10-Q/A
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 84-3235065 | |||||||||
(State or other jurisdiction of
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| (I.R.S. Employer
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195 South Milpitas Blvd Milpitas, | ||||||||
(Address of principal executive offices) | (Zip Code) |
Not Applicable
code)
Title of each class | Trading | Name of each exchange | ||||||||||||
Class A common stock, par value, $0.0001 per share | VIEW | The Nasdaq Global Market | ||||||||||||
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 | VIEWW | The Nasdaq Global Market |
Large accelerated filer | ¨ | Accelerated filer | ¨ | ||||||||||||
Non-accelerated filer | Smaller reporting company | x | |||||||||||||
Emerging growth company |
RESTATEMENT
This Amendment No. 1 on Form 10-Q/A (this “Amendment” or “Form 10-Q/A”) amends the CF Finance Acquisition Corp. II (“CFII,” now known as View, Inc. as of March 8, 2021, “View” or the “Company”) Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 originally filed with the Securities and Exchange Commission (the “SEC”) on November 12, 2020 by the Company (the “Original Filing”). This Amendment restates the Company’s previously issued quarterly unaudited financial statements as of and for the quarter ended September 30, 2020. See Note 3, Restatement of Previously Issued Financial Statements, in Item 1, Financial Statements, for such restated information.
Restatement Background
On April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the SEC together issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (‘SPACs’)” (the “SEC Staff Statement”). Specifically, the SEC Statement focused on certain settlement terms and provisions related to certain tender offers following a business combination, which terms are similar to those contained in the Warrant Agreement (the “Warrant Agreement”), dated as of August 26, 2020, between CFII and Continental Stock Transfer & Trust Company, a New York corporation, as warrant agent. As a result of the SEC Statement, the Company reevaluated the accounting treatment of (i) the 16,666,637 redeemable warrants (the “Public Warrants”) that were included in the units issued by CFII in its initial blank-check public offering (the “IPO”) and (ii) the 366,666 redeemable warrants (together with the Public Warrants, the “Warrants”) that were issued to CFII’s sponsor in a private placement that closed concurrently with the closing of the blank check IPO, and determined to classify the Warrants as derivative liabilities measured at fair value, with changes in fair value each period reported in earnings.
Similarly, press releases, earnings releases,Company’s warrants during that period. For additional information, please refer to that certain Form 8-K, filed on May 11, 2021.
Impactupon and would require restatement in order to correct misstatements in those financial
The change in accountingwarranty-related obligations
The impact of these adjustments was an increase to net lossthe restatement is included in Note 2 of $2,323,679 for the quarter ended September 30, 2020, an increase to total liabilities of $32,943,941, a decrease in Class A common stock shares subject to possible redemption of $32,943,950 and an increase to total stockholders’ equity of $9 as of September 30, 2020.
See Note 3“Notes to the Unaudited Condensed Consolidated Financial StatementsStatements” included in Part I, Item 11. “Financial Statements (Unaudited)” of this Amendment for additional information onForm 10-Q/A.
Internal Control Considerations
In lightreporting that constituted additional material weaknesses as of the restatement discussed above, the Company has reassessed the effectivenessMarch 31, 2021. For a discussion of itsmanagement's consideration of our disclosure controls and procedures and internal controls over financial reporting as of September 30, 2020, and has concluded that its remediation plan of its previously disclosedthe material weaknesses will be expanded to address this matter, so as to improve the process and controls in the determination of the appropriate accounting and classification of its financial instruments and key agreements.identified, See additional information included in Part I, Item 4, “ControlsControls and Procedures”Procedures of this Amendment for Internal Control Considerations.
Form 10-Q/A.
Filing
Part
Part-Part I, Item 2.2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations.Operations
Part II, Item 1A. Risk Factors.
However, for the convenienceChief Financial Officer have provided new certifications dated as of the reader,date of this Amendment sets forthfiling (Exhibits 31.1, 31.2, 32.1 and 32.2), and the Company has provided its restated condensed consolidated financial statements formatted in Extensible Business Reporting Language (XBRL) in Exhibit 101.
Filing. This AmendmentForm 10-Q/A speaks as of the filing date of the Original Filing and does not reflect other events occurringthat may have occurred after the filing date of the Original Filing other than as described herein.
Investors should rely onlyor modify or update any disclosures that may have been affected by subsequent events.
In addition, as required by Rule 12b-15 under the Securities Exchange Act
Page No. | ||||||||
iii
PART I—FINANCIAL INFORMATION
VIEW, INC.
September 30, 2020 | March 31, 2020 | |||||||
(Unaudited) (As Restated) | ||||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash | $ | 404,636 | $ | 25,000 | ||||
Prepaid expenses | 24,062 | — | ||||||
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Total current assets | 428,698 | — | ||||||
Cash equivalents held in Trust Account | 500,000,000 | — | ||||||
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Total Assets | $ | 500,428,698 | $ | 25,000 | ||||
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Liabilities and Stockholders’ Equity: | ||||||||
Current liabilities: | ||||||||
Accrued expenses | 44,577 | 505 | ||||||
Payables to related parties | 32,083 | — | ||||||
Franchise tax payable | 16,667 | — | ||||||
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Total current liabilities | 93,327 | 505 | ||||||
Derivative warrant liabilities | 32,943,941 | — | ||||||
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Total liabilities | $ | 33,037,268 | 505 | |||||
Commitments and Contingencies | ||||||||
Class A common stock, 46,239,142 and -0- shares subject to possible redemption at $10.00 per share at September 30, 2020 and March 31, 2020, respectively | 462,391,420 | — | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | — | — | ||||||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 4,860,858 and -0- shares issued and outstanding (excluding 46,239,142 and -0- shares subject to possible redemption) at September 30, 2020 and March 31, 2020, respectively | 486 | — | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 14,375,000 shares issued and outstanding at September 30, 2020 and March 31, 2020 (1) | 1,438 | 1,438 | ||||||
Additional paid-in capital | 7,391,561 | 23,562 | ||||||
Accumulated deficit | (2,393,475 | ) | (505 | ) | ||||
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Total Stockholders’ Equity | 5,000,010 | 24,495 | ||||||
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Total Liabilities and Stockholders’ Equity | $ | 500,428,698 | $ | 25,000 | ||||
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March 31,
2021December 31,
2020(As Restated) (As Restated) Assets Current assets: Cash and cash equivalents $ 506,457 $ 63,232 Accounts receivable, net of allowances of $224 as of March 31, 2021 and December 31, 2020, respectively 12,086 12,252 Inventories 7,134 6,483 Prepaid expenses and other current assets 6,069 6,213 Total current assets 531,746 88,180 Property and equipment, net 278,304 282,560 Restricted cash 10,464 10,461 Other assets 3,421 8,946 Total assets $ 823,935 $ 390,147 Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit) Current liabilities: Accounts payable $ 8,688 $ 14,562 Accrued expenses and other current liabilities 29,996 42,150 Accrued compensation 10,386 10,827 Deferred revenue 4,220 2,649 Debt, current — 247,248 Total current liabilities 53,290 317,436 Debt, non-current 15,430 15,430 Redeemable convertible preferred stock warrant liability — 12,323 Sponsor earn-out liability 23,983 — Other liabilities 53,290 56,844 Total liabilities 145,993 402,033 0 0 Redeemable convertible preferred stock, $0.0001 par value; none authorized, issued and outstanding as of March 31, 2021; 224,409,612 shares authorized, 121,431,310 shares issued and outstanding as of December 31, 2020; no aggregate liquidation preference as of March 31, 2021 and $1,749,201 as of December 31, 2020 — 1,812,678 Stockholders’ equity (deficit): Preferred stock, $0.0001 par value; 1,000,000 shares authorized, none issued and outstanding as of March 31, 2021; none authorized, issued and outstanding as of December 31, 2020 — — Common stock, $0.0001 par value; 600,000,000 and 262,797,235 shares authorized as of March 31, 2021 and December 31, 2020; 217,076,712 and 1,708,476 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively 22 — Additional paid-in capital 2,666,308 89,789 Accumulated deficit (1,988,388) (1,914,353) Total stockholders’ equity (deficit) 677,942 (1,824,564) Total liabilities redeemable convertible preferred stock, and stockholders’ equity (deficit) $ 823,935 $ 390,147
VIEW, INC.
(UNAUDITED)
For the Three Months Ended September 30, 2020 (As Restated) | For the Six Months Ended September 30, 2020 (As Restated) | For the period from September 27, 2019 (inception) through September 30, 2019 | ||||||||||
General and administrative costs | $ | 703,973 | $ | 703,973 | $ | — | ||||||
Franchise tax expense | 16,667 | 16,667 | — | |||||||||
Loss from operations | (720,640 | ) | (720,640 | ) | — | |||||||
Change in fair value of warrant liability | (1,672,330 | ) | (1,672,330 | ) | — | |||||||
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Net loss | $ | (2,392,970 | ) | $ | (2,392,970 | ) | $ | — | ||||
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Weighted average shares outstanding of Class A common stock | 51,100,000 | 51,100,000 | — | |||||||||
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Basic and diluted net income (loss) per share, Class A | $ | — | $ | — | $ | — | ||||||
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Weighted average shares outstanding of Class B common stock (1) | 12,500,000 | 12,500,000 | 12,500,000 | |||||||||
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Basic and diluted net income (loss) per share, Class B | $ | (0.19 | ) | $ | (0.19 | ) | $ | — | ||||
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Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
(As Restated) | (As Restated) | ||||||||||
Revenue | $ | 9,769 | $ | 9,032 | |||||||
Costs and expenses: | |||||||||||
Cost of revenue | 36,179 | 36,463 | |||||||||
Research and development | 16,570 | 23,088 | |||||||||
Selling, general, and administrative | 21,700 | 21,364 | |||||||||
Total costs and expenses | 74,449 | 80,915 | |||||||||
Loss from operations | (64,680) | (71,883) | |||||||||
Interest and other income (expense), net | |||||||||||
Interest income | 5 | 445 | |||||||||
Interest expense | (5,308) | (5,285) | |||||||||
Other expense, net | (1,442) | (24) | |||||||||
Gain on fair value change, net | 7,413 | 4,427 | |||||||||
Loss on extinguishment of debt | (10,018) | — | |||||||||
Interest and other income (expense), net | (9,350) | (437) | |||||||||
Loss before provision of income taxes | (74,030) | (72,320) | |||||||||
Provision for income taxes | (5) | (5) | |||||||||
Net and comprehensive loss | $ | (74,035) | $ | (72,325) | |||||||
Net loss per share, basic and diluted | $ | (1.33) | $ | (43.65) | |||||||
Weighted-average shares used in calculation of net loss per share, basic and diluted | 55,500,398 | 1,656,774 |
VIEW, INC.
