- Began trading on the NYSE as the world’s first and only public company focused on Additive Manufacturing 2.0 (AM 2.0)
- Commenced global shipments of the Shop System – our binder jetting platform focused on flexible, mid-volume production in job and machine shops
- Commenced global shipments of the Production System P-1 – our binder jetting development platform featuring breakthrough Single Pass Jetting™ technology
- Fourth quarter 2020 revenue of $8.4 million, up from $2.5 million in the third quarter of 2020
- Robust liquidity position with cash and cash equivalents and short-term investments of $595.4 million as of December 31, 2020 to support organic and inorganic growth opportunities
- Entered photopolymer additive manufacturing market through EnvisionTEC acquisition, which closed in the first quarter of 2021
BOSTON — (BUSINESS WIRE) — March 15, 2021 — Desktop Metal, Inc. (NYSE: DM), (“Desktop Metal” or “the Company”), a leader in mass production and turnkey additive manufacturing solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2020.
“The fourth quarter of 2020 was transformative for our Company as we became the only publicly traded pure-play AM 2.0 company,” said Ric Fulop, CEO and co-founder of Desktop Metal. “We achieved key milestones in our path to driving adoption of additive manufacturing with the global shipments of our Shop System and Production System P-1 solutions. Our acquisition of EnvisionTEC in February strengthens our market position by adding a compelling lineup of production-focused photopolymer printers and over 190 qualified materials to our portfolio. We are excited to continue building on our strong momentum by capitalizing on both high levels of customer interest and inorganic opportunities in the space as we enter this next chapter of our growth story.”
Fourth Quarter 2020 Business Highlights:
- Completed business combination between Trine Acquisition Corp. and Desktop Metal, Inc. to become the world’s first publicly traded, pure-play AM 2.0 company
- Received multi-million dollar award from the United States Department of Defense for the development of a high-volume manufacturing process to mass produce Cobalt-free hardmetal parts
- Launched Live Sinter, a new process simulation software for powder metallurgy-based additive manufacturing
- Commenced global shipments of Shop System, which became the #1 metal binder jetting system by unit share within its first quarter of salesi
- Commenced global shipments of the Production System P-1
Fourth Quarter and Full Year 2020 Financial Highlights:
- Fourth quarter revenue of $8.4 million, up from $2.5 million in the third quarter of 2020
- Fourth quarter net loss of $25.4 million
- Full year revenue of $16.5 million
- Full year net loss of $90.4 million
- Full year Adjusted EBITDA of $(73.5) million
- Robust liquidity position with cash, cash equivalents and short-term investments of $595.4 million as of December 31, 2020
Recent Business Highlights:
- Acquired EnvisionTEC, a leading global provider of volume production photopolymer 3D printing solutions for end-use parts, in February 2021, creating a comprehensive product portfolio across metals, polymers, composites, and biocompatible materials while strengthening our global distribution channel
-
Enhanced senior management team
- Appointed James Haley as Chief Financial Officer, effective February 12, 2021
- Appointed Arjun Aggarwal as Chief Product Officer, effective February 9, 2021
- Announced and commenced global shipments of Studio System 2, a second generation of our office-friendly metal 3D printing platform that offers customers an accessible way to print metal parts in low volumes with a simplified two-step process
- Streamlined capital structure and enhanced cash position by beginning the redemption process for DM public warrants, providing significant financial flexibility to invest in organic and inorganic growth opportunities with an additional $137 million in cash provided through March 10, 2021
Desktop Health:
In a separate press release issued today, Desktop Metal announced the launch of Desktop Health™, a new business dedicated to redefining patient-specific healthcare. Led by healthcare industry executive, Michael Jafar, who brings nearly 20 years of experience creating and scaling breakthrough healthcare products, Desktop Health’s mission is to change the way patients experience personalized healthcare, through innovation and science-based solutions. The business will leverage Desktop Metal’s comprehensive portfolio of additive manufacturing solutions in combination with its extensive library of advanced materials for current and future applications spanning dentistry, orthodontics, dermatology, orthopedics, cardiology, plastic surgery and printed regenerative tissues and grafts. Additional details on this launch can be found in the separate press release, accessible on the Investor Relations section of Desktop Metal’s website, ir.desktopmetal.com.
