(In thousands, unaudited)
| Nine Months Ended September 30, | |||||||
| 2022 | 2021 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net loss | $ | (50,989 | ) | $ | (177,070 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 9,237 | 4,121 | |||||
| Amortization of debt discount | — | 135 | |||||
| Amortization of investment premiums, net of accretion of discounts | 2,517 | 413 | |||||
| Stock-based compensation, net of amounts capitalized | 116,738 | 31,997 | |||||
| Change in fair value of warrants liabilities | (26,147 | ) | 24,176 | ||||
| Change in fair value of contingent earn-out liability | (136,043 | ) | 98,478 | ||||
| Deferred income taxes | (27 | ) | — | ||||
| Transaction costs | — | 565 | |||||
| Loss on extinguishment of debt and convertible notes | — | 210 | |||||
| Allowance for doubtful accounts | 343 | 460 | |||||
| Other | 681 | 193 | |||||
| Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||
| Accounts receivable | (7,379 | ) | (6,100 | ) | |||
| Inventories | (6,135 | ) | (342 | ) | |||
| Prepaid expenses and other assets | (5,348 | ) | (7,699 | ) | |||
| Accounts payable | (4,154 | ) | 3,427 | ||||
| Deferred revenue | 3,167 | 4,503 | |||||
| Accrued expenses and other liabilities | 4,181 | 1,442 | |||||
| Net cash used in operating activities | (99,358 | ) | (21,091 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchases of property and equipment | (1,417 | ) | (536 | ) | |||
| Capitalized software and development costs | (9,890 | ) | (5,233 | ) | |||
| Purchase of investments | (87,997 | ) | (466,466 | ) | |||
| Maturities of investments | 194,241 | — | |||||
| Investment in convertible notes | — | (1,000 | ) | ||||
| Business acquisitions, net of cash acquired | (51,874 | ) | — | ||||
| Net cash provided by (used in) investing activities | 43,063 | (473,235 | ) | ||||
| CASH FLOW FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from reverse recapitalization and PIPE financing, net | — | 612,854 | |||||
| Payment of transaction costs related to reverse recapitalization | — | (9,813 | ) | ||||
| Proceeds from sales of shares through employee equity incentive plans | 5,292 | 1,696 | |||||
| Payments for taxes related to net settlement of equity awards | (34,424 | ) | — | ||||
| Proceeds from exercise of warrants | 27,844 | — | |||||
| Repayment of debt | — | (13,067 | ) | ||||
| Other | 76 | — | |||||
| Net cash provided by (used in) financing activities | (1,212 | ) | 591,670 | ||||
| Net change in cash, cash equivalents, and restricted cash | (57,507 | ) | 97,344 | ||||
| Effect of exchange rate changes on cash | (628 | ) | (273 | ) | |||
| Cash, cash equivalents, and restricted cash at beginning of year | 139,987 | 52,250 | |||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 81,852 | $ | 149,321 | |||
MATTERPORT, INC.