FOR THE PERIOD FROM MARCH 31, 2020 THROUGH SEPTEMBER 30, 2020
(UNAUDITED)
For the three and six months ended September 30, 2020 (As Restated) | ||||||||||||||||||||||||||||
Common Stock | Additional | Total | ||||||||||||||||||||||||||
Class A | Class B | Paid-In | Accumulated | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares (1) | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||
Balance—March 31, 2020 | — | $ | — | 14,375,000 | $ | 1,438 | $ | 23,562 | $ | (505 | ) | $ | 24,495 | |||||||||||||||
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Net loss | — | — | — | — | — | — | — | |||||||||||||||||||||
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Balance—June 30, 2020 (unaudited) | — | $ | — | 14,375,000 | $ | 1,438 | $ | 23,562 | $ | (505 | ) | $ | 24,495 | |||||||||||||||
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Sale of units in initial public offering, less fair value of public warrants | 50,000,000 | 5,000 | — | — | 469,328,388 | — | 469,333,388 | |||||||||||||||||||||
Offering costs | — | — | — | — | (9,968,484 | ) | — | (9,968,484 | ) | |||||||||||||||||||
Sale of private placement units to Sponsor in private placement less fair value of private warrants | 1,100,000 | 110 | — | — | 10,394,891 | — | 10,395,001 | |||||||||||||||||||||
Class A common stock subject to possible redemption | (46,239,142 | ) | (4,624 | ) | — | — | (462,386,796 | ) | — | (462,391,420 | ) | |||||||||||||||||
Net loss | — | — | — | — | — | (2,392,970 | ) | (2,392,970 | ) | |||||||||||||||||||
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Balance—September 30, 2020 (unaudited) | 4,860,858 | $ | 486 | 14,375,000 | $ | 1,438 | $ | 7,391,561 | $ | (2,393,475 | ) | $ | 5,000,010 | |||||||||||||||
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For the period from September 27, 2019 (inception) through September 30, 2019 | ||||||||||||||||||||||||||||
Common Stock | Additional | Total | ||||||||||||||||||||||||||
Class A | Class B | Paid-In | Accumulated | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares (1) | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||
Balance—September 27, 2019 (inception) | — | $ | — | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
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Issuance of Class B common stock to Sponsor | — | — | 14,375,000 | 1,438 | 23,562 | — | 25,000 | |||||||||||||||||||||
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Balance—September 30, 2019 (unaudited) | — | $ | — | 14,375,000 | $ | 1,438 | $ | 23,562 | $ | — | $ | 25,000 | ||||||||||||||||
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Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2020 (As Restated) | 5,222,852 | $ | 1,812,678 | 73,483 | $ | 7 | $ | 89,782 | $ | (1,914,353) | $ | (1,824,564) | |||||||||||||||||||||||||||||
(5,101,421) | — | (71,774) | (7) | 7 | — | — | |||||||||||||||||||||||||||||||||||
Balances as of December 31, 2020, as converted (As Restated) | 121,431 | 1,812,678 | 1,709 | — | 89,789 | (1,914,353) | (1,824,564) | ||||||||||||||||||||||||||||||||||
Conversion of redeemable convertible preferred stock to common stock in connection with reverse recapitalization | (121,431) | (1,812,678) | 121,431 | 12 | 1,812,666 | — | 1,812,678 | ||||||||||||||||||||||||||||||||||
Reverse recapitalization transaction, net of fees | — | — | 93,865 | 10 | 745,741 | — | 745,751 | ||||||||||||||||||||||||||||||||||
Conversion of redeemable convertible preferred stock warrants to common stock warrants in connection with reverse recapitalization | — | — | — | — | 7,267 | — | 7,267 | ||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | 72 | — | 382 | — | 382 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 10,463 | — | 10,463 | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (74,035) | (74,035) | ||||||||||||||||||||||||||||||||||
Balances as of March 31, 2021 (As Restated) | — | $ | — | 217,077 | $ | 22 | $ | 2,666,308 | $ | (1,988,388) | $ | 677,942 |
Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2019 (As Restated) | 5,223,032 | $ | 1,812,724 | 71,000 | $ | 7 | $ | 60,349 | $ | (1,664,627) | $ | (1,604,271) | |||||||||||||||||||||||||||||
(5,101,596) | — | (69,349) | (7) | 7 | — | — | |||||||||||||||||||||||||||||||||||
Balances as of December 31, 2019, as converted (As Restated) | 121,436 | 1,812,724 | 1,651 | — | 60,356 | (1,664,627) | (1,604,271) | ||||||||||||||||||||||||||||||||||
Cancellation of Series A, Series B, and Series E redeemable convertible preferred stock | (5) | (46) | — | — | 46 | — | 46 | ||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | 28 | — | 149 | — | 149 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 9,218 | — | 9,218 | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (72,325) | (72,325) | ||||||||||||||||||||||||||||||||||
Balances as of March 31, 2020 (As Restated) | 121,431 | $ | 1,812,678 | 1,679 | $ | — | $ | 69,769 | $ | (1,736,952) | $ | (1,667,183) |
VIEW, INC.
(UNAUDITED)
For the Six Months | For the Period from September 27, 2019 (inception) through September 30, 2019 | |||||||
Ended September 30, 2020 (As Restated) | ||||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (2,392,970 | ) | $ | — | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Change in fair value of derivative warrant liabilities | 1,672,330 | — | ||||||
Offering costs allocated to derivative warrant liabilities | 651,349 | |||||||
General and administrative expenses paid by related party | 32,614 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (24,062 | ) | — | |||||
Accrued expenses | 44,072 | — | ||||||
Franchise tax payable | 16,667 | — | ||||||
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Net cash used in operating activities | — | — | ||||||
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Cash Flows from Investing Activities: | ||||||||
Cash deposited in Trust Account | (500,000,000 | ) | — | |||||
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Net cash used in investing activities | (500,000,000 | ) | — | |||||
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Cash Flows from Financing Activities: | ||||||||
Repayment of note payable to related party | (185,410 | ) | — | |||||
Proceeds from issuance of Class B common stock to Sponsor | — | 25,000 | ||||||
Proceeds received from initial public offering, gross | 500,000,000 | — | ||||||
Proceeds received from private placement | 11,000,000 | — | ||||||
Offering costs paid | (10,434,954 | ) | — | |||||
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Net cash provided by financing activities | 500,379,636 | 25,000 | ||||||
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Net change in cash | 379,636 | 25,000 | ||||||
Cash—beginning of the period | 25,000 | — | ||||||
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Cash—end of the period | $ | 404,636 | $ | 25,000 | ||||
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Supplemental disclosure of noncash activities: | ||||||||
Offering costs included in note payable | $ | 184,879 | $ | — | ||||
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Initial derivative warrant liabilities in connection with initial public offering and Sponsor private placement | $ | 31,271,611 | $ | — | ||||
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Initial classification of Class A common stock subject to possible redemption | $ | 464,133,020 | $ | — | ||||
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Change in classification of Class A common stock subject to possible redemption | $ | (1,741,600 | ) | — | ||||
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Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
(As Restated) | (As Restated) | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (74,035) | $ | (72,325) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 7,029 | 6,614 | |||||||||
Loss on extinguishment of debt | 10,018 | — | |||||||||
Gain on fair value change, net | (7,413) | (4,427) | |||||||||
Amortization of debt discount | 488 | 586 | |||||||||
Stock-based compensation | 10,463 | 9,218 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 166 | 1,523 | |||||||||
Inventories | (651) | 756 | |||||||||
Prepaid expenses and other current assets | 143 | 22,762 | |||||||||
Other assets | 32 | 26 | |||||||||
Accounts payable | (4,685) | (2,967) | |||||||||
Deferred revenue | 1,571 | (407) | |||||||||
Accrued compensation | (439) | 133 | |||||||||
Accrued expenses and other liabilities | (13,025) | (843) | |||||||||
Net cash used in operating activities | (70,338) | (39,351) | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (2,679) | (19,355) | |||||||||
Maturities of short-term investments | — | 32,866 | |||||||||
Net cash provided by (used in) investing activities | (2,679) | 13,511 | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from draws related to revolving debt facility | — | 34,615 | |||||||||
Repayment of revolving debt facility | (257,454) | (37,500) | |||||||||
Repayment of other debt obligations | — | (1,714) | |||||||||
Payments of obligations under capital leases | (212) | (364) | |||||||||
Proceeds from issuance of common stock upon exercise of stock options | 382 | 149 | |||||||||
Proceeds from reverse recapitalization and PIPE financing | 815,184 | — | |||||||||
Payment of transaction costs related to reverse recapitalization | (41,655) | — | |||||||||
Net cash provided by (used in) financing activities | 516,245 | (4,814) | |||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 443,228 | (30,654) | |||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 74,693 | 148,674 | |||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 517,921 | $ | 118,020 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | 19,329 | $ | 1,492 | |||||||
Cash paid for income taxes | 28 | 8 | |||||||||
Non-cash investing and financing activities: | |||||||||||
Change in accounts payable balance and other liabilities related to purchase of property and equipment | $ | (967) | $ | (3,563) | |||||||
Conversion of redeemable convertible preferred stock to common stock | $ | 1,812,678 | $ | — | |||||||
Conversion of redeemable convertible preferred stock warrants to common stock warrants | $ | 7,267 | $ | — | |||||||
Common stock issued in exchange for services associated with the reverse recapitalization | $ | 7,500 | $ | — |
VIEW, INC.
Significant Accounting Policies
Although the Company is not limited in its search for target businesses to a particular industry or sector for the purpose of consummating a Business Combination, the Company intends to focus its search on companies operating in the financial services, healthcare, real estate services, technology and software industries. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
As of September 30, 2020, the Company had not commenced operations. All activity through September 30, 2020 relates to the Company’s formation and the initial public offering (the “Initial Public Offering”) described below, and since the Initial Public Offering, the search for a target for a Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of net gains on investments, dividends and interest income on U.S. Treasury Securities, investments in money market funds that invest in U.S. Treasury Securities, and cash from the proceeds derived from the Initial Public Offering.
The Company’s sponsor is CF Finance Holdings II, LLC (the “Sponsor”). The registration statement for the Company’s Initial Public Offering was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on August 26, 2020. On August 31, 2020, the Company consummated the Initial Public Offering of 50,000,000 units (each, a “Unit” and with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”) at a purchase price of $10.00 per Unit, generating gross proceeds of $500,000,000, which is described in Note 4. Each Unit consists of one share of Class A common stock and one-third of one redeemable warrant. Each whole warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50. Each warrant will become exercisable on the later of 30 days after the completion of the Business Combination or 12 months from the closing of the Initial Public Offering and will expire 5 years after the completion of the Business Combination, or earlier upon redemption or liquidation. The Company granted the underwriter a 45-day option to purchase up to an additional 7,500,000 Units to cover over-allotments, if any. The over-allotment option expired unexercised on October 10, 2020.
Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 1,100,000 Units (the “Private Placement Units”) at a price of $10.00 per Private Placement Unit in a private placement to the Sponsor, generating gross proceeds of $11,000,000, which is described in Note 5.
Transaction costs amounted to approximately $10,600,000, consisting of $10,100,000 of underwriting fees and approximately $500,000 of other costs. In addition, approximately $500,000 of cash from the Initial Public Offering was held outside of the Trust Account and is available for working capital purposes.
Following the closing of the Initial Public Offering on August 31, 2020 and the concurrent sale of Private Placement Units, an amount of $500,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Units (see Note 5) was placed in a trust account (“Trust Account”) located in the United States at J.P. Morgan Chase Bank, N.A., with Continental Stock Transfer & Trust Company acting as trustee, which may be invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of paragraphs (d)(2), (d)(3) and (d)(4) of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account, as described below.
Initial Business Combination—The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of Private Placement Units, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company must complete one or more initial Business Combinations having an aggregate fair market value of at least 80% of the assets held in the Trust Account (excluding taxes payable on income earned on the Trust Account) at the time of the agreement to enter into the initial Business Combination. However, the Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act.
The Company will provide the holders of the Public Shares (the “public stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially $10.00 per Public Share). The per share amount to be distributed to public stockholders who redeem the Public Shares will not be reduced by the Marketing Fee (as defined below in Note 5). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 either immediately prior to or upon such consummation of a Business Combination and a majority of the shares voted are voted in favor of the Business Combination. If a stockholder vote is not required by law and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the SEC and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transactions is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. Additionally, each public stockholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed Business Combination. If the Company seeks stockholder approval in connection with a Business Combination, the initial stockholders (as defined below) have agreed to vote their Founder Shares (as defined below in Note 5), their shares underlying the Private Placement Units and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination. In addition, the initial stockholders have agreed to waive their redemption rights with respect to their Founder Shares and any Public Shares held by the initial stockholders in connection with the completion of a Business Combination.
Notwithstanding the foregoing, the Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Class A common stock sold in the Initial Public Offering, without the prior consent of the Company.
The Sponsor and the Company’s officers and directors (the “initial stockholders”) have agreed not to propose an amendment to the Amended and Restated Certificate of Incorporation (i) that would affect the substance or timing of the Company’s obligation to allow redemption in connection with its initial Business Combination or to redeem 100% of its Public Shares if the Company does not complete a Business Combination or (ii) with respect to any other provision relating to stockholders’ rights or pre-business combination activity, unless the Company provides the public stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment.
Failure to Consummate a Business Combination – The Company has until August 31, 2022 to consummate a Business Combination (or a later date approved by the Company’s stockholders in accordance with the Amended and Restated Certificate of Incorporation, the “Combination Period”). If the Company is unable to complete a Business Combination by the Combination Period, the Company will (i) cease all operations except for the purpose of winding
up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in the case of clauses (ii) and (iii) to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Period.
The initial stockholders have agreed to waive their liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the initial stockholders acquire Public Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a Business Combination within the Combination Period. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than $10.00 per share initially held in the Trust Account. In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a vendor for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the Trust Account or to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.
Basis of Presentation
The unaudited condensed financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of September 30, 2020 and the results of operations and cash flows for the periods presented. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. Interim results are not necessarily indicative of results for a full year.
The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Form8-K and the final prospectus filed by the Company with the SEC on August 28, 2020 and September 4, 2020, respectively, as well as the Company’s filings made with the SEC subsequent to the filing of the Original Filing, including any amendments to those filings.
As described in Note 3—Restatement of Previously Issued Financial Statements, the Company’s financial statements for the quarter ended September 30, are being restated in this Quarterly Report on Form 10-Q/A (Amendment No. 1) (this “Quarterly Report”) to correct the misapplication of accounting guidance related to the Company’s public and private warrants in the Company’s previously issued unaudited condensed financial statements for the quarter ended September 30, 2020. The restated financial statements are indicated as “Restated” in the unaudited condensed financial statements and accompanying notes, as applicable. See Note 3—Restatement of Previously Issued Financial Statements for further information.
