Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | Markforged Holding Corporation |
Entity Central Index Key | 0001816613 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | |||
Cash and cash equivalents | $ 33,144 | $ 58,715 | $ 59,768 |
Accounts receivable, net | 17,567 | 16,601 | 18,159 |
Inventory | 7,926 | 6,553 | 5,782 |
Prepaid expenses | 1,691 | 1,496 | 1,163 |
Other current assets | 814 | 1,373 | 2,214 |
Total current assets | 61,142 | 84,738 | 87,086 |
Property and equipment, net | 4,480 | 4,281 | 5,553 |
Deferred transaction costs | 4,884 | ||
Other assets | 645 | 584 | 633 |
Total assets | 71,151 | 89,603 | 93,272 |
Current liabilities | |||
Accounts payable | 6,340 | 3,369 | 5,023 |
Accrued expenses | 8,432 | 8,168 | 5,760 |
Deferred revenue | 5,192 | 6,196 | 2,446 |
Other current liabilities | 331 | 300 | 666 |
Total current liabilities | 20,295 | 18,033 | 13,895 |
Long-term debt | 5,022 | 0 | |
Long-term deferred revenue | 2,820 | 2,905 | 1,597 |
Deferred rent | 1,483 | 1,073 | 973 |
Other liabilities | 545 | 371 | |
Total liabilities | 24,598 | 27,578 | 16,836 |
Commitments and contingencies (Note 12) | |||
Convertible preferred stock (Note 8) | 137,952 | 137,497 | 136,797 |
Stockholders' deficit | |||
Common stock | |||
Additional paid-in capital | 10,724 | 5,542 | 2,012 |
Treasury stock | (1,450) | (1,450) | (624) |
Note receivable | 0 | (170) | |
Accumulated deficit | (100,673) | (79,564) | (61,579) |
Total stockholders' deficit | (91,399) | (75,472) | (60,361) |
Total liabilities, convertible preferred stock, and stockholders' deficit | $ 71,151 | $ 89,603 | $ 93,272 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Common stock, Par value | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Common stock, Shares authorized | 183,300,000 | 183,300,000 | 173,300,000 |
Common stock, Shares issued | 42,537,176 | 41,491,257 | 39,259,717 |
Common stock, Shares outstanding | 42,537,176 | 41,491,257 | 39,259,717 |
Treasury stock, Common shares | 507,722 | 507,722 | 244,691 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 20,419 | $ 14,174 | $ 40,539 | $ 31,875 | $ 71,851 | $ 72,549 |
Cost of revenue | 8,496 | 6,720 | 16,435 | 14,997 | 29,921 | 36,321 |
Gross profit | 11,923 | 7,454 | 24,104 | 16,878 | 41,930 | 36,228 |
Operating expense | ||||||
Sales and marketing | 8,255 | 5,296 | 15,312 | 11,761 | 22,413 | 31,018 |
Research and development | 6,444 | 4,206 | 11,703 | 8,852 | 17,176 | 20,270 |
General and administrative | 7,959 | 3,623 | 16,822 | 7,250 | 20,080 | 15,683 |
Total operating expense | 22,658 | 13,125 | 43,837 | 27,863 | 59,669 | 66,971 |
Loss from operations | (10,735) | (5,671) | (19,733) | (10,985) | (17,739) | (30,743) |
Other (expense) income, net | (345) | 10 | (1,368) | 23 | (184) | (121) |
Interest expense | (5) | (20) | (9) | (29) | (98) | (49) |
Interest income | 1 | 21 | 3 | 144 | 147 | 1,053 |
Loss before income taxes | (11,084) | (5,660) | (21,107) | (10,847) | (17,874) | (29,860) |
Income tax expense | 6 | 29 | 2 | 87 | 111 | 15 |
Net loss and comprehensive loss | $ (11,090) | $ (5,689) | $ (21,109) | $ (10,934) | (17,985) | (29,875) |
Net loss attributable to MarkForged, Inc. common stockholders | $ (18,811) | $ (31,284) | ||||
Weighted average shares outstanding basic and diluted | 41,853,841 | 39,980,784 | 41,638,004 | 39,856,193 | 40,258,968 | 38,673,218 |
Basic and diluted net loss per common share | $ (0.26) | $ (0.14) | $ (0.51) | $ (0.27) | $ (0.47) | $ (0.81) |
Series Seed Redeemable Convertible Preferred Stock [Member] | ||||||
Operating expense | ||||||
Deemed dividend | $ 0 | $ (785) | ||||
Common Stock [Member] | ||||||
Operating expense | ||||||
Deemed dividend | $ (826) | $ (624) |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Convertible Preferred Stock and Stockholders' Deficit - USD ($) $ in Thousands | Total | Convertible preferred stock | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Note Receivable [Member] | Accumulated Deficit [Member] | Total [Member] |
Beginning balance at Dec. 31, 2018 | $ (30,325) | $ 54,541 | $ 1,379 | $ (31,704) | $ 24,216 | |||
Beginning balance, Shares at Dec. 31, 2018 | 95,819,538 | 37,010,424 | ||||||
Issuance of Series D convertible preferred stock | $ 82,126 | 82,126 | ||||||
Issuance of Series D convertible preferred stock, Shares | 17,305,052 | |||||||
Exercise of common stock options | 390 | 560 | $ (170) | 390 | ||||
Exercise of common stock options, Shares | 2,249,293 | |||||||
Repurchase of Series Seed convertible preferred stock | (785) | $ (20) | (785) | (805) | ||||
Repurchase of Series Seed convertible preferred stock, Shares | (315,637) | |||||||
Repurchase of common stock | (624) | $ (624) | (624) | |||||
Repurchase of common stock, Shares | 244,691 | 244,691 | ||||||
Stock-based compensation | 858 | 858 | 858 | |||||
Exercise of Series D warrants | $ 150 | 150 | ||||||
Exercise of Series D warrants, Shares | 31,564 | |||||||
Net loss and comprehensive loss | (29,875) | (29,875) | (29,875) | |||||
Ending Balance at Dec. 31, 2019 | (60,361) | $ 136,797 | 2,012 | $ (624) | (170) | (61,579) | 76,436 | |
Ending Balance, Shares at Dec. 31, 2019 | 112,840,517 | 39,259,717 | 244,691 | |||||
Exercise of common stock options | 600 | 430 | 170 | 600 | ||||
Exercise of common stock options, Shares | 850,079 | |||||||
Stock-based compensation | 504 | 504 | 504 | |||||
Exercise of Series D warrants | $ 50 | 50 | ||||||
Exercise of Series D warrants, Shares | 10,520 | |||||||
Net loss and comprehensive loss | (5,245) | (5,245) | (5,245) | |||||
Ending Balance at Mar. 31, 2020 | (64,502) | $ 136,847 | 2,946 | $ (624) | (66,824) | 72,345 | ||
Ending Balance, Shares at Mar. 31, 2020 | 112,851,037 | 40,109,796 | 244,691 | |||||
Beginning balance at Dec. 31, 2019 | (60,361) | $ 136,797 | 2,012 | $ (624) | (170) | (61,579) | 76,436 | |
Beginning balance, Shares at Dec. 31, 2019 | 112,840,517 | 39,259,717 | 244,691 | |||||
Net loss and comprehensive loss | (10,934) | |||||||
Ending Balance at Jun. 30, 2020 | (69,633) | $ 137,147 | 3,504 | $ (624) | (72,513) | 67,514 | ||
Ending Balance, Shares at Jun. 30, 2020 | 112,914,163 | 40,464,583 | 244,691 | |||||
Beginning balance at Dec. 31, 2019 | (60,361) | $ 136,797 | 2,012 | $ (624) | (170) | (61,579) | 76,436 | |
Beginning balance, Shares at Dec. 31, 2019 | 112,840,517 | 39,259,717 | 244,691 | |||||
Exercise of common stock options | 1,131 | 961 | $ 170 | 1,131 | ||||
Exercise of common stock options, Shares | 2,231,540 | |||||||
Repurchase of common stock | (826) | $ (826) | (826) | |||||
Repurchase of common stock, Shares | 263,031 | 263,031 | ||||||
Stock-based compensation | 2,569 | 2,569 | 2,569 | |||||
Exercise of Series D warrants | $ 700 | 700 | ||||||
Exercise of Series D warrants, Shares | 147,293 | |||||||
Net loss and comprehensive loss | (17,985) | (17,985) | (17,985) | |||||
Ending Balance at Dec. 31, 2020 | (75,472) | $ 137,497 | 5,542 | $ (1,450) | (79,564) | 62,025 | ||
Ending Balance, Shares at Dec. 31, 2020 | 112,987,810 | 41,491,257 | 507,722 | |||||
Beginning balance at Mar. 31, 2020 | (64,502) | $ 136,847 | 2,946 | $ (624) | (66,824) | 72,345 | ||
Beginning balance, Shares at Mar. 31, 2020 | 112,851,037 | 40,109,796 | 244,691 | |||||
Stock-based compensation | 503 | 503 | 503 | |||||
Exercise of common stock warrants | 55 | 55 | 55 | |||||
Exercise of common stock warrants, Shares | 354,787 | |||||||
Exercise of Series D warrants | $ 300 | 300 | ||||||
Exercise of Series D warrants, Shares | 63,126 | |||||||
Net loss and comprehensive loss | (5,689) | (5,689) | (5,689) | |||||
Ending Balance at Jun. 30, 2020 | (69,633) | $ 137,147 | 3,504 | $ (624) | (72,513) | 67,514 | ||
Ending Balance, Shares at Jun. 30, 2020 | 112,914,163 | 40,464,583 | 244,691 | |||||
Beginning balance at Dec. 31, 2020 | (75,472) | $ 137,497 | 5,542 | $ (1,450) | (79,564) | 62,025 | ||
Beginning balance, Shares at Dec. 31, 2020 | 112,987,810 | 41,491,257 | 507,722 | |||||
Exercise of common stock options | 356 | 356 | 356 | |||||
Exercise of common stock options, Shares | 749,980 | |||||||
Stock-based compensation | 1,194 | 1,194 | 1,194 | |||||
Exercise of Series D warrants | $ 100 | 100 | ||||||
Exercise of Series D warrants, Shares | 21,042 | |||||||
Net loss and comprehensive loss | (10,019) | (10,019) | (10,019) | |||||
Ending Balance at Mar. 31, 2021 | (83,941) | $ 137,597 | 7,092 | $ (1,450) | (89,583) | 53,656 | ||
Ending Balance, Shares at Mar. 31, 2021 | 113,008,852 | 42,241,237 | 507,722 | |||||
Beginning balance at Dec. 31, 2020 | (75,472) | $ 137,497 | 5,542 | $ (1,450) | (79,564) | 62,025 | ||
Beginning balance, Shares at Dec. 31, 2020 | 112,987,810 | 41,491,257 | 507,722 | |||||
Net loss and comprehensive loss | (21,109) | |||||||
Ending Balance at Jun. 30, 2021 | (91,399) | $ 137,952 | 10,724 | $ (1,450) | (100,673) | 46,553 | ||
Ending Balance, Shares at Jun. 30, 2021 | 113,083,557 | 42,537,176 | 507,722 | |||||
Beginning balance at Mar. 31, 2021 | (83,941) | $ 137,597 | 7,092 | $ (1,450) | (89,583) | 53,656 | ||
Beginning balance, Shares at Mar. 31, 2021 | 113,008,852 | 42,241,237 | 507,722 | |||||
Exercise of common stock options | 62 | 62 | 62 | |||||
Exercise of common stock options, Shares | 107,363 | |||||||
Stock-based compensation | 1,777 | 1,777 | 1,777 | |||||
Exercise of Series D warrants | $ 355 | 355 | ||||||
Exercise of Series D warrants, Shares | 74,705 | |||||||
Exercise of common stock warrants, net of shares withheld for exercise | 1,793 | 1,793 | 1,793 | |||||
Exercise of common stock warrants, net of shares withheld for exercise, Shares | 188,576 | |||||||
Net loss and comprehensive loss | (11,090) | (11,090) | (11,090) | |||||
Ending Balance at Jun. 30, 2021 | $ (91,399) | $ 137,952 | $ 10,724 | $ (1,450) | $ (100,673) | $ 46,553 | ||
Ending Balance, Shares at Jun. 30, 2021 | 113,083,557 | 42,537,176 | 507,722 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities: | ||||
Net loss | $ (21,109) | $ (10,934) | $ (17,985) | $ (29,875) |
Adjustments to reconcile net loss to cash used in operating activities | ||||
Depreciation | 841 | 907 | 1,795 | 1,359 |
Provision for doubtful accounts | 378 | 397 | 591 | 1,014 |
Reserve for excess and obsolete inventory | 56 | 263 | 37 | 762 |
Stock-based compensation expense | 2,971 | 1,007 | 2,569 | 858 |
Loss on sale of assets | 0 | 35 | ||
Changes in operating assets and liabilities | ||||
Accounts receivable | (1,345) | 5,678 | 967 | (3,959) |
Inventory | (1,430) | (3,244) | (808) | (2,180) |
Prepaid expenses | (196) | (206) | (333) | 150 |
Other current assets | 559 | 1,457 | 840 | (1,644) |
Other assets | (60) | (17) | 49 | 183 |
Accounts payable and accrued expenses | 2,350 | (1,398) | 852 | (318) |
Other current liabilities | (242) | (366) | 484 | |
Deferred rent | 409 | (76) | 100 | 198 |
Other liabilities | 1,249 | 13 | 175 | 220 |
Deferred revenue | (1,088) | 1,301 | 5,058 | 2,046 |
Net cash used in operating activities | (16,384) | (5,094) | (6,459) | (30,667) |
Investing Activities: | ||||
Purchases of property and equipment | (1,039) | (243) | (640) | (4,770) |
Proceeds from sale and disposal of fixed assets | 118 | 138 | ||
Net cash used in investing activities | (1,039) | (243) | (522) | (4,632) |
Financing Activities: | ||||
Proceeds (repayments) of debt obligations | (5,022) | 5,192 | ||
Payment of transaction costs | ||||
Proceeds from debt obligations | 5,022 | 0 | ||
Proceeds from the issuance of Series D convertible preferred stock | 0 | 82,239 | ||
Costs from issuance of Series D convertible preferred stock | 0 | (113) | ||
Proceeds from exercise of Series D warrants | 455 | 350 | 700 | 150 |
Proceeds from the exercise of common stock options | 419 | 485 | 1,131 | 390 |
Repurchase of Seed Series convertible preferred stock | 0 | (805) | ||
Repurchase of common stock | (826) | (624) | ||
Taxes paid related to net share settlement of equity awards | (98) | 0 | ||
Payment of financing costs | 0 | (38) | ||
Principal repayments of capital lease obligations | (1) | (1) | (14) | |
Net cash (used in) provided by financing activities | (8,148) | 6,026 | 5,928 | 81,185 |
Net change in cash and cash equivalents | (25,571) | 689 | (1,053) | 45,886 |
Cash and cash equivalents | ||||
Beginning of year | 58,715 | 59,768 | 59,768 | 13,882 |
End of year | 33,144 | 60,457 | 58,715 | 59,768 |
Supplemental disclosure of cash flow information | ||||
Cash paid for interest | 0 | 1 | ||
Cash paid for income taxes | 84 | 15 | ||
Non-cash financing and investing activities | ||||
Deferred transaction costs included in accounts payable and accrued expenses | 885 | |||
De-recognition of warrant liability to additional paid-in capital | $ 1,793 | |||
Note receivable for exercise of common stock options . . . . | $ 170 | $ 0 | $ 170 |
Organization, Nature of the Bus
Organization, Nature of the Business, and Risks and Uncertainties | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization, Nature of the Business, and Risks and Uncertainties | Note 1. Organization, Nature of the Business, and Risks and Uncertainties Organization and Nature of Business MarkForged, Inc. and its subsidiaries (the “Company”, “Markforged”) was founded in 2013 to transform the manufacturing industry with high strength, cost effective parts using additive manufacturing. The Company produces and sells 3D printers and materials worldwide to customers who can build parts strong enough for the factory floor with significantly reduced lead time and cost. The printers print in plastic, nylon, metal, and the parts can be reinforced with carbon fiber for industry leading strength at an affordable price point . As previously disclosed, on February 23, 2021, one, a Cayman Islands exempted company (“AONE”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Caspian Merger Sub Inc., a wholly owned subsidiary of AONE (“Merger Sub”), and MarkForged, Inc. (“Markforged”), pursuant to which (i) AONE would deregister as a Cayman Islands company and domesticate as a corporation in the State of Delaware and would be renamed “Markforged Holding Corporation” (the “Domestication”) and (ii) Merger Sub would merge with and into Markforged, with Markforged surviving as a wholly owned subsidiary of Markforged Holding Corporation (the “Merger”). AONE’s shareholders approved the transactions contemplated by the Merger Agreement on July 13, 2021, and the Domestication and the Merger were completed on July 14, 2021. Cash proceeds of the merger were funded through a combination of AONE’s $123.8 million of cash held in trust (after redemptions) and an aggregate of $210.0 million in fully committed common stock transactions at $10.00 per share. Upon closing of the Merger, Markforged repurchased shares of common stock from certain of its stockholders, for a total value of $45.0 million of cash on hand, referred to as the “Employee Transactions”. Total net proceeds upon closing of the Merger, net of share repurchases, were $288.8 million. Risks and Uncertainties While COVID-19 had an impact on the Company’s results, primarily in the second and third quarters of 2020, the Company is unable to predict the ultimate impact that the virus may have on the business, future results of operations, financial position or cash flows. Further COVID-19 impact on the Company is largely dependent on future developments and subsequent government responses. The Company identified potential risks to the business to include certain accounting estimates around accounts receivable, inventory and related reserves, and long-lived assets. As of and for the six months ended June 30, 2021 these risks were assessed and had no material impact on the realizability of accounts receivables, inventories, long- lived assets or the related estimates used in the Company’s condensed consolidated financial statements. There may be changes to those estimates in future periods, and actual results could differ from those estimates. The Company has funded its operations to date primarily through the sale of convertible preferred stock and the sale of its products. Management believes that existing cash will be sufficient to fund operating and capital expenditure requirements through at least one year after the date these condensed consolidated financial statements are available to be issued. The accompanying condensed consolidated financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. | Note 1. Organization, Nature of the Business, and Risks and Uncertainties Organization and Nature of Business MarkForged, Inc. and its subsidiaries (the “Company”, “Markforged”) was founded in 2013 to transform the manufacturing industry with high strength, cost effective parts using additive manufacturing. The Company produces and sells 3D printers and materials worldwide to customers who can build parts strong enough for the factory floor with significantly reduced lead time and cost. The printers print in plastic, nylon, metal, and the parts can be reinforced with carbon fiber for industry leading strength at an affordable price point . Risks and Uncertainties While COVID-19 COVID-19 The Company has funded its operations to date primarily through the sale of convertible preferred stock and the sale of its products. Management believes that existing cash will be sufficient to fund operating and capital expenditure requirements through at least one year after the date these financial statements are available to be issued. The accompanying financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The unaudited condensed consolidated financial statements include the accounts of MarkForged, Inc. and its wholly owned subsidiaries. The Company’s fiscal year end is December 31 and, unless otherwise stated, all years and dates refer to the fiscal year. Unaudited Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) regarding interim financial reporting and include the accounts of MarkForged, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s audited consolidated financial statements for the year ended December 31, 2020. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The accompanying condensed consolidated financial statements as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of June 30, 2021 and results of operations for the three and six months ended June 30, 2021 and 2020 and cash flows for the six months ended June 30, 2021 and 2020. The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2021 and 2020 are also unaudited. The condensed balance sheet at December 31, 2020, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Other than policies noted below, there have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements as of December 31, 2020 and 2019 and for the years ended December 31, 2020 and 2019. The results for the three and six months ended June 30, 2021 and 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements as of December 31, 2020 and 2019 and for each of the two years in the period ended December 31, 2020. Basis of Presentation The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. Reporting Currency The Company’s reporting currency is the U.S. Dollar, while the functional currencies of its foreign subsidiaries are their respective local currencies. The effect of foreign currency translation was immaterial for all periods presented. Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management’s significant estimates include allowance for doubtful accounts, reserve for excess and obsolete inventory, fair value of equity awards and assumptions in revenue recognition. Actual results could differ from those estimates. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based on management’s assessment of the collectability of the accounts receivable which considers historical write-off . The following presents the changes in the balance of the Company’s allowance for doubtful accounts: Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 1,012 $ 1,060 $ 1,070 $ 1,038 Additions 296 236 378 397 Write – offs (63 ) (14 ) (64 ) (14 ) Recoveries (80 ) (179 ) (219 ) (318 ) Balance at end of period $ 1,165 $ 1,103 $ 1,165 $ 1,103 Fair Value of Financial Instruments The Company is required to provide information according to the fair value hierarchy based on the observability of the inputs used in the valuation techniques. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities The following table presents information about the Company’s assets and liabilities that are measured at fair value as of June 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation: Fair Value Measurements (in thousands) Level 1 Level 2 Level 3 Total June 30, 2021 Money market funds included in cash and cash equivalents $ 31,337 $ — $ — $ 31,337 December 31, 2020 Money market funds included in cash and cash equivalents $ 56,907 $ — $ — $ 56,907 Warrant liability — — 545 545 The Company remeasures its warrant liability at fair value at each reporting period using Level 3 inputs via the Black-Scholes option-pricing model. The significant assumptions used in preparing the option pricing model are disclosed in Note 10 Stock Warrants. All warrants were exercised in June 2021. There were no transfers between levels during the periods presented. Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 1,555 $ 382 $ 545 $ 370 Change in fair value 241 — 1,251 12 Derecognition of liability (1,796 ) — (1,796 ) — Balance at end of period $ — $ 382 $ — $ 382 At December 31, 2020, the fair value of the Company’s debt using Level 2 inputs was approximately $ million calculated using a discounted cash flow method. All debt was paid off in January 2021 as disclosed in Note 7 Borrowings. Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents held on deposit at one financial institution and accounts receivable. The Company does not require collateral from customers for amounts owed. At June 30, 2021 and December 31, 2020, no one customer represented greater than 10% of the accounts receivable balance. For the three and six months ended June 30, 2021 no one customer represented more than 10% of total revenue. Historically, the Company has not experienced any significant credit loss related to any individual customer. Impairment of Long-Lived Assets The Company evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant reassessment or that the carrying value of these assets may not be recoverable. When a triggering event is identified, management assesses the recoverability of the asset group, which is the lowest level where identifiable cash flows are largely independent, by comparing the expected undiscounted cash flows of the asset group to the carrying value. When the carrying value is not recoverable and an impairment is determined to exist, the asset group is written down to fair value. The Company did not identify any triggering events or record any impairment during the three and six months ended June 30, 2021 and 2020. Sales and Marketing Advertising costs, a component of sales and marketing expenses, were $1.2 million and $3.0 million during the three and six months ended June 30, 2021, respectively, compared to $0.5 million and $1.5 million for the three and six months ended June 30, 2020. Warranty Reserves Substantially all of the Company’s hardware products are covered by a standard assurance warranty of one year. In the event of a failure of a product covered by this warranty, the Company may repair or replace the product, at its option. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues for which the Company expects to incur an obligation. The Company periodically assesses the appropriateness of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the appropriateness of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be necessary. Warranty reserves are included within accrued expenses on the condensed consolidated balance sheets. The following table presents changes in the balance of the Company’s warranty reserve: Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 538 $ 1,261 $ 564 $ 1,260 Additions to warranty reserve 366 250 633 482 Claims fulfilled (336 ) (144 ) (629 ) (375 ) Balance at end of period $ 568 $ 1,367 $ 568 $ 1,367 Warranty reserve is recorded through cost of revenue in the condensed consolidated statements of operations and comprehensive loss. Segment Information The Company determines its chief operating decision maker (“CODM”) based on the person responsible for making resource allocation decisions. Operating segments are components of the business for which the CODM regularly reviews discrete financial information. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. Recently Adopted Accounting Pronouncements The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (“the JOBS Act”) either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as private companies, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as private companies . In August 2018, the FASB issued ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use 350-40) 2018-15”), internal-use In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes 2019-12”) , Income Taxes year-to-date 2019-12 Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”), other receivables, loans and commitments, held-to-maturity 2016-13 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02”), 2016-02 2016-02 2016-02 2016-02 right-of-use | Note 2. Summary of Significant Accounting Policies The consolidated financial statements include the accounts of MarkForged, Inc. and its wholly owned subsidiaries. The Company’s fiscal year end is December 31 and, unless otherwise stated, all years and dates refer to the fiscal year. Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. Reporting Currency The Company’s reporting currency is the U.S. Dollar, while the functional currencies of its foreign subsidiaries are their respective local currencies. The effect of foreign currency translation was immaterial for all periods presented. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management’s significant estimates include allowance for doubtful accounts, reserve for excess and obsolete inventory, fair value of equity awards and assumptions in revenue recognition. Actual results could differ from those estimates. Treasury Stock Treasury stock is accounted for using the cost method, with the purchase price of the common stock and Seed stock separately recorded as a deduction from stockholders’ deficit. Revenue Recognition The Company recognized revenue in accordance with Accounting Standards Codification (‘‘ASC’’) Topic 606, Revenue from Contracts with Customers Under ASC Topic 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of the new revenue recognition accounting standard, the Company performs the following five steps: • identifies the contract with a customer; • identifies the performance obligations in the contract; • determines the transaction price; • allocates the transaction price to the performance obligations in the contract; and • recognizes revenue when (or as) the entity satisfies a performance obligation. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of 90 days or less to be cash equivalents. Cash equivalents consist of money market funds as of December 31, 2020 and 2019. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based on management’s assessment of the collectability of the accounts receivable which considers historical write-off The following presents the changes in the balance of the Company’s allowance for doubtful accounts: Year Ended (in thousands) 2020 2019 Balance at beginning of year $ 1,038 $ 175 Additions 591 1,014 Write – offs (559 ) (151 ) Balance at end of year $ 1,070 $ 1,038 Fair Value of Financial Instruments The Company is required to provide information according to the fair value hierarchy based on the observability of the inputs used in the valuation techniques. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents information about the Company’s assets that are measured at fair value as of December 31, 2020 and 2019, and indicates the fair value hierarchy of the valuation: Fair Value Measurements (in thousands) Level 1 Level 2 Level 3 Total December 31, 2020 Money market funds included in cash and cash equivalents $ 56,907 $ — $ — $ 56,907 Warrant liability — — 545 545 December 31, 2019 Money market funds included in cash and cash equivalents $ 58,182 $ — $ — $ 58,182 Warrant liability — — 370 370 The Company remeasures its warrant liability at fair value at each reporting period using Level 3 inputs via the Black-Scholes option-pricing model. The significant assumptions used in preparing the option pricing model are disclosed in Note 10 Stock Warrants. Year ended (in thousands) 2020 2019 Balance at beginning of year $ 370 $ 150 Change in fair value 175 220 Balance at end of year $ 545 $ 370 At December 31, 2020, the fair value of the Company’s debt using Level 2 inputs is approximately $4.7 million calculated using a discounted cash flow method. Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents held on deposit at one financial institution and accounts receivable. The Company does not require collateral from customers for amounts owed. At December 31, 2020 and 2019, no one customer represented greater than 10% of the accounts receivable balance. For the years ended December 31, 2020 and 2019, no one customer represented more than 10% of total revenue. Historically, the Company has not experienced any significant credit loss related to any individual customer. Property and Equipment Property and equipment are recorded at cost and are depreciated over their estimated useful lives using the straight-line method. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the determination of net income or loss. Repairs and maintenance costs are expensed as incurred . The cost of property and equipment is depreciated based upon the following asset lives: Asset Classification Estimated Useful Life Machinery and equipment 5 years Leasehold improvements Shorter of estimated useful life or remaining lease term Computer equipment 3 years Computer software 3 years Furniture and fixtures 3 years Impairment of Long-Lived Assets The Company evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant reassessment or that the carrying value of these assets may not be recoverable. When a triggering event is identified, management assesses the recoverability of the asset group, which is the lowest level where identifiable cash flows are largely independent, by comparing the expected undiscounted cash flows of the asset group to the carrying value. When the carrying value is not recoverable and an impairment is determined to exist, the asset group is written down to fair value. The Company did not identify any triggering events or record any impairment during the years ended December 31, 2020 and 2019. Inventory Inventory is stated at lower of cost or net realizable value. Cost is based on a standard costing system which approximates the cost on a first in, first out method. The Company regularly reviews inventory for excess and obsolescence and records a provision to write down inventory to its net realizable value. Cost of Revenue Cost of revenue is primarily comprised of cost of product and software subscriptions, maintenance services, personnel-related costs, third party logistics, warranty fulfillment costs, and overhead. For the production of consumables, the Company utilizes its internal manufacturing facilities and personnel, while for the production of the Company’s additive manufacturing hardware, third party manufacturers are utilized. For internally manufactured products, the cost of revenue includes raw material, labor conversion costs, and overhead related to the manufacturing operations, inclusive of associated depreciation. Cost of revenue for maintenance services is comprised of costs associated with the Company’s customer success teams’ provision of remote and on-site The Company’s cost of revenue also includes indirect costs of providing products and services to its customers. These indirect costs consist primarily of reserves for excess and obsolete inventory and stock- based compensation. Research and Development The Company expenses all research and development costs as incurred. These costs consist mainly of employee compensation and other personnel-related costs, product prototypes, facility costs, as well as engineering services. Sales and Marketing Sales and marketing costs are expensed as incurred and are primarily comprised of personnel-related costs for the Company’s sales and marketing departments, costs related to sales commissions, trades shows, facilities costs, as well as advertising and other demand generating services. Sales and marketing expenses include advertising costs which were $3.0 million and $5.4 million during 2020 and 2019, respectively. Shipping and Handling Costs The Company recognizes shipping and handling costs in cost of revenue within the consolidated statements of operations and comprehensive loss. When shipping and handling services are provided subsequent to the point in time control is transferred, the Company accounts for the shipping and handling services as a fulfillment activity and accrues the related costs. Stock-Based Compensation The Company recognizes expense for stock-based compensation awards based on the estimated fair value of the award on the date of grant, which is amortized on a straight-line basis over the employee’s or director’s requisite service period, generally the vesting period of the award. The Company uses the Black- Scholes pricing model to estimate the fair value of options on the date of grant . The Company uses the Black-Scholes pricing model to estimate the fair value of options on the date of grant. The use of a valuation model requires management to make certain assumptions with respect to selected model inputs. The Company grants stock options at exercise prices determined equal to the fair value of common stock on the date of the grant, as determined by the Board of Directors. The fair value of the Company’s common stock at each measurement date is based on a number of factors, including the results of third-party valuations, the Company’s historical financial performance, and observable arms-length sales of the Company’s capital stock including convertible preferred stock, and the prospects of a liquidity event, among other inputs. The computation of expected option life is based on an average of the vesting term and the maximum contractual life of the Company’s stock options, as the Company does not have sufficient history to use an alternative method to the simplified method to calculate an expected life for employees. The Company estimates an expected forfeiture rate for stock options, which is factored into the determination of stock-based compensation expense. The volatility assumption is based on the historical and implied volatility of the Company’s peer group with similar business models. The risk-free interest rate is based on U.S. Treasury zero-coupon These estimates involve inherent uncertainties and the use of different assumptions may have resulted in stock-based compensation expense that was different from the amounts recorded. The Company has repurchased fully vested restricted common shares from its employees pursuant to individual repurchase agreements. The Company allows its employee to elect the Company to retain an amount to cover the employee’s tax withholding obligations incurred as a result of the repurchase. The employee tax withholding related to net settlement is recorded in the accrued expenses caption on the Company’s consolidated balance sheets. Warranty Reserves Substantially all of the Company’s hardware products are covered by a standard assurance warranty of one year. In the event of a failure of a product covered by this warranty, the Company may repair or replace the product, at its option. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues for which the Company expects to incur an obligation. The Company periodically assesses the appropriateness of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the appropriateness of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be necessary. Warranty reserves are included within accrued expenses on the consolidated balance sheets. The following table presents changes in the balance of the Company’s warranty reserve: Year Ended (in thousands) 2020 2019 Balance at beginning of year $ 1,260 $ 80 Additions to warranty reserve 821 2,415 Claims fulfilled (882 ) (1,235 ) Change in estimate related to pre-existing (635 ) — Balance at end of year $ 564 $ 1,260 Warranty reserve is recorded through cost of revenue in the consolidated statements of operations and comprehensive loss. Common Stock The holders of the common stock are entitled to one vote for each share held at all meetings of stockholders (and written actions in lieu of meetings). Dividends may be declared and paid on common stock from funds lawfully available as and when determined by the Board of Directors and subject to any preferential dividend rights of any then outstanding preferred stock. Through the year ended December 31, 2020, no dividends had been declared. Warrants Warrants to purchase the Company’s common stock issued in conjunction with the Company’s former term loan facility debt are recorded as a liability and classified as other liabilities on the consolidated balance sheets. The change in the fair value is recognized in other expense in the consolidated statements of operations and comprehensive loss. Warrants to purchase the Company’s Series D convertible preferred stock issued in conjunction with a customer contract are recorded as additional Series D convertible preferred stock and classified as mezzanine equity on the consolidated balance sheets. Earnings Per Share The Company calculates basic and diluted net loss per share attributable to common stockholders in conformity with the two-class The Company presents basic and diluted loss per common share amounts. Basic loss per common share is calculated by dividing net loss attributable to common stockholders, less any participating dividends by the weighted average number of common shares outstanding during the applicable period. See Note 13 for further information. Income Taxes The Company files U.S. federal and state tax returns where applicable. The non-U.S. The Company follows the authoritative guidance on accounting for and disclosure of uncertainty in tax positions which requires the Company to determine whether a tax position of the Company is more likely than not to be sustained upon examination, including resolution of any related appeals of litigation processes, based on the technical merits of the position. For tax positions meeting the more-likely-than-not Loss Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs for loss contingencies are expensed as incurred. Segment Information The Company determines its chief operating decision maker (“CODM”) based on the person responsible for making resource allocation decisions. Operating segments are components of the business for which the CODM regularly reviews discrete financial information. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. Recently Adopted Accounting Pronouncements The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (“the JOBS Act”) either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as private companies, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as private companies . In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Non employee Share-Based Payment Accounting 2018-07”), the measurement and classification guidance for share based payments to non employees with the guidance for share based payments to employees. The ASU also clarifies that any share based payment issued to a customer should be evaluated by ASC Topic 606 and the consideration payable to a customer guidance. The new ASU was adopted using a modified retrospective transition approach. The ASU is effective for the Company beginning January 1, 2020 for annual periods and January 1, 2021 for interim periods. The adoption of this standard on January 1, 2020 did not have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”), 2018-13 In November 2019, the FASB issued ASU 2019-08, Compensation Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements — Share-Based Consideration Payable to a Customer 2019-08”), 2019-08, 2019-08 Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes 2019-12”) , year-to-date 2019-12 In August 2018, the FASB issued ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use 350-40) 2018-15”), internal-use 2018-15 will In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”), held-to-maturity measure expected credit losses on assets that have a low risk of loss. These changes become effective for the Company on January 1, 2023. The Company is currently evaluating the impact that the adoption of ASU 2016-13 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02”), 2016-02 2016-02 2016-02 right-of-use . |
Revenue
