☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | ||||
(State or other jurisdiction of incorporation or organization) | ( | Identification | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
The New York Stock Exchange | ||||
Warrants, each | The New York Stock Exchange |
☐ | Large accelerated filer | ☐ | Accelerated filer | |||
☒ | ||||||
Non-accelerated filer | ☒ | Smaller reporting company | ||||
☒ | ||||||
Emerging growth company |
No. 3 | |||||||||||
Item 1. | |||||||||||
3 | |||||||||||
3 | |||||||||||
4 | |||||||||||
5 | |||||||||||
7 | |||||||||||
8 | |||||||||||
Item 2. | 22 | ||||||||||
Item 3. | |||||||||||
Item 4. | Controls and Procedures | 37 | |||||||||
39 | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. | Exhibits | 71 | |||||||||
June 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash | $ | 170 | $ | 1,569,739 | ||||
Prepaid assets | 711,544 | 770,285 | ||||||
Total current assets | 711,714 | 2,340,024 | ||||||
Investments held in Trust Account | 300,083,934 | 300,030,565 | ||||||
Total Assets | $ | 300,795,648 | $ | 302,370,589 | ||||
Liabilities and Stockholders’ Equity: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 313,509 | $ | 850,442 | ||||
Accrued expenses | 3,550,285 | 512,509 | ||||||
Franchise tax payable | 100,050 | 58,132 | ||||||
Due to related parties | 156,366 | 31,366 | ||||||
Total current liabilities | 4,120,210 | 1,452,449 | ||||||
Deferred underwriting commissions in connection with the initial public offering | 10,500,000 | 10,500,000 | ||||||
Derivative warrant liabilities | 40,600,000 | 34,885,000 | ||||||
Total liabilities | 55,220,210 | 46,837,449 | ||||||
Commitments and Contingencies (Note 5) | 0 | 0 | ||||||
Class A common stock, $0.0001 par value; 380,000,000 shares authorized; 24,057,543 and 25,053,313 shares subject to possible redemption at $10.00 per share as of June 30, 2021 and December 31, 2020, respectively | 240,575,430 | 250,533,130 | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding | 0 | 0 | ||||||
Class A common stock, $0.0001 par value; 380,000,000 shares authorized; 5,942,457 and 4,946,687 shares issued and outstanding (excluding 24,057,543 and 25,053,313 shares subject to possible redemption) as of June 30, 2021 and December 31, 2020, respectively | 594 | 495 | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 7,500,000 shares issued and outstanding | 750 | 750 | ||||||
Additional paid-in capital | 31,170,964 | 21,213,363 | ||||||
Accumulated deficit | (26,172,300 | ) | (16,214,598 | ) | ||||
Total stockholders’ equity | 5,000,008 | 5,000,010 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 300,795,648 | $ | 302,370,589 | ||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 587,294 | $ | 36,120 | ||||
Accounts receivable ($4,000 | 4,082 | 390 | ||||||
Prepaid expenses and other current assets ($520 and $1,013 attributable to related parties) | 6,478 | 2,069 | ||||||
Total current assets | 597,854 | 38,579 | ||||||
Property and equipment, net | 16,729 | 11,988 | ||||||
Operating lease right-of-use | 4,098 | 4,296 | ||||||
Intangible assets, net | 5,521 | 2,687 | ||||||
Other noncurrent assets ($1,975 and $2,365 attributable to related parties) | 2,357 | 2,928 | ||||||
Total Assets | $ | 626,559 | $ | 60,478 | ||||
Liabilities, Convertible Redeemable Preferred Stock and Warrants, and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable ($15 and $5 attributable to related parties) | $ | 1,967 | $ | 538 | ||||
Accrued expenses | 3,483 | 608 | ||||||
Current portion of operating lease liabilities ($564 and $495 attributable to related parties) | 564 | 495 | ||||||
Unearned revenue ($3,836 | 3,909 | 240 | ||||||
Current portion of stock option early exercise liabilities | 1,153 | 0— | ||||||
Total current liabilities | 11,076 | 1,881 | ||||||
Operating lease liabilities, net of current portion ($3,681 and $3,776 attributable to related parties) | 3,681 | 3,776 | ||||||
