(In thousands, unaudited)
| Year Ended December 31, | |||||||
| 2022 | 2021 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net Loss | $ | (111,339 | ) | $ | (338,060 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 13,297 | 5,824 | |||||
| Amortization of debt discount | — | 135 | |||||
| Amortization of investment premiums, net of accretion of discounts | 2,924 | 1,370 | |||||
| Investment impairment | 1,093 | — | |||||
| Stock-based compensation, net of amounts capitalized | 148,490 | 100,605 | |||||
| Change in fair value of warrants liabilities | (27,035 | ) | 48,370 | ||||
| Change in fair value of contingent earn-out liability | (136,043 | ) | 140,454 | ||||
| Transaction costs | — | 565 | |||||
| Deferred income taxes | 51 | (385 | ) | ||||
| Loss on extinguishment of debt and convertible notes | — | 210 | |||||
| Allowance for doubtful accounts | 1,245 | 222 | |||||
| Loss of obsolete inventory and excess purchase obligation | 5,007 | — | |||||
| Other | (195 | ) | (102 | ) | |||
| Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||
| Accounts receivable | (9,609 | ) | (7,170 | ) | |||
| Inventories | (6,484 | ) | (1,946 | ) | |||
| Prepaid expenses and other assets | (1,991 | ) | (7,751 | ) | |||
| Accounts payable | (5,240 | ) | 8,812 | ||||
| Deferred revenue | 5,985 | 7,602 | |||||
| Accrued expenses and other liabilities | 1,282 | 2,437 | |||||
| Net cash used in operating activities | (118,562 | ) | (38,808 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchases of property and equipment | (1,730 | ) | (810 | ) | |||
| Capitalized software and development costs | (12,590 | ) | (7,200 | ) | |||
| Purchase of investments | (137,631 | ) | (532,561 | ) | |||
| Maturities of investments | 299,002 | — | |||||
| Investment in privately held companies | — | (250 | ) | ||||
| Investment in convertible notes | — | (1,000 | ) | ||||
| Business acquisitions, net of cash acquired | (51,874 | ) | — | ||||
| Net cash provided by (used in) investing activities | 95,177 | (541,821 | ) | ||||
| CASH FLOW FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from reverse recapitalization and PIPE financing, net | — | 612,854 | |||||
| Payment of transaction costs related to reverse recapitalization | — | (10,013 | ) | ||||
| Proceeds from sales of shares through employee equity incentive plans | 6,781 | 2,068 | |||||
| Payments for taxes related to net settlement of equity awards | (34,424 | ) | — | ||||
| Proceeds from exercise of warrants | 27,844 | 76,607 | |||||
| Repayment of debt | — | (13,067 | ) | ||||
| Other | 76 | — | |||||
| Net cash provided by financing activities | 277 | 668,449 | |||||
| Net change in cash, cash equivalents, and restricted cash | (23,108 | ) | 87,820 | ||||
| Effect of exchange rate changes on cash | 249 | (83 | ) | ||||
| Cash, cash equivalents, and restricted cash at beginning of year | 139,987 | 52,250 | |||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 117,128 | $ | 139,987 | |||
MATTERPORT, INC.