Revenue | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue | Note 3. Revenue Contract Balances For the three and six months ended June 30, 2021, the Company recognized $1.6 million and $3.6 million of revenue, respectively, from the deferred revenue account balance as of December 31, 2020. For the three and six months ended June 30, 2020, the Company recognized $0.7 million and $1.2 million of revenue, respectively, from the deferred revenue account balance as of December 31, 2019. Deferred revenue is expected to be recognized when the Company provides hardware maintenance services or contractual performance obligations for which the customer has already provided payment with $3.6 million expected to be recognized in the remainder of 2021, $2.7 million expected to be recognized in 2022, $1.3 million expected to be recognized in 2023, and $0.4 million thereafter. Disaggregation of Revenue The following table disaggregates the Company’s revenue based on the nature of the products and services: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Hardware $ 14,331 $ 9,919 $ 28,569 $ 22,473 Consumables 4,780 $ 3,429 9,397 $ 7,582 Services 1,308 $ 826 2,573 $ 1,820 Total Revenue $ 20,419 $ 14,174 $ 40,539 $ 31,875 | Note 3. Revenue The Company derives revenue from the sale of 3D printers, consumable materials, and hardware maintenance agreements, through its global channel of third-party value-added reseller partners (“VARs”). Typically the VAR is the Company’s customer. Customers are invoiced at the time of shipment or at the beginning of the maintenance term and payment is typically due within 60 days. Contracts primarily contain fixed consideration although certain VAR contracts include performance rebates that may be earned based on sales targets which are accounted for as variable consideration and a reduction of revenue. The Company’s variable consideration is primarily based on performance metrics measured over the fiscal year, thus uncertainties related to variable consideration are resolved at December 31, 2020 and 2019. Revenue associated with the Company’s products are generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Revenue associated with hardware maintenance arrangements is recognized ratably over the term of the arrangements. For its premium cloud software subscription offering, the Company recognizes revenue ratably over time beginning on the date the customer is capable of accessing the software under “Services” in the revenue disaggregation table. Significant Judgements The Company enters into certain contracts that have multiple performance obligations. These performance obligations may include 3D printers, consumables, premium cloud software subscriptions, and hardware maintenance. Contracts with more than one performance obligation require the Company to allocate the transaction price to each performance obligation. As the Company’s contracts predominantly contain fixed consideration, the allocation of transaction price is based on a relative standalone selling price method. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the performance obligation is not sold separately, the Company estimates the standalone selling price considering available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company has a right to bill when products are shipped, which is often the point in time revenue is recognized. As a result, the Company will have accounts receivable for billings and also deferred revenue for the portion of billings in advance of service in its hardware maintenance agreements. The Company recognized $2.4 million of revenue in 2020 from deferred revenue as of December 31, 2019. The Company recognized $1.2 million of revenue in 2019 from deferred revenue as of December 31, 2018. Deferred revenue is expected to be recognized when the Company provides hardware maintenance services or contractual performance obligations for which the customer has already provided payment with $6.2 million recognized in 2021, $2.2 million recognized in 2022, $0.6 million recognized in 2023, and $0.1 million thereafter. Contract Costs When costs to obtain a contract are incremental and the amortization period is greater than one year, the cost is capitalized and amortized over the period that aligns with the transfer of related goods and services. The amortization period does not extend beyond the initial contract term because there is not a sufficient history of renewals. When the costs to obtain a contract are capitalized for a contract that includes multiple performance obligations, the amortization pattern is consistent with the pattern of revenue recognition for the performance obligations. The Company expenses sales commissions when incurred when the amortization period is one year or less. These costs are recorded within sales and marketing in the consolidated statement of operations and comprehensive loss. Disaggregation of Revenue The following table disaggregates the Company’s revenue based on the nature of the products and services: Year Ended (in thousands) 2020 2019 Hardware $ 52,119 $ 57,285 Consumables 15,498 12,584 Services 4,234 2,680 Total Revenue $ 71,851 $ 72,549 |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Property and Equipment, net | Note 4. Property and Equipment, net Property and equipment consist of the following: (in thousands) June 30, December 31, Machinery and equipment $ 4,990 $ 4,761 Leasehold improvements 2,190 2,190 Computer equipment 1,393 1,109 Furniture and fixtures 345 345 Computer software 246 246 Construction in process 562 36 Property and equipment, gross 9,726 8,687 Less: Accumulated depreciation (5,246 ) (4,406 ) Property and equipment, net $ 4,480 $ 4,281 For the three and six months ended June 30, 2021, depreciation expense for property and equipment was $0.4 million and $0.8 million, respectively, compared to $0.5 million and $0.9 million, respectively, for the three and six months ended June 30, 2020. | Note 4. Property and Equipment, net Property and equipment consist of the following: December 31, (in thousands) 2020 2019 Machinery and equipment $ 4,761 $ 4,467 Leasehold improvements 2,190 2,146 Computer equipment 1,109 1,048 Furniture and fixtures 345 307 Computer software 246 52 Construction in process 36 146 Property and equipment, gross 8,687 8,166 Less: Accumulated depreciation (4,406 ) (2,613 ) Property and equipment, net $ 4,281 $ 5,553 Depreciation expense for property and equipment was $1.8 million and $1.4 million for the years ended December 31, 2020 and 2019, respectively. Disposal of property and equipment amounted to $0.1 million for the years ended December 31, 2020 and 2019. |
Inventory
Inventory | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | ||
Inventory | Note 5. Inventory Inventory consists of the following: (in thousands) June 30, December 31, Raw material $ 989 $ 1,669 Work in process 219 79 Finished goods 6,718 4,805 Total inventory $ 7,926 $ 6,553 The Company maintained reserves for obsolete inventory of $0.9 million and $0.8 million as of June 30, 2021 and December 31, 2020, respectively. The impairment of obsolete inventory is wholly related to raw materials. The impairment of obsolete inventories are recorded within cost of revenue in the condensed consolidated statements of operations and comprehensive loss . | Note 5. Inventory Inventory consists of the following: December 31, (in thousands) 2020 2019 Raw material $ 1,669 $ 900 Work in process 79 23 Finished goods 4,805 4,859 Total inventory $ 6,553 $ 5,782 The Company maintained reserves for obsolete inventory of $0.8 million as of December 31, 2020 and 2019. The impairment of obsolete inventory is wholly related to raw materials. The impairment of obsolete inventories are recorded within cost of revenue in the consolidated statements of operations and comprehensive loss. |
Accrued Expenses
Accrued Expenses | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | ||
Accrued Expenses | Note 6. Accrued Expenses The following table summarizes the Company’s components of accrued expenses: (in thousands) June 30, December 31, Warranty reserve $ 568 $ 564 Compensation and benefits 3,882 3,100 VAR commissions 789 520 Professional services 1,629 2,907 Marketing and advertising 634 780 Other 930 297 Total accrued expense s $ 8,432 $ 8,168 | Note 6. Accrued Expenses The following table summarizes the Company’s components of accrued expenses: December 31, (in thousands) 2020 2019 Warranty reserve $ 564 $ 1,260 Compensation and benefits 3,100 2,893 VAR commissions 520 — Professional services 2,907 1,101 Marketing and advertising 780 46 Other 297 460 Total accrued expense $ 8,168 $ 5,760 |
Borrowings
Borrowings | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Borrowings | Note 7. Borrowings PPP Loan On April 10, 2020, the Company was granted a loan (the “Loan”) from a lending institution in the aggregate amount of $5.0 million, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was enacted March 27, 2020. The Loan, which was in the form of a note dated April 21, 2020, was scheduled to mature on April 21, 2022 and bore interest at a rate of 1% per annum, payable monthly commencing on November 22, 2020. The terms of the note permitted prepayment by the borrower at any time prior to maturity with no prepayment penalties. The Company paid off the loan in full in January 2021. | Note 7. Borrowings Secured Credit Facility During October 2018, the Company entered into a Loan and Security Agreement with a lending institution for a revolving line of credit. The Company can draw up to the amount of 80% of its receivables not to exceed $15.0 million. The available balance is secured by the accounts receivable of the Company. The Company had no draws on the line of credit as of December 31, 2019. The Loan and Security Agreement expired in September 2020 PPP Loan On April 10, 2020, the Company was granted a loan (the “Loan”) from a lending institution in the aggregate amount of $5.0 million, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was enacted March 27, 2020 . The Loan, which was in the form of a note dated April 21, 2020 April 21, 2022 Funds from the Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations that have been entered into prior to February 15, 2020. The Company intended to use the entire Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company paid off the loan in full in January 2021. |
Convertible Preferred Stock, Co
Convertible Preferred Stock, Common Stock and Stockholders' Deficit | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | ||
Convertible Preferred Stock, Common Stock and Stockholders' Deficit | Note 8. Convertible Preferred Stock, Common Stock and Stockholders’ Deficit The following table summarizes details of convertible preferred stock authorized, issued and outstanding as of June 30, 2021 and December 31, 2020: June 30, 2021 (in thousands, except for share counts) Shares Shares Issued Issuance Net Liquidation Series Seed 18,233,848 17,918,211 $ 0.0618 $ 1,107 $ 1,107 Series A 28,725,920 28,725,920 0.2959 8,437 8,500 Series B 34,391,480 34,391,480 0.4414 15,096 15,180 Series C 14,468,290 14,468,290 2.0735 29,881 30,000 Series D 17,599,646 17,579,656 4.7523 83,431 83,544 Total convertible preferred stock 113,419,184 113,083,557 $ 137,952 $ 138,331 December 31, 2020 (in thousands, except for share counts) Shares Shares Issued Issuance Net Liquidation Series Seed 18,233,848 17,918,211 $ 0.0618 $ 1,107 $ 1,107 Series A 28,725,920 28,725,920 0.2959 8,437 8,500 Series B 34,391,480 34,391,480 0.4414 15,096 15,180 Series C 14,468,290 14,468,290 2.0735 29,881 30,000 Series D 17,599,646 17,483,909 4.7523 82,976 83,089 Total convertible preferred stock 113,419,184 112,987,810 $ 137,497 $ 137,876 The terms of Series Seed, Series A, Series B, Series C, and Series D preferred stock are as follows: Voting The holders of the Series Seed, Series A, Series B, Series C, and Series D preferred stock are entitled to vote, together with the holders of common stock, on all matters submitted to stockholders for a vote. Each preferred stockholder is entitled to the number of votes equal to the number of shares of common stock into which each preferred share is convertible at the time of such vote. Series A class is entitled to elect two representatives to the Board of Directors. Each of the Series B, Series C, and Series D classes is entitled to elect one representative to the Board of Directors. The Series Seed class is not entitled to elect a representative to the Board of Directors. Dividends The holders of the Series Seed, Series A, Series B, Series C, and Series D preferred stock are entitled to receive, when and as declared by the Board of Directors and out of funds legally available, dividends payable in preference and priority to any dividend payment on common stock. As of June 30, 2021, no dividends have been declared or paid by the Company. Liquidation Preference In the event of any liquidation, dissolution, change of control or winding-up of the affairs of the Company, the holders of the then outstanding Series Seed, Series A, Series B, Series C, and Series D preferred stock are entitled to receive, on a pari passu basis, an amount equal to the original issue price of $0.06, $0.29, $0.44, $2.07 and $4.75, respectively, per share plus any declared and unpaid dividends. If the amount paid would be greater had the preferred stockholders converted to common stock, the calculation of the amount to be distributed to the preferred shareholders shall be calculated as if the preferred stockholders had converted just prior to the distribution without having them first convert to common stock. After payment to the preferred stockholders, the remaining proceeds shall be distributed on a pro-rata basis . Conversion Each share of Series Seed, Series A, Series B, Series C and Series D preferred stock, at the option of the holder, is convertible into a number of fully paid shares of common stock as determined by dividing the respective preferred stock issue price by the conversion price in effect at the time. The initial conversion price of Series Seed preferred stock is $0.06 per share and is subject to adjustment in accordance with anti- dilution provisions contained in the Company’s Certificate of Incorporation. The initial conversion price of Series A preferred stock is $0.29 per share and is subject to adjustment in accordance with anti-dilution provisions contained in the Company’s Certificate of Incorporation. The initial conversion price of Series B preferred stock is $0.44 per share and is subject to adjustment in accordance with anti-dilution provisions contained in the Company’s Certificate of Incorporation. The initial conversion price of Series C preferred stock is $2.07 per share and is subject to adjustment in accordance with anti-dilution provisions contained in the Company’s Certificate of Incorporation. The initial conversion price of Series D preferred stock is $4.75 per share and is subject to adjustment in accordance with anti-dilution provisions contained in the Company’s Certificate of Incorporation. With respect to Series Seed, Series A, Series B, and Series C, conversion is at the holder’s option, however, all outstanding shares of preferred stock shall automatically convert immediately upon the closing of a sale of shares of common stock to the public at a price per share of at least $2.59 per share. At the election of the majority of all preferred stockholders and 10% of the outstanding Series C holders, shares of Series Seed, Series A, Series B, and Series C stock shall be automatically converted. With respect to Series D, conversion is at the holder’s option, however, all outstanding shares of preferred stock shall automatically convert immediately upon the closing of a sale of shares of common stock to the public at a price per share of at least $4.75 per share. The Series D stock shall be automatically converted at the election of the majority of Series D holders. Redemption The preferred stock is not redeemable at the option of the holder. Repurchases There were no repurchases for the three and six months ended June 30, 2021. During the year ended December 31, 2020 the Company repurchased common stock from an employee. Concurrent to the repurchase, the Company was contractually obligated to repurchase an additional 263,030 shares of common stock from this employee for $4.75 per share in 2021, subject to certain conditions. This obligation was waived by the parties in April of 2021. Management determines the fair value of its common stock using the methodology described in the Summary of Significant Accounting Policies in its S-4/A Common Stock Reserved for Future Issuance The Company has reserved the following shares of common stock for future issuance: June 30, December 31, Common stock options outstanding 18,399,068 19,420,305 Shares available for issuance under the plan 3,322,966 4,649,322 Convertible preferred stock outstanding 113,083,557 112,987,810 Warrants to purchase Series D convertible 19,990 115,737 Common stock warrants outstanding — 190,000 Total shares of authorized common stock reserved 134,825,581 137,363,174 | Note 8. Convertible Preferred Stock, Common Stock and Stockholders’ Deficit The following table summarizes details of convertible preferred stock authorized, issued and outstanding as of December 31, 2020 and 2019: December 31, 2020 Share Issued Issuance Net (in thousands, except for share counts) Shares Authorized and Price Per Carrying Liquidation Series Seed 18,233,848 17,918,211 $ 0.0618 $ 1,107 $ 1,107 Series A 28,725,920 28,725,920 0.2959 8,437 8,500 Series B 34,391,480 34,391,480 0.4414 15,096 15,180 Series C 14,468,290 14,468,290 2.0735 29,881 30,000 Series D 17,599,646 17,483,909 4.7523 82,976 83,089 Total convertible preferred stock 113,419,184 112,987,810 $ 137,497 $ 137,876 December 31, 2019 Share Issued Issuance Net (in thousands, except for share counts) Shares and Price Per Carrying Liquidation Series Seed 18,233,848 17,918,211 $ 0.0618 $ 1,107 $ 1,107 Series A 28,725,920 28,725,920 0.2959 8,437 8,500 Series B 34,391,480 34,391,480 0.4414 15,096 15,180 Series C 14,468,290 14,468,290 2.0735 29,881 30,000 Series D 17,599,646 17,336,616 4.7523 82,276 82,389 Total convertible preferred stock 113,419,184 112,840,517 $ 136,797 $ 137,176 The terms of Series Seed, Series A, Series B, Series C, and Series D preferred stock are as follows: Voting The holders of the Series Seed, Series A, Series B, Series C, and Series D preferred stock are entitled to vote, together with the holders of common stock, on all matters submitted to stockholders for a vote. Each preferred stockholder is entitled to the number of votes equal to the number of shares of common stock into which each preferred share is convertible at the time of such vote. Series A class is entitled to elect two representatives to the Board of Directors. Each of the Series B, Series C, and Series D classes is entitled to elect one representative to the Board of Directors. The Series Seed class is not entitled to elect a representative to the Board of Directors. Dividends The holders of the Series Seed, Series A, Series B, Series C, and Series D preferred stock are entitled to receive, when and as declared by the Board of Directors and out of funds legally available, dividends payable in preference and priority to any dividend payment on common stock. As of December 31, 2020, no dividends have been declared or paid by the Company. Liquidation Preference In the event of any liquidation, dissolution, change of control or winding-up to receive, on a pari passu basis, an amount equal to the original issue price pro-rata Conversion Each share of Series Seed, Series A, Series B, Series C and Series D preferred stock, at the option of the holder, is convertible into a number of fully paid shares of common stock as determined by dividing the respective preferred stock issue price by the conversion price in effect at the time. The initial conversion price of Series Seed preferred stock is $0.06 per share and is subject to adjustment in accordance with anti- dilution provisions contained in the Company’s Certificate of Incorporation. The initial conversion price of Series A preferred stock is $0.29 per share and is subject to adjustment in accordance with anti-dilution provisions contained in the Company’s Certificate of Incorporation. The initial conversion price of Series B preferred stock is $0.44 per share and is subject to adjustment in accordance with anti-dilution provisions contained in the Company’s Certificate of Incorporation. The initial conversion price of Series C preferred stock is $2.07 per share and is subject to adjustment in accordance with anti-dilution provisions contained in the Company’s Certificate of Incorporation. The initial conversion price of Series D preferred stock is $4.75 per share and is subject to adjustment in accordance with anti-dilution provisions contained in the Company’s Certificate of Incorporation . With respect to Series Seed, Series A, Series B, and Series C, conversion is at the holder’s option, however, all outstanding shares of preferred stock shall automatically convert immediately upon the closing of a sale of shares of common stock to the public at a price per share of at least $2.59 per share. At the election of the majority of all preferred stockholders and 10% of the outstanding Series C holders, shares of Series Seed, Series A, Series B, and Series C stock shall be automatically converted. With respect to Series D, conversion is at the holder’s option, however, all outstanding shares of preferred stock shall automatically convert immediately upon the closing of a sale of shares of common stock to the public at a price per share of at least $4.75 per share. The Series D stock shall be automatically converted at the election of the majority of Series D holders. Redemption The preferred stock is not redeemable at the option of the holder. Repurchases During the year ended December 31, 2020, the Company repurchased 263,031 shares of common stock from an employee for $4.75 per share net of withholding taxes of $0.2 million classified within accrued payroll for the employee’s related income tax liability. The fair value per share on the date of repurchase was $3.14. The repurchase resulted in additional compensation expense of $0.4 million for the value of the repurchase in excess of fair value. The expense is recognized in operating expenses within the general and administrative expenses on the consolidated statements of operations and comprehensive loss. The Company became contractually obligated to repurchase an additional 263,030 shares of common stock from this employee for $4.75 per share in 2021, with such obligation having been contingent but not probable of occurring as of December 31, 2020. However, the Company expects this obligation to be waived subsequent to the merger as described within Note 15 to the consolidated financial statements. During the year ended December 31, 2019, the Company repurchased 244,691 shares of common stock from certain employees for $4.75 per share. The fair value per share on the date of repurchase was $2.55. The repurchase resulted in additional compensation expense of $0.5 million for the value of the repurchase in excess of fair value. The expense is recognized in operating expenses in the research and development expenses on the consolidated statements of operations and comprehensive loss. During the year ended December 31, 2019, the Company repurchased 315,637 shares of series Seed convertible preferred stock from an employee for $4.75 per share. The fair value per share on the date of repurchase was $2.55. The repurchase resulted in additional compensation expense of $0.7 million for the value of the repurchase in excess of fair value. The expense is recognized in operating expenses in the research and development expenses on the consolidated statements of operations and comprehensive loss. Management determines the fair value of its common stock using the methodology described in Note 2 Summary of Significant Accounting Policies, adjusting for changes in inputs based on material information known at the time of a repurchase transaction such as estimated timing to exit events and respective probabilities of such events occurring. Common Stock Reserved for Future Issuance The Company has reserved the following shares of common stock for future issuance: December 31, 2020 2019 Common stock options outstanding 19,420,305 13,162,473 Shares available for issuance under the plan 4,649,322 2,823,610 Convertible preferred stock outstanding 112,987,810 112,840,517 Warrants to purchase Series D convertible preferred stock 115,737 263,030 Common stock warrants outstanding 190,000 190,000 Total shares of authorized common stock reserved for future issuance 137,363,174 129,279,630 |