Unearned revenue, net of current portion | 1,533 | 1,118 | ||||||
Stock option early exercise liabilities, net of current portion | 2,252 | 0— | ||||||
Warrant liabilities | 50,350 | — | ||||||
Total liabilities | $ | 68,892 | $ | 6,775 | ||||
Commitments and Contingencies | 0 | 0 | ||||||
Convertible Redeemable Preferred Stock and Warrants: | ||||||||
Series A convertible redeemable preferred stock , $0.0001 par value per share; 2,000,000 shares authorized; aftergiving effect to the recapitalization there is 0 convertible redeemable preferred stock issued or outstanding at September 30, 2021 and December 31, 2020 | 0 | 0 | ||||||
Series B convertible redeemable preferred stock , $0.0001 par value per share; 9,753,798 shares authorized; aftergiving effect to the recapitalization there is 0 convertible redeemable preferred stock issued or outstanding at September 30, 2021 and December 31, 2020 | 0 | 0 | ||||||
Series B-1 convertible redeemable preferred stock, $0.0001 par value per share; 13,217,404 shares authorized; aftergiving effect to the | 0 | 0 | ||||||
Warrants for Series B-1 convertible redeemable preferred stock; after giving effect to the recapitalization there are 0 warrants for convertible redeemable preferred stock issued or outstanding at September 30, 2021 and December 31, 2020 | 0 | 0 | ||||||
Stockholders’ Equity: | ||||||||
Common stock $0.0001 par value per share ; 1,000,000,000 shares authorized; 190,197,253 and 118,146,795 shares issued and outstandingat September 30, 2021 and December 31, 2020, respectively | 10 | 3 | ||||||
Additional paid-in capital | 629,364 | 93,305 | ||||||
Accumulated deficit | (71,707 | ) | (39,605 | ) | ||||
Total stockholders’ equity | 557,667 | 53,703 | ||||||
Total Liabilities, Convertible Redeemable Preferred Stock, Warrants and Stockholders’ Equity | $ | 626,559 | $ | 60,478 | ||||
For the three months ended | For the six months ended | |||||||
June 30, 2021 | June 30, 2021 | |||||||
General and administrative expenses | $ | 376,809 | $ | 4,194,577 | ||||
Franchise tax expense | 50,000 | 101,531 | ||||||
Loss from operations | (426,809 | ) | (4,296,108 | ) | ||||
Interest income earned in operating account | 4 | 37 | ||||||
Gain on marketable securities (net), dividends and interest, held in Trust Account | 6,545 | 53,369 | ||||||
Change in fair value of derivative warrant liabilities | (7,510,000 | ) | (5,715,000 | ) | ||||
Net loss | $ | (7,930,260 | ) | $ | (9,957,702 | ) | ||
Weighted average shares outstanding of Class A common stock | 30,000,000 | 30,000,000 | ||||||
Basic and diluted net income per share, Class A common stock | $ | 0 | $ | 0 | ||||
Weighted average shares outstanding of Class B common stock | 7,500,000 | 7,500,000 | ||||||
Basic and diluted net loss per share, Class B common stock | $ | (1.06) | $ | (1.33) | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | $ | 233 | $ | — | $ | 451 | $ | — | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 234 | 57 | 742 | 57 | ||||||||||||
Research and development | 6,180 | 2,339 | 15,311 | 7,643 | ||||||||||||
Sales and marketing | 1,286 | 81 | 2,384 | 263 | ||||||||||||
General and administrative | 2,461 | 727 | 8,321 | 1,840 | ||||||||||||
Depreciation and amortization | 596 | 372 | 1,543 | 995 | ||||||||||||
Total operating costs and expenses | 10,757 | 3,576 | 28,301 | 10,798 | ||||||||||||
Loss from operations | (10,524 | ) | (3,576 | ) | (27,850 | ) | (10,798 | ) | ||||||||
Offering costs associated with warrants | (4,259 | ) | — | (4,259 | ) | — | ||||||||||
Other income | 2 | 11 | 7 | 305 | ||||||||||||
Loss before benefit for income taxes | (14,781 | ) | (3,565 | ) | (32,102 | ) | (10,493 | ) | ||||||||
Benefit for income taxes | 0 | 0 | 0 | 0 | ||||||||||||
Net loss and comprehensive loss | $ | (14,781 | ) | $ | (3,565 | ) | $ | (32,102 | ) | $ | (10,493 | ) | ||||