Conference Call Information:
Desktop Metal will host a conference call on March 15, 2021 at 8:30 a.m. ET to discuss fourth quarter 2020 financial results. To listen to the conference call via telephone, dial 1-877-407-4018 or 1-201-689-8471 (international callers/U.S. toll) and enter the conference ID number 13717409. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of Desktop Metal’s website, ir.desktopmetal.com. A replay of the call will be accessible at the webcast link after the conference call.
Full Year 2020 Financial Results
DESKTOP METAL, INC. |
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CONSOLIDATED BALANCE SHEETS |
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(in thousands, except share and per share amounts) |
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December 31, |
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|
|
2020 |
|
2019 |
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Assets |
|
|
|
|
|
|
||
| Current assets: |
|
|
|
|
|
|
||
| Cash and cash equivalents |
|
$ |
483,525 |
|
|
$ |
66,161 |
|
| Short-term investments |
|
|
111,867 |
|
|
|
84,754 |
|
| Accounts receivable |
|
|
6,516 |
|
|
|
4,523 |
|
| Inventory |
|
|
9,708 |
|
|
|
8,405 |
|
| Prepaid expenses and other current assets |
|
|
976 |
|
|
|
1,888 |
|
| Total current assets |
|
|
612,592 |
|
|
|
165,731 |
|
| Restricted cash |
|
|
612 |
|
|
|
612 |
|
| Property and equipment, net |
|
|
12,160 |
|
|
|
18,387 |
|
| Capitalized software, net |
|
|
312 |
|
|
|
446 |
|
| Goodwill |
|
|
2,252 |
|
|
|
2,252 |
|
| Acquired technology, net |
|
|
9,102 |
|
|
|
2,994 |
|
| Other noncurrent assets |
|
|
4,879 |
|
|
|
2,289 |
|
| Total Assets |
|
$ |
641,909 |
|
|
$ |
192,711 |
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||
| Current liabilities: |
|
|
|
|
|
|
||
| Accounts payable |
|
$ |
7,591 |
|
|
$ |
10,228 |
|
| Customer deposits |
|
|
1,480 |
|
|
|
2,325 |
|
| Current portion of operating lease liability |
|
|
868 |
|
|
|
806 |
|
| Accrued expenses and other current liabilities |
|
|
7,565 |
|
|
|
5,053 |
|
| Deferred revenue |
|
|
3,004 |
|
|
|
2,230 |
|
| Current portion of long-term debt, net of deferred financing costs |
|
|
9,991 |
|
|
|
— |
|
| Total current liabilities |
|
|
30,499 |
|
|
|
20,642 |
|
| Long-term debt, net of deferred financing costs |
|
|
— |
|
|
|
9,972 |
|
| Lease liability, net of current portion |
|
|
2,157 |
|
|
|
3,026 |
|
| Total liabilities |
|
|
32,656 |
|
|
|
33,640 |
|
| Commitments and Contingencies (Note 15) |
|
|
|
|
|
|
||
| Legacy Convertible Preferred Stock (Note 17) |
|
|
— |
|
|
|
— |
|
| Stockholders’ Equity |
|
|
|
|
|
|
||
| Preferred Stock, $0.0001 par value—authorized, 50,000,000 shares; no shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively |
|
|
— |
|
|
|
— |
|
| Common Stock, $0.0001 par value—500,000,000 shares authorized; 226,756,733 and 160,500,702 shares issued at December 31, 2020 and December 31, 2019, respectively, 224,626,597 and 154,913,934 shares outstanding at December 31, 2020 and December 31, 2019, respectively |
|
|
23 |
|
|
|
16 |
|
| Additional paid-in capital |
|
|
993,933 |
|
|
|
453,242 |
|
| Accumulated deficit |
|
|
(384,694 |
) |
|
|
(294,262 |
) |
| Accumulated other comprehensive (loss) income |
|
|
(9 |
) |
|
|
75 |
|
| Total Stockholders’ Equity |