Equity Based Awards
Equity Based Awards | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Equity Based Awards | Note 9. Equity Based Awards The Company adopted the 2013 Stock Plan (the “2013 Plan”) under which a total of 36,313,607 shares of the Company’s common stock have been reserved for issuance to employees, directors and consultants as of June 30, 2021. Option activity under the plan for the year to date period ending June 30, 2021 is as follows: Number of Weighted- Weighted- Outstanding at December 31, 2020 19,420,305 $ 1.72 8.71 Exercised (857,343 ) 0.49 Forfeited (163,894 ) 1.91 Outstanding at June 30, 2021 18,399,068 $ 1.78 8.33 Options exercisable at June 30, 2021 5,648,643 $ 1.31 7.07 The aggregate intrinsic value of stock options outstanding at June 30, 2021 was $114.7 million. As of June 30, 2021, the Company had 17,877,383 shares vested and expected to vest. Additional information regarding the exercise of stock options is as follows: Six Months Ended (in thousands, except weighted average) 2021 2020 Weighted-average grant date fair value of options $ — $ 1.01 Intrinsic value of options exercised 6,450 2,017 In the six months ended June 30, 2021, the Company did not grant any options to purchase shares of common stock. In the six months ended June 30, 2020, the Company granted options to purchase 850,300 shares of common stock with aggregate fair values of $0.9 million, calculated via the Black-Scholes option pricing model (see Note 2) using the following assumptions: Six Months Expected option term (in years) 6.06 Expected volatility% 52.2 % Risk-free interest rate% 1.50 % Expected dividend yield% 0 % Fair value of common stock (per share) $ 1.01 Restricted Stock Units During the six months ended June 30, 2021, the Company awarded restricted stock units to newly hired employees. The fair value per share of these awards was determined based on the fair market value of our stock in June 2021 and is being recognized as stock-based compensation expense over the requisite service period. The following table summarizes the restricted stock unit activity for the year-to-date Number of Weighted- Outstanding at December 31, 2020 — $ — Granted 1,494,250 8.17 Vested — — Forfeited (4,000 ) 8.01 Unvested at June 30, 2021 1,490,250 $ 8.17 Stock-Based Compensation Expense During the three and six months ended June 30, 2021 and 2020, the Company recognized the following stock-based compensation expense in the following captions within the condensed consolidated statements of operations and comprehensive loss: Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Cost of revenue $ 62 $ 124 $ 89 $ 258 Research and development 394 171 725 225 Sales and marketing 237 135 320 227 General and administrative 1,084 73 1,837 297 Total stock-based compensation expense $ 1,777 $ 503 $ 2,971 $ 1,007 Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Stock Options $ 1,188 $ 503 $ 2,382 $ 1,007 Restricted Stock Units 589 — 589 — Total stock-based compensation expense $ 1,777 $ 503 $ 2,971 $ 1,007 Total unrecognized stock-based compensation expense for all stock-based awards outstanding was $21.9 million at June 30, 2021, which is expected to be recognized over a weighted-average period of 1.4 years. | Note 9. Stock Option Plan The Company adopted the 2013 Stock Plan (the “2013 Plan”) under which a total of 36,313,607 shares of the Company’s common stock have been reserved for issuance to employees, directors and consultants as of December 31, 2020. Awards granted under the 2013 Plan may be incentive stock options, non-statutory Option activity under the plan for the year ended December 31, 2020 is as follows: Number of Weighted-Average Weighted-Average Outstanding at December 31, 2019 13,162,473 $ 1.16 7.51 Granted 9,890,563 2.06 Exercised (2,231,540 ) 0.42 Forfeited (1,401,191 ) 1.08 Outstanding at December 31, 19,420,305 $ 1.72 8.71 Options exercisable at December 31, 2019 4,561,561 0.37 4.14 Options exercisable at December 31, 2020 4,700,993 $ 0.98 6.84 The aggregate intrinsic value of stock options outstanding at December 31, 2020 was $13.6 million. As of December 31, 2020, the Company had 18,695,077 shares vested and expected to vest. In December 31, 2019, there were 240,875 options exercised by employees for which the Company did not receive the proceeds of $0.2 million prior to December 31, 2019, the proceeds are recorded as a note receivable in the consolidated statements of stockholders’ deficit. Additional information regarding the exercise of stock options is as follows: (in thousands, except weighted average) 2020 2019 Weighted-average grant date fair value of options granted $ 1.28 $ 0.92 Intrinsic value of options exercised 4,455 3,909 In the years ended December 31, 2020 and 2019, the Company granted options to purchase 9,890,563 and 7,194,585 shares of common stock with aggregate fair values of $12.7 million and $6.6 million, respectively, calculated via the Black-Scholes option pricing model (see Note 2) using the following assumptions: Year Ended 2020 2019 Expected option term (in years) 5.86 6.07 Expected volatility 53.1 % 52.6 % Risk-free interest rate 0.56 % 1.89 % Expected dividend yield — % — % Fair value of common stock (per share) $ 2.36 $ 1.81 The Company recorded compensation expense for the stock options of $2.6 million and $0.9 million for the years ended December 31, 2020 and 2019, respectively, which was recognized in the following captions within the consolidated statements of operations and comprehensive loss: Year Ended (in thousands) 2020 2019 Cost of revenue $ 589 $ 186 Research and development 693 307 Sales and marketing 578 262 General and administrative 709 103 Total stock-based compensation expense $ 2,569 $ 858 Total unrecognized stock-based compensation expense for all stock-based awards outstanding was $15.4 million at December 31, 2020, which is expected to be recognized over a weighted-average period of 1.6 years. |
Stock Warrants
Stock Warrants | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Warrants and Rights Note Disclosure [Abstract] | ||
Stock Warrants | Note 10. Stock Warrants As part of a loan agreement entered into with a lending institution during 2015, the Company issued warrants to the lender granting the right to purchase 190,000 shares of the Company’s common stock at an exercise price of $0.06 per share. The loan agreement was terminated prior to January 1, 2018. The warrants were due to expire on February 17, 2025. The warrants were classified as a derivative liability within other liabilities prior to exercise in the condensed consolidated balance sheets and subsequent adjustments to fair value are shown in other expense in the condensed consolidated statements of operations and comprehensive loss . In June 2021, the lender exercised the warrant on a cashless basis and the Company issued 188,576 shares of common stock. The fair value is measured at each reporting date using the Black-Scholes model using the following inputs. The inputs below correspond to June 10, 2021, the date of exercise for the June 30, 2021 reporting period: June 30, 2021 2020 Expected (remaining) option term (in years) 3.69 4.64 Expected volatility% 65.0 % 54.3 % Risk-free interest rate% 0.45 % 0.29 % Expected dividend yield% 0 % 0 % Fair value of common stock (per share) $ 9.51 $ 2.07 Management considers contemporaneous third-party valuations in its determination of the fair value of common stock. The fair value of common stock increased significantly between the three and six months ended June 30, 2021 and 2020 in large part due to the change in the probability of special purpose acquisition company (SPAC) exit. For the June 10, 2021 valuation, the Company assigned a 95% probability of a SPAC exit and a 5% probability of staying a private company. As part of a development agreement executed with a customer in 2019, the Company agreed, to issue warrants to the customer to purchase common stock that would vest upon the achievement of certain payment milestones. The warrants granted the customer the right to purchase up to 294,594 shares of the Company’s Series D convertible preferred stock at an exercise price of $0.0001 per share at a fair value based on the company’s Series D valuation. As the customer remits payment for goods purchased from the company under the development agreement, a pro-rata The Company accounts for the warrants issued to the customer as consideration payable to the customer and a reduction of revenue with a corresponding adjustment to convertible preferred stock. The Company accounts for the warrants that vest to the customer as a reduction to deferred revenue and a corresponding adjustment to convertible preferred stock. The value of the warrants is measured based on the grant date fair value. The grant date was considered to occur at the execution date of the development agreement. In accordance with the development agreement, 74,705 and 63,126 warrants vested during the three months ended June 30, 2021 and 2020, respectively, and 95,747 and 73,646 warrants vested during the six months ended June 30, 2021 and 2020, respectively. As a result, the Company recorded $0.4 million and $0.3 million related to the warrants in the three months ended June 30, 2021 and 2020, respectively, and of $0.5 million and $0.3 million related to the warrants in the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, there were 19,990 outstanding but unvested warrants remaining under the terms of the development agreement. | Note 10. Stock Warrants As part of a loan agreement entered into with a lending institution during 2015, the Company issued warrants to the lender granting the right to purchase 190,000 shares of the Company’s common stock at an exercise price of $0.06 per share. The loan agreement was terminated prior to January 1, 2018. The warrants expire on February 17, 2025. There has been no related warrant activity for these instruments since the date of issue. The warrant is classified as derivative liability within other liabilities in the consolidated balance sheets and subsequent adjustments to fair value are shown in other expense in the consolidated statements of operations and comprehensive loss. The fair value is measured at each reporting date using the Black- Scholes model using the following inputs: Year Ended 2020 2019 Expected (remaining) option term (in years) 4.13 5.14 Expected volatility 55.4 % 52.4 % Risk-free interest rate 0.36 % 1.69 % Expected dividend yield — % — % Fair value of common stock (per share) 2.93 2.00 As part of a development agreement with a customer signed in 2019, the Company will issue warrants to the customer, granting the right to purchase up to 294,594 shares of the Company’s Series D convertible preferred stock at an exercise price of $0.0001 per share and a grant date fair value equal to the Series D valuation. As the customer remits payment to the Company under the development agreement, a pro-rata The Company accounts for the warrants issued to the customer as consideration payable to the customer and a reduction of revenue with a corresponding adjustment to convertible preferred stock. The value of the warrants is measured based on the grant date fair value. The grant date was considered to occur at the execution date of the contract. The Company recorded $0.7 million and $0.2 million related to the warrants in 2020 and 2019, respectively. In accordance with the agreement, 147,293 and 31,564 warrants vested during the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, there are 115,737 outstanding warrants to be issued under the terms of the development agreement . |
Income Taxes
Income Taxes | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | Note 11. Income Taxes 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 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. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that these assets may not be realized. The Company recognized a de minimis tax expense due to small state refunds and extension filings in some US states during the three and six months ended June 30, 2021 . 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 recognized is equal to the largest amount that is more than 50% likely to be sustained. Interest and penalties associated with uncertain tax positions are recorded as a component of income tax expense. As of June 30, 2021 and December 31, 2020, the Company’s uncertain tax positions are not material and would not impact the effective tax rate if recognized as a result of the valuation allowance maintained against the Company’s net deferred tax assets. The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are primarily comprised of net operating loss carryforwards and capitalized research and development costs at December 31, 2020. Since its inception, the Company has not recorded any income tax benefits for the net losses incurred or for the research and development tax credits earned in each year and interim period, as the Company believes, based upon the weight of available evidence, that it is more likely than not that all of its net operating loss carryforwards and tax credit carryforwards will not be realized. Management has determined that it is more likely than not that the Company will not recognize the benefits of federal and state deferred tax assets and, as a result, a full valuation allowance has been established at December 31, 2020. Management has also asserted that there is no material adjustment to the valuation allowance at June 30, 2021. | Note 11. Income Taxes The components of the Company’s loss before income taxes are as follows: Year Ended (in thousands) 2020 2019 Loss before income taxes: Domestic $ (18,269 ) $ (29,944 ) Foreign 395 84 Total $ (17,874 ) $ (29,860 ) The components of the income tax provision are as follows: Year Ended (in thousands) 2020 2019 Current Provision Federal $ — $ — State 5 10 Foreign 106 5 Total current provision 111 15 Deferred Provision Federal — — State — — Foreign — — Total deferred provision — — Total income tax expense $ 111 $ 15 The overall effective tax rate differs from the statutory federal tax rate as follows: Year Ended % of Pretax Loss 2020 2019 Statutory US federal rate 21.00 % 21.00 % State income taxes 1.85 2.19 Stock-based compensation (1.06 ) (0.23 ) Nondeductible expenses (0.61 ) (0.22 ) Global intangible low-taxed (0.46 ) (0.06 ) Research & development credits 3.48 2.35 Valuation allowance (25.18 ) (25.65 ) Change in statutory tax rate (0.20 ) — Other rate items 0.24 0.50 Effective tax rate (0.94 )% (0.12 )% Significant components of the Company’s net deferred tax assets are as follows: December 31, (in thousands) 2020 2019 Deferred tax assets Amortization 23 27 Deferred revenue 318 86 Deferred expenses 280 322 Reserves 560 713 Accrued expenses 453 97 Stock compensation 372 43 Uniform capitalization 45 31 Net operating losses 16,266 13,184 Research and development credits 3,085 2,467 Other state credits 147 141 Gross deferred tax assets $ 21,546 $ 17,111 Less: Valuation allowance (21,507 ) (17,001 ) Deferred tax liabilities Depreciation (39 ) (110 ) Unrealized foreign currency loss (3 ) — Net deferred tax assets $ — $ — The Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. There is no tax provision or tax benefit attributable to the net loss which differs from the amount computed by applying the US federal income tax rates of 21% to the pretax loss, primarily due to changes in valuation allowance, generation of research and development tax credits, and state taxes. As of December 31, 2020, the Company had federal net operating loss carryforwards of $15.0 million that are subject to expire at various dates between 2033 and 2038, and net operating losses of $53.2 million, that have no expiration date and can be carried forward indefinitely Utilization of the net operating loss and research and development credit carryforwards may be subject to a substantial annual limitation under Section 382 of the Internal Revenue Code of 1986, and similar state provisions, due to ownership change limitations that have occurred previously or that could occur in the future. These ownership changes may limit the amount of net operating loss and research and development credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. As of December 31, 2020, the Company has not completed a 382 study to assess whether a change of ownership has occurred since its formation . The Company has not conducted a study of its research and development credit carryforwards. This study may result in an adjustment to research and development credit carryforwards; however, until a study is completed and any adjustment is known, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against the Company’s research and development credits and, if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the balance sheets or statements of operations if an adjustment were required. Uncertain tax positions represent tax positions for which reserves have been established. The Company’s policy is to record interest and penalties related to uncertain tax positions as part of income tax expense. Reserves for uncertain tax positions as of December 31, 2020 are not material and would not impact the effective tax rate if recognized as a result of the valuation allowance maintained against the Company’s net deferred tax assets. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business the Company is subject to examination by federal, state and foreign jurisdictions, where applicable. There are currently no pending income tax examinations. The Company is open to future tax examination under statute from 2016 to the present; however, carryforward attributes that were generated prior to January 1, 2016 may still be adjusted upon examination by federal, state or local tax authorities to the extent utilized in an open tax year or in future periods. As of December 31, 2020, the Company has not provided for deferred income taxes on undistributed earnings of its foreign subsidiaries since these earnings are deemed to be indefinitely reinvested. Upon distribution of those earnings in the form of dividends or otherwise, the Company could be subject to income taxes as well as withholding taxes. The amount of taxes attributable to the undistributed earnings is immaterial . The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are primarily comprised of net operating loss carryforwards and capitalized research and development costs. Management has determined that it is more likely than not that the Company will not recognize the benefits of federal and state deferred tax assets and, as a result, a full valuation allowance of $21.5 million has been established at December 31, 2020. The following table presents the changes in the balance of the Company’s deferred income tax asset valuation allowance: Year Ended (in thousands) 2020 2019 Balance at beginning of year $ 17,001 $ 9,343 Additions charged to expense 4,465 7,658 Balance at end of year $ 21 $ 17,001 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | Note 12. Commitments and Contingencies Operating Leases The Company leases two spaces with two locations in Watertown, Massachusetts and one location in Billerica, Massachusetts for office and manufacturing, under noncancellable operating lease agreements. These leases provide for escalating monthly payments and are set to expire in December 2023, April 2027, and July 2028. Rent expense under the Company’s lease agreements was $0.7 million and $0.6 million for the three months ended June 30, 2021 and 2020, respectively. For the six months ended June 30, 2021 and 2020, rent expense was $1.3 million and $1.2 million , (in thousands) Amount 2021 $ 1,207 2022 2,866 2023 3,070 2024 2,132 2025 2,089 After 2025 5,088 Total future minimum lease payments $ 16,452 Minimum Commitment Arrangements The Company may enter into non-binding 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 address accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. In July 2021, Continuous Composites Inc. (“Continuous Composites”), a company based out of Idaho, brought a claim in the United States District Court for the District of Delaware against the Company regarding patent infringement. While the Company takes any claims of infringement seriously, MarkForged believes that Continuous Composite’s claims are baseless and without merit. The Company intends to mount a vigorous defense against Continuous Composites in court. However, the Company can provide no assurance as to the outcome of any such disputes, and any such actions may result in judgments against MarkForged for significant damages. The Company does no | Note 12. Commitments and Contingencies Operating Leases The Company leases two spaces with two locations in Watertown, Massachusetts and one location in Billerica, Massachusetts for office and manufacturing, under noncancellable operating lease agreements. These leases provide for escalating monthly payments and are set to expire in December 2023, April 2027, and July 2028. Rent expense under the Company’s lease agreements was $2.2 million and $2.3 million for the years ended December 31, 2020 and 2019, respectively. Future minimum lease payments under these agreements are as follows: (in thousands) Amount 2021 $ 2,150 2022 2,866 2023 3,070 2024 2,132 2025 2,089 After 2025 5,088 Total future minimum lease payments $ 17,395 Minimum Commitment Arrangements The Company may enter into non-binding 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 address accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net Loss Per Share | Note 13. Net Loss Per Share The Company computes basic net loss per share using net loss attributable to MarkForged, Inc. common stockholders and the weighted-average number of common 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 June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator for basic and diluted net loss per share: Net loss and comprehensive loss $ (11,090 ) $ (5,689 ) $ (21,109 ) $ (10,934 ) Denominator for basic and diluted net loss per share: Weighted average shares outstanding 41,853,841 39,980,784 41,638,004 39,856,193 Net loss per common share: Basic $ (0.26 ) $ (0.14 ) $ (0.51 ) $ (0.27 ) Diluted $ (0.26 ) $ (0.14 ) $ (0.51 ) $ (0.27 ) For the three and six months ended June 30, 2021 and 2020, the Company was in a net loss position, thus the effect of potentially dilutive securities, including non-vested Three and Six Months Ended 2021 2020 Convertible preferred stock 113,083,557 112,914,163 Unvested awards 14,241,592 8,231,273 Warrants — 190,000 Total 127,325,149 121,335,436 | Note 13. Net Loss Per Share The Company computes basic net loss per share using net loss attributable to MarkForged, Inc. common stockholders and the weighted-average number of common 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. Year Ended December 31, (in thousands, except per share amounts) 2020 2019 Numerator for basic and diluted net loss per share: Net loss $ (17,985 ) $ (29,875 ) Deemed dividend – repurchase of Series Seed convertible preferred stock — (785 ) Deemed dividend – repurchase of common stock (826 ) (624 ) Net loss attributable to MarkForged, Inc. common stockholders $ (18,811 ) $ (31,284 ) Denominator for basic and diluted net loss per share: Weighted average shares outstanding 40,258,968 38,673,218 Net loss per common share: Basic $ (0.47 ) $ (0.81 ) Diluted $ (0.47 ) $ (0.81 ) For the year ended December 31, 2020 and 2019, the Company was in a net loss position, thus the effect of potentially dilutive securities, including non-vested Years ended December 31, 2020 2019 Convertible preferred stock 112,987,810 112,840,517 Unvested awards 19,599,305 13,656,557 Warrants 190,000 190,000 Total 132,777,115 126,687,074 |
Segment Information
Segment Information | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||
Segment Information | Note 14. Segment Information In the operation of the business, the Chief Executive Officer, who is the Company’s chief operating decision maker, reviews the business as one segment. The Company currently sells its product in the Americas, Europe, Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”) markets. The Company measures revenue based on the physical location of where the customer who is receiving the promised goods or service is located. Disaggregated revenue data for those markets is as follows: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Americas $ 9,806 $ 7,437 $ 20,232 $ 18,308 EMEA 6,425 4,555 12,687 8,390 APAC 4,188 2,182 7,620 5,177 Total $ 20,419 $ 14,174 $ 40,539 $ 31,875 Revenue generated from customers within the Company’s country of domicile, the United States, amounted to $9.8 million and $6.1 million for the three months ended June 30, 2021 and 2020, respectively. For the six months ended June 30, 2021 and 2020, revenue in the United States was $19.4 million and $14.8 million, respectively. The Company’s long-lived assets are substantially located in the United States, where the Company’s primary operations are located. | Note 14. Segment Information In the operation of the business, the Chief Executive Officer, who is the Company’s chief operating decision maker, reviews the business as one segment. The Company currently sells its product in the Americas, Europe, Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”) markets. The Company measures revenue based on the physical location of where the customer who is receiving the promised goods or service is located. Disaggregated revenue data for those markets is as follows: Revenue during the (in thousands) 2020 2019 Americas $ 40,837 $ 53,183 EMEA 19,214 12,142 APAC 11,800 7,224 Total $ 71,851 $ 72,549 Revenue generated from customers within the Company’s country of domicile, the United States, amounted to $35.1 million and $44.9 million for the years ended December 31, 2020 and 2019, respectively. The Company’s long-lived assets are substantially located in the United States, where the Company’s primary operations are located. here the Company’s primary operations are located . |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
Subsequent Events | Note 15. Subsequent Events The Company has evaluated subsequent events through August 12, 2021, the date the financial statements were available to be issued, and has determined that the following subsequent events require disclosure in the condensed consolidated financial statements: On July 14, 2021, as contemplated by the Merger Agreement and described in the section titled “ BCA Proposal Immediately prior to the effective time of the Merger (the “Effective Time”), Markforged purchased approximately $45.0 million of its securities from certain of its stockholders (the “Employee Transactions”), and each outstanding share of Markforged preferred stock was converted on a one-for-one . At the Effective Time, among other things, each outstanding share of Markforged Common Stock as of immediately prior to the effective time of the Merger (after giving effect to the Employee Transactions and the Preferred Stock Conversion), other than (x) any shares of Markforged Common Stock subject to Markforged Awards (as defined below) and (y) any shares of Markforged capital stock held in treasury by Markforged, which treasury shares were canceled as part of the Merger, was canceled and converted into the right to receive a number of shares of New Common Stock equal to the product of one share of Markforged Common Stock multiplied by the Exchange Ratio (as defined below). No fractional shares were issued in the Merger, and any fractional shares that a holder of Markforged securities would have otherwise been entitled to in the Merger were eliminated in accordance with the terms of the Merger Agreement. At the Effective Time, all options to purchase shares of Markforged Common Stock and all restricted stock units based on shares of Markforged Common Stock outstanding as of immediately prior to the Merger (together, the “Markforged Awards”) were converted into (a) options to purchase shares of New Common Stock (“New Options”), and (b) restricted stock units based on shares of New Common Stock (“New RSUs”), respectively. | Note 15. Subsequent Events The Company has evaluated subsequent events through April 1, 2021, the date the financial statements were available to be issued, and has determined that the following subsequent events require disclosure in the consolidated financial statements: On February 23, 2021, Markforged entered into an Agreement and Plan of Merger with AONE a special purpose acquisition company, and Caspian Merger Sub Inc., a wholly-owned subsidiary of AONE. Pursuant to the Agreement and Plan of Merger, at the effective time of the merger, Caspian Merger Sub Inc. will merge with and into Markforged and Markforged will survive the merger as a wholly-owned subsidiary of AONE. Upon closing of the merger, AONE is expected to be named Markforged Holding Corporation and will continue to be listed on the NYSE and trade under the ticker symbol “MKFG.” Cash proceeds of the merger will be funded through a combination of AONE’s $215 million of cash held in trust (assuming no redemptions) and an aggregate of $210 million in fully committed common stock transactions at $10.00 per share. Prior to the effective time of the Merger, Markforged will repurchase or settle for cash shares of common stock and stock options, as applicable, from certain of its stockholders, for a total value of approximately $45.0 million of cash on hand, referred to as the “Employee Transactions”. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Unaudited Interim Financial Statements | Unaudited Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) regarding interim financial reporting and include the accounts of MarkForged, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s audited consolidated financial statements for the year ended December 31, 2020. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The accompanying condensed consolidated financial statements as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of June 30, 2021 and results of operations for the three and six months ended June 30, 2021 and 2020 and cash flows for the six months ended June 30, 2021 and 2020. The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2021 and 2020 are also unaudited. The condensed balance sheet at December 31, 2020, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Other than policies noted below, there have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements as of December 31, 2020 and 2019 and for the years ended December 31, 2020 and 2019. The results for the three and six months ended June 30, 2021 and 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements as of December 31, 2020 and 2019 and for each of the two years in the period ended December 31, 2020. | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. | Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Reporting Currency | Reporting Currency The Company’s reporting currency is the U.S. Dollar, while the functional currencies of its foreign subsidiaries are their respective local currencies. The effect of foreign currency translation was immaterial for all periods presented. | Reporting Currency The Company’s reporting currency is the U.S. Dollar, while the functional currencies of its foreign subsidiaries are their respective local currencies. The effect of foreign currency translation was immaterial for all periods presented. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management’s significant estimates include allowance for doubtful accounts, reserve for excess and obsolete inventory, fair value of equity awards and assumptions in revenue recognition. Actual results could differ from those estimates. | amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management’s significant estimates include allowance for doubtful accounts, reserve for excess and obsolete inventory, fair value of equity awards and assumptions in revenue recognition. Actual results could differ from those estimates. |
Treasury Stock | Treasury Stock Treasury stock is accounted for using the cost method, with the purchase price of the common stock and Seed stock separately recorded as a deduction from stockholders’ deficit. | |
Revenue Recognition | Revenue Recognition The Company recognized revenue in accordance with Accounting Standards Codification (‘‘ASC’’) Topic 606, Revenue from Contracts with Customers Under ASC Topic 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of the new revenue recognition accounting standard, the Company performs the following five steps: • identifies the contract with a customer; • identifies the performance obligations in the contract; • determines the transaction price; • allocates the transaction price to the performance obligations in the contract; and • recognizes revenue when (or as) the entity satisfies a performance obligation. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of 90 days or less to be cash equivalents. Cash equivalents consist of money market funds as of December 31, 2020 and 2019. | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based on management’s assessment of the collectability of the accounts receivable which considers historical write-off . The following presents the changes in the balance of the Company’s allowance for doubtful accounts: Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 1,012 $ 1,060 $ 1,070 $ 1,038 Additions 296 236 378 397 Write – offs (63 ) (14 ) (64 ) (14 ) Recoveries (80 ) (179 ) (219 ) (318 ) Balance at end of period $ 1,165 $ 1,103 $ 1,165 $ 1,103 | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based on management’s assessment of the collectability of the accounts receivable which considers historical write-off The following presents the changes in the balance of the Company’s allowance for doubtful accounts: Year Ended (in thousands) 2020 2019 Balance at beginning of year $ 1,038 $ 175 Additions 591 1,014 Write – offs (559 ) (151 ) Balance at end of year $ 1,070 $ 1,038 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company is required to provide information according to the fair value hierarchy based on the observability of the inputs used in the valuation techniques. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities The following table presents information about the Company’s assets and liabilities that are measured at fair value as of June 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation: Fair Value Measurements (in thousands) Level 1 Level 2 Level 3 Total June 30, 2021 Money market funds included in cash and cash equivalents $ 31,337 $ — $ — $ 31,337 December 31, 2020 Money market funds included in cash and cash equivalents $ 56,907 $ — $ — $ 56,907 Warrant liability — — 545 545 The Company remeasures its warrant liability at fair value at each reporting period using Level 3 inputs via the Black-Scholes option-pricing model. The significant assumptions used in preparing the option pricing model are disclosed in Note 10 Stock Warrants. All warrants were exercised in June 2021. There were no transfers between levels during the periods presented. Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 1,555 $ 382 $ 545 $ 370 Change in fair value 241 — 1,251 12 Derecognition of liability (1,796 ) — (1,796 ) — Balance at end of period $ — $ 382 $ — $ 382 At December 31, 2020, the fair value of the Company’s debt using Level 2 inputs was approximately $ million calculated using a discounted cash flow method. All debt was paid off in January 2021 as disclosed in Note 7 Borrowings. | Fair Value of Financial Instruments The Company is required to provide information according to the fair value hierarchy based on the observability of the inputs used in the valuation techniques. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents information about the Company’s assets that are measured at fair value as of December 31, 2020 and 2019, and indicates the fair value hierarchy of the valuation: Fair Value Measurements (in thousands) Level 1 Level 2 Level 3 Total December 31, 2020 Money market funds included in cash and cash equivalents $ 56,907 $ — $ — $ 56,907 Warrant liability — — 545 545 December 31, 2019 Money market funds included in cash and cash equivalents $ 58,182 $ — $ — $ 58,182 Warrant liability — — 370 370 The Company remeasures its warrant liability at fair value at each reporting period using Level 3 inputs via the Black-Scholes option-pricing model. The significant assumptions used in preparing the option pricing model are disclosed in Note 10 Stock Warrants. Year ended (in thousands) 2020 2019 Balance at beginning of year $ 370 $ 150 Change in fair value 175 220 Balance at end of year $ 545 $ 370 At December 31, 2020, the fair value of the Company’s debt using Level 2 inputs is approximately $4.7 million calculated using a discounted cash flow method. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents held on deposit at one financial institution and accounts receivable. The Company does not require collateral from customers for amounts owed. At June 30, 2021 and December 31, 2020, no one customer represented greater than 10% of the accounts receivable balance. For the three and six months ended June 30, 2021 no one customer represented more than 10% of total revenue. Historically, the Company has not experienced any significant credit loss related to any individual customer. | Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents held on deposit at one financial institution and accounts receivable. The Company does not require collateral from customers for amounts owed. At December 31, 2020 and 2019, no one customer represented greater than 10% of the accounts receivable balance. For the years ended December 31, 2020 and 2019, no one customer represented more than 10% of total revenue. Historically, the Company has not experienced any significant credit loss related to any individual customer. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and are depreciated over their estimated useful lives using the straight-line method. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the determination of net income or loss. Repairs and maintenance costs are expensed as incurred . The cost of property and equipment is depreciated based upon the following asset lives: Asset Classification Estimated Useful Life Machinery and equipment 5 years Leasehold improvements Shorter of estimated useful life or remaining lease term Computer equipment 3 years Computer software 3 years Furniture and fixtures 3 years | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant reassessment or that the carrying value of these assets may not be recoverable. When a triggering event is identified, management assesses the recoverability of the asset group, which is the lowest level where identifiable cash flows are largely independent, by comparing the expected undiscounted cash flows of the asset group to the carrying value. When the carrying value is not recoverable and an impairment is determined to exist, the asset group is written down to fair value. The Company did not identify any triggering events or record any impairment during the three and six months ended June 30, 2021 and 2020. | Impairment of Long-Lived Assets The Company evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant reassessment or that the carrying value of these assets may not be recoverable. When a triggering event is identified, management assesses the recoverability of the asset group, which is the lowest level where identifiable cash flows are largely independent, by comparing the expected undiscounted cash flows of the asset group to the carrying value. When the carrying value is not recoverable and an impairment is determined to exist, the asset group is written down to fair value. The Company did not identify any triggering events or record any impairment during the years ended December 31, 2020 and 2019. |
Inventory | Inventory Inventory is stated at lower of cost or net realizable value. Cost is based on a standard costing system which approximates the cost on a first in, first out method. The Company regularly reviews inventory for excess and obsolescence and records a provision to write down inventory to its net realizable value. | |