Net loss per share attributable to common stockholders - basic and diluted | $ | (0.12 | ) | $ | (0.03 | ) | $ | (0.27 | ) | $ | (0.09 | ) | ||||
Weighted average shares used in computing net loss per share attributable to common stockholders – basic and diluted | 120,605,457 | 115,369,517 | 119,535,167 | 114,597,135 | ||||||||||||
Common Stock | Total | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-In | Accumulated | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||
Balance - December 31, 2020 | 4,946,687 | $ | 495 | 7,500,000 | $ | 750 | $ | 21,213,363 | $ | (16,214,598 | ) | $ | 5,000,010 | |||||||||||||||
Common stock subject to possible redemption | 202,744 | 20 | — | — | 2,027,420 | — | 2,027,440 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (2,027,442 | ) | (2,027,442 | ) | |||||||||||||||||||
Balance - March 31, 2021 (Unaudited) | 5,149,431 | $ | 515 | 7,500,000 | $ | 750 | $ | 23,240,783 | $ | (18,242,040 | ) | $ | 5,000,008 | |||||||||||||||
Common stock subject to possible redemption | 793,026 | 79 | — | — | 7,930,181 | — | 7,930,260 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (7,930,260 | ) | (7,930,260 | ) | |||||||||||||||||||
Balance - June 30, 2021 (Unaudited) | 5,942,457 | $ | 594 | 7,500,000 | $ | 750 | $ | 31,170,964 | $ | (26,172,300 | ) | $ | 5,000,008 | |||||||||||||||
Convertible Redeemable Preferred Stock | Stockholder s ’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Series B-1 | Warrants | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholder s’ Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | 2,000,000 | $ | 1,925 | 9,753,798 | $ | 21,111 | 11,166,941 | $ | 61,867 | $ | 0 | 5,527,749 | 1 | 3,821 | (31,109 | ) | (27,287 | ) | ||||||||||||||||||||||||||||||
Retroactive application of recapitalization | (2,000,000 | ) | (1,925 | ) | (9,753,798 | ) | (21,111 | ) | (11,166,941 | ) | (61,867 | ) | 0 | 109,644,604 | 2 | 84,901 | — | 84,903 | ||||||||||||||||||||||||||||||
Adjusted balance, beginning of period | — | — | — | — | — | — | — | 115,172,353 | 3 | 88,722 | (31,109 | ) | 57,616 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | (3,565 | ) | (3,565 | ) | ||||||||||||||||||||||||||||||||||
Vesting of warrant issued to a customer | — | — | — | — | — | — | — | — | — | 566 | — | 566 | ||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | — | 16,513 | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||||||
Vesting of restricted common stock | — | — | — | — | — | — | — | 253,028 | — | 24 | — | 24 | ||||||||||||||||||||||||||||||||||||
Stock- based compensation | — | — | — | — | — | — | — | — | — | 227 | — | 227 | ||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 115,441,894 | 3 | 89,542 | (34,674 | ) | 54,871 | |||||||||||||||||||||||||||||||
Convertible Redeemable Preferred Stock | Stockholder s’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Series B-1 | Warrants | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholder s’ Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | 2,000,000 | $ | 1,925 | 9,753,798 | $ | 21,111 | 11,166,941 | $ | 61,867 | $ | 566 | 6,635,988 | $ | 1 | $ | 14,865 | $ | (56,926 | ) | $ | (42,060 | ) | ||||||||||||||||||||||||||
Retroactive application of recapitalization | (2,000,000 | ) | (1,925 | ) | (9,753,798 | ) | (21,111 | ) | (11,166,941 | ) | (61,867 | ) | (566 | ) | 113,023,018 | 2 | 85,467 | 85,469 | ||||||||||||||||||||||||||||||
Adjusted balance, beginning of period | — | — | — | — | — | — | — | 119,659,006 | 3 | 100,332 | (56,926 | ) | 43,409 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | (14,781 | ) | (14,781 | ) | ||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | — | 69,458 | 0 | 33 | — | 33 | ||||||||||||||||||||||||||||||||||||
Vesting of restricted common stock | — | — | — | — | — | — | — | 166,112 | — | 380 | — | 380 | ||||||||||||||||||||||||||||||||||||