|
|
609,253 |
|
|
|
159,071 |
|
| Total Liabilities and Stockholders’ Equity |
|
$ |
641,909 |
|
|
$ |
192,711 |
|
| DESKTOP METAL, INC. |
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| CONSOLIDATED STATEMENTS OF OPERATIONS |
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| (in thousands, except per share amounts) |
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|
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|
Years Ended December 31, |
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|
|
|
2020 |
|
2019 |
||||
| Revenues |
|
|
|
|
|
|
||
| Products |
|
$ |
13,718 |
|
|
$ |
22,758 |
|
| Services |
|
|
2,752 |
|
|
|
3,681 |
|
| Total revenues |
|
|
16,470 |
|
|
|
26,439 |
|
| Cost of sales |
|
|
|
|
|
|
||
| Products |
|
|
26,945 |
|
|
|
45,268 |
|
| Services |
|
|
4,574 |
|
|
|
5,528 |
|
| Total cost of sales |
|
|
31,519 |
|
|
|
50,796 |
|
| Gross margin |
|
|
(15,049 |
) |
|
|
(24,357 |
) |
| Operating expenses |
|
|
|
|
|
|
||
| Research and development |
|
|
43,136 |
|
|
|
54,656 |
|
| Sales and marketing |
|
|
13,136 |
|
|
|
18,749 |
|
| General and administrative |
|
|
20,734 |
|
|
|
11,283 |
|
| Total operating expenses |
|
|
77,006 |
|
|
|
84,688 |
|
| Loss from operations |
|
|
(92,055 |
) |
|
|
(109,045 |
) |
| Interest expense |
|
|
(328 |
) |
|
|
(503 |
) |
| Interest and other income, net |
|
|
1,011 |
|
|
|
5,952 |
|
| Loss before income taxes |
|
|
(91,372 |
) |
|
|
(103,596 |
) |
| Income tax benefit |
|
|
940 |
|
|
|
— |
|
| Net loss |
|
$ |
(90,432 |
) |
|
$ |
(103,596 |
) |
| Net loss per share—basic and diluted |
|
$ |
(0.57 |
) |
|
$ |
(0.69 |
) |
| DESKTOP METAL, INC. |
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| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
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| (in thousands) |
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|
|
|
|
|
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|
||
|
|
|
Years Ended December 31, |
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|
|
|
2020 |
|
2019 |
||||
| Net loss |
|
$ |
(90,432 |
) |
|
$ |
(103,596 |
) |
| Other comprehensive (loss) income, net of taxes: |
|
|
|
|
|
|
||
| Unrealized (loss) gain on available-for-sale marketable securities, net |
|
|
(84 |
) |
|
|
171 |
|
| Total comprehensive loss, net of taxes of $0 |
|
$ |
(90,516 |
) |
|
$ |
(103,425 |
) |
| DESKTOP METAL, INC. |
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| CONSOLIDATED STATEMENTS OF CASH FLOWS |
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| (in thousands) |
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|
Years Ended December 31, |
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|
|
|
2020 |
|
2019 |
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| Cash flows from operating activities: |
|
|
|
|
|
|
||
| Net loss |
|
$ |
(90,432 |
) |
|
$ |
(103,596 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
| Depreciation and amortization |
|
|
8,589 |
|
|
|
8,087 |
|
| Stock-based compensation |
|
|
8,006 |
|
|
|
5,215 |
|
| Expense related to Common Stock warrants issued |
|
|
1,915 |
|
|
|
1,038 |
|
| Loss (gain) on disposal of property and equipment |
|
|
18 |
|
|
|
(7 |
) |
| Gain on investment, related to Make Composites, Inc. |
|
|
— |
|
|
|
(1,426 |
) |