Cost of Revenue | Cost of Revenue Cost of revenue is primarily comprised of cost of product and software subscriptions, maintenance services, personnel-related costs, third party logistics, warranty fulfillment costs, and overhead. For the production of consumables, the Company utilizes its internal manufacturing facilities and personnel, while for the production of the Company’s additive manufacturing hardware, third party manufacturers are utilized. For internally manufactured products, the cost of revenue includes raw material, labor conversion costs, and overhead related to the manufacturing operations, inclusive of associated depreciation. Cost of revenue for maintenance services is comprised of costs associated with the Company’s customer success teams’ provision of remote and on-site The Company’s cost of revenue also includes indirect costs of providing products and services to its customers. These indirect costs consist primarily of reserves for excess and obsolete inventory and stock- based compensation. | |
Research and Development | Research and Development The Company expenses all research and development costs as incurred. These costs consist mainly of employee compensation and other personnel-related costs, product prototypes, facility costs, as well as engineering services. | |
Sales and Marketing | Sales and Marketing Advertising costs, a component of sales and marketing expenses, were $1.2 million and $3.0 million during the three and six months ended June 30, 2021, respectively, compared to $0.5 million and $1.5 million for the three and six months ended June 30, 2020. | Sales and Marketing Sales and marketing costs are expensed as incurred and are primarily comprised of personnel-related costs for the Company’s sales and marketing departments, costs related to sales commissions, trades shows, facilities costs, as well as advertising and other demand generating services. Sales and marketing expenses include advertising costs which were $3.0 million and $5.4 million during 2020 and 2019, respectively. |
Shipping and Handling Costs | Shipping and Handling Costs The Company recognizes shipping and handling costs in cost of revenue within the consolidated statements of operations and comprehensive loss. When shipping and handling services are provided subsequent to the point in time control is transferred, the Company accounts for the shipping and handling services as a fulfillment activity and accrues the related costs. | |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes expense for stock-based compensation awards based on the estimated fair value of the award on the date of grant, which is amortized on a straight-line basis over the employee’s or director’s requisite service period, generally the vesting period of the award. The Company uses the Black- Scholes pricing model to estimate the fair value of options on the date of grant . The Company uses the Black-Scholes pricing model to estimate the fair value of options on the date of grant. The use of a valuation model requires management to make certain assumptions with respect to selected model inputs. The Company grants stock options at exercise prices determined equal to the fair value of common stock on the date of the grant, as determined by the Board of Directors. The fair value of the Company’s common stock at each measurement date is based on a number of factors, including the results of third-party valuations, the Company’s historical financial performance, and observable arms-length sales of the Company’s capital stock including convertible preferred stock, and the prospects of a liquidity event, among other inputs. The computation of expected option life is based on an average of the vesting term and the maximum contractual life of the Company’s stock options, as the Company does not have sufficient history to use an alternative method to the simplified method to calculate an expected life for employees. The Company estimates an expected forfeiture rate for stock options, which is factored into the determination of stock-based compensation expense. The volatility assumption is based on the historical and implied volatility of the Company’s peer group with similar business models. The risk-free interest rate is based on U.S. Treasury zero-coupon These estimates involve inherent uncertainties and the use of different assumptions may have resulted in stock-based compensation expense that was different from the amounts recorded. The Company has repurchased fully vested restricted common shares from its employees pursuant to individual repurchase agreements. The Company allows its employee to elect the Company to retain an amount to cover the employee’s tax withholding obligations incurred as a result of the repurchase. The employee tax withholding related to net settlement is recorded in the accrued expenses caption on the Company’s consolidated balance sheets. | |
Warranty Reserves | Warranty Reserves Substantially all of the Company’s hardware products are covered by a standard assurance warranty of one year. In the event of a failure of a product covered by this warranty, the Company may repair or replace the product, at its option. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues for which the Company expects to incur an obligation. The Company periodically assesses the appropriateness of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the appropriateness of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be necessary. Warranty reserves are included within accrued expenses on the condensed consolidated balance sheets. The following table presents changes in the balance of the Company’s warranty reserve: Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 538 $ 1,261 $ 564 $ 1,260 Additions to warranty reserve 366 250 633 482 Claims fulfilled (336 ) (144 ) (629 ) (375 ) Balance at end of period $ 568 $ 1,367 $ 568 $ 1,367 Warranty reserve is recorded through cost of revenue in the condensed consolidated statements of operations and comprehensive loss. | Warranty Reserves Substantially all of the Company’s hardware products are covered by a standard assurance warranty of one year. In the event of a failure of a product covered by this warranty, the Company may repair or replace the product, at its option. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues for which the Company expects to incur an obligation. The Company periodically assesses the appropriateness of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the appropriateness of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be necessary. Warranty reserves are included within accrued expenses on the consolidated balance sheets. The following table presents changes in the balance of the Company’s warranty reserve: Year Ended (in thousands) 2020 2019 Balance at beginning of year $ 1,260 $ 80 Additions to warranty reserve 821 2,415 Claims fulfilled (882 ) (1,235 ) Change in estimate related to pre-existing (635 ) — Balance at end of year $ 564 $ 1,260 Warranty reserve is recorded through cost of revenue in the consolidated statements of operations and comprehensive loss. |
Common Stock | Common Stock The holders of the common stock are entitled to one vote for each share held at all meetings of stockholders (and written actions in lieu of meetings). Dividends may be declared and paid on common stock from funds lawfully available as and when determined by the Board of Directors and subject to any preferential dividend rights of any then outstanding preferred stock. Through the year ended December 31, 2020, no dividends had been declared. | |
Warrants | Warrants Warrants to purchase the Company’s common stock issued in conjunction with the Company’s former term loan facility debt are recorded as a liability and classified as other liabilities on the consolidated balance sheets. The change in the fair value is recognized in other expense in the consolidated statements of operations and comprehensive loss. Warrants to purchase the Company’s Series D convertible preferred stock issued in conjunction with a customer contract are recorded as additional Series D convertible preferred stock and classified as mezzanine equity on the consolidated balance sheets. | |
Earnings Per Share | Earnings Per Share The Company calculates basic and diluted net loss per share attributable to common stockholders in conformity with the two-class The Company presents basic and diluted loss per common share amounts. Basic loss per common share is calculated by dividing net loss attributable to common stockholders, less any participating dividends by the weighted average number of common shares outstanding during the applicable period. See Note 13 for further information. | |
Income Taxes | Income Taxes The Company files U.S. federal and state tax returns where applicable. The non-U.S. The Company follows the authoritative guidance on accounting for and disclosure of uncertainty in tax positions which requires the Company to determine whether a tax position of the Company is more likely than not to be sustained upon examination, including resolution of any related appeals of litigation processes, based on the technical merits of the position. For tax positions meeting the more-likely-than-not | |
Loss Contingencies | Loss Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs for loss contingencies are expensed as incurred. | |
Segment Information | Segment Information The Company determines its chief operating decision maker (“CODM”) based on the person responsible for making resource allocation decisions. Operating segments are components of the business for which the CODM regularly reviews discrete financial information. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. | Segment Information The Company determines its chief operating decision maker (“CODM”) based on the person responsible for making resource allocation decisions. Operating segments are components of the business for which the CODM regularly reviews discrete financial information. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (“the JOBS Act”) either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as private companies, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as private companies . In August 2018, the FASB issued ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use 350-40) 2018-15”), internal-use In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes 2019-12”) , Income Taxes year-to-date 2019-12 | Recently Adopted Accounting Pronouncements The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (“the JOBS Act”) either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as private companies, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as private companies . In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Non employee Share-Based Payment Accounting 2018-07”), the measurement and classification guidance for share based payments to non employees with the guidance for share based payments to employees. The ASU also clarifies that any share based payment issued to a customer should be evaluated by ASC Topic 606 and the consideration payable to a customer guidance. The new ASU was adopted using a modified retrospective transition approach. The ASU is effective for the Company beginning January 1, 2020 for annual periods and January 1, 2021 for interim periods. The adoption of this standard on January 1, 2020 did not have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”), 2018-13 In November 2019, the FASB issued ASU 2019-08, Compensation Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements — Share-Based Consideration Payable to a Customer 2019-08”), 2019-08, 2019-08 |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”), other receivables, loans and commitments, held-to-maturity 2016-13 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02”), 2016-02 2016-02 2016-02 2016-02 right-of-use | Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes 2019-12”) , year-to-date 2019-12 In August 2018, the FASB issued ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use 350-40) 2018-15”), internal-use 2018-15 will In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”), held-to-maturity measure expected credit losses on assets that have a low risk of loss. These changes become effective for the Company on January 1, 2023. The Company is currently evaluating the impact that the adoption of ASU 2016-13 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02”), 2016-02 2016-02 2016-02 right-of-use . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Summary of Allowance For Doubtful Accounts | The following presents the changes in the balance of the Company’s allowance for doubtful accounts: Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 1,012 $ 1,060 $ 1,070 $ 1,038 Additions 296 236 378 397 Write – offs (63 ) (14 ) (64 ) (14 ) Recoveries (80 ) (179 ) (219 ) (318 ) Balance at end of period $ 1,165 $ 1,103 $ 1,165 $ 1,103 | The following presents the changes in the balance of the Company’s allowance for doubtful accounts: Year Ended (in thousands) 2020 2019 Balance at beginning of year $ 1,038 $ 175 Additions 591 1,014 Write – offs (559 ) (151 ) Balance at end of year $ 1,070 $ 1,038 |
Summary of Fair Value Hierarchy of The Valuation | The following table presents information about the Company’s assets and liabilities that are measured at fair value as of June 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation: Fair Value Measurements (in thousands) Level 1 Level 2 Level 3 Total June 30, 2021 Money market funds included in cash and cash equivalents $ 31,337 $ — $ — $ 31,337 December 31, 2020 Money market funds included in cash and cash equivalents $ 56,907 $ — $ — $ 56,907 Warrant liability — — 545 545 | The following table presents information about the Company’s assets that are measured at fair value as of December 31, 2020 and 2019, and indicates the fair value hierarchy of the valuation: Fair Value Measurements (in thousands) Level 1 Level 2 Level 3 Total December 31, 2020 Money market funds included in cash and cash equivalents $ 56,907 $ — $ — $ 56,907 Warrant liability — — 545 545 December 31, 2019 Money market funds included in cash and cash equivalents $ 58,182 $ — $ — $ 58,182 Warrant liability — — 370 370 |
Summary of Changes in Fair Value of the Derivative Warrant Liabilities | The Company remeasures its warrant liability at fair value at each reporting period using Level 3 inputs via the Black-Scholes option-pricing model. The significant assumptions used in preparing the option pricing model are disclosed in Note 10 Stock Warrants. All warrants were exercised in June 2021. There were no transfers between levels during the periods presented. Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 1,555 $ 382 $ 545 $ 370 Change in fair value 241 — 1,251 12 Derecognition of liability (1,796 ) — (1,796 ) — Balance at end of period $ — $ 382 $ — $ 382 | The Company remeasures its warrant liability at fair value at each reporting period using Level 3 inputs via the Black-Scholes option-pricing model. The significant assumptions used in preparing the option pricing model are disclosed in Note 10 Stock Warrants. Year ended (in thousands) 2020 2019 Balance at beginning of year $ 370 $ 150 Change in fair value 175 220 Balance at end of year $ 545 $ 370 |
Summary of Estimated Useful Life of Property Plant Equipment | The cost of property and equipment is depreciated based upon the following asset lives: Asset Classification Estimated Useful Life Machinery and equipment 5 years Leasehold improvements Shorter of estimated useful life or remaining lease term Computer equipment 3 years Computer software 3 years Furniture and fixtures 3 years | |
Summary of Balance of The Company's Warranty Reserve | The following table presents changes in the balance of the Company’s warranty reserve: Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 538 $ 1,261 $ 564 $ 1,260 Additions to warranty reserve 366 250 633 482 Claims fulfilled (336 ) (144 ) (629 ) (375 ) Balance at end of period $ 568 $ 1,367 $ 568 $ 1,367 | The following table presents changes in the balance of the Company’s warranty reserve: Year Ended (in thousands) 2020 2019 Balance at beginning of year $ 1,260 $ 80 Additions to warranty reserve 821 2,415 Claims fulfilled (882 ) (1,235 ) Change in estimate related to pre-existing (635 ) — Balance at end of year $ 564 $ 1,260 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Abstract] | ||
Summary of Company's Revenue Based on The Nature of The Products and Services | The following table disaggregates the Company’s revenue based on the nature of the products and services: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Hardware $ 14,331 $ 9,919 $ 28,569 $ 22,473 Consumables 4,780 $ 3,429 9,397 $ 7,582 Services 1,308 $ 826 2,573 $ 1,820 Total Revenue $ 20,419 $ 14,174 $ 40,539 $ 31,875 | The following table disaggregates the Company’s revenue based on the nature of the products and services: Year Ended (in thousands) 2020 2019 Hardware $ 52,119 $ 57,285 Consumables 15,498 12,584 Services 4,234 2,680 Total Revenue $ 71,851 $ 72,549 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Summary of Property Plant and Equipment | Property and equipment consist of the following: (in thousands) June 30, December 31, Machinery and equipment $ 4,990 $ 4,761 Leasehold improvements 2,190 2,190 Computer equipment 1,393 1,109 Furniture and fixtures 345 345 Computer software 246 246 Construction in process 562 36 Property and equipment, gross 9,726 8,687 Less: Accumulated depreciation (5,246 ) (4,406 ) Property and equipment, net $ 4,480 $ 4,281 | Property and equipment consist of the following: December 31, (in thousands) 2020 2019 Machinery and equipment $ 4,761 $ 4,467 Leasehold improvements 2,190 2,146 Computer equipment 1,109 1,048 Furniture and fixtures 345 307 Computer software 246 52 Construction in process 36 146 Property and equipment, gross 8,687 8,166 Less: Accumulated depreciation (4,406 ) (2,613 ) Property and equipment, net $ 4,281 $ 5,553 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | ||
Summary of Inventory | Inventory consists of the following: (in thousands) June 30, December 31, Raw material $ 989 $ 1,669 Work in process 219 79 Finished goods 6,718 4,805 Total inventory $ 7,926 $ 6,553 | Inventory consists of the following: December 31, (in thousands) 2020 2019 Raw material $ 1,669 $ 900 Work in process 79 23 Finished goods 4,805 4,859 Total inventory $ 6,553 $ 5,782 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | ||
Summary of Accrued Expenses | The following table summarizes the Company’s components of accrued expenses: (in thousands) June 30, December 31, Warranty reserve $ 568 $ 564 Compensation and benefits 3,882 3,100 VAR commissions 789 520 Professional services 1,629 2,907 Marketing and advertising 634 780 Other 930 297 Total accrued expense s $ 8,432 $ 8,168 | The following table summarizes the Company’s components of accrued expenses: December 31, (in thousands) 2020 2019 Warranty reserve $ 564 $ 1,260 Compensation and benefits 3,100 2,893 VAR commissions 520 — Professional services 2,907 1,101 Marketing and advertising 780 46 Other 297 460 Total accrued expense $ 8,168 $ 5,760 |
Convertible Preferred Stock, _2
Convertible Preferred Stock, Common Stock and Stockholders' Deficit (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | ||
Summary of Convertible Preferred Stock Authorized, Issued and Outstanding | The following table summarizes details of convertible preferred stock authorized, issued and outstanding as of June 30, 2021 and December 31, 2020: June 30, 2021 (in thousands, except for share counts) Shares Shares Issued Issuance Net Liquidation Series Seed 18,233,848 17,918,211 $ 0.0618 $ 1,107 $ 1,107 Series A 28,725,920 28,725,920 0.2959 8,437 8,500 Series B 34,391,480 34,391,480 0.4414 15,096 15,180 Series C 14,468,290 14,468,290 2.0735 29,881 30,000 Series D 17,599,646 17,579,656 4.7523 83,431 83,544 Total convertible preferred stock 113,419,184 113,083,557 $ 137,952 $ 138,331 December 31, 2020 (in thousands, except for share counts) Shares Shares Issued Issuance Net Liquidation Series Seed 18,233,848 17,918,211 $ 0.0618 $ 1,107 $ 1,107 Series A 28,725,920 28,725,920 0.2959 8,437 8,500 Series B 34,391,480 34,391,480 0.4414 15,096 15,180 Series C 14,468,290 14,468,290 2.0735 29,881 30,000 Series D 17,599,646 17,483,909 4.7523 82,976 83,089 Total convertible preferred stock 113,419,184 112,987,810 $ 137,497 $ 137,876 | The following table summarizes details of convertible preferred stock authorized, issued and outstanding as of December 31, 2020 and 2019: December 31, 2020 Share Issued Issuance Net (in thousands, except for share counts) Shares Authorized and Price Per Carrying Liquidation Series Seed 18,233,848 17,918,211 $ 0.0618 $ 1,107 $ 1,107 Series A 28,725,920 28,725,920 0.2959 8,437 8,500 Series B 34,391,480 34,391,480 0.4414 15,096 15,180 Series C 14,468,290 14,468,290 2.0735 29,881 30,000 Series D 17,599,646 17,483,909 4.7523 82,976 83,089 Total convertible preferred stock 113,419,184 112,987,810 $ 137,497 $ 137,876 December 31, 2019 Share Issued Issuance Net (in thousands, except for share counts) Shares and Price Per Carrying Liquidation Series Seed 18,233,848 17,918,211 $ 0.0618 $ 1,107 $ 1,107 Series A 28,725,920 28,725,920 0.2959 8,437 8,500 Series B 34,391,480 34,391,480 0.4414 15,096 15,180 Series C 14,468,290 14,468,290 2.0735 29,881 30,000 Series D 17,599,646 17,336,616 4.7523 82,276 82,389 Total convertible preferred stock 113,419,184 112,840,517 $ 136,797 $ 137,176 |
