Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Entity Registrant Name | Desktop Metal, Inc. |
Entity Central Index Key | 0001754820 |
Document Type | S-4 |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Amendment Flag | false |
Entity Filer Category | Non-accelerated Filer |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | |||||||
Cash and cash equivalents | $ 188,199 | $ 483,525 | $ 74,647 | $ 66,161 | $ 29,043 | ||
Short-term investments | 326,318 | 111,867 | 84,754 | ||||
Accounts receivable | 13,441 | 6,516 | 4,523 | ||||
Inventory | 25,407 | 9,708 | 8,405 | ||||
Prepaid expenses and other current assets | 7,078 | 976 | 1,888 | ||||
Total current assets | 560,443 | 612,592 | 165,731 | ||||
Restricted cash | 676 | 612 | 612 | ||||
Property and equipment, net | 13,228 | 12,160 | 18,387 | ||||
Capitalized software, net | 226 | 312 | 446 | ||||
Goodwill | 251,060 | 2,252 | 2,300 | 2,252 | |||
Intangible assets, net | 178,860 | 9,102 | 2,994 | ||||
Other noncurrent assets | 12,210 | 4,879 | 2,289 | ||||
Total Assets | 1,016,703 | 641,909 | 192,711 | ||||
Current liabilities: | |||||||
Accounts payable | 9,214 | 7,591 | 10,228 | ||||
Customer deposits | 2,829 | 1,480 | 2,325 | ||||
Current portion of operating lease liability | 1,983 | 868 | 806 | ||||
Accrued expenses and other current liabilities | 20,968 | 7,565 | 5,053 | ||||
Deferred revenue | 4,814 | 3,004 | 2,230 | ||||
Current portion of long term debt | 311 | 9,991 | |||||
Total current liabilities | 41,548 | 30,499 | 20,642 | ||||
Warrant liability | 93,328 | ||||||
Long-term debt, net of deferred financing costs | 9,972 | ||||||
Lease liability, net of current portion | 3,959 | 2,157 | 3,026 | ||||
Total liabilities | 59,359 | 125,984 | 33,640 | ||||
Commitments and Contingences (Note 15) | |||||||
Legacy Convertible Preferred Stock (Note 17) | |||||||
Stockholders' Equity | |||||||
Preferred Stock, $0.0001 par value-authorized, 50,000,000 shares; no shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | |||||||
Common Stock, $0.0001 par value-500,000,000 shares authorized; 226,756,733 and 160,500,702 shares issued at December 31, 2020 and December 31, 2019, respectively, 224,626,597 and 154,913,934 shares outstanding at December 31, 2020 and December 31, 2019, respectively | 26 | 23 | 16 | ||||
Additional paid-in capital | 1,387,779 | 844,188 | 453,242 | ||||
Accumulated deficit | (430,565) | (328,277) | (294,262) | ||||
Accumulated other comprehensive (loss) income | 104 | (9) | 75 | ||||
Total Stockholders' Equity | 957,344 | $ 939,564 | 515,925 | $ 116,158 | $ (299,425) | (277,462) | $ (184,569) |
Total Liabilities and Stockholders' Equity | 1,016,703 | 641,909 | 192,711 | ||||
Acquired technology | |||||||
Current assets: | |||||||
Intangible assets, net | $ 121,026 | 9,102 | |||||
As Reported | |||||||
Current liabilities: | |||||||
Total liabilities | 32,656 | ||||||
Stockholders' Equity | |||||||
Additional paid-in capital | 993,933 | ||||||
Accumulated deficit | (384,694) | ||||||
Total Stockholders' Equity | $ 609,253 | $ 159,071 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 09, 2020 | Aug. 31, 2020 | Aug. 20, 2020 | Dec. 31, 2019 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||
Preferred stock, shares, issued | 0 | 0 | 0 | |||
Preferred Stock, shares, outstanding | 0 | 0 | 0 | |||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 366,366 | 500,000,000 | |
Common stock, shares, issued | 259,712,899 | 226,756,733 | 160,500,702 | |||
Common stock, shares, outstanding | 259,545,731 | 224,626,597 | 154,913,934 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | ||||||
Total revenues | $ 18,977 | $ 2,189 | $ 30,290 | $ 5,574 | $ 16,470 | $ 26,439 |
Cost of sales | ||||||
Total cost of sales | 16,605 | 10,478 | 28,505 | 16,682 | 31,519 | 50,796 |
Gross profit/(loss) | 2,372 | (8,289) | 1,785 | (11,108) | (15,049) | (24,357) |
Operating expenses | ||||||
Research and development | 15,651 | 9,827 | 26,509 | 22,167 | 43,136 | 54,656 |
Sales and marketing | 10,894 | 2,958 | 16,343 | 7,452 | 13,136 | 18,749 |
General and administrative | 13,142 | 2,964 | 26,988 | 5,589 | 20,734 | 11,283 |
Total operating expenses | 50,087 | 15,749 | 80,240 | 35,208 | 77,006 | 84,688 |
Loss from operations | (47,715) | (24,038) | (78,455) | (46,316) | (92,055) | (109,045) |
Change in fair value of warrant liability | (56,576) | 56,417 | ||||
Interest expense | (51) | (51) | (125) | (155) | (328) | (503) |