| Impairment of capitalized software |
|
|
— |
|
|
|
444 |
|
| Amortization (accretion) of discount on investments |
|
|
75 |
|
|
|
(1,570 |
) |
| Amortization of debt financing cost |
|
|
19 |
|
|
|
19 |
|
| Provision for bad debt |
|
|
377 |
|
|
|
199 |
|
| Net increase in accrued interest related to marketable securities |
|
|
(3 |
) |
|
|
(36 |
) |
| Income tax benefit |
|
|
(940 |
) |
|
|
— |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
| Accounts receivable |
|
|
(2,370 |
) |
|
|
(1,664 |
) |
| Inventory |
|
|
(1,303 |
) |
|
|
(1,694 |
) |
| Prepaid expenses and other current assets |
|
|
901 |
|
|
|
809 |
|
| Accounts payable |
|
|
(2,637 |
) |
|
|
(4,455 |
) |
| Accrued expenses and other current liabilities |
|
|
(2,391 |
) |
|
|
3,272 |
|
| Customer deposits |
|
|
(845 |
) |
|
|
152 |
|
| Deferred revenue |
|
|
774 |
|
|
|
(1,693 |
) |
| Change in right of use assets and lease liabilities, net |
|
|
(328 |
) |
|
|
(296 |
) |
| Net cash used in operating activities |
|
|
(80,575 |
) |
|
|
(97,202 |
) |
| Cash flows from investing activities: |
|
|
|
|
|
|
||
| Purchases of property and equipment |
|
|
(1,429 |
) |
|
|
(6,867 |
) |
| Purchase of other investments |
|
|
(3,000 |
) |
|
|
— |
|
| Capitalized software |
|
|
— |
|
|
|
(321 |
) |
| Purchase of marketable securities |
|
|
(136,286 |
) |
|
|
(215,584 |
) |
| Proceeds from sales and maturities of marketable securities |
|
|
109,016 |
|
|
|
196,836 |
|
| Cash paid for asset acquisition, net of cash acquired |
|
|
(5,284 |
) |
|
|
(96 |
) |
| Net cash used in investing activities |
|
|
(36,983 |
) |
|
|
(26,032 |
) |
| Cash flows from financing activities: |
|
|
|
|
|
|
||
| Proceeds from Preferred Stock issuances, net of issuance cost |
|
|
— |
|
|
|
159,644 |
|
| Proceeds from reverse recapitalization, net of issuance costs |
|
|
534,597 |
|
|
|
— |
|
| Proceeds from exercise of stock options |
|
|
325 |
|
|
|
708 |
|
| Proceeds from PPP loan |
|
|
5,379 |
|
|
|
— |
|
| Repayment of PPP loan |
|
|
(5,379 |
) |
|
|
— |
|
| Net cash provided by financing activities |
|
|
534,922 |
|
|
|
160,352 |
|
| Net increase in cash, cash equivalents, and restricted cash |
|
|
417,364 |
|
|
|
37,118 |
|
| Cash and cash equivalents at beginning of year |
|
|
66,161 |
|
|
|
29,043 |
|
| Restricted cash |
|
|
612 |
|
|
|
612 |
|
| Cash, cash equivalents, and restricted cash at year-end |
|
$ |
484,137 |
|
|
$ |
66,773 |
|
| Supplemental cash flow information: |
|
|
|
|
|
|
||
| Interest paid |
|
$ |
322 |
|
|
$ |
485 |
|
| Non-cash investing and financing activities: |
|
|
|
|
|
|
||
| Net liabilities assumed from Trine in Business Combination |
|
$ |
2,650 |
|
|
|
— |
|
| Accrued reverse recapitalization transaction costs |
|
$ |
1,901 |
|
|
|
— |
|
| Common Stock issued for acquisitions |
|
$ |
500 |
|
|
$ |
3,563 |
|
| Accrued purchase price for asset acquisition |
|
$ |
200 |
|
|
|
— |
|
| Tax liabilities related to withholdings on Common Stock issued in connection with acquisitions |
|
$ |
102 |
|
|
|
— |
|
| Additions to right of use assets and lease liabilities |
|
$ |
— |
|
|
$ |
296 |
|
| Purchase of property and equipment included in accrued expenses and other current liabilities |
|
$ |
— |
|
|
$ |
109 |
|
| Common Stock forfeited in satisfaction of note receivable |
|
$ |
— |
|
|
$ |
249 |
|