Merger and PIPE transaction, net of transaction costs | — | — | — | — | — | — | — | 70,302,677 | 7 | 526,498 | — | 526,505 | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | 2,121 | — | 2,121 | ||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 190,197,253 | $ | 10 | $ | 629,364 | $ | (71,707 | ) | $ | 557,667 | |||||||||||||||||||||||||||
For the six months ended | ||||
June 30, 2021 | ||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (9,957,702 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of derivative warrant liabilities | 5,715,000 | |||
Gain on marketable securities (net), dividends and interest, held in Trust Account | (53,369 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | 58,741 | |||
Accounts payable | (536,933 | ) | ||
Accrued expenses | 3,037,776 | |||
Franchise tax payable | 41,918 | |||
Net cash used in operating activities | (1,694,569 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from advances from related party | 125,000 | |||
Net cash provided by financing activities | 125,000 | |||
Net decrease in cash | (1,569,569 | ) | ||
Cash - beginning of the period | 1,569,739 | |||
Cash - end of the period | $ | 170 | ||
Supplemental disclosure of noncash activities: | ||||
Change value of Class A common stock subject to possible redemption | $ | 9,957,700 |
Convertible Redeemable Preferred Stock | Stockholder s ’ | |||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Series B-1 | Warrants | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholder s’ Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 2,000,000 | $ | 1,925 | 9,753,798 | $ | 21,111 | 11,166,941 | $ | 61,867 | $ | — | 5,098,562 | 1 | 3,263 | (24,181 | ) | (20,917 | ) | ||||||||||||||||||||||||||||||
Retroactive application of recapitalization | (2,000,000 | ) | (1,925 | ) | (9,753,798 | ) | (21,111 | ) | (11,166,941 | ) | (61,867 | ) | — | 108,336,247 | 2 | 84,901 | — | 84,903 | ||||||||||||||||||||||||||||||
Adjusted balance, beginning of period | — | — | — | — | — | — | — | 113,434,809 | 3 | 88,164 | (24,181 | ) | 63,986 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | (10,493 | ) | (10,493 | ) | ||||||||||||||||||||||||||||||||||
Vesting of warrant issued to a customer | — | — | — | — | — | — | — | — | — | 566 | — | 566 | ||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | — | 235,887 | 0 | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||
Vesting of restricted common stock | — | — | — | — | — | — | — | 1,771,198 | — | 170 | — | 170 | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | 612 | — | 612 | ||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | $ | — | 115,441,894 | 3 | 89,542 | (34,674 | ) | 54,871 | |||||||||||||||||||||||||||||||
Convertible Redeemable Preferred Stock | Stockholder s’ | |||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Series B-1 | Warrants | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholder s’ Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, December 3 1 , 2020 | 2,000,000 | $ | 1,925 | 9,753,798 | $ | 21,111 | 11,166,941 | $ | 61,867 | $ | 566 | 6,262,460 | $ | 1 | $ | 7,838 | $ | (39,605 | ) | $ | (31,766 | ) | ||||||||||||||||||||||||||
Retroactive application of recapitalization | (2,000,000 | ) | (1,925 | ) | (9,753,798 | ) | (21,111 | ) | (11,166,941 | ) | (61,867 | ) | (566 | ) | 111,884,335 | 2 | 85,467 | 85,469 | ||||||||||||||||||||||||||||||
Adjusted balance, beginning of period | — | — | — | — | — | — | — | 118,146,795 | 3 | 93,305 | (39,605 | ) | 53,703 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | (32,102 | ) | (32,102 | ) | ||||||||||||||||||||||||||||||||||
Equity instruments issued in consideration for intellectual property and research and development arrangements | — | — | — | — | — | — | — | 385,797 | — | 2,381 | — | 2,381 | ||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | — | 974,013 | — | 256 | — | 256 | ||||||||||||||||||||||||||||||||||||
Vesting of restricted common stock | — | — | — | — | — | — | — | 387,971 | — | 796 | — | 796 | ||||||||||||||||||||||||||||||||||||
