(In thousands, unaudited)
Three Months Ended March 31, | |||||||
2022 | 2021 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | 71,904 | $ | (2,872 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 2,463 | 1,285 | |||||
Amortization of debt discount | — | 67 | |||||
Amortization of investment premiums, net of accretion of discounts | 954 | — | |||||
Stock-based compensation, net of amounts capitalized | 55,277 | 658 | |||||
Change in fair value of warrants liabilities | (21,433 | ) | — | ||||
Change in fair value of contingent earn-out liability | (136,043 | ) | — | ||||
Deferred income taxes | (227 | ) | — | ||||
Allowance for doubtful accounts | 191 | 16 | |||||
Other | 45 | (53 | ) | ||||
Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||
Accounts receivable | (3,988 | ) | (722 | ) | |||
Inventories | 427 | 185 | |||||
Prepaid expenses and other assets | (1,571 | ) | (144 | ) | |||
Accounts payable | 659 | 1,869 | |||||
Deferred revenue | 2,610 | 1,787 | |||||
Accrued expenses and other liabilities | 3,254 | (1,020 | ) | ||||
Net cash provided by (used in) operating activities | (25,478 | ) | 1,056 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (448 | ) | (162 | ) | |||
Capitalized software and development costs | (3,596 | ) | (1,344 | ) | |||
Purchase of investments | (30,378 | ) | — | ||||
Maturities of investments | 46,200 | — | |||||
Investment in convertible notes | — | (1,000 | ) | ||||
Business acquisitions, net of cash acquired | (30,020 | ) | — | ||||
Net cash used in investing activities | (18,242 | ) | (2,506 | ) | |||
CASH FLOW FROM FINANCING ACTIVITIES: | |||||||
Payment of transaction costs related to reverse recapitalization | — | (593 | ) | ||||
Proceeds from exercise of stock options | 2,191 | 789 | |||||
Payments for taxes related to net settlement of equity awards | (33,337 | ) | — | ||||
Proceeds from exercise of warrants | 27,844 | — | |||||
Repayment of debt | — | (1,099 | ) | ||||
Other | 76 | — | |||||
Net cash used in financing activities | (3,226 | ) | (903 | ) | |||
Net change in cash, cash equivalents, and restricted cash | (46,946 | ) | (2,353 | ) | |||
Effect of exchange rate changes on cash | (45 | ) | (12 | ) | |||
Cash, cash equivalents, and restricted cash at beginning of year | 139,987 | 52,250 | |||||
Cash, cash equivalents, and restricted cash at end of period | $ | 92,996 | $ | 49,885 |
MATTERPORT, INC.