Summary of Common Stock Reserved for Future Issuance | The Company has reserved the following shares of common stock for future issuance: June 30, December 31, Common stock options outstanding 18,399,068 19,420,305 Shares available for issuance under the plan 3,322,966 4,649,322 Convertible preferred stock outstanding 113,083,557 112,987,810 Warrants to purchase Series D convertible 19,990 115,737 Common stock warrants outstanding — 190,000 Total shares of authorized common stock reserved 134,825,581 137,363,174 | The Company has reserved the following shares of common stock for future issuance: December 31, 2020 2019 Common stock options outstanding 19,420,305 13,162,473 Shares available for issuance under the plan 4,649,322 2,823,610 Convertible preferred stock outstanding 112,987,810 112,840,517 Warrants to purchase Series D convertible preferred stock 115,737 263,030 Common stock warrants outstanding 190,000 190,000 Total shares of authorized common stock reserved for future issuance 137,363,174 129,279,630 |
Equity Based Awards (Tables)
Equity Based Awards (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Summary of Option activity under the plan for the year | Option activity under the plan for the year to date period ending June 30, 2021 is as follows: Number of Weighted- Weighted- Outstanding at December 31, 2020 19,420,305 $ 1.72 8.71 Exercised (857,343 ) 0.49 Forfeited (163,894 ) 1.91 Outstanding at June 30, 2021 18,399,068 $ 1.78 8.33 Options exercisable at June 30, 2021 5,648,643 $ 1.31 7.07 | Option activity under the plan for the year ended December 31, 2020 is as follows: Number of Weighted-Average Weighted-Average Outstanding at December 31, 2019 13,162,473 $ 1.16 7.51 Granted 9,890,563 2.06 Exercised (2,231,540 ) 0.42 Forfeited (1,401,191 ) 1.08 Outstanding at December 31, 19,420,305 $ 1.72 8.71 Options exercisable at December 31, 2019 4,561,561 0.37 4.14 Options exercisable at December 31, 2020 4,700,993 $ 0.98 6.84 |
Summary of Additional information regarding the exercise of stock options | Additional information regarding the exercise of stock options is as follows: Six Months Ended (in thousands, except weighted average) 2021 2020 Weighted-average grant date fair value of options $ — $ 1.01 Intrinsic value of options exercised 6,450 2,017 | Additional information regarding the exercise of stock options is as follows: (in thousands, except weighted average) 2020 2019 Weighted-average grant date fair value of options granted $ 1.28 $ 0.92 Intrinsic value of options exercised 4,455 3,909 |
Summary of calculated via the Black-Scholes option pricing model | Six Months Expected option term (in years) 6.06 Expected volatility% 52.2 % Risk-free interest rate% 1.50 % Expected dividend yield% 0 % Fair value of common stock (per share) $ 1.01 | Year Ended 2020 2019 Expected option term (in years) 5.86 6.07 Expected volatility 53.1 % 52.6 % Risk-free interest rate 0.56 % 1.89 % Expected dividend yield — % — % Fair value of common stock (per share) $ 2.36 $ 1.81 |
Summary of consolidated statements of operations and comprehensive loss | During the three and six months ended June 30, 2021 and 2020, the Company recognized the following stock-based compensation expense in the following captions within the condensed consolidated statements of operations and comprehensive loss: Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Cost of revenue $ 62 $ 124 $ 89 $ 258 Research and development 394 171 725 225 Sales and marketing 237 135 320 227 General and administrative 1,084 73 1,837 297 Total stock-based compensation expense $ 1,777 $ 503 $ 2,971 $ 1,007 | The Company recorded compensation expense for the stock options of $2.6 million and $0.9 million for the years ended December 31, 2020 and 2019, respectively, which was recognized in the following captions within the consolidated statements of operations and comprehensive loss: Year Ended (in thousands) 2020 2019 Cost of revenue $ 589 $ 186 Research and development 693 307 Sales and marketing 578 262 General and administrative 709 103 Total stock-based compensation expense $ 2,569 $ 858 |
Summary of restricted stock units activity | The following table summarizes the restricted stock unit activity for the year-to-date Number of Weighted- Outstanding at December 31, 2020 — $ — Granted 1,494,250 8.17 Vested — — Forfeited (4,000 ) 8.01 Unvested at June 30, 2021 1,490,250 $ 8.17 | |
Summary of stock based compensation based on the awards granted | Three Months Six Months Ended (in thousands) 2021 2020 2021 2020 Stock Options $ 1,188 $ 503 $ 2,382 $ 1,007 Restricted Stock Units 589 — 589 — Total stock-based compensation expense $ 1,777 $ 503 $ 2,971 $ 1,007 |
Stock Warrants (Tables)
Stock Warrants (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Summary of Black- Scholes model using the following inputs | The fair value is measured at each reporting date using the Black-Scholes model using the following inputs. June 30, 2021 2020 Expected (remaining) option term (in years) 3.69 4.64 Expected volatility% 65.0 % 54.3 % Risk-free interest rate% 0.45 % 0.29 % Expected dividend yield% 0 % 0 % Fair value of common stock (per share) $ 9.51 $ 2.07 | The fair value is measured at each reporting date using the Black- Scholes model using the following inputs: Year Ended 2020 2019 Expected (remaining) option term (in years) 4.13 5.14 Expected volatility 55.4 % 52.4 % Risk-free interest rate 0.36 % 1.69 % Expected dividend yield — % — % Fair value of common stock (per share) 2.93 2.00 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of the Company's loss before Income Taxes | The components of the Company’s loss before income taxes are as follows: Year Ended (in thousands) 2020 2019 Loss before income taxes: Domestic $ (18,269 ) $ (29,944 ) Foreign 395 84 Total $ (17,874 ) $ (29,860 ) |
Summary of the Income Tax Provision | The components of the income tax provision are as follows: Year Ended (in thousands) 2020 2019 Current Provision Federal $ — $ — State 5 10 Foreign 106 5 Total current provision 111 15 Deferred Provision Federal — — State — — Foreign — — Total deferred provision — — Total income tax expense $ 111 $ 15 |
Summary of the Overall Effective Tax Rate differs from the Statutory Federal Tax Rate | The overall effective tax rate differs from the statutory federal tax rate as follows: Year Ended % of Pretax Loss 2020 2019 Statutory US federal rate 21.00 % 21.00 % State income taxes 1.85 2.19 Stock-based compensation (1.06 ) (0.23 ) Nondeductible expenses (0.61 ) (0.22 ) Global intangible low-taxed (0.46 ) (0.06 ) Research & development credits 3.48 2.35 Valuation allowance (25.18 ) (25.65 ) Change in statutory tax rate (0.20 ) — Other rate items 0.24 0.50 Effective tax rate (0.94 )% (0.12 )% |
Summary of the Company's Net Deferred Tax Assets | Significant components of the Company’s net deferred tax assets are as follows: December 31, (in thousands) 2020 2019 Deferred tax assets Amortization 23 27 Deferred revenue 318 86 Deferred expenses 280 322 Reserves 560 713 Accrued expenses 453 97 Stock compensation 372 43 Uniform capitalization 45 31 Net operating losses 16,266 13,184 Research and development credits 3,085 2,467 Other state credits 147 141 Gross deferred tax assets $ 21,546 $ 17,111 Less: Valuation allowance (21,507 ) (17,001 ) Deferred tax liabilities Depreciation (39 ) (110 ) Unrealized foreign currency loss (3 ) — Net deferred tax assets $ — $ — |
Summary of the Company's Deferred Income Tax Asset Valuation Allowance | The following table presents the changes in the balance of the Company’s deferred income tax asset valuation allowance: Year Ended (in thousands) 2020 2019 Balance at beginning of year $ 17,001 $ 9,343 Additions charged to expense 4,465 7,658 Balance at end of year $ 21 $ 17,001 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of Future Minimum Rental Payments | Future minimum lease payments under these agreements are as follows: (in thousands) Amount 2021 $ 1,207 2022 2,866 2023 3,070 2024 2,132 2025 2,089 After 2025 5,088 Total future minimum lease payments $ 16,452 | Future minimum lease payments under these agreements are as follows: (in thousands) Amount 2021 $ 2,150 2022 2,866 2023 3,070 2024 2,132 2025 2,089 After 2025 5,088 Total future minimum lease payments $ 17,395 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Summary of Earnings Per Share, Basic and Diluted | Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator for basic and diluted net loss per share: Net loss and comprehensive loss $ (11,090 ) $ (5,689 ) $ (21,109 ) $ (10,934 ) Denominator for basic and diluted net loss per share: Weighted average shares outstanding 41,853,841 39,980,784 41,638,004 39,856,193 Net loss per common share: Basic $ (0.26 ) $ (0.14 ) $ (0.51 ) $ (0.27 ) Diluted $ (0.26 ) $ (0.14 ) $ (0.51 ) $ (0.27 ) | Year Ended December 31, (in thousands, except per share amounts) 2020 2019 Numerator for basic and diluted net loss per share: Net loss $ (17,985 ) $ (29,875 ) Deemed dividend – repurchase of Series Seed convertible preferred stock — (785 ) Deemed dividend – repurchase of common stock (826 ) (624 ) Net loss attributable to MarkForged, Inc. common stockholders $ (18,811 ) $ (31,284 ) Denominator for basic and diluted net loss per share: Weighted average shares outstanding 40,258,968 38,673,218 Net loss per common share: Basic $ (0.47 ) $ (0.81 ) Diluted $ (0.47 ) $ (0.81 ) |
Summary of Dilutive Securities are Excluded from the Denominator | The following dilutive securities are excluded from the denominator: Three and Six Months Ended 2021 2020 Convertible preferred stock 113,083,557 112,914,163 Unvested awards 14,241,592 8,231,273 Warrants — 190,000 Total 127,325,149 121,335,436 | The following dilutive securities are excluded from the denominator: Years ended December 31, 2020 2019 Convertible preferred stock 112,987,810 112,840,517 Unvested awards 19,599,305 13,656,557 Warrants 190,000 190,000 Total 132,777,115 126,687,074 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||
Summary of Disaggregated Revenue Data for Those Markets | Disaggregated revenue data for those markets is as follows: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Americas $ 9,806 $ 7,437 $ 20,232 $ 18,308 EMEA 6,425 4,555 12,687 8,390 APAC 4,188 2,182 7,620 5,177 Total $ 20,419 $ 14,174 $ 40,539 $ 31,875 | The Company measures revenue based on the physical location of where the customer who is receiving the promised goods or service is located. Disaggregated revenue data for those markets is as follows: Revenue during the (in thousands) 2020 2019 Americas $ 40,837 $ 53,183 EMEA 19,214 12,142 APAC 11,800 7,224 Total $ 71,851 $ 72,549 |
Organization, Nature of the B_2
Organization, Nature of the Business, and Risks and Uncertainties - Additional Information (Detail) - AONE [Member] $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)$ / shares | |
Cash held in trust | $ 123.8 |
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 210 |
Shares Issued, Price Per Share | $ / shares | $ 10 |
Cash on hand | $ 45 |
Proceeds from Divestiture of Businesses, Net of share purchases | $ 288.8 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Allowance For Doubtful Accounts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||||||
Balance at beginning of period | $ 1,012 | $ 1,060 | $ 1,070 | $ 1,038 | $ 1,038 | $ 175 |
Additions | 296 | 236 | 378 | 397 | 591 | 1,014 |
Write – offs | (63) | (14) | (64) | (14) | (559) | (151) |
Recoveries | (80) | (179) | (219) | (318) | ||
Balance at end of year | $ 1,165 | $ 1,103 | $ 1,165 | $ 1,103 | $ 1,070 | $ 1,038 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Fair Value Hierarchy of The Valuation (Detail) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability | $ 545 | $ 370 | |
Fair Value Measurements Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability | 545 | 370 | |
Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value | $ 31,337 | 56,907 | 58,182 |
Money Market Funds [Member] | Fair Value Measurements Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value | $ 31,337 | $ 56,907 | $ 58,182 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Changes in Fair Value of the Derivative Warrant Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||||||
Balance at beginning of year | $ 1,555 | $ 382 | $ 545 | $ 370 | $ 370 | $ 150 |
Change in fair value | 241 | 1,251 | 12 | 175 | 220 | |
Derecognition of liability | (1,796) | (1,796) | ||||
Balance at end of year | $ 382 | $ 382 | $ 545 | $ 370 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Estimated Useful Life of Property Plant Equipment (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Machinery and equipment [Member] | |
Schedule of Estimated Useful life of property plant equipment [Line Items] | |
Estimated Useful Life | 5 years |
Leasehold improvements [Member] | |
Schedule of Estimated Useful life of property plant equipment [Line Items] | |
Estimated Useful Life | Shorter of estimated useful life or remaining lease term |
Computer equipment [Member] | |
Schedule of Estimated Useful life of property plant equipment [Line Items] | |
Estimated Useful Life | 3 years |
Computer software [Member] | |
Schedule of Estimated Useful life of property plant equipment [Line Items] | |
Estimated Useful Life | 3 years |
Furniture and fixtures [Member] | |
Schedule of Estimated Useful life of property plant equipment [Line Items] | |
Estimated Useful Life | 3 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Balance of The Company's Warranty Reserve (Detail) - Accrued Liabilities [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product Warranty Liability [Line Items] | ||||||
Balance at beginning of year | $ 538 | $ 1,261 | $ 564 | $ 1,260 | $ 1,260 | $ 80 |
Additions to warranty reserve | 366 | 250 | 633 | 482 | 821 | 2,415 |
Claims fulfilled | (336) | (144) | (629) | (375) | (882) | (1,235) |
Change in estimate related to pre-existing warranties | (635) | 0 | ||||
Balance at end of year | $ 568 | $ 1,367 | $ 568 | $ 1,367 | $ 564 | $ 1,260 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($)Segment | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)Segment$ / shares | Dec. 31, 2019USD ($)Segment | |
Sales and marketing expenses, include advertising costs | $ 3 | $ 5.4 | ||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0 | |||||
Advertising expenses | $ 1.2 | $ 0.5 | $ 3 | $ 1.5 | ||
Accounts Receivable [Member] | ||||||
Number of customer | Segment | 0 | 0 | 0 | |||
Revenue Benchmark [Member] | ||||||
Number of customer | Segment | 0 | 0 | 0 | 0 | ||
Valuation Technique, Discounted Cash Flow [Member] | Fair Value Measurements Level 2 [Member] | ||||||
Debt Instrument, Fair Value Disclosure | $ 4.7 |
Revenue - Summary of Company's
Revenue - Summary of Company's Revenue Based on The Nature of The Products and Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenue | $ 20,419 | $ 14,174 | $ 40,539 | $ 31,875 | $ 71,851 | $ 72,549 |
Hardware [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 14,331 | 9,919 | 28,569 | 22,473 | 52,119 | 57,285 |
Consumables [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 4,780 | 3,429 | 9,397 | 7,582 | 15,498 | 12,584 |
Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | $ 1,308 | $ 826 | $ 2,573 | $ 1,820 | $ 4,234 | $ 2,680 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||||
Contract with Customer, Liability, Revenue Recognized | $ 1.6 | $ 0.7 | $ 3.6 | $ 1.2 | $ 2.4 | $ 1.2 |
Contractual Obligation, to be Paid, Year One | 3.6 | 3.6 | 6.2 | |||
Contractual Obligation, to be Paid, Year Two | 2.7 | 2.7 | 2.2 | |||
Contractual Obligation, to be Paid, Year Three | 1.3 | 1.3 | 0.6 | |||
Contractual Obligation Due After Third Year | $ 0.4 | $ 0.4 | $ 0.1 |
Property and Equipment, net - S
Property and Equipment, net - Summary of Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 9,726 | $ 8,687 | $ 8,166 |
Less: Accumulated depreciation | (5,246) | (4,406) | (2,613) |
Property and equipment, net | 4,480 | 4,281 | 5,553 |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4,990 | 4,761 | 4,467 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,190 | 2,190 | 2,146 |
Computer equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,393 | 1,109 | 1,048 |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 345 | 345 | 307 |
Computer software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 246 | 246 | 52 |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 562 | $ 36 | $ 146 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||||||
Depreciation expense | $ 0.4 | $ 0.5 | $ 0.8 | $ 0.9 | $ 1.8 | $ 1.4 |
Property, Plant and Equipment, Disposals | $ 0.1 | $ 0.1 |
Inventory - Summary of Inventor
Inventory - Summary of Inventory (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | |||
Raw material | $ 989 | $ 1,669 | $ 900 |
Work in process | 219 | 79 | 23 |
Finished goods | 6,718 | 4,805 | 4,859 |
Total inventory | $ 7,926 | $ 6,553 | $ 5,782 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | |||
Inventory Valuation Reserves | $ 0.9 | $ 0.8 | $ 0.8 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | |||
Warranty reserve | $ 568 | $ 564 | $ 1,260 |
Compensation and benefits | 3,882 | 3,100 | 2,893 |
VAR commissions | 789 | 520 | 0 |
Professional services | 1,629 | 2,907 | 1,101 |
Marketing and advertising | 634 | 780 | 46 |
Other | 930 | 297 | 460 |
Total accrued expenses | $ 8,432 | $ 8,168 | $ 5,760 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Apr. 10, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2018 |
PPP Loan In The Form Of Notes [Member] | Pay Check Protection Program The PPP [Member] | |||||
Debt instrument, Face amount | $ 5,000,000 | ||||
Debt instrument, Maturity date | Apr. 21, 2020 | ||||
Debt instrument, Interest rate effective percentage | 1.00% | 1.00% | |||
Debt instrument, Frequency of periodic payment | payable monthly commencing on November 22, 2020 | payable monthly commencing on November 22, 2020 | |||
Debt instrument, Date of first required payment | Nov. 22, 2020 | Nov. 22, 2020 | |||
Debt instrument, Prepayment penalties | $ 0 | $ 0 | |||
Lending Institution [Member] | Secured Revolving Credit Facility [Member] | Loan And Security [Member] | |||||
Line of credit facility, Percentage of maximum borrowing to receivables | 80.00% | ||||
Line of credit facility, Maximum borrowing capacity | $ 15,000,000 | ||||
Proceeds from Line of credit | $ 0 |
Convertible Preferred Stock, _3
Convertible Preferred Stock, Common Stock and Stockholders' Deficit - Summary of Convertible Preferred Stock Authorized, Issued and Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Convertible Preferred Stock [Line Items] | |||
Shares Authorized | 113,419,184 | 113,419,184 | 113,419,184 |
Share Issued and Outstanding | 113,083,557 | 112,987,810 | 112,840,517 |
Net Carrying Value | $ 137,952 | $ 137,497 | $ 136,797 |
Liquidation Preference | $ 138,331 | $ 137,876 | $ 137,176 |
Series Seed [Member] | |||
Schedule of Convertible Preferred Stock [Line Items] | |||
Shares Authorized | 18,233,848 | 18,233,848 | 18,233,848 |
Share Issued and Outstanding | 17,918,211 | 17,918,211 | 17,918,211 |
Issuance Price Per Share | $ 0.0618 | $ 0.0618 | $ 0.0618 |
Net Carrying Value | $ 1,107 | $ 1,107 | $ 1,107 |
Liquidation Preference | $ 1,107 | $ 1,107 | $ 1,107 |
Series A [Member] | |||
Schedule of Convertible Preferred Stock [Line Items] | |||
Shares Authorized | 28,725,920 | 28,725,920 | 28,725,920 |
Share Issued and Outstanding | 28,725,920 | 28,725,920 | 28,725,920 |
Issuance Price Per Share | $ 0.2959 | $ 0.2959 | $ 0.2959 |
Net Carrying Value | $ 8,437 | $ 8,437 | $ 8,437 |
Liquidation Preference | $ 8,500 | $ 8,500 | $ 8,500 |
Series B [Member] | |||
Schedule of Convertible Preferred Stock [Line Items] | |||
Shares Authorized | 34,391,480 | 34,391,480 | 34,391,480 |
Share Issued and Outstanding | 34,391,480 | 34,391,480 | 34,391,480 |
Issuance Price Per Share | $ 0.4414 | $ 0.4414 | $ 0.4414 |
Net Carrying Value | $ 15,096 | $ 15,096 | $ 15,096 |
Liquidation Preference | $ 15,180 | $ 15,180 | $ 15,180 |
Series C [Member] | |||
Schedule of Convertible Preferred Stock [Line Items] | |||
Shares Authorized | 14,468,290 | 14,468,290 | 14,468,290 |
Share Issued and Outstanding | 14,468,290 | 14,468,290 | 14,468,290 |
Issuance Price Per Share | $ 2.0735 | $ 2.0735 | $ 2.0735 |
Net Carrying Value | $ 29,881 | $ 29,881 | $ 29,881 |
Liquidation Preference | $ 30,000 | $ 30,000 | $ 30,000 |
Series D [Member] | |||
Schedule of Convertible Preferred Stock [Line Items] | |||
Shares Authorized | 17,599,646 | 17,599,646 | 17,599,646 |
Share Issued and Outstanding | 17,579,656 | 17,483,909 | 17,336,616 |
Issuance Price Per Share | $ 4.7523 | $ 4.7523 | $ 4.7523 |
Net Carrying Value | $ 83,431 | $ 82,976 | $ 82,276 |
Liquidation Preference | $ 83,544 | $ 83,089 | $ 82,389 |
Convertible Preferred Stock, _4
Convertible Preferred Stock, Common Stock and Stockholders' Deficit - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||||||
Payments related to tax withholding for Shares | $ 98 | $ 0 | ||||
Additional Compensation expense | $ 1,777 | $ 503 | $ 2,971 | $ 1,007 | $ 2,569 | $ 858 |
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchased during period shares | 263,031 | 244,691 | ||||
Common stock repurchase price per share | $ 4.75 | $ 4.75 | $ 4.75 | $ 4.75 | ||
Payments related to tax withholding for Shares | $ 200 | |||||
Fair value per share on the date of repurchase | $ 3.14 | $ 2.55 | ||||
Additional Compensation expense | $ 400 | $ 500 | ||||