Emerging Growth Company
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.
This may make comparison of the Company’s financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Liquidity and Capital Resources
As of September 30, 2020, the Company had approximately $405,000 in its operating bank account, and working capital of approximately $335,000.
The Company’s liquidity needs to date have been satisfied through a contribution of $25,000 from the Sponsor in exchange for the issuance of the Founder Shares, the loan of approximately $185,000 from the Sponsor pursuant to the promissory note (the “Note”) (see Note 5), and the proceeds from the consummation of the Private Placement not held in the Trust Account. The Company fully repaid the Note as of August 31, 2020. In addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor has committed up to $750,000 to be provided to the Company to fund the Company’s expenses relating to investigating and selecting a target business and other working capital requirements after the Initial Public Offering and prior to the Company’s initial Business Combination (the “Sponsor Loan”). If the Sponsor Loan is insufficient, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, provide the Company Working Capital Loans (see Note 5). As of September 30, 2020, there were no amounts outstanding under the Sponsor Loan or any Working Capital Loan.
Based on the foregoing, management believes that the Company will have sufficient working capital and borrowing capacity from the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors to meet its needs through the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, the Company will be using these funds for paying existing accounts payable, identifying and evaluating prospective target businesses, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination.
Note 2—Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these financial statements is the determination of the fair value of the warrant liability. Accordingly, the actual results could differ significantly from those estimates.
Cash and Cash Equivalents
The Company considers all short-term investments with an original maturity of three months or less when purchased, and interests in certain money market funds regulated pursuant to Rule 2a-7 under the Investment Company Act, to be cash equivalents. The Company had approximately $500 million and $0 in cash equivalents held in the Trust Account as of September 30, 2020 and March 31, 2020, respectively.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000, and cash equivalents held in the Trust Account. At September 30, 2020 and March 31, 2020, the Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.
Derivative Warrant Liabilities
The Company accounts for the Warrants in accordance with the guidance contained in Accounting Standard Codification (“ASC”) 815 under which the Warrants do not meet the criteria for equity treatment and must be recorded as derivative liabilities. Accordingly, the Company classifies the warrants as liabilities at their fair value and adjusts the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until the warrants are exercised or expire, and any change in fair value is recognized in earnings. The fair value of the Public Warrants was initially and through September 30, 2020 measured using a Monte Carlo simulation model. From October 15, 2020, the Public Warrants have subsequently been measured based on the listed market price. The fair value of the Private Warrants has been estimated using a Black-Scholes-Merton model since the initial measurement date. See Note 9 for further information.
Fair Value of Financial Instruments
As of September 30, 2020 and March 31, 2020, the carrying values of cash, cash equivalents held in Trust Account, accrued expenses, notes payable – related party, and franchise tax payable approximate their fair values due to the short-term nature of the instruments. See Note 9 for further information.
Offering Costs Associated with the Initial Public Offering
Offering costs consisted of legal, accounting, and other costs incurred that were directly related to the Initial Public Offering. A portion of such costs allocated to the issuance of the derivative warrant liabilities in conjunction with the Initial Public Offering were immediately expensed and the remaining amount was charged to shareholders’ equity upon the completion of the Initial Public Offering.
Class A Common Stock Subject to Possible Redemption
The Company accounts for its shares of Class A common stock subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable shares of Class A common stock (including shares of Class A common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, shares of Class A common stock are classified as shareholders’ equity. The Company’s Class A common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, at September 30, 2020, 46,239,142 shares of Class A common stock subject to possible
redemption are presented as temporary equity, outside of the shareholders’ equity section of the Company’s balance sheet.
Income Taxes
Income taxes are accounted for under ASC Topic 740, Income Taxes, using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. To the extent that it is more likely than not that deferred tax assets will not be recognized, a valuation allowance would be established to offset their benefit.
ASC Topic 740 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements. The Company provides for uncertain tax positions, based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes interest and penalties related to unrecognized tax benefits as provision for income taxes on the statement of operations.
Net Income (Loss) Per Share
Net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the periods. The Company has not considered the effect of the warrants sold in the Initial Public Offering and the Private Placement to purchase an aggregate of 17,033,303, of the Company’s Class A common stock in the calculation of diluted loss per share, since their inclusion would be anti-dilutive under the treasury stock method.
The Company’s unaudited condensed statements of operations include a presentation of income (loss) per share for Class A common stock subject to redemption in a manner similar to the two-class method of income (loss) per share. Net income (loss) per share, basic and diluted for shares of Class A common stock are calculated by dividing the gain on investments (net), dividends and interest earned on cash equivalents and investments held in the Trust Account, net of applicable taxes available to be withdrawn from the Trust Account by the weighted average number of shares of Class A common stock outstanding for the period. Net loss per share, basic and diluted for shares of Class B common stock is calculated by dividing the net loss, less income attributable to the shares of Class A common stock by the weighted average number of shares of Class B common stock outstanding for the period.
Recent Accounting Pronouncements
Management does not believe that any recently issued, but not yet effective, accounting pronouncement if currently adopted would have a material effect on the Company’s financial statements.
Note 3—Restatement of Previously Issued Financial Statements
On April 12, 2021, the staff of the Securities and Exchange Commission (the “SEC Staff”) issued a public statement entitled “Staff Statement on Accounting and Reporting Considerations for Warrants issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Staff Statement”). In the SEC Staff Statement, the SEC Staff expressed its view that certain terms and conditions common to SPAC warrants may require the warrants to be classified as liabilities on the SPAC’s balance sheet as opposed to equity. Since issuance in August, 2020, the Company’s warrants were accounted for as a component of stockholders’ equity within the Company’s previously reported balance sheets. The views expressed in the SEC Staff Statement were not consistent with the Company’s historical interpretation of the specific provisions within its warrant agreement and the Company’s application of ASC 815-40 to the warrant agreement.
In May 2021, the Company reassessed its accounting for Warrants issued in August 2020, in light of the SEC Staff’s published views. and after discussion and evaluation management concluded that the warrants should be presented as liabilities measured at fair value upon issuance, with subsequent changes in fair value reported in the Condensed Statement of Operations at each reporting period. Therefore, the Company, in consultation with its Audit Committee, concluded that its previously issued Financial Statements for the quarters ended September 30, 2020 and December 31, 2020 should be restated because of a misapplication in the guidance around accounting for certain of our outstanding warrants to purchase common stock (the “Warrants”) and should no longer be relied upon.
Since the Company classified the Public Warrants as derivative liabilities, offering costs totaling $651,349 that were previously allocated to the reported amount of the Public Warrants are now reflected as an expense in the Condensed Statement of Operations as general and administrative costs.
Impact of the Restatement
The Company corrected certain line items related to the previously audited balance sheet as of August 31, 2020 in the Form 8-K filed with the SEC on September 4, 2020 related to the restatement. The following balance sheet items as of August 31, 2020 were impacted: an increase of $31.3 million in Derivative warrants liability, a decrease of $31.3 million in the amount of Class A common stock subject to redemption, an increase of $0.7 million in Additional paid-in capital and an increase of $0.7 million in Accumulated deficit.
The impact of the restatement on the balance sheets, statements of operations and statements of cash flows for the quarter ended September 30, 2020 is presented below:
As of September 30, 2020 | ||||||||||||
As Previously Reported | Restatement Adjustment | As Restated | ||||||||||
BALANCE SHEET | ||||||||||||
Warrant liability | $ | — | 32,943,941 | 32,943,941 | ||||||||
Total liabilities | 93,327 | 32,943,941 | 33,037,268 | |||||||||
Class A common stock subject to possible redemption | 495,335,970 | (32,943,950 | ) | 462,391,420 | ||||||||
Class A common stock—$0.0001 par value | 157 | 329 | 486 | |||||||||
Additional paid-in capital | 5,068,202 | 2,323,359 | 7,391,561 | |||||||||
Accumulated deficit | (69,796 | ) | (2,323,679 | ) | (2,393,475 | ) | ||||||
Total stockholders’ equity/(deficit) | 5,000,001 | 9 | 5,000,010 |
For the three and six months ended September 30, 2020 | ||||||||||||
As Previously Reported | Restatement Adjustment | As Restated | ||||||||||
STATEMENT OF OPERATIONS | ||||||||||||
General and administrative expenses | $ | 52,624 | 651,349 | 703,973 | ||||||||
Change in fair value of warrant liability | — | 1,672,330 | 1,672,330 | |||||||||
Net loss | 69,291 | 2,323,679 | 2,392,970 | |||||||||
Basic and diluted net loss per share, Class B | — | (0.19 | ) |
For the six months ended September 30, 2020 | ||||||||||||
As Previously Reported | Restatement Adjustment | As Restated | ||||||||||
STATEMENT OF CASH FLOWS | ||||||||||||
Net loss | $ | 69,291 | 2,323,679 | 2,392,970 | ||||||||
Change in fair value of derivative warrant liability | — | 1,672,330 | 1,672,330 | |||||||||
Offering costs allocated to derivative warrant liabilities | — | 651,349 | 651,349 | |||||||||
Supplemental disclosure of noncash activities: | ||||||||||||
Initial derivative warrant liabilities in connection with Initial Public Offering and Sponsor private placement | — | 31,271,611 | 31,271,611 | |||||||||
Initial classification of Class A common stock subject to possible redemption | 495,335,370 | (32,943,950 | ) | 464,133,020 | ||||||||
Change in classification of Class A common stock subject to possible redemption | — | (1,741,600 | ) | (1,741,600 | ) |
Note 4—Initial Public Offering
In the Initial Public Offering, the Company sold 50,000,000 Units at a price of $10.00 per Unit. Each Unit consists of one share of Class A common stock, and one-third of one redeemable warrant (each, a “Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 7). No fractional warrants will be issued upon separation of the Units and only whole warrants will trade.
Note 5—Related Party Transactions
Founder Shares
In September 2019, the Sponsor purchased 11,500,000 shares (the “Founder Shares”) of the Company’s Class B common stock, par value $0.0001 (“Class B common stock”) for an aggregate price of $25,000. On June 25, 2020, the Company effectuated a 1.3125-for-1 stock split. In August 2020, the Sponsor transferred 20,000 Founder Shares to Mr. Robert Hochberg, an independent director (none of which were subject to forfeiture in the event that the underwriters’ over-allotment option was not exercised in full). In addition, in August 2020, the Sponsor returned to the Company, at no cost, an aggregate of 718,750 Founder Shares, which were cancelled, resulting in an aggregate of 14,375,000 Founder Shares outstanding and held by the Sponsor. All share and per-share amounts have been retroactively restated to reflect the stock split and Founder Shares cancellation. Up to 1,875,000 Founder Shares were subject to forfeiture if the underwriter’s over-allotment option was not exercised in full. The Founder Shares will automatically convert into shares of Class A common stock at the time of the consummation of the Business Combination and are subject to certain transfer restrictions (see Note 8).
On October 10, 2020, the 45-day over-allotment option expired unexercised and, as a result, 1,875,000 shares of Class B common stock were forfeited for no consideration by the Sponsor in order for it to maintain ownership of 20.0% of the issued and outstanding shares of common stock of the Company (excluding the Private Placement Units). Such forfeited shares were cancelled by the Company.
The initial stockholders have agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur of: (A) one year after the completion of the initial Business Combination or (B) subsequent to the initial Business Combination, (x) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20-trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property.
Private Placement Units
Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 1,100,000 Private Placement Units at a price of $10.00 per Private Placement Unit ($11,000,000 in the aggregate). Each Private Placement Unit consists of one share of Class A common stock and one-third of one warrant. Each whole warrant sold as part of the Private Placement Units is exercisable for one share of Class A common stock at a price of $11.50 per share (“Private Warrant”). The proceeds from the Private Placement Units have been added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, Private Warrants will expire worthless. The Private Warrants will be non-redeemable and exercisable on a cashless basis so long as they are held by the Sponsor or its permitted transferees. The warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation.
The Sponsor and the Company’s officers and directors have agreed, subject to limited exceptions, not to transfer, assign or sell any of their Private Placement Units until 30 days after the completion of the initial Business Combination.
Underwriter
There were two underwriters involved in the Initial Public Offering. One of them is an affiliate of the Sponsor (see Note 6).
Business Combination Marketing Agreement
The Company has engaged Cantor Fitzgerald & Co., an affiliate of the Sponsor, as an advisor in connection with the Business Combination to assist the Company in holding meetings with its stockholders to discuss the Business Combination and the target business’ attributes, introduce the Company to potential investors that are interested in purchasing the Company’s securities, assist the Company in obtaining stockholder approval for the Business Combination and assist the Company with its press releases and public filings in connection with the Business Combination. The Company will pay Cantor Fitzgerald & Co. a cash fee (the “Marketing Fee”) for such services upon the consummation of the Business Combination in an amount equal to, in the aggregate, 3.5% of the gross proceeds of the Initial Public Offering, and 5.5% of the gross proceeds from the full or partial exercise of the underwriters’ over-allotment option.