Merger and PIPE transaction, net of transaction costs | — | — | — | — | — | — | — | 70,302,677 | 7 | 526,498 | — | 526,505 | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | 6,128 | — | 6,128 | ||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 190,197,253 | $ | 10 | $ | 629,364 | $ | (71,707 | ) | $ | 557,667 | |||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (32,102 | ) | $ | (10,493 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,543 | 995 | ||||||
Non-cash research and development arrangements | 1,205 | — | ||||||
Amortization of customer warrant | 219 | 18 | ||||||
Offering costs associated with warrants | 4,259 | — | ||||||
Stock-based compensation | 5,929 | 681 | ||||||
Non-cash operating lease expense | 184 | 46 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (3,691 | ) | (293 | ) | ||||
Prepaid expenses and other current assets | (3,950 | ) | (428 | ) | ||||
Other noncurrent assets | (39 | ) | 3 | |||||
Accounts payable | (1,191 | ) | 178 | |||||
Accrued expenses | 1,714 | 214 | ||||||
Operating lease liabilities | (15 | ) | 14 | |||||
Unearned revenue | 4,084 | 743 | ||||||
Net cash used in operating activities | (21,851 | ) | (8,322 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (5,300 | ) | (8,031 | ) | ||||
Capitalized software development costs | (1,205 | ) | (775 | ) | ||||
Intangible asset acquisition costs | (414 | ) | (286 | ) | ||||
Proceeds from disposal of assets | 5 | 1 | ||||||
Net cash used in investing activities | (6,914 | ) | (9,091 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from stock options exercised | 5,424 | 29 | ||||||
Repurchase of early exercised stock options | (968 | ) | — | |||||
Proceeds from merger and PIPE transaction, net of transaction costs | 575,483 | — | ||||||
Net cash provided by financing activities | 579,939 | 29 | ||||||
Net change in cash and cash equivalents | 551,174 | (17,384 | ) | |||||
Cash and cash equivalents at the beginning of the period | 36,120 | 59,527 | ||||||
Cash and cash equivalents at the end of the period | $ | 587,294 | $ | 42,143 | ||||
Supplemental disclosures of non-cash investing and financing transactions: | ||||||||
Issuance of common stock for intellectual property | $ | 1,567 | $ | — | ||||
Issuance of common stock for research and development arrangement | $ | 814 | $ | — | ||||
Property and equipment purchases in accounts payable and accrued expenses | $ | 309 | $ | 320 | ||||
Intangible asset purchases in accounts payable and accrued expenses | $ | 129 | $ | 75 | ||||
Transaction costs in accounts payable and accrued expenses | $ | 2,620 | — | |||||
Vesting of warrants | $ | — | $ | 566 |
September 30, 2021 | December 31, 2020 | |||||||
Billed accounts receivable | $ | 4,080 | $ | 390 | ||||
Unbilled accounts receivable | 2 | 0 | ||||||
Total accounts receivable | $ | 4,082 | $ | 390 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Numerator: | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net loss available to common stockholders | $ | (14,781 | ) | $ | (3,565 | ) | $ | (32,102 | ) | $ | (10,493 | ) | ||||
Denominator: | ||||||||||||||||
Weighted average shares used in computing net loss per share attributable to common stockholders – basic and diluted | 120,605,457 | 115,369,517 | 119,535,167 | 114,597,135 | ||||||||||||
Net loss per share attributable to common stockholders – basic and diluted | $ | (0.12 | ) | $ | (0.03 | ) | $ | (0.27 | ) | $ | (0.09 | ) | ||||
For the Three Months Ended June 30, 2021 | For the Six Months Ended June 30, 2021 | |||||||
Class A common stock | ||||||||
Numerator: Income allocable to Class A common stock | ||||||||
Income from investments held in Trust Account | $ | 6,545 | $ | 53,369 | ||||
Less: Company’s portion available to be withdrawn to pay taxes | (6,545 | ) | (53,369 | ) | ||||
Net income attributable to Class A common stock | $ | 0 | $ | 0 | ||||
Denominator: Weighted average Class A common stock | ||||||||
