges | $ 142 | $ 3,085 | $ 6,610 | $ 12,782 | |
Employee severance | |||||
RESTRUCTURING CHARGES | |||||
Restructuring charges | 100 | 6,610 | 12,782 | ||
Maximum | Employee severance | |||||
RESTRUCTURING CHARGES | |||||
Restructuring charges | $ 26,000 | ||||
Minimum | Employee severance | |||||
RESTRUCTURING CHARGES | |||||
Restructuring charges | $ 19,600 | ||||
Cost of sales | |||||
RESTRUCTURING CHARGES | |||||
Restructuring charges | 16 | $ 3,085 | 3,221 | 3,126 | |
Research and development | |||||
RESTRUCTURING CHARGES | |||||
Restructuring charges | 187 | 3,085 | 8,117 | ||
Sales and marketing | |||||
RESTRUCTURING CHARGES | |||||
Restructuring charges | (62) | 68 | 667 | ||
General and administrative | |||||
RESTRUCTURING CHARGES | |||||
Restructuring charges | $ 1 | $ 236 | 489 | ||
Interest and other (expense) income, net | |||||
RESTRUCTURING CHARGES | |||||
Restructuring charges | $ 383 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (46,373) | $ (60,774) | $ (148,742) | $ (427,990) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | |
Sep. 30, 2023 shares | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Trading Arrangement Name and Principal Position Action Date Rule 10b5-1* Non-Rule 10b5-1** Total Shares to be Sold Expiration Date Thomas Nogueira Modify 8/18/2023 X 278,752 12/31/2024 Chief Operating Officer Jonah Myerberg Adopt 6/15/2023 X 400,000 6/15/2024 Chief Technology Officer | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Thomas Nogueira | ||
Trading Arrangements, by Individual | ||
Name | Thomas Nogueira | |
Title | Chief Operating Officer | |
Aggregate Available | 278,752 | |
Rule 10b51 Arr Modified Flag | true | [1] |
Non Rule 10b51 Arr Modified | false | [2] |
Expiration Date | 12/31/2024 | |
Modified Date | 8/18/2023 | |
Jonah Myerberg | ||
Trading Arrangements, by Individual | ||
Name | Jonah Myerberg | |
Title | Chief Technology Officer | |
Rule 10b5-1 Arrangement Adopted | true | [1] |
Non-Rule 10b5-1 Arrangement Adopted | false | [2] |
Adoption Date | 6/15/2023 | |
Aggregate Available | 400,000 | |
Expiration Date | 6/15/2024 | |
[1] Intended to satisfy the affirmative defense of Rule 10b5-1(c). |