Related Party Loans
In order to finance transaction costs in connection with an intended Business Combination, the Sponsor has committed up to $750,000 in the Sponsor Loan to be provided to the Company to fund the Company’s expenses relating to investigating and selecting a target business and other working capital requirements after the Initial Public Offering and prior to the Business Combination. As of September 30, 2020 and March 31, 2020, the Company had no outstanding amounts under the Sponsor Loan.
Prior to the Initial Public Offering, the Sponsor agreed to make available to the Company, under the Note, up to $300,000 to be used for a portion of the expenses of the Initial Public Offering. As of September 30, 2020 and March 31, 2020, the Company had no outstanding amounts under the Note.
If the $750,000 loan agreed to be funded by the Sponsor is insufficient to cover the working capital requirements of the Company, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans.
The Sponsor pays expenses on the Company’s behalf. The Company reimburses the Sponsor. The unpaid balance is included in Payables to related parties on the accompanying condensed balance sheets. As of September 30, 2020, the Company had accounts payable outstanding to Sponsor for such expenses paid on the Company’s behalf of approximately $32,000.
Note 6—Commitments and Contingencies
Registration and Shareholder Rights
Pursuant to a registration rights agreement entered into on August 26, 2020, the holders of Founder Shares and Private Placement Units (and component securities) will be entitled to registration rights (in the case of the Founder Shares, only after conversion of such shares to shares of Class A common stock). These holders will be entitled to certain demand and “piggyback” registration rights. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriting Agreement
The Company granted Cantor Fitzgerald & Co., as representative of the underwriters of the Initial Public Offering, a 45-day option to purchase up to 7,500,000 additional Units to cover over-allotments, if any, at the Initial Public Offering price less the underwriting discounts and commissions. On October 10, 2020, the 45-day over-allotment option expired unexercised.
The underwriters of the Initial Public Offering were paid a cash underwriting discount of $10,000,000.
The Company also engaged a qualified independent underwriter to participate in the preparation of the registration statement and exercise the usual standards of “due diligence” in respect thereto. The Company paid the independent underwriter a fee of $100,000 upon the completion of the Initial Public Offering in consideration for its services and expenses as the qualified independent underwriter. The independent underwriter received no other compensation.
Risks and Uncertainties
Management is currently evaluating the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that the virus could have an effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Business Combination Marketing Agreement
The Company has engaged Cantor Fitzgerald & Co. as an advisor in connection with the Business Combination. (see Note 5).
Note 7—Warrants
The Company issued 16,666,637 redeemable Public Warrants that were included in the units issued in its Initial Public Offering and 366,666 redeemable Private Warrants that were issued to the Company’s sponsor in a private placement that closed concurrently with the Initial Public Offering. Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the shares of common stock issuable upon exercise of the Public Warrants and a current prospectus relating to them is available.
The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of a Business Combination, the Company will use its commercially reasonable best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the shares of Class A common stock issuable
upon exercise of the Public Warrants. The Company will use its commercially reasonable best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the Public Warrants in accordance with the provisions of the warrant agreement. Notwithstanding the foregoing, if a registration statement covering the shares of Class A common stock issuable upon exercise of the Public Warrants is not effective within a specified period following the consummation of Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the Securities Act, provided that such exemption is available. If that exemption, or another exemption, is not available, holders will not be able to exercise their warrants on a cashless basis. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation.
The Private Warrants are identical to the Public Warrants underlying the Units being sold in the Initial Public Offering, except that the Private Warrants and the Class A common stock issuable upon the exercise of such warrants are not transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions.
Additionally, the Private Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If Private Warrants are held by someone other than the initial purchasers or their permitted transferees, Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.
The Company may redeem the Public Warrants (except with respect to the warrants included in the Private Placement Units):
in whole and not in part;
at a price of $0.01 per warrant;
at any time during the exercise period;
upon a minimum of 30 days’ prior written notice of redemption;
if, and only if, the last reported sale price of the Company’s common stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending on the third business day prior to the date on which the Company sends the notice of redemption to the warrant holders; and
if, and only if, there is a current registration statement in effect with respect to the shares of common stock underlying such warrants.
If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis”, as described in the warrant agreement.
The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants will expire worthless.
Note 8—Shareholders’ Equity
Class A Common Stock—The Company is authorized to issue 100,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of Class A common stock are entitled to one vote for each share. As of September 30, 2020, there were 4,860,858 shares of Class A common stock issued and outstanding, excluding 46,239,142 shares subject to possible redemption. Class A common stock includes 1,100,000 shares included in the Private Placement Units. The shares of Class A common stock included in the Private Placement Units do not contain the same redemption feature contained in the shares sold in the Initial Public Offering.
Class B Common Stock—The Company is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. Holders of Class B common stock are entitled to one vote for each share. As of September 30, 2020, there were 14,375,000 shares of Class B common stock issued and outstanding, of which an aggregate of up to 1,875,000 shares are subject to forfeiture to the Company by the Sponsor for no consideration to the extent that the underwriter’s over-allotment option is not exercised in full or in part, so that the initial stockholders will collectively own 20% of the Company’s issued and outstanding common stock after the Initial Public Offering (not including the Private Placement Units). On October 10, 2020, the 45-day over-allotment option expired unexercised and, as a result, 1,875,000 shares of Class B Common Stock were forfeited by the Sponsor. Such forfeited shares were cancelled by the Company.
Prior to the consummation of the Business Combination, only holders of Class B common stock will have the right to vote on the election of directors. Holders of the Class A common stock will not be entitled to vote on the election of directors during such time. Holders of Class A common stock and Class B common stock will vote together as a single class on all other matters submitted to a vote of stockholders except as required by law.
The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of the Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of the Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with the Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in the Business Combination).
On June 25, 2020, the Sponsor effectuated a recapitalization of the Company, which included a 1.3125-for-1 stock split. In addition, in August 2020, the Sponsor returned to the Company, at no cost, an aggregate of 718,750 Founder Shares, which were cancelled resulting in an aggregate of 14,375,000 Founder Shares outstanding and held by the Sponsor (1,875,000 of which were subject to forfeiture as of September 30, 2020, if the underwriter’s over-allotment option was not exercised in full).
Preferred stock—The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of September 30, 2020, there were no shares of preferred stock issued or outstanding.
Note 9—Fair Value Measurements
Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:
Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2020 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value.
September 30, 2020
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Total | ||||||||||||
Assets held in Trust Account: | ||||||||||||||||
U.S. Treasury Securities | $ | 500,000,000 | $ | — | $ | — | $ | 500,000,000 | ||||||||
Total | $ | 500,000,000 | $ | — | $ | — | $ | 500,000,000 | ||||||||
Liabilities: | ||||||||||||||||
Derivative warrant liabilities | $ | — | $ | — | $ | 32,943,941 | $ | 32,943,941 |
Transfers to/from Levels 1, 2, and 3 are recognized at the end of the reporting period. There were no transfers between levels for the three and six months ended September 30, 2020.
Level 1 instruments include investments in money market funds and U.S. Treasury securities. The Company uses inputs such as actual trade data, benchmark yields, quoted market prices from dealers or brokers, and other similar sources to determine the fair value of its investments.
The estimated fair value of the Private Warrants and the Public Warrants prior to being separately listed and traded, is determined using Level 3 inputs. Inherent in a Monte Carlo simulation are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its Warrants based on implied volatility from the Company’s trading activities of Warrants and from historical volatility of a group of peer companies’ common stock that matches the expected remaining life of the Warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the Warrants. The expected life of the Warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates remaining at zero.
The following table provides quantitative information regarding Level 3 fair value measurements inputs as their measurement dates:
At Issuance on August 26, 2020 | ||||||||
Public Warrants | Private Warrants | |||||||
Stock price | $ | 9.40 | $ | 9.40 | ||||
Strike Price | $ | 11.50 | $ | 11.50 | ||||
Term (in years) | 6.25 | 5.0 | ||||||
Volatility | 9% - 45 | % | 36 | % | ||||
Risk-free rate | 0.42 | % | 0.28 | % | ||||
Dividend yield | 0.00 | % | 0.00 | % | ||||
Probability of business combination | 70.00 | % | 70.00 | % |
At September 30, 2020 | ||||||||
Public Warrants | Private Warrants | |||||||
Stock price | $ | 9.38 | $ | 9.38 | ||||
Strike Price | $ | 11.50 | $ | 11.50 | ||||
Term (in years) | 5.37 | 4.91 | ||||||
Volatility | 10.50% - 45.0 | % | 42.4 | % | ||||
Risk-free rate | 0.32 | % | 0.28 | % | ||||
Dividend yield | 0.00 | % | 0.00 | % | ||||
Probability of business combination | 75.00 | % | 75.00 | % |
The change in the fair value of the Warrants measured with Level 3 inputs for the period from August 26, 2020 (Initial Issuance Date) through September 30 , 2020 is summarized as follows:
Initial issuance of Public and Private Warrants with Level 3 measurements | $ | 31,271,611 | ||
Change in fair value of warrant liability measured with Level 3 inputs | 1,672,330 | |||
|
| |||
Derivative warrants liability at September 30, 2020 measured utilizing Level 3 inputs | $ | 32,943,941 |
Note 10—Subsequent Events
On October 10, 2020, upon the expiration of the 45-day period for the underwriters to exercise the over-allotment option and the underwriters not exercising the over-allotment option, 1,875,000 shares of Class B Common Stock were forfeited by the Sponsor in order for it to maintain ownership of 20.0% of the issued and outstanding shares of common stock of the Company (excluding private units held by the Sponsor). Such forfeited shares were cancelled by the Company. For additional information regarding the forfeiture of founder shares, see the Form 8-K filed by the Company with the SEC on October 16, 2020.
On March 8, 2021, the Companycorporation, consummated the previously announced merger pursuant to an Agreement and Plan of Merger, dated November 30, 2020 (the “Merger Agreement”), by and among CF II, PVMS Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the CompanyCF II (“Merger Sub”), and Legacy View, Inc. (hereinafter(prior to the Closing, hereinafter referred to as “Legacy View”). Pursuant to the Merger Agreement, a business combination between the CompanyCF II and Legacy View was effected through the merger of Merger Sub with and into Legacy View, with Legacy View surviving as the surviving company and as a wholly-owned subsidiary of CF II (the “Merger”). In connection with the Merger, the Company (the “Merger”raised $815.2 million of gross proceeds including the contribution of $374.1 million of cash held in CF II’s trust account from its initial public offering, net of redemptions of CF II Class A Common Stock held by CF II’s public stockholders of $125.9 million, $260.8 million of private investment in public equity (“PIPE”) at $10.00 per share of CF II’s Class A Common Stock, and $180.3 million of additional PIPE at $11.25 per share of CF II’s Class A Common Stock. The PIPE, collectively with the Merger and other transactions described in the Merger Agreement, theare herein referred to collectively as “Transactions”). On March 8, 2021, the CompanyClosing Date, CF II changed its name from CF Finance Acquisition Corp. II to View, Inc. and Legacy View changed its name to View Operating Corporation. ForSee Note 3for additional information.
8, 2021, prior period share and per share amounts presented in the accompanying condensed consolidated financial statements and these related notes have been retroactively converted.