Basic and diluted weighted average shares outstanding, Class A common stock | 30,000,000 | 30,000,000 | ||||||
Basic and diluted net income per share, Class A common stock | $ | 0 | $ | 0 | ||||
Class B common stock | ||||||||
Numerator: Net loss minus net income attributable to Class A common stock | ||||||||
Net loss | $ | (7,930,260 | ) | $ | (9,957,702 | ) | ||
Net income attributable to Class A common stock | 0 | 0 | ||||||
Net loss attributable to Class B common stock | $ | (7,930,260 | ) | $ | (9,957,702 | ) | ||
Denominator: Weighted average Class B common stock | ||||||||
Basic and diluted weighted average shares outstanding, Class B common stock | 7,500,000 | 7,500,000 | ||||||
Basic and diluted net loss per share, Class B common stock | $ | (1.06 | ) | $ | (1.33 | ) | ||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Common stock options outstanding | 24,844,683 | 16,775,118 | 24,765,944 | 16,149,250 | ||||||||||||
Warrants to purchase common stock | 8,301,202 | 8,301,202 | 8,301,202 | 8,301,202 | ||||||||||||
Public and private warrants | 125,000 | — | 42,125 | — | ||||||||||||
Unvested founders’ shares | 8,152 | — | 2,747 | — | ||||||||||||
Unvested common stock | 1,627,627 | 68,018 | 1,329,755 | 996,441 | ||||||||||||
Total | 34,906,664 | 25,144,338 | 34,441,773 | 25,446,893 | ||||||||||||
September 30, 2021 | December 31, 2020 | |||||||
Computer equipment and acquired computer software | $ | 662 | $ | 364 | ||||
Machinery, equipment, furniture, and fixtures | 3,963 | 2,974 | ||||||
Leasehold improvements | 818 | 736 | ||||||
Quantum computing systems | 13,998 | 9,617 | ||||||
Gross p roperty ande quipment | 19,441 | 13,691 | ||||||
Less: accumulated depreciation | (2,712 | ) | (1,703 | ) | ||||
Property and e quipment, net | $ | 16,729 | $ | 11,988 | ||||
Fair Value Measured as of September 30, 2021: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 587,294 | $ | 0— | $ | 0— | $ | 587,294 | ||||||||
Liabilities : | ||||||||||||||||
Public w arrants | 25,938 | 0— | 0— | 25,938 | ||||||||||||
Private p lacementw arrants | 0 | 0— | 24,412 | 24,412 | ||||||||||||
Total liabilities | $ | 25,938 | $ | 0— | $ | 24,412 | $ | 50,350 | ||||||||
Fair Value Measured as of December 31, 2020: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 36,120 | $ | 0— | $ | 0— | $ | 36,120 | ||||||||
September 30, 2021 | ||||
Exercise Price | $ | 11.50 | ||
Stock Price | $ | 10.40 | ||
Volatility | 74.8 | % | ||
Term | 5.00 | |||
Risk-free rate | 0.98 | % | ||
Dividend yield | 0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Risk- Free Interest Rate | 0 | % | 0.36 | % | 0.96 | % | 1.18 | % | ||||||||
Expected Term (in years) | — | 6.37 | 6.26 | 6.20 | ||||||||||||
Expected Volatility | 0 | % | 73.07 | % | 77.04 | % | 71.11 | % | ||||||||
Dividend Yield | 0 | % | 0 | % | 0 | % | 0 | % |
Number of Option Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value (in millions) | |||||||||||||
Outstanding as of December 31, 2019 | 13,933,956 | $ | 0.13 | 8.80 | 5.00 | |||||||||||
Granted | 3,620,559 | $ | 0.46 | |||||||||||||
Exercised | (235,887 | ) | $ | 0.13 | ||||||||||||
Cancelled/ Forfeited | (219,410 | ) | $ | 0.13 | ||||||||||||
Outstanding as of September 30, 2020 | 17,099,218 | $ | 0.20 | 8.36 | 7.85 |
Number of Option Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value (in millions) | |||||||||||||
Outstanding as of December 31, 2020 | 21,863,368 | $ | 0.34 | 8.67 | 44.80 | |||||||||||
Granted | 6,492,540 | $ | 2.39 | |||||||||||||
Exercised | (3,308,594 | ) | $ | 1.64 | ||||||||||||
Cancelled/ Forfeited | (1,212,609 | ) | $ | 1.91 | ||||||||||||
Outstanding as of September 30, 2021 | 23,834,705 | $ | 0.64 | 8.15 | 227.89 | |||||||||||
Exercisable as of September 30, 2021 | 7,476,990 | $ | 0.25 | 7.43 | 74.37 | |||||||||||
Exercisable and expected to vest at September 30, 2021 | 23,834,705 | $ | 0.64 | 8.15 | 227.89 | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cost of revenue | $ | 15 | $ | 0 | $ | 46 | $ | 0 | ||||||||