Additional Stock repurchased during period shares | 263,030 | 263,030 | ||||
Series Seed Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Temporary equity liquidation preference per share | 0.06 | $ 0.06 | $ 0.06 | |||
Temporary equity conversion price per share | 0.06 | 0.06 | 0.06 | |||
Stock repurchased during period shares | 315,637 | |||||
Common stock repurchase price per share | $ 4.75 | |||||
Additional Compensation expense | $ 700 | |||||
Series Seed Convertible Preferred Stock [Member] | Maximum [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock convertible conversion price per share | 2.59 | 2.59 | ||||
Series A Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Temporary equity liquidation preference per share | 0.29 | 0.29 | 0.29 | |||
Temporary equity conversion price per share | 0.29 | 0.29 | 0.29 | |||
Series A Convertible Preferred Stock [Member] | Maximum [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock convertible conversion price per share | 2.59 | 2.59 | ||||
Series B Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Temporary equity liquidation preference per share | 0.44 | 0.44 | 0.44 | |||
Temporary equity conversion price per share | 0.44 | 0.44 | 0.44 | |||
Series B Convertible Preferred Stock [Member] | Maximum [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock convertible conversion price per share | 2.59 | 2.59 | ||||
Series C Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Temporary equity liquidation preference per share | 2.07 | 2.07 | 2.07 | |||
Temporary equity conversion price per share | 2.07 | $ 2.07 | $ 2.07 | |||
Percentage of approval received from outstanding stockholders for conversion | 10.00% | 10.00% | ||||
Series C Convertible Preferred Stock [Member] | Maximum [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock convertible conversion price per share | $ 2.59 | $ 2.59 | ||||
Series D Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Temporary equity liquidation preference per share | 4.75 | 4.75 | 4.75 | |||
Temporary equity conversion price per share | 4.75 | 4.75 | 4.75 | |||
Series D Convertible Preferred Stock [Member] | Maximum [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares issued price per share | $ 4.75 | $ 4.75 | $ 4.75 |
Convertible Preferred Stock, _5
Convertible Preferred Stock, Common Stock and Stockholders' Deficit - Summary of Common Stock Reserved for Future Issuance (Detail) - shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule for Common Stock Reserved for Future Issuance [Line Items] | |||
Total shares of authorized common stock reserved for future issuance | 134,825,581 | 137,363,174 | 129,279,630 |
Common stock options outstanding [Member] | |||
Schedule for Common Stock Reserved for Future Issuance [Line Items] | |||
Total shares of authorized common stock reserved for future issuance | 18,399,068 | 19,420,305 | 13,162,473 |
Shares available for issuance under the plan [Member] | |||
Schedule for Common Stock Reserved for Future Issuance [Line Items] | |||
Total shares of authorized common stock reserved for future issuance | 3,322,966 | 4,649,322 | 2,823,610 |
Convertible preferred stock outstanding [Member] | |||
Schedule for Common Stock Reserved for Future Issuance [Line Items] | |||
Total shares of authorized common stock reserved for future issuance | 113,083,557 | 112,987,810 | 112,840,517 |
Warrants to purchase Series D convertible preferred stock [Member] | |||
Schedule for Common Stock Reserved for Future Issuance [Line Items] | |||
Total shares of authorized common stock reserved for future issuance | 19,990 | 115,737 | 263,030 |
Common stock warrants outstanding [Member] | |||
Schedule for Common Stock Reserved for Future Issuance [Line Items] | |||
Total shares of authorized common stock reserved for future issuance | 0 | 190,000 | 190,000 |
Equity Based Awards - Summary o
Equity Based Awards - Summary of Option Activity Under The Plan For The Year (Detail) - 2013 Stock Plan [Member] - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding | 19,420,305 | 13,162,473 | |
Granted | 9,890,563 | ||
Exercised | (857,343) | (2,231,540) | (240,875) |
Forfeited | (163,894) | (1,401,191) | |
Number of Shares, Outstanding | 18,399,068 | 19,420,305 | 13,162,473 |
Number of Shares, Options exercisable | 5,648,643 | 4,700,993 | 4,561,561 |
Weighted-Average Exercise Price, Outstanding | $ 1.72 | $ 1.16 | |
Granted | $ 2.06 | ||
Exercised | 0.49 | 0.42 | |
Forfeited | 1.91 | 1.08 | |
Weighted-Average Exercise Price, Outstanding | 1.78 | 1.72 | |
Weighted-Average Exercise Price, Options exercisable | $ 1.31 | $ 0.98 | $ 0.37 |
Weighted-Average Remaining Contractual Life, Outstanding | 8 years 3 months 29 days | 8 years 8 months 15 days | 7 years 6 months 3 days |
Weighted-Average Remaining Contractual Life, exercisable | 7 years 25 days | 6 years 10 months 2 days | 4 years 1 month 20 days |
Equity Based Awards - Summary_2
Equity Based Awards - Summary of Additional Information Regarding The Exercise of Stock Options (Detail) - 2013 Stock Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures [Line Items] | ||||
Weighted-average grant date fair value of options granted | $ 0 | $ 1.01 | $ 1.28 | $ 0.92 |
Intrinsic value of options exercised | $ 6,450 | $ 2,017 | $ 4,455 | $ 3,909 |
Equity Based Awards - Summary_3
Equity Based Awards - Summary of Calculated Via The Black-Scholes Option Pricing Model (Detail) - 2013 Stock Plan [Member] - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | |||
Expected option term (in years) | 6 years 21 days | 5 years 10 months 9 days | 6 years 25 days |
Expected volatility | 52.20% | 53.10% | 52.60% |
Risk-free interest rate | 1.50% | 0.56% | 1.89% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Fair value of common stock (per share) | $ 1.01 | $ 2.36 | $ 1.81 |
Equity Based Awards - Summary_4
Equity Based Awards - Summary of Consolidated Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based Payment Arrangement, Expense | $ 1,777 | $ 503 | $ 2,971 | $ 1,007 | $ 2,569 | $ 858 |
Cost of revenue [Member] | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based Payment Arrangement, Expense | 62 | 124 | 89 | 258 | 589 | 186 |
Research and development [Member] | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based Payment Arrangement, Expense | 394 | 171 | 725 | 225 | 693 | 307 |
Sales and marketing [Member] | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based Payment Arrangement, Expense | 237 | 135 | 320 | 227 | 578 | 262 |
General and administrative [Member] | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based Payment Arrangement, Expense | $ 1,084 | $ 73 | $ 1,837 | $ 297 | $ 709 | $ 103 |
Equity Based Awards - Summary_5
Equity Based Awards - Summary of restricted stock units activity (Detail) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding at December 31, 2020 | shares | 0 |
Number of Shares, Granted | shares | 1,494,250 |
Number of Shares, Vested | shares | 0 |
Number of Shares, Forfeited | shares | (4,000) |
Number of Shares, Unvested at June 30, 2021 | shares | 1,490,250 |
Weighted- Average Grant Date Fair Value, Outstanding at December 31, 2020 | $ / shares | $ 0 |
Weighted- Average Grant Date Fair Value, Granted | $ / shares | 8.17 |
Weighted- Average Grant Date Fair Value, Vested | $ / shares | 0 |
Weighted- Average Grant Date Fair Value, Forfeited | $ / shares | 8.01 |
Weighted- Average Grant Date Fair Value, Unvested at June 30, 2021 | $ / shares | $ 8.17 |
Equity Based Awards - Summary_6
Equity Based Awards - Summary of stock based compensation based on the awards granted (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Stock based compensation expense | $ 1,777 | $ 503 | $ 2,971 | $ 1,007 | $ 2,569 | $ 858 |
Stock Options | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Stock based compensation expense | 1,188 | 503 | 2,382 | 1,007 | ||
Restricted Stock Units | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Stock based compensation expense | $ 589 | $ 0 | $ 589 | $ 0 |
Equity Based Awards - Additiona
Equity Based Awards - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common stock reserved for future issuance | 134,825,581 | 134,825,581 | 137,363,174 | 129,279,630 | ||||
Stock issued during period, value, Stock options exercised | $ 62 | $ 356 | $ 600 | $ 1,131 | $ 390 | |||
Stock based compensation expense | 1,777 | $ 503 | $ 2,971 | $ 1,007 | $ 2,569 | $ 858 | ||
2013 Stock Plan [Member] | ||||||||
Common stock reserved for future issuance | 36,313,607 | |||||||
Share-based payment award, Award vesting rights percentage | 25.00% | |||||||
Share-based payment award, Award expiration period | 10 years | |||||||
Share-based payment award, Aggregate intrinsic value of option outstanding | $ 114,700 | $ 114,700 | $ 13,600 | |||||
Share-based payment award, Vested and expected to vest shares outstanding | 17,877,383 | 17,877,383 | 18,695,077 | |||||
Stock issued during period, Option exercised | 857,343 | 2,231,540 | 240,875 | |||||
Share-based payment award, options grants to purchase shares | 0 | 850,300 | ||||||
Share-based payment award, Fair value of option granted | $ 12,700 | $ 6,600 | ||||||
Stock based compensation expense | 2,600 | 900 | ||||||
Share-based payment award, Compensation cost not yet recognized | $ 21,900 | $ 21,900 | $ 15,400 | |||||
Share-based payment award, Compensation cost not yet recognized, Period of recognition | 1 year 4 months 24 days | 1 year 7 months 6 days | ||||||
Share-based payment award, Fair value of option granted | $ 900 | |||||||
2013 Stock Plan [Member] | Maximum [Member] | ||||||||
Share-based payment award, Award vesting period | 36 months | |||||||
2013 Stock Plan [Member] | Minimum [Member] | ||||||||
Share-based payment award, Award vesting period | 12 months | |||||||
2013 Stock Plan [Member] | Employees Directors And Consultants [Member] | ||||||||
Common stock reserved for future issuance | 36,313,607 | 36,313,607 | ||||||
2013 Stock Plan [Member] | Notes Receivable [Member] | ||||||||
Stock issued during period, value, Stock options exercised | $ 200 | |||||||
Common Stock [Member] | 2013 Stock Plan [Member] | ||||||||
Share-based payment award, options grants to purchase shares | 9,890,563 | 7,194,585 |
Stock Warrants - Summary of Bla
Stock Warrants - Summary of Black- Scholes model using the following inputs (Detail) - Fair Value, Inputs, Level 3 [Member] - Warrant [Member] | Jun. 30, 2021yr | Dec. 31, 2020yr | Jun. 30, 2020yr | Dec. 31, 2019yr |
Expected (remaining) option term (in years) | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | 3.69 | 4.13 | 4.64 | 5.14 |
Expected volatility | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | 65 | 55.4 | 54.3 | 52.4 |
Risk-free interest rate | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | 0.45 | 0.36 | 0.29 | 1.69 |
Expected dividend yield | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | 0 | 0 | 0 | 0 |
Fair value of common stock (per share) | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | 9.51 | 2.93 | 2.07 | 2 |
Stock Warrants - Additional In
Stock Warrants - Additional Information (Detail) - Warrant [Member] - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 |
Class of warrants of rights, Number of warrants or rights vested during period | 147,293 | 31,564 | |||||||
Other Noncurrent Liabilities [Member] | |||||||||
Derivative liabilities | $ 0.7 | $ 0.2 | |||||||
Loan Agreement [Member] | Right To Purchase Shares Of Common Stock [Member] | |||||||||
Class of warrants and rights issued during period, Shares | 190,000 | ||||||||
Class of warrants and rights, Exercise price of warrants and rights | $ 0.06 | ||||||||
Loan agreement termination date | Jan. 1, 2018 | Feb. 17, 2025 | |||||||
Warrants and rights outstanding date | Feb. 17, 2025 | Jan. 1, 2018 | |||||||
Stock Issued During Period, Shares, New Issues | 188,576 | ||||||||
Development Agreement [Member] | Outstanding Warrants To Be Issued [Member] | |||||||||
Class of warrants of rights, Outstanding | 115,737 | ||||||||
Development Agreement [Member] | Right To Purchase Shares Series D Convertible Preferred Stock [Member] | |||||||||
Class of warrants and rights issued during period, Shares | 294,594 | ||||||||
Class of warrants and rights, Exercise price of warrants and rights | $ 0.0001 | ||||||||
Warrants and rights outstanding date | Sep. 24, 2029 | Sep. 24, 2029 | |||||||
Class of warrants of rights, Number of warrants or rights vested during period | 74,705 | 63,126 | 95,747 | 73,646 | |||||
Class of warrants or rights non vested outstanding | 19,990 | 19,990 | |||||||
Increase or decrease derivative liabilities | $ 0.5 | $ 0.3 | $ 0.4 | $ 0.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective income tax rate reconciliation, Fedaral statutory tax rate | 21.00% | 21.00% | ||
Operating loss carryforwards | $ 53,200,000 | |||
Unrecognized tax benefits | 0 | |||
Deferred tax assets, Valuation allowance | $ 21,507,000 | $ 17,001,000 | $ 9,343,000 | |
Effective Income Tax Rate Reconciliation, Percent | 50.00% | (0.94%) | (0.12%) | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 | ||
Maximum [Member] | ||||
Operating loss carryforwards, Expiration period | 0 days | |||
Research Tax Credit Carryforward [Member] | ||||
Operating loss carryforwards, Expiration period | 2030 years | |||
Domestic Tax Authority [Member] | ||||
Operating loss carryforwards | $ 15,000,000 | |||
Tax credit carryforwards, Amount | $ 2,100,000 | |||
Domestic Tax Authority [Member] | Minimum [Member] | ||||
Operating loss carryforwards, Expiration period | 2033 years | |||
Domestic Tax Authority [Member] | Maximum [Member] | ||||
Operating loss carryforwards, Expiration period | 2038 years | |||
State and Local Jurisdiction [Member] | ||||
Operating loss carryforwards | $ 34,600,000 | |||
Tax credit carryforwards, Amount | $ 1,300,000 | |||
State and Local Jurisdiction [Member] | Minimum [Member] | ||||
Operating loss carryforwards, Expiration period | 2033 years | |||
State and Local Jurisdiction [Member] | Maximum [Member] | ||||
Operating loss carryforwards, Expiration period | 2044 years |
Income Taxes - Summary of the C
Income Taxes - Summary of the Company's loss before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss before income taxes: | ||||||
Domestic | $ (18,269) | $ (29,944) | ||||
Foreign | 395 | 84 | ||||
Total | $ (11,084) | $ (5,660) | $ (21,107) | $ (10,847) | $ (17,874) | $ (29,860) |
Income Taxes - Summary of the I
Income Taxes - Summary of the Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current Provision | ||||||
Federal | $ 0 | $ 0 | ||||
State | 5 | 10 | ||||
Foreign | 106 | 5 | ||||
Total current provision | 111 | 15 | ||||
Deferred Provision | ||||||
Federal | 0 | 0 | ||||
State | 0 | 0 | ||||
Foreign | 0 | 0 | ||||
Total deferred provision | 0 | 0 | ||||
Total income tax expense | $ 6 | $ 29 | $ 2 | $ 87 | $ 111 | $ 15 |
Income Taxes - Summary of the O
Income Taxes - Summary of the Overall Effective Tax Rate differs from the Statutory Federal Tax Rate (Detail) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory US federal rate | 21.00% | 21.00% | |
State income taxes | 1.85% | 2.19% | |
Stock-based compensation | (1.06%) | (0.23%) | |
Nondeductible expenses | (0.61%) | (0.22%) | |
Global intangible low-taxed income | (0.46%) | (0.06%) | |
Research & development credits | 3.48% | 2.35% | |
Valuation allowance | (25.18%) | (25.65%) | |
Change in statutory tax rate | (0.20%) | 0.00% | |
Other rate items | 0.24% | 0.50% | |
Effective tax rate | 50.00% | (0.94%) | (0.12%) |
Income Taxes - Summary of the_2
Income Taxes - Summary of the Company's Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | |||
Amortization | $ 23 | $ 27 | |
Deferred revenue | 318 | 86 | |
Deferred expenses | 280 | 322 | |
Reserves | 560 | 713 | |
Accrued expenses | 453 | 97 | |
Stock compensation | 372 | 43 | |
Uniform capitalization | 45 | 31 | |
Net operating losses | 16,266 | 13,184 | |
Research and development credits | 3,085 | 2,467 | |
Other state credits | 147 | 141 | |
Gross deferred tax assets | 21,546 | 17,111 | |
Less: Valuation allowance | (21,507) | (17,001) | $ (9,343) |
Deferred tax liabilities | |||
Depreciation | (39) | (110) | |
Unrealized foreign currency loss | (3) | 0 | |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Summary of the_3
Income Taxes - Summary of the Company's Deferred Income Tax Asset Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance [Abstract] | ||
Balance at beginning of year | $ 17,001 | $ 9,343 |
Additions charged to expense | 4,465 | 7,658 |
Balance at end of year | $ 21,507 | $ 17,001 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Rental Payments (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2021 | $ 1,207 | $ 2,150 |
2022 | 2,866 | 2,866 |
2023 | 3,070 | 3,070 |
2024 | 2,132 | 2,132 |
2025 | 2,089 | 2,089 |
After 2025 | 5,088 | 5,088 |
Total future minimum lease payments | $ 16,452 | $ 17,395 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Spaces | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)Spaces | Dec. 31, 2019USD ($) | |
Number of spaces leased | Spaces | 2 | 2 | ||||
Operating lease, Rent expense | $ 700 | $ 600 | $ 1,300 | $ 1,200 | $ 2,200 | $ 2,300 |
Purchase commitment, Minimum amount commited | 0 | 0 | $ 0 | |||
Loss contingency | $ 0 | $ 0 | ||||
December 2023 [Member] | ||||||
Operating lease escalating monthly payment | December 2023 | |||||
April 2027 [Member] | ||||||
Operating lease escalating monthly payment | April 2027 | |||||
July 2028 [Member] | ||||||
Operating lease escalating monthly payment | July 2028 |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Earnings Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator for basic and diluted net loss per share: | ||||||||
Net loss and comprehensive loss | $ (11,090) | $ (10,019) | $ (5,689) | $ (5,245) | $ (21,109) | $ (10,934) | $ (17,985) | $ (29,875) |
Net loss attributable to MarkForged, Inc. common stockholders | $ (18,811) | $ (31,284) | ||||||
Denominator for basic and diluted net loss per share: | ||||||||
Weighted average shares outstanding | 41,853,841 | 39,980,784 | 41,638,004 | 39,856,193 | 40,258,968 | 38,673,218 | ||
Net loss per common share: | ||||||||
Basic | $ (0.26) | $ (0.14) | $ (0.51) | $ (0.27) | $ (0.47) | $ (0.81) | ||
Diluted | $ (0.26) | $ (0.14) | $ (0.51) | $ (0.27) | $ (0.47) | $ (0.81) | ||
Common Stock [Member] | ||||||||
Numerator for basic and diluted net loss per share: | ||||||||
Deemed dividend | $ (826) | $ (624) | ||||||
Series Seed Redeemable Convertible Preferred Stock [Member] | ||||||||
Numerator for basic and diluted net loss per share: | ||||||||
Deemed dividend | $ 0 | $ (785) |
Net Loss per Share - Summary _2
Net Loss per Share - Summary of Dilutive Securities are Excluded from the Denominator (Detail) - shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 127,325,149 | 121,335,436 | 132,777,115 | 126,687,074 |
Convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 113,083,557 | 112,914,163 | 112,987,810 | 112,840,517 |
Unvested awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14,241,592 | 8,231,273 | 19,599,305 | 13,656,557 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 190,000 | 190,000 | 190,000 |
Segment Information - Summary o
Segment Information - Summary of Disaggregated Revenue Data for Those Markets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | $ 20,419 | $ 14,174 | $ 40,539 | $ 31,875 | $ 71,851 | $ 72,549 |
Americas | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 9,806 | 7,437 | 20,232 | 18,308 | 40,837 | 53,183 |
EMEA | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 6,425 | 4,555 | 12,687 | 8,390 | 19,214 | 12,142 |
APAC | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | $ 4,188 | $ 2,182 | $ 7,620 | $ 5,177 | $ 11,800 | $ 7,224 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | |
Number of operating segment | Segment | 1 | 1 | ||||
Revenue | $ 20,419 | $ 14,174 | $ 40,539 | $ 31,875 | $ 71,851 | $ 72,549 |
US [Member] | ||||||
Revenue | $ 9,800 | $ 6,100 | $ 19,400 | $ 14,800 | $ 35,100 | $ 44,900 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, $ in Millions | Jul. 14, 2021USD ($)$ / sharesshares | Feb. 23, 2021USD ($)$ / shares | Jun. 30, 2021$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares |
Subsequent Event [Line Items] | |||||
Stock purchased from the employees | shares | 45,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Proceeds from Sale of Restricted Investments | $ 150.9 | ||||
Class A Ordinary Shares [Member] | AONE IPO [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of Shares Issued in Transaction | shares | 6,418,667 | ||||
Temporary Equity, Redemption Price Per Share | $ / shares | $ 10.005 | ||||
Aggregate Amount of Redemption Requirement | $ 64.2 | ||||
Markforged Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Stockholders' Equity Note,Conversion Ratio | 1 | ||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | ||||
Subsequent Event [Member] | AONE [Member] | |||||
Subsequent Event [Line Items] | |||||
Business combination, Consideration transferred | $ 215 | ||||
Business combination, Equity interest issued | $ 210 | ||||
Business acquisition, Share price | $ / shares | $ 10 | ||||
Subsequent Event [Member] | Markforged [Member] | |||||
Subsequent Event [Line Items] | |||||
Payments to acquire business | $ 45 |