March 31, 2021 | December 31, 2020 | ||||||||||
Beginning balance | $ | 47,678 | $ | 53,296 | |||||||
Accruals for warranties issued | 413 | 1,304 | |||||||||
Changes to estimates of volume and costs | — | (1,002) | |||||||||
Settlements made | (1,276) | (5,920) | |||||||||
Ending balance | $ | 46,815 | $ | 47,678 | |||||||
Warranty liability, current, beginning balance | $ | 8,864 | $ | 8,038 | |||||||
Warranty liability, noncurrent, beginning balance | $ | 38,814 | $ | 45,258 | |||||||
Warranty liability, current, ending balance | $ | 9,470 | $ | 8,864 | |||||||
Warranty liability, noncurrent, ending balance | $ | 37,345 | $ | 38,814 |
March 31, 2021 | ||||||||||||||||||||||||||
As Previously Reported | Investigation Adjustments | Other Adjustments | As Restated | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 506,457 | $ | — | $ | — | $ | 506,457 | ||||||||||||||||||
Accounts receivable, net of allowances | 12,086 | — | — | 12,086 | ||||||||||||||||||||||
Inventories | 7,134 | — | — | 7,134 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 6,793 | — | (724) | (b) | 6,069 | |||||||||||||||||||||
Total current assets | 532,470 | — | (724) | 531,746 | ||||||||||||||||||||||
Property and equipment, net | 279,278 | — | (974) | (a) | 278,304 | |||||||||||||||||||||
Restricted cash | 10,464 | — | — | 10,464 | ||||||||||||||||||||||
Other assets | 4,318 | — | (897) | (e) | 3,421 | |||||||||||||||||||||
Total assets | $ | 826,530 | $ | — | $ | (2,595) | $ | 823,935 | ||||||||||||||||||
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||
Accounts payable | $ | 8,688 | $ | — | $ | — | $ | 8,688 | ||||||||||||||||||
Accrued expenses and other current liabilities | 17,085 | 5,705 | 7,206 | (d), (f) | 29,996 | |||||||||||||||||||||
Accrued compensation | 13,305 | — | (2,919) | (b) | 10,386 | |||||||||||||||||||||
Deferred revenue | 2,543 | — | 1,677 | (c), (e) | 4,220 | |||||||||||||||||||||
Total current liabilities | 41,621 | 5,705 | 5,964 | 53,290 | ||||||||||||||||||||||
Debt, non-current | 15,430 | — | — | 15,430 | ||||||||||||||||||||||
Sponsor earn-out liability | 23,983 | — | — | 23,983 | ||||||||||||||||||||||
Other liabilities | 34,051 | 19,239 | — | 53,290 | ||||||||||||||||||||||
Total liabilities | 115,085 | 24,944 | 5,964 | 145,993 | ||||||||||||||||||||||
Stockholders' equity (deficit): | ||||||||||||||||||||||||||
Common stock, $0.0001 par value | 22 | — | — | 22 | ||||||||||||||||||||||
Additional paid-in-capital | 2,667,127 | — | (819) | (g) | 2,666,308 | |||||||||||||||||||||
Accumulated deficit | (1,955,704) | (24,944) | (7,740) | (1,988,388) | ||||||||||||||||||||||
Total stockholders' equity (deficit) | 711,445 | (24,944) | (8,559) | 677,942 | ||||||||||||||||||||||
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) | $ | 826,530 | $ | — | $ | (2,595) | $ | 823,935 |
December 31, 2020 | ||||||||||||||||||||||||||
As Previously Reported | Investigation Adjustments | Other Adjustments | As Restated | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 63,232 | $ | — | $ | — | $ | 63,232 | ||||||||||||||||||
Accounts receivable, net of allowances | 12,252 | — | — | 12,252 | ||||||||||||||||||||||
Inventories | 6,483 | — | — | 6,483 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 6,881 | — | (668) | (b) | 6,213 | |||||||||||||||||||||
Total current assets | 88,848 | — | (668) | 88,180 | ||||||||||||||||||||||
Property and equipment, net | 282,560 | — | — | 282,560 | ||||||||||||||||||||||
Restricted cash | 10,461 | — | — | 10,461 | ||||||||||||||||||||||
Other assets | 8,946 | — | — | 8,946 | ||||||||||||||||||||||
Total assets | $ | 390,815 | $ | — | $ | (668) | $ | 390,147 | ||||||||||||||||||
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||
Accounts payable | $ | 14,562 | $ | — | $ | — | $ | 14,562 | ||||||||||||||||||
Accrued expenses and other current liabilities | 36,480 | 4,849 | 821 | (d) | 42,150 | |||||||||||||||||||||
Accrued compensation | 14,665 | — | (3,838) | (b) | 10,827 | |||||||||||||||||||||
Deferred revenue | 2,111 | — | 538 | (c) | 2,649 | |||||||||||||||||||||
Debt, current | 247,248 | — | — | 247,248 | ||||||||||||||||||||||
Total current liabilities | 315,066 | 4,849 | (2,479) | 317,436 | ||||||||||||||||||||||
Debt, non-current | 15,430 | — | — | 15,430 | ||||||||||||||||||||||
Redeemable convertible preferred stock warrant liability | 12,323 | — | — | 12,323 | ||||||||||||||||||||||
Other liabilities | 36,731 | 20,113 | — | 56,844 | ||||||||||||||||||||||
Total liabilities | 379,550 | 24,962 | (2,479) | 402,033 | ||||||||||||||||||||||
Redeemable convertible preferred stock | 1,812,678 | — | — | 1,812,678 | ||||||||||||||||||||||
Stockholders' equity (deficit): | ||||||||||||||||||||||||||
Common stock, $0.0001 par value | — | — | — | — | ||||||||||||||||||||||
Additional paid-in-capital | 89,789 | — | — | 89,789 | ||||||||||||||||||||||
Accumulated deficit | (1,891,202) | (24,962) | 1,811 | (1,914,353) | ||||||||||||||||||||||
Total stockholders' equity (deficit) | (1,801,413) | (24,962) | 1,811 | (1,824,564) | ||||||||||||||||||||||
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) | $ | 390,815 | $ | — | $ | (668) | $ | 390,147 |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||
As Previously Reported | Investigation Adjustments | Other Adjustments | As Restated | ||||||||||||||||||||
Revenue | $ | 11,805 | $ | — | $ | (2,036) | (c), (e) | 9,769 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of revenue | 29,874 | (18) | 6,323 | (d), (f), (g) | 36,179 | ||||||||||||||||||
Research and development | 15,658 | — | 912 | (a), (g) | 16,570 | ||||||||||||||||||
Selling, general, and administrative | 21,420 | — | 280 | (b), (g) | 21,700 | ||||||||||||||||||
Total costs and expenses | 66,952 | (18) | 7,515 | 74,449 | |||||||||||||||||||
Loss from operations | (55,147) | 18 | (9,551) | (64,680) | |||||||||||||||||||
Interest and other income (expense), net | |||||||||||||||||||||||
Interest income | 5 | — | — | 5 | |||||||||||||||||||
Interest expense | (5,308) | — | — | (5,308) | |||||||||||||||||||
Other expense, net | (1,442) | — | — | (1,442) | |||||||||||||||||||
Gain on fair value change, net | 7,413 | — | — | 7,413 | |||||||||||||||||||
Loss on extinguishment of debt | (10,018) | — | — | (10,018) | |||||||||||||||||||
Interest and other income (expense), net | (9,350) | — | — | (9,350) | |||||||||||||||||||
Loss before provision of income taxes | (64,497) | 18 | (9,551) | (74,030) | |||||||||||||||||||
Provision for income taxes | (5) | — | — | (5) | |||||||||||||||||||
Net and comprehensive loss | $ | (64,502) | $ | 18 | $ | (9,551) | $ | (74,035) | |||||||||||||||
Net loss per share, basic and diluted | $ | (1.16) | $ | — | $ | (0.17) | $ | (1.33) | |||||||||||||||
Weighted-average shares used in calculation of net loss per share, basic and diluted | 55,500,398 | — | — | 55,500,398 |
Three Months Ended March 31, 2020 | |||||||||||||||||||||||
As Previously Reported | Investigation Adjustments | Other Adjustments | As Restated | ||||||||||||||||||||
Revenue | $ | 9,167 | $ | — | $ | (135) | (c) | 9,032 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of revenue | 35,572 | (1,381) | 2,272 | (a), (d), (h) | 36,463 | ||||||||||||||||||
Research and development | 21,258 | — | 1,830 | (a), (h) | 23,088 | ||||||||||||||||||
Selling, general, and administrative | 22,835 | — | (1,471) | (a), (b), (h) | 21,364 | ||||||||||||||||||
Total costs and expenses | 79,665 | (1,381) | 2,631 | 80,915 | |||||||||||||||||||
Loss from operations | (70,498) | 1,381 | (2,766) | (71,883) | |||||||||||||||||||
Interest and other income (expense), net | |||||||||||||||||||||||
Interest income | 445 | — | — | 445 | |||||||||||||||||||
Interest expense | (5,285) | — | — | (5,285) | |||||||||||||||||||
Other expense, net | (24) | — | — | (24) | |||||||||||||||||||
Gain on fair value change, net | 4,427 | — | — | 4,427 | |||||||||||||||||||
Interest and other income (expense), net | (437) | — | — | (437) | |||||||||||||||||||
Loss before provision of income taxes | (70,935) | 1,381 | (2,766) | (72,320) | |||||||||||||||||||
Provision for income taxes | (5) | — | — | (5) | |||||||||||||||||||
Net and comprehensive loss | $ | (70,940) | $ | 1,381 | $ | (2,766) | $ | (72,325) | |||||||||||||||
Net loss per share, basic and diluted | $ | (42.82) | $ | 0.83 | $ | (1.66) | $ | (43.65) | |||||||||||||||
Weighted-average shares used in calculation of net loss per share, basic and diluted | 1,656,774 | — | — | 1,656,774 |
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||
As Previously Reported | Investigation Adjustments | Other Adjustments | As Restated | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||
Net loss | (64,502) | 18 | (9,551) | (a), (b), (c), (d), (e), (f), (g) | (74,035) | |||||||||||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||||
Depreciation and amortization | 6,055 | — | 974 | (a) | 7,029 | |||||||||||||||||||||
Loss on extinguishment of debt | 10,018 | — | — | 10,018 | ||||||||||||||||||||||
Gain on fair value change, net | (7,413) | — | — | (7,413) | ||||||||||||||||||||||
Amortization of debt discount | 488 | — | — | 488 | ||||||||||||||||||||||
Stock-based compensation | 11,282 | — | (819) | (g) | 10,463 | |||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||
Accounts receivable | 166 | — | — | 166 | ||||||||||||||||||||||
Inventories | (651) | — | — | (651) | ||||||||||||||||||||||
Prepaid expenses and other current assets | 87 | — | 56 | (b) | 143 | |||||||||||||||||||||
Other assets | (865) | — | 897 | (e) | 32 | |||||||||||||||||||||
Accounts payable | (4,685) | — | — | (4,685) | ||||||||||||||||||||||
Deferred revenue | 432 | — | 1,139 | (c), (e) | 1,571 | |||||||||||||||||||||
Accrued compensation | (1,360) | — | 921 | (b) | (439) | |||||||||||||||||||||
Accrued expenses and other liabilities | (19,390) | (18) | 6,383 | (d), (f) | (13,025) | |||||||||||||||||||||
Net cash used in operating activities | (70,338) | — | — | (70,338) |
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||
As Previously Reported | Investigation Adjustments | Other Adjustments | As Restated | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||
Net loss | (70,940) | 1,381 | (2,766) | (a), (b), (c), (d), (e), (h) | (72,325) | |||||||||||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||||
Depreciation and amortization | 6,201 | — | 413 | (a) | 6,614 | |||||||||||||||||||||
Gain on fair value change, net | (4,427) | — | — | (4,427) | ||||||||||||||||||||||
Amortization of debt discount | 586 | — | — | 586 | ||||||||||||||||||||||
Stock-based compensation | 9,218 | — | — | 9,218 | ||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||
Accounts receivable | 1,523 | — | — | 1,523 | ||||||||||||||||||||||
Inventories | 756 | — | — | 756 | ||||||||||||||||||||||
Prepaid expenses and other current assets | 22,044 | — | 718 | (b), (e) | 22,762 | |||||||||||||||||||||
Other assets | 26 | — | — | 26 | ||||||||||||||||||||||
Accounts payable | (2,967) | — | — | (2,967) | ||||||||||||||||||||||
Deferred revenue | (542) | — | 135 | (c) | (407) | |||||||||||||||||||||
Accrued compensation | 481 | — | (348) | (b) | 133 | |||||||||||||||||||||
Accrued expenses and other liabilities | (1,310) | (1,381) | 1,848 | (d), (h) | (843) | |||||||||||||||||||||
Net cash used in operating activities | (39,351) | — | — | (39,351) | ||||||||||||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||||||||||||
Change in accounts payable balance and other liabilities related to purchase of property and equipment | (2,784) | — | (779) | (h) | (3,563) |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenue: | |||||||||||
United States | $ | 9,665 | $ | 8,687 | |||||||
Canada | 104 | 321 | |||||||||
Other | — | 24 | |||||||||
Total | $ | 9,769 | $ | 9,032 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenue: | |||||||||||
Products | $ | 9,711 | $ | 8,944 | |||||||
Services | 58 | 88 | |||||||||
Total | $ | 9,769 | $ | 9,032 |
March 31, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 457,440 | $ | — | $ | — | $ | 457,440 | |||||||||||||||
Total cash equivalents | 457,440 | — | — | ||||||||||||||||||||
Restricted cash: | |||||||||||||||||||||||
Certificates of deposit | 11,464 | — | 11,464 | ||||||||||||||||||||
Total assets measured at fair value | $ | 457,440 | $ | 11,464 | $ | — | $ | 468,904 | |||||||||||||||
Private warrants liability | $ | — | $ | — | $ | 692 | $ | 692 | |||||||||||||||
Sponsor earn-out liability | — | — | 23,983 | 23,983 | |||||||||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 24,675 | $ | 24,675 |
December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 38,574 | $ | — | $ | — | $ | 38,574 | |||||||||||||||
Total cash equivalents | 38,574 | — | — | 38,574 | |||||||||||||||||||
Restricted cash: | |||||||||||||||||||||||
Certificates of deposit | — | 11,461 | — | 11,461 | |||||||||||||||||||
Total assets measured at fair value | $ | 38,574 | $ | 11,461 | $ | — | $ | 50,035 | |||||||||||||||
Redeemable convertible preferred stock warrants | $ | — | $ | — | $ | 12,323 | $ | 12,323 | |||||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 12,323 | $ | 12,323 |
Private Warrants | Sponsor Earn-out Liability | Redeemable Convertible Preferred Stock Warrants | |||||||||||||||
Balance as of December 31, 2020 | $ | — | $ | — | $ | 12,323 | |||||||||||
Additions during the quarter | 589 | 26,443 | — | ||||||||||||||
Change in fair value | 103 | (2,460) | (5,056) | ||||||||||||||
Reclass to additional paid-in-capital upon Closing | — | — | (7,267) | ||||||||||||||
Balance as of March 31, 2021 | $ | 692 | $ | 23,983 | $ | — |
March 8, 2021 (Closing Date) | December 31, 2020 | ||||||||||
Expected volatility | 52%-75% | 70% | |||||||||
Expected term (in years) | 0.08-7.71 | 2.0 | |||||||||
Expected dividends | 0% | 0% | |||||||||
Risk-free rate | 0.04%-1.28% | 0.1% | |||||||||
Discount for lack of marketability | 5.0%-33.0% | 11%-55% |
March 31, 2021 | March 8, 2021 (Closing Date) | ||||||||||
Stock price | $7.40 | $9.19 | |||||||||