Research and development | 1,181 | 76 | 2,351 | 349 | ||||||||||||
Sales and marketing | 22 | 0 | 47 | 0 | ||||||||||||
General and administrative | 837 | 105 | 3,485 | 332 | ||||||||||||
Stock-based compensation, net of amounts capitalized | 2,055 | 181 | 5,929 | 681 | ||||||||||||
Capitalized stock-based compensation – Intangibles and fixed assets | 66 | 70 | 199 | 101 | ||||||||||||
Total stock-based compensation | $ | 2,121 | $ | 251 | $ | 6,128 | $ | 782 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | 164 | — | 164 | — | ||||||||||||
Cost of revenue | 34 | — | 34 | — | ||||||||||||
Research and development | 313 | 7 | 1,649 | 117 | ||||||||||||
Sales and marketing | 8 | — | 8 | — | ||||||||||||
General and administrative | 59 | 55 | 189 | 71 |
September 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Accounts receivable | 4,000 | — | ||||||
Prepaid expenses and other current assets | 520 | 1,013 | ||||||
Operating lease right-of-use | 4,098 | 4,296 | ||||||
Other noncurrent assets | 1,975 | 2,365 | ||||||
Liabilities | ||||||||
Accounts payable | 15 | 5 | ||||||
Current operating lease liabilities | 564 | 495 | ||||||
Unearned r evenue | 3,836 | — | ||||||
Non-current operating lease liabilities | 3,681 | 3,776 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 233 | $ | — | $ | 451 | $ | — | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) (1) | 234 | 57 | 742 | 57 | ||||||||||||
Research and development (1) | 6,180 | 2,339 | 15,311 | 7,643 | ||||||||||||
Sales and marketing (1) | 1,286 | 81 | 2,384 | 263 | ||||||||||||
General and administrative (1) | 2,461 | 727 | 8,321 | 1,840 | ||||||||||||
Depreciation and amortization | 596 | 372 | 1,543 | 995 | ||||||||||||
Total operating costs and expenses | 10,757 | 3,576 | 28,301 | 10,798 | ||||||||||||
Loss from operations | (10,524 | ) | (3,576 | ) | (27,850 | ) | (10,798 | ) | ||||||||
Offering costs associated with warrants | (4,259 | ) | — | (4,259 | ) | — | ||||||||||
Other income | 2 | 11 | 7 | 305 | ||||||||||||
Loss before benefit for income taxes | (14,781 | ) | (3,565 | ) | (32,102 | ) | (10,493 | ) | ||||||||
Benefit for income taxes | — | — | — | — | ||||||||||||
Net loss | $ | (14,781 | ) | $ | (3,565 | ) | $ | (32,102 | ) | $ | (10,493 | ) | ||||
(1) | Cost of revenue, research and development, sales and marketing, and general and administrative expenses for the periods include stock-based compensation expense as follows: |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenue | $ | 15 | $ | — | $ | 46 | $ | — | ||||||||
Research and development | 1,181 | 76 | 2,351 | 349 | ||||||||||||
Sales and marketing | 22 | — | 47 | — | ||||||||||||
General and administrative | 837 | 105 | 3,485 | 332 |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account - U.S. Treasury Securities (1) | $ | 300,083,544 | $ | 0— | $ | 0— | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities | $ | 24,000,000 | $ | 0 | $ | 16,600,000 |
Three Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 233 | $ | — | $ | 233 | 100 | % |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account - U.S. Treasury Securities (1) | $ | 300,029,996 | $ | 0— | $ | 0— | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities | $ | 0 | $ | 0 | $ | 34,885,000 |
Three Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 234 | $ | 57 | $ | 177 | 311 | % |
Three Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Research and development | $ | 6,180 | $ | 2,339 | $ | 3,841 | 164 | % |
Three Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Sales and marketing | $ | 1,286 | $ | 81 | $ | 1,205 | 1488 | % |
Three Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
General and administrative | $ | 2,461 | $ | 727 | $ | 1,734 | 239 | % |
Three Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Depreciation and amortization | $ | 596 | $ | 372 | $ | 224 | 60 | % |