Expected volatility | 46.60% | 29.20% | |||||||||
Risk free rate | 0.92% | 0.86% | |||||||||
Contractual term (in years) | 4.9 | 5.0 | |||||||||
Expected dividends | 0% | 0% |
March 31, 2021 | March 8, 2021 (Closing Date) | ||||||||||
Stock price | $7.40 | $9.19 | |||||||||
Expected volatility | 46.6% | 29.2% | |||||||||
Risk free rate | 0.78% | 0.73% | |||||||||
Expected term (in years) | 4.4 | 4.5 | |||||||||
Expected dividends | 0% | 0% |
Year Ending December 31, | Operating Leases | ||||
2021 (remaining nine months) | $ | 5,672 | |||
2022 | 7,718 | ||||
2023 | 7,901 | ||||
2024 | 8,089 | ||||
2025 | 8,281 | ||||
Thereafter | 22,509 | ||||
Total minimum lease payments | $ | 60,170 |
Interest Rate | March 31, 2021 | December 31, 2020 | |||||||||||||||
Term loan, due June 30, 2032 | 0% | $ | 15,430 | $ | 15,430 | ||||||||||||
Revolving debt facility, repaid on March 8, 2021 | LIBOR+9.05% | — | 250,000 | ||||||||||||||
Debt discount | — | (2,752) | |||||||||||||||
Total Debt | 15,430 | 262,678 | |||||||||||||||
Debt, current | — | 247,248 | |||||||||||||||
Debt, non-current | $ | 15,430 | $ | 15,430 |
Year Ending December 31, | Total | ||||
2021 (remaining nine months) | $ | — | |||
2022 | 1,470 | ||||
2023 | 1,470 | ||||
2024 | 1,470 | ||||
2025 | 1,470 | ||||
Thereafter | 9,550 | ||||
Total | $ | 15,430 |
Warrant issue date | Types of shares issued by Legacy View | Number of Warrants March 31, 2021 (As converted) | Number of Warrants December 31, 2020 (As converted) | Exercise Price Per Warrant (As converted) | Expiry Date | |||||||||||||||||||||||||||
August 2010 - June 2011 | Common stock (previously Series B redeemable convertible preferred stock) | 46,498 | 46,498 | 15.49 | Note 1 | |||||||||||||||||||||||||||
August 2011 - January 2012 | Common stock (previously Series C redeemable convertible preferred stock) | 53,256 | 53,256 | 18.78 | Note 1 | |||||||||||||||||||||||||||
August 2012 | Common stock (previously Series D redeemable convertible preferred stock) | 45,388 | 45,388 | 21.6 | Note 1 | |||||||||||||||||||||||||||
December 2013 | Common stock (previously Series E redeemable convertible preferred stock) | 63,296 | 63,296 | 25.91 | Note 1 | |||||||||||||||||||||||||||
April 2015 - April 2016 | Common stock (previously Series F redeemable convertible preferred stock) | 161,457 | 161,457 | 38.71 | Through December 2022 | |||||||||||||||||||||||||||
April 2016 - November 2018 | Common stock (previously Series H redeemable convertible preferred stock) | 1,135,391 | 1,135,391 | 18.93 | Note 1 | |||||||||||||||||||||||||||
March 2017 | Common stock (previously Series H redeemable convertible preferred stock) | 1,849,431 | 1,849.431 | 12.91 | March 2027 | |||||||||||||||||||||||||||
March 2014 | Common stock | 2,324 | 2,324 | 9.47 | Through March 2024 | |||||||||||||||||||||||||||
August 2015 | Common stock | 12,916 | 12.916 | 11.62 | Through August 2025 | |||||||||||||||||||||||||||
December 2018 | Common stock | 24,910 | 24,910 | 9.04 | Through December 2028 | |||||||||||||||||||||||||||
August 2020 | Common stock | 17,033,303 | — | 11.50 | March 2026 | |||||||||||||||||||||||||||
Total stock warrants | 20,428,170 | 3,394,867 |
Tranche | Option Shares (#) | Average 60-day Trading Price per Share of the Entity ($) | |||||||||
1 | 2,500,000 | 20.00 | |||||||||
2 | 2,500,000 | 30.00 | |||||||||
3 | 2,500,000 | 40.00 | |||||||||
4 | 2,500,000 | 50.00 | |||||||||
5 | 2,500,000 | 60.00 | |||||||||
6 | 2,500,000 | 70.00 | |||||||||
7 | 2,500,000 | 80.00 | |||||||||
8 | 2,500,000 | 90.00 | |||||||||
9 | 2,500,000 | 100.00 | |||||||||
10 | 2,500,000 | 110.00 |
Options Outstanding | |||||||||||||||||||||||
Number of Shares Subject to Stock Options Outstanding | Weighted- Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value 1 | ||||||||||||||||||||
Outstanding as of December 31, 2020 | 1,071,605,000 | $ | 0.22 | 7.59 | $ | 20,564 | |||||||||||||||||
Retroactive application of reverse recapitalization | (1,046,690,000) | ||||||||||||||||||||||
Balance as of December 31, 2020, as converted | 24,915 | $ | 9.32 | 7.59 | $ | 20,564 | |||||||||||||||||
Options granted | 5,000 | $ | 10.00 | — | — | ||||||||||||||||||
Exercised | (186,000) | $ | 9.04 | — | — | ||||||||||||||||||
Canceled/forfeited | (99,000) | $ | 9.35 | — | — | ||||||||||||||||||
Outstanding as of March 31, 2021 | 29,630 | $ | 9.44 | 7.84 | $ | — | |||||||||||||||||
Options vested and expected to vest as of March 31, 2021 | 28,294,000 | $ | 9.46 | 7.84 | $ | — | |||||||||||||||||
Exercisable as of March 31, 2021 | 14,950,000 | $ | 9.52 | 7.13 | $ | — |
Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
Outstanding as of December 31, 2020 | — | $ | — | ||||||||
Granted | 12,500 | $ | 6.12 | ||||||||
Outstanding as of March 31, 2021 | 12,500 | $ | 6.12 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Expected volatility | 53.0% | 70% | |||||||||
Expected terms (in years) | 6.0 | 5.4-6.7 | |||||||||
Expected dividends | 0% | 0% | |||||||||
Risk-free rate | 1.07% | 1.4%-1.8% |
CEO Option Award | Officer RSUs | Officer Options | |||||||||||||||
Expected stock price | $9.19 | $9.19 | $9.19 | ||||||||||||||
Expected volatility | 54.0% | 56.0% | 53.0% | ||||||||||||||
Risk-free rate | 1.59% | 0.60% | 1.07% | ||||||||||||||
Expected terms (in years) | 10.0 | 4.0 | 6.0 | ||||||||||||||
Expected dividends | 0% | 0% | 0% | ||||||||||||||
Discount for lack of marketability | 20% | n/a | n/a |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cost of revenue | $ | 879 | $ | 542 | |||||||
Research and development | 914 | 2,908 | |||||||||
Selling, general, and administrative | 8,670 | 5,768 | |||||||||
Total | $ | 10,463 | $ | 9,218 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net loss | $ | (74,035) | $ | (72,325) | |||||||
Total weighted-average shares outstanding, basic and diluted | 55,500,398 | 1,656,774 | |||||||||
Net loss per share, basic and diluted | $ | (1.33) | $ | (43.65) |
March 31, | |||||||||||
2021 | 2020 | ||||||||||
Redeemable convertible preferred stock (on an if-converted basis) | — | 121,431,302 | |||||||||
Stock options to purchase common stock | 29,630,036 | 25,404,652 | |||||||||
Warrants to purchase common stock | 20,428,170 | 40,152 | |||||||||
Warrants to purchase redeemable convertible preferred stock (on an if-converted basis) | — | 3,387,251 | |||||||||
Total | 50,058,206 | 150,263,357 |
December 31, 2020. This Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, has been amended "Financial Statements (Unaudited)."Operations.ReferencesOperations“Company,” “our,” “us” or “we” refer to View, Inc. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the unaudited condensed financial statements and the notes thereto containedCondensed Consolidated Financial Statements” included elsewhere in this report. Certain information contained inAmendment No. 1 to the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.Cautionary Note Regarding Forward-Looking StatementsThis Quarterly Report on Form 10-Q/A, includes forward-looking we have restated our unaudited quarterly financial statements within the meaningas of Section 27AMarch 31, 2021 and for each of the Securities Actthree months ended March 31, 2021 and 2020, and we have restated our condensed consolidated balance sheet as of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Such statements include, but are not limited to, possible business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included in this Form 10-Q/A. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings.and restated to give effect toreflect the restatement of ourthe previously reported financial information for these periods, including but not limited to, information within the Results of Operations section.as more fully describedand notes, and for a full understanding of View’s results of operations and financial condition should be read in conjunction with the Explanatory Notecondensed consolidated financial statements and notes included in Note 3this Amendment No. 1 to the Notes to Financial Statements, Restatement of Previously Issued Financial StatementsQuarterly Report on Form 10-Q/A included in Part I, Item 1, of this amendment. For further detail regarding the restatement adjustments, see also Item 4 Controls and Procedures.formedincorporated on September 27, 2019 under the name CF Finance Acquisition Corp. II (“CF II”) as a Delaware corporation and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businessesbusinesses. On March 8, 2021 (the “Business Combination”“Closing Date”), CF II consummated the previously announced merger pursuant to an Agreement and Plan of Merger, dated November 30, 2020 (the “Merger Agreement”), by and among CF II, PVMS Merger Sub, Inc., a Delaware corporation and wholly owned-subsidiary of CF II (“Merger Sub”), and View, Inc. (prior to the Merger, hereinafter referred to as “Legacy View”). Although we are not limited in our search for target businessesPursuant to the Merger Agreement, a particular industry or sector forbusiness combination between CF II and Legacy View was effected through the purposemerger of consummating a Business Combination, we intend to focus our search on companies operating inMerger Sub with and into Legacy View, with Legacy View surviving as the financial services, healthcare, real estate services, technology and software industries. We are an early stage and emerging growthsurviving company and as such, we are subjecta wholly-owned subsidiary of CF II (the “Merger”). On the Closing Date, CF II changed its name from CF Finance Acquisition Corp. II to allView, Inc. and Legacy View changed its name to View Operating Corporation.risks associatedfinancial statements of Legacy View with early stage and emerging growth companies. Our sponsor isthe Merger treated as the equivalent of Legacy View issuing stock for the net assets of CF Finance Holdings II, LLC (our “Sponsor”).Our registration statement for ouraccompanied by a recapitalization. The net assets of CF II will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Merger are those of Legacy View.(the “Initial Public Offering”) was declared effective on August 26, 2020. On August 31, 2020, we consummated the Initial Public Offeringnet of 50,000,000 units (each, a “Unit” and with respect to the sharesredemption of CF II Class A common stock includedCommon Stock held by CF II’s public stockholders of $125.9 million, $260.8 million of private investment in public equity (“PIPE”) at $10.00 per share of CF II’s Class A Common Stock, and $180.3 million of additional PIPE at $11.25 per share of CF II’s Class A Common Stock (the PIPE and collectively with the Merger and other transactions described in the Units sold,Merger Agreement, the “Public Shares”“Transactions”) at. We incurred $43.9 million of Transaction costs, consisting of underwriting, legal, and other professional fees, of which $42.4 million was recorded to additional paid-in capital as a purchase pricereduction of $10.00 per Unit, generating gross proceeds and the remaining $1.5 million was expensed immediately.$500,000,000. Each Unit consists of one share of Class ALegacy View common stock and one-thirdredeemable convertible preferred stock received shares of one redeemable warrant.the Company’s common stock in an amount determined by application of the exchange ratio of 0.02325 (the “Exchange Ratio”), which was based on Legacy View’s implied price per share prior to the Merger. For periods prior to the Merger, the reported share and per share amounts have been retroactively converted by applying the Exchange Ratio.Class Athe Company’s common stock at a price of $11.50. Each warrant will become$11.50 per share, subject to adjustments. The Warrants are exercisable at any time commencing on the later of 30 days after the completion of the Business Combination or 12 months from the closing of the Initial Public OfferingAugust 26, 2021 and will expire 5terminating five years after the completionClosing. The Public Warrants meet the criteria to be classified in stockholders’ equity and the Private Warrants are classified as a liability. The Private Warrants are recorded at fair value at the Closing and at each reporting date estimated using the Black-Scholes option-pricing model.Business Combination, or earlier upon redemption or liquidation. We granteddevelopment process, including materials science, electronics, networking, hardware, software, and human factors research. As we have since inception, we intend to continue making significant investments in research and development and hiring top technical and engineering talent to improve our existing products and develop new products, which would increaseunderwritermarket. For example, in 2020, we introduced a 45-day optionnew suite of products to purchase upcomplement our market-leading Smart Glass windows and optimize the human experience while making buildings more intelligent:additional 7,500,000 Unitsintelligent building platform.cover over-allotments, if any. The over-allotment option expired unexercised on October 10, 2020.Simultaneouslymeasure and optimize light, humidity, temperature, air quality, dust and noise to improve occupant wellness.closingconstruction of a second production line at our Olive Branch facility. We expect the name-plate capacity of the Initial Public Offering, we consummatedsecond production line to be 7.5 million square feet of smart glass per year, bringing total name-plate capacity of our facility to 12.5 million square feet per year. We believe our facility, including the salesecond production line, will enable us to achieve economies of 1,100,000 Units (the “Private Placement Units”) at a price of $10.00 per Private Placement Unit in a private placement to our Sponsor, generating gross proceeds of $11,000,000 (the “Private Placement”). The proceeds of the Private Placement Units were deposited into the Trust Accountscale, meet future demand, and will be used to fund the redemption of the Public Shares subject to the requirements of applicable law.achieve profitability.
Transaction costs amounted to approximately $10,600,000, consisting of $10,100,000 of underwriting fees and approximately $500,000 of other costs. In addition, approximately $500,000 of cash from the Initial Public Offering was held outside of the Trust Account and is available for working capital purposes.
Following the closing of the Initial Public Offering on August 31, 2020, an aggregate of $500,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Units was placed in a trust account (the “Trust Account”) located in the United States at J.P. Morgan Chase Bank, N.A., with Continental Stock Transfer & Trust Company acting as trustee, which may be invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of paragraphs (d)(2), (d)(3) and (d)(4) of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account. As of September 30, 2020, the proceedsMarch 31, 2021, we have invested $410.1 million in capital expenditures net of the Initial Public Offering and Private Placement Units were heldretirements, primarily in cash and subsequently invested in a money market fund, as specified above.
If we are unable to complete a Business Combination within 24 months from the closing of our Initial Public Offering, or August 31, 2022 (or a later date approved by our stockholders in accordance with our Amended and Restated Certificate of Incorporation, the “Combination Period”), we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to us to pay our taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish our public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in the case of clauses (ii) and (iii) above to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we fail to complete a Business Combination within the Combination Period.
Results of Operations
Our entire activity since inception through September 30, 2020 related to our formation, the preparation for the Initial Public Offering, and since the closing of the Initial Public Offering, the search for a prospective initial Business Combination. We have neither engaged in any operations nor generated any revenues to date. We will not generate any operating revenues until after completion of our initial Business Combination. We will generate non-operating income in the form of net gains on investments, dividends and interest income on U.S. Treasury Securities, investments in money market funds that invest in U.S. Treasury Securities and cash from the proceeds derived from the Initial Public Offering.factory. We expect to incur increased expensesadditional factory capital expenditure of up to approximately $160.0 million over the next two to four years with respect to facility automation and completion of the second production line to support the expected growth in demand for our products.
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(As Restated) | (As Restated) | Change ($) | Change (%) | ||||||||||||||||||||
Revenue | $ | 9,769 | $ | 9,032 | $ | 737 | 8.2 | % | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of revenue | 36,179 | 36,463 | (284) | (0.8) | % | ||||||||||||||||||
Research and development | 16,570 | 23,088 | (6,518) | (28.2) | % | ||||||||||||||||||
Selling, general, and administrative | 21,700 | 21,364 | 336 | 1.6 | % | ||||||||||||||||||
Total costs and expenses | 74,449 | 80,915 | (6,466) | (8.0) | % | ||||||||||||||||||
Loss from operations | (64,680) | (71,883) | 7,203 | (10.0) | % | ||||||||||||||||||
Interest and other income (expense), net: | |||||||||||||||||||||||
Interest income | 5 | 445 | (440) | (98.9) | % | ||||||||||||||||||
Interest expense | (5,308) | (5,285) | (23) | (0.4) | % | ||||||||||||||||||
Other expense, net | (1,442) | (24) | (1,418) | * | |||||||||||||||||||
Gain on fair value change, net | 7,413 | 4,427 | 2,986 | 67.4 | % | ||||||||||||||||||
Loss on extinguishment of debt | (10,018) | — | (10,018) | * | |||||||||||||||||||
Interest and other income (expense), net | (9,350) | (437) | (8,913) | * | |||||||||||||||||||
Loss before provision of income taxes | (74,030) | (72,320) | (1,710) | 2.4 | % | ||||||||||||||||||
Provision for income taxes | (5) | (5) | — | — | |||||||||||||||||||
Net and comprehensive loss | $ | (74,035) | $ | (72,325) | $ | (1,710) | 2.4 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Change ($) | Change (%) | ||||||||||||||||||||
United States | $ | 9,665 | $ | 8,687 | $ | 978 | 11.3 | % | |||||||||||||||
Percentage of total revenue | 98.9 | % | 96.2 | % | |||||||||||||||||||
Canada | 104 | 321 | (217) | (67.6) | % | ||||||||||||||||||
Percentage of total revenue | 1.1 | % | 3.6 | % | |||||||||||||||||||
Other | — | 24 | (24) | (100) | % | ||||||||||||||||||
Percentage of total revenue | — | 0.3 | % | ||||||||||||||||||||
Total | $ | 9,769 | $ | 9,032 | $ | 737 | 8.2 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Change ($) | Change (%) | ||||||||||||||||||||
Product | $ | 9,711 | $ | 8,944 | $ | 767 | 8.6 | % | |||||||||||||||
Percentage of total revenue | 99.4 | % | 99.0 | % | |||||||||||||||||||
Services | 58 | 88 | (30) | (34.1) | % | ||||||||||||||||||
Percentage of total revenue | 0.6 | % | 1.0 | % | |||||||||||||||||||
Total | $ | 9,769 | $ | 9,032 | $ | 737 | 8.2 | % |
Income Taxes
Liquidity and Capital Resources
As of September 30, 2020, we had approximately $405,000 in our operating bank account, and working capitalnegative cash flows from operations of approximately $335,000.
Our liquidity needs to date have been satisfied through a contribution of $25,000 from our Sponsor in exchange for the issuance of the Founder Shares, the loan of approximately $185,000 from our Sponsor pursuant to a promissory note (the “Note”), and the proceeds from the consummation of the Private Placement not held in the Trust Account. We fully repaid the Note as of August 31, 2020. In addition, in order to finance transaction costs in connection with a
Business Combination, our Sponsor has committed to loan to us up to $750,000 to fund our expenses relating to investigating and selecting a target business and other working capital requirements after the Initial Public Offering and prior to our initial Business Combination (the “Sponsor Loan”). If the Sponsor Loan is insufficient, our Sponsor or an affiliate of our Sponsor, or certain of our officers and directors may, but are not obligated to, provide us working capital loans. As of September 30, 2020, there were no amounts outstanding under the Sponsor Loan or any working capital loan.
Based on the foregoing, management believes that we will have sufficient working capital and borrowing capacity from our Sponsor to meet our needs through the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, we will be using these funds for paying existing accounts payable, identifying and evaluating prospective target businesses, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination.
We continue to evaluate the impact of the COVID-19 pandemic and our management has concluded that the specific impact is not readily determinable as of the date of the accompanyingfiling of this Amendment No. 1 to the Quarterly Report on Form 10-Q/A, the Company’s liquidity and forecasted operating costs and obligations for the next twelve months have changed such that the Company determined that there is currently substantial doubt about its ability to continue as a going concern, as the Company does not currently have adequate financial statements. The financial statements accompanying this report do not include any adjustments that might resultresources to fund its forecasted operating costs and meet its obligations for at least twelve months from the outcomefiling of this uncertainty.
Contractual Obligations
We doAmendment No. 1 to the Quarterly Report on Form 10-Q/A.
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net cash used in operating activities | (70,338) | (39,351) | |||||||||
Net cash (used in) provided by investing activities | (2,679) | 13,511 | |||||||||
Net cash provided by (used in) financing activities | 516,245 | (4,814) |
any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special
This management’s discussion and analysisEstimates
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Expected volatility | 53.0% | 70% | |||||||||
Expected terms (in years) | 6.0 | 5.4-6.7 | |||||||||
Expected dividends | 0% | 0% | |||||||||
Risk-free rate | 1.07% | 1.4%-1.8% |
Class A Common Stock Subject to Possible Redemption
Shares of Class A common stock subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable shares of Class A common stock (including shares of Class A common stock that feature redemption rights that are either within the controlcontractual terms of the holderstock-based awards, vesting schedules, and expectations of future employee behavior.
Net Income (Loss) Per Share
Net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares outstanding during the applicable periods. We have not considered the effect of the warrants sold in the Initial Public Offering and the Private Placement to purchase an aggregate of 17,033,303 shares of the Company’s Class A common stock in the calculationforeseeable future.
Our unaudited condensed statements of operations include a presentationour, and in part on input from third-party valuations.
Derivative Warrant Liability
We account for the Warrantswas determined in accordance with the guidance containedguidelines outlined in ASC 815 under which the Warrants do not meetAmerican Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. The assumptions used to determine the criteria for equity treatment and must be recorded as derivative liabilities. Accordingly, we classified the Warrants as liabilities at theirestimated fair value of our common stock are based on numerous objective and adjust subjective factors, combined with management’s judgment, including:
CEO Option Award | Officer RSUs | Officer Options | |||||||||||||||
Expected stock price | $9.19 | $9.19 | $9.19 | ||||||||||||||
Expected volatility | 54.0% | 56.0% | 53.0% | ||||||||||||||
Risk-free rate | 1.59% | 0.60% | 1.07% | ||||||||||||||
Expected terms (in years) | 10.0 | 4.0 | 6.0 | ||||||||||||||
Expected dividends | 0% | 0% | 0% | ||||||||||||||
Discount for lack of marketability | 20% | n/a | n/a |
March 31, 2021 | March 8, 2021 (Closing Date) | ||||||||||
Stock price | $7.40 | $9.19 | |||||||||
Expected volatility | 46.6% | 29.20% | |||||||||
Risk free rate | 0.92% | 0.86% | |||||||||
Contractual term | 4.9 years | 5.0 years | |||||||||
Expected dividends | 0% | 0% |
March 31, 2021 | March 8, 2021 (Closing Date) | ||||||||||
Stock price | $7.40 | $9.19 | |||||||||
Expected volatility | 46.60% | 29.20% | |||||||||
Risk free rate | 0.78% | 0.73% | |||||||||
Expected term | 4.4 years | 4.5 years | |||||||||
Expected dividends | 0% | 0% |
RecentSignificant Accounting Pronouncements
Our management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.
Off-Balance Sheet Arrangements
As of September 30, 2020, we did not have any off-balance sheet arrangements as definedPolicies,” in Item 303(a)(4)(ii) of Regulation S-K.
JOBS Act
The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We qualify as an “emerging growth company” and under the JOBS Act, we are allowedour notes to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, ourcondensed consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.