Three Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Offering costs associated with warrants | $ | 4,259 | $ | — | $ | 4,259 | 100 | % |
Three Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Other income | $ | 2 | $ | 11 | $ | (9 | ) | (82 | )% |
Nine Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 451 | $ | — | $ | 451 | 100 | % |
Nine Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 742 | $ | 57 | $ | 685 | 1202 | % |
Nine Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Research and development | $ | 15,311 | $ | 7,643 | $ | 7,668 | 100 | % |
Nine Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Sales and marketing | $ | 2,384 | $ | 263 | $ | 2,121 | 806 | % |
Nine Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
General and administrative | $ | 8,321 | $ | 1,840 | $ | 6,481 | 352 | % |
Nine Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Depreciation and amortization | $ | 1,543 | $ | 995 | $ | 548 | 55 | % |
Nine Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Offering costs associated with warrants | $ | 4,259 | $ | — | $ | 4,259 | 100 | % |
Nine Months Ended September 30, | $ Change | % Change | ||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | ||||||||||||||||
Other income | $ | 7 | $ | 305 | $ | (298 | ) | (98 | )% |
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Net cash used in operating activities | $ | (21,851 | ) | $ | (8,322 | ) | ||
Net cash used in investing activities | $ | (6,914 | ) | $ | (9,091 | ) | ||
Net cash provided by financing activities | $ | 579,939 | $ | 29 |
As of December 31, 2020 | Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | ||||||||||||||||
( in thousands ) | ||||||||||||||||||||
Contractual Obligations: | ||||||||||||||||||||
Operating lease obligation (1) | $ | 7,544 | $ | 561 | $ | 1,315 | $ | 1,522 | $ | 4,146 | ||||||||||
Total | $ | 7,544 | $ | 561 | $ | 1,315 | $ | 1,522 | $ | 4,146 | ||||||||||
As of September 30, 2021 | Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | ||||||||||||||||
( in thousands ) | ||||||||||||||||||||
Contractual Obligations: | ||||||||||||||||||||
Operating lease obligation (1) | $ | 7,140 | $ | 639 | $ | 1,394 | $ | 1,556 | $ | 3,551 | ||||||||||
Total | $ | 7,140 | $ | 639 | $ | 1,394 | $ | 1,556 | $ | 3,551 | ||||||||||
(1) | Includes future minimum payments for an operating lease of corporate office facilities. |
As of December 31, 2020 | As of June 30, 2021 | |||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock price | $ | 10.84 | $ | 10.69 | ||||
Volatility | 22.7% / 44.3% | | 40.5% / 45.2% | | ||||
Term | 6.42 | 5.25 | ||||||
Risk-free rate | 0.57 | % | 0.91 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Level 3 - Derivative warrant liabilities at December 31, 2020 | $ | 34,885,000 | ||
Transfer to Level 1 | (16,725,000 | ) | ||
Change in fair value of derivative warrant liabilities | (1,560,000 | ) | ||
Level 3 - Derivative warrant liabilities at June 30, 2021 | $ | 16,600,000 | ||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||||
7/1/2021 – 7/31/2021 | — | — | — | — | ||||||||||||
8/1/2021 – 8/31/2021 | — | — | — | — | ||||||||||||
9/1/2021 – 9/30/2021 | 100,000 | 9.68 | — | — | ||||||||||||
Total | 100,000 | 9.68 | — | — | ||||||||||||
Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation |
# | Indicates a management contract or compensatory plan, contract or arrangement. |
* | Furnished herewith and not deemed to 10-Q), irrespective of any general incorporation language contained in such filing. |
IonQ, Inc. (Formerly Known as dMY Technology Group, Inc. III) | ||||||||
/s/ | ||||||||
Name: | ||||||||
Title: | President and Chief Executive Officer (Principal Executive Officer) | |||||||
Date: November 15, 2021 | /s/ Thomas Kramer | |||||||
Name: | Thomas Kramer | |||||||
Title: | Chief Financial Officer and Secretary (Principal Financial and Accounting Officer) |