Additionally, we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we choose to rely on such exemptions we may not be required to, among other things, (i) provide an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404, (ii) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis) and (iv) disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation. These exemptions will apply for a period of five years following the completion of our Initial Public Offering or until we are no longer an “emerging growth company,” whichever is earlier.
effective as of March 31, 2021. Nevertheless, based on a number of factors, including the completion of the Audit Committee’s investigation, our internal review that identified the need to restate our previously issued financial statements and the performance of additional procedures by management designed to ensure the reliability of our financial reporting, we believe that the condensed consolidated financial statements in this Amendment No. 1 to the Quarterly Report fairly present, in all material respects, our financial position, results of operations and cash flows as of the dates, and for the periods, presented, in conformity with generally accepted accounting principles in the United States of America (“GAAP”).Evaluation Disclosure Controls and ProceduresOn April 12, 2021, the Staff of the U.S. Securities and Exchange Commission issued the “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (the “SEC Staff Statement”). In light of the SEC Staff Statement, on May 10, 2021, after discussion with WithumSmith+Brown, PC, our independent registered public accounting firm during the Non-Reliance Periods, our Audit Committee and management concluded that, it was appropriate to restate certain financial statements of CF Finance Acquisition Corp. II previously filed before consummation of our Business Combination, namely the quarterly unaudited financial statements for the quarters ended September 30, 2020 and December 31, 2020 (the “Non-Reliance Periods”).As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried outrequired by Rule 13a-14 of the Securities Exchange Act of 1934 (the “Exchange Act”). See Exhibits 31.1 and 31.2. This Item 4 includes information concerning the controls and control evaluations referred to in those certifications.September 30, 2020. On November 12, 2020, we filed our original audited Quarterly ReportMarch 31, 2021. Based on Form 10-Q for the quarter ended September 30, 2020 (the “Original Report”). Based upon their evaluation at that earlier time, our Chief Executive Officer and Chief Financial Officer had concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective. Subsequent to that evaluation, as a result ofdue to the material weaknessweaknesses in internal control over financial reporting described below, our Chief Executive Officer and Chief Financial Officer have concluded that as of September 30, 2020, our disclosure controls and procedures were not effective.the Company’sour annual or interim financial statements will not be prevented or detected on a timely basis.In connection with the restatement discussed in Note 3 to the financial statements included herein, our Chief Executive Officer and Chief Financial Officer reevaluated the Company’s disclosure controls and procedures relating to the Company’s method of accounting for certain warrants to purchase common stock of the Company. They concluded there was aweakness in controls related to the classification and accounting for such warrants, which did not operate effectively to appropriately apply the correct accounting treatment.Notwithstanding this material weakness, management has concluded that our financial statements included in this Quarterly Report on Form 10-Q/A are fairly stated in all material respects in accordance with GAAP for each of the periods presented herein.To remediate the material weakness, the Company studied and clarified its understanding of the accounting of contracts that may be settled in the Company’s own stock, such as warrants, as equity of the entity or as an asset or liability as highlighted in the SEC Staff Statement and enhanced the accounting policy related to the accounting for such contracts to determine proper accounting in accordance with GAAP as clarified by the SEC Staff Statement. Finally, the Company restated its consolidated financial statements as of and for the quarter ended September 30, 2020 and December 31, 2020 upon completing its evaluation of the SEC Staff Statement. The Company plans to complete the remediation of the material weakness during the quarter ended June 30, 2021.Changes in Internal Control over Financial ReportingThere was no changeweaknesses in our internal control over financial reporting as of March 31, 2021, as follows:occurredmeets our accounting and reporting requirements. Specifically, we did not have a sufficient complement of personnel with an appropriate degree of accounting knowledge and experience to appropriately analyze, record and disclose accounting matters commensurate with our accounting and reporting requirements and lacked related internal controls necessary to satisfy our accounting and financial reporting requirements. Additionally, we did not demonstrate a commitment to integrity and ethical values. These material weaknesses contributed to the following additional material weaknesses:September 30, 2020, covered by this Quarterly Report on Form 10-Q/AMarch 31, 2021 in our internal control over financial reporting (as such term is defined in the Exchange Act) that hashave materially affected, or isare reasonably likely to materially affect, our internal control over financial reporting other than the changes described above related to the material weakness related to the accounting for certainreporting.II –II. OTHER INFORMATION
None.
Factors.There have been noFactorschanges fromrisk factors affecting our business operations and financial condition. Any of the risk factors previously disclosedincluded therein could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. The risks included in Part I, Item 1A. "Risk Factors" of the Company’s most recent QuarterlyCompany's 2021 Annual Report on Form 10-Q as10-K, filed June 15, 2022 should be read in conjunction with the SEC on May 17, 2021unaudited condensed consolidated financial statements and notes to the financial statements included elsewhere in this Form 10-Q/A.
Private PlacementAugust 31,March 8, 2021 (the “Closing Date”), View, Inc., a Delaware corporation (f/k/a CF Finance Acquisition Corp. II (“CF II”)) (the “Company” or “View”), consummated the previously announced merger pursuant to an Agreement and Plan of Merger, dated November 30, 2020 simultaneously(as amended, modified or waived from time to time, the “Merger Agreement”), by and among CF II, PVMS Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of CF II (“Merger Sub”), and View Operating Corporation, a Delaware corporation (f/k/a View, Inc.) (“Legacy View”).closingother transactions described in the Merger Agreement, the “Transactions”). On the Closing Date, the Company changed its name from CF Finance Acquisition Corp. II to View, Inc. and Legacy View changed its name from View, Inc. to View Operating Corporation.Initial Public Offering, we consummatedstockholders of CF II held on March 5, 2021 (the “Special Meeting”) and the Merger, holders of 12,587,893 shares of Company Class A common stock, par value $0.0001 per share (the “Class A Common Stock”), exercised their right to redeem their shares for cash at a private placement of an aggregate of 1,100,000 units (“Private Placement Units”) to the Sponsor at aredemption price of $10.00 per Private Placement Unit, generating total proceedsshare, for an aggregate redemption amount of $11,000,000. Each Private Placement Unit consistsapproximately $125.88 million.onethe Merger (the “Effective Time”), and subject to (and except as specifically provided by) the terms of the Merger Agreement, each share of Legacy View common stock, par value $0.0001 per share and each share of Legacy View preferred stock, par value $0.0001 per share, that was issued and outstanding immediately prior to the Effective Time, was automatically cancelled and ceased to exist in exchange for 0.02325 shares (the “Exchange Ratio”) of Class A Common Stock for each share of Legacy View common stock and Legacy View preferred stock, without interest, subject to rounding up such fractional shares of each holder to the nearest whole share of Class A Common Stock (after aggregating all fractional shares of Class A Common Stock that otherwise would be received by such holder).one-third of one warrant. Each whole warrant sold aswithout any required action on the part of the Private Placement Units is exercisableany holder or beneficiary thereof, was converted into and exchanged for one validly issued, fully paid and nonassessable share of Legacy View common stock.atsubject to such Legacy View option immediately prior to the Effective Time by (ii) the Exchange Ratio. Except as specifically provided in the Merger Agreement, following the Effective Time, each assumed option is governed by the same terms and conditions (including vesting and$11.50 per share.Class A Common Stock exceeds $12.50 for 5 out of any 10 trading days, (b) 25% of the Sponsor Earn-Out Shares being released if the stock price of Class A Common Stock exceeds $15.00 for 5 out of any 10 trading days and (c) 25% of the Sponsor Earn-Out Shares being released if the stock price of Class A Common Stock exceeds $20.00 for 5 out of any 10 trading days, in each case, subject to early release for a Combined Entity sale, change of control or going private transaction or delisting after the Effective Time.Private Placement UnitsOfficer RSUs are identicalsubject to both time and market based vesting conditions. The Officer RSUs time vest over a four-year period with 25% to vest on the twelve-month anniversary of the Closing and the remaining 75% to vest on a monthly basis over the following thirty-six months, subject to the Units soldfollowing market-based vesting. 50% of the Officer RSUs granted to each executive officer will only vest if the share price hurdle of $15.00 is achieved and the remaining 50% of such Officer RSUs will vest if the share price hurdle of $20.00 is achieved. The Officer Options time vest over a four-year period with 25% to vest on the twelve-month anniversary of the Closing and the remaining 75% will vest on a monthly basis over the following thirty-six months. For further details about the Officer Earnout Awards, see “2021 Equity Incentive Plan Proposal — New Plan Benefits” beginning on page 176 of the proxy statement/prospectus.Public Offering, except thatSubscribers agreed to purchase, and CF II agreed to sell to the Sponsor hasInitial Subscribers, an aggregate of up to 30,000,000 shares of Class A Common Stock (the “Initial PIPE Shares”), for a purchase price of $10.00 per share, and on January 11, 2021, CF II entered into a Subscription Agreement with an additional subscriber (the “Additional Subscriber” and together with the Initial Subscribers, the “PIPE Subscribers”), pursuant to which the Additional Subscriber agreed not to transfer, assign orpurchase, and CF II agreed to sell anyto the Additional Subscriber, up to 17,777,778 shares of Class A Common Stock (the “Additional PIPE Shares” and together with the Initial PIPE Shares, the “PIPE Shares”). The closing of the Private Placement Units (exceptsale of the PIPE Shares pursuant to certain permitted transferees) until 30 days after the completionSubscription Agreements was contingent upon, among other customary closing conditions, including the substantially concurrent closing of our initial business combination. The warrants underlying the Private Placement Units are also not redeemable by us so long as they are heldMerger (the “Closing”). On March 8, 2021, substantially concurrently with the Closing, the sale of the PIPE Shares was consummated, pursuant to which (after taking into account open market purchases by the Sponsor or its permitted transferees. In addition, for as long asInitial Subscribers and the warrants underlying9.85% cap applicable to the Private Placement Units are held by the Sponsor, such warrants may not be exercised after five years from the effective date of the registration statement forAdditional Subscriber), the Initial Public Offering. No underwriting discounts or commissions were paidSubscribers purchased an aggregate of 26,078,242 shares of Class A Common Stock and the Additional Subscriber purchased 16,024,914 shares of Class A Common Stock, for total gross proceeds to the Company of approximately $441.1 million.respect to such sale. The issuancethe PIPE Subscription Agreements have not been registered under the Securities Act of the Private Placement Units was made pursuant to1933, as amended (the “Securities Act”) in reliance on the exemption from registration contained inprovided by Section 4(a)(2) of the Securities Act.Use of Proceeds from the Initial Public OfferingOn August 31, 2020, we consummated our Initial Public Offering of 50,000,000 units, with each unit consisting of one share of Class A common stock and one-third of one warrant. Each whole warrant is exercisable to purchase one share of Class A common stock at an exercise price of $11.50 per whole share. The Units in the Initial Public Offering were sold at an offering price of $10.00 per unit, generating total gross proceeds of approximately $500,000,000. Cantor Fitzgerald & Co. (“CF&Co.”) acted as sole book-running manager for the Initial Public Offering. The securities sold in the Initial Public Offering were registered under the Securities Act on a registration statement on Form S-1 (No. 333-241727). The SEC declared the registration statement effective on August 26, 2020.We paid a total of $10,100,000 in underwriting discounts and commissions and approximately $500,000 for other costs and expenses related to the Initial Public Offering. In addition, we have engaged CF&Co. as an advisor in connection with our business combination, pursuant to a Business Combination Marketing Agreement. We will pay CF&Co. a cash fee for such services out of funds in the Trust Account upon the consummation of our initial business combination in an amount equal to $17,500,000, which is equal to 3.5% of the gross proceeds of the Initial Public Offering. We also repaid the promissory note to our Sponsor from the proceeds of the Initial Public Offering.After deducting the underwriting discounts and commissions and the offering expenses, the total net proceeds from our Initial Public Offering and the sale of the Private Placement Units was approximately $500,400,000, of which $500,000,000 (or $10.00 per unit sold in the Initial Public Offering) was placed in the Trust Account. As of September 30, 2020, approximately $405,000 was held outside the Trust Account and will be used to fund the Company’s operating expenses. The proceeds held in the Trust Account may be invested by the trustee only in U.S. government treasury bills with a maturity of 180 days or less or in money market funds investing solely in U.S. government treasury obligations and meeting certain conditions under Rule 2a-7 under the Investment Company Act.
There has been no material change in the planned use of the proceeds from the Initial Public Offering and Private Placement as is described in the Company’s final prospectus related to the Initial Public Offering.
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None.
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View, Inc. | ||||||||||
Date: June 15, 2022 | ||||||||||
/s/ Rao Mulpuri | ||||||||||
Name: Rao Mulpuri | ||||||||||
Title: Chief Executive Officer | ||||||||||
(Principal Executive Officer) | ||||||||||
Date: June | ||||||||||
15, 2022 | ||||||||||||
/s/ | ||||||||||||
Name: | ||||||||||||
Title: | Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer) |
32