Interest and other income, net | 268 | 323 | 630 | 901 | 1,011 | 5,952 |
Loss before income taxes | (47,498) | (23,766) | (134,526) | (45,570) | (34,955) | (103,596) |
Income tax benefit | 4,318 | 0 | 32,238 | 0 | 940 | 0 |
Net loss | (43,180) | (23,766) | (102,288) | (45,570) | $ (34,015) | $ (103,596) |
Net loss per share-basic and diluted | $ (0.22) | $ (0.69) | ||||
Products | ||||||
Revenues | ||||||
Total revenues | 17,560 | 1,531 | 27,871 | 4,225 | $ 13,718 | $ 22,758 |
Cost of sales | ||||||
Total cost of sales | 15,490 | 9,372 | 25,977 | 14,413 | 26,945 | 45,268 |
Services | ||||||
Revenues | ||||||
Total revenues | 1,417 | 658 | 2,419 | 1,349 | 2,752 | 3,681 |
Cost of sales | ||||||
Total cost of sales | $ 1,115 | $ 1,106 | $ 2,528 | $ 2,269 | $ 4,574 | $ 5,528 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||
Net loss | $ (43,180) | $ (23,766) | $ (102,288) | $ (45,570) | $ (34,015) | $ (103,596) |
Other comprehensive (loss) income, net of taxes: | ||||||
Unrealized (loss) gain on available-for-sale marketable securities, net | (5) | 132 | (4) | (27) | (84) | 171 |
Total comprehensive loss, net of taxes of $0 | $ (43,055) | $ (23,634) | $ (102,175) | $ (45,597) | $ (34,099) | $ (103,425) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||
Tax on Comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | As ReportedCommon Stock | As ReportedAdditional Paid-In Capital | As ReportedAccumulated Deficit | As ReportedAccumulated Other Comprehensive (Loss) Income | As Reported | Cumulative Effect, Period of Adoption, AdjustmentLegacy Convertible Preferred Stock | Cumulative Effect, Period of Adoption, AdjustmentCommon Stock | Cumulative Effect, Period of Adoption, AdjustmentAdditional Paid-In Capital | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted BalanceCommon Stock | Cumulative Effect, Period of Adoption, Adjusted BalanceAdditional Paid-In Capital | Cumulative Effect, Period of Adoption, Adjusted BalanceNotes Receivable | Cumulative Effect, Period of Adoption, Adjusted BalanceAccumulated Deficit | Cumulative Effect, Period of Adoption, Adjusted BalanceAccumulated Other Comprehensive (Loss) Income | Cumulative Effect, Period of Adoption, Adjusted Balance | Legacy Convertible Preferred Stock | Series E Preferred StockCommon Stock | Series E Preferred StockAdditional Paid-In Capital | Series E Preferred Stock | Series E1 Preferred StockCommon Stock | Series E1 Preferred StockAdditional Paid-In Capital | Series E1 Preferred Stock | Common Stock | Additional Paid-In Capital | Notes Receivable | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Total |
BALANCE at Dec. 31, 2018 | $ (276,889) | $ 276,889 | ||||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2018 | (84,092,669) | 84,092,669 | ||||||||||||||||||||||||||
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Abstract] | ||||||||||||||||||||||||||||
Issuance of Preferred Stock | $ 2 | $ 134,665 | $ 134,667 | $ 24,977 | $ 24,977 | |||||||||||||||||||||||
Issuance of Preferred Stock (in shares) | 16,426,267 | 3,046,623 | ||||||||||||||||||||||||||
BALANCE at Dec. 31, 2019 | $ (436,533) | $ 436,533 | ||||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2019 | (100,038,109) | 100,038,109 | ||||||||||||||||||||||||||
BALANCE at Dec. 31, 2018 | $ 11 | $ 276,878 | $ 276,889 | $ 13 | $ 283,318 | $ (249) | $ (190,666) | $ (96) | $ 92,320 | $ 2 | $ 6,440 | $ (249) | $ (190,666) | $ (96) | $ (184,569) | |||||||||||||
BALANCE (in shares) at Dec. 31, 2018 | 106,977,440 | 126,329,695 | 19,352,255 | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Exercise of Common Stock options | 708 | 708 | ||||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 1,217,255 | |||||||||||||||||||||||||||
Vesting of restricted Common Stock | $ 1 | 7 | 8 | |||||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 6,904,182 | |||||||||||||||||||||||||||
Issuance of Common Stock for acquisitions | 3,563 | 3,563 | ||||||||||||||||||||||||||
Issuance of Common Stock for acquisitions (in shares) | 1,066,373 | |||||||||||||||||||||||||||
Stock-based compensation expense | 5,215 | 5,215 | ||||||||||||||||||||||||||
Common Stock warrants issued and exercised | 1,038 | 1,038 | ||||||||||||||||||||||||||
Repayment of notes receivable | (249) | $ 249 | ||||||||||||||||||||||||||
Repayment of notes receivable (in shares) | (76,461) | |||||||||||||||||||||||||||
Net loss | (103,596) | (103,596) | ||||||||||||||||||||||||||
Other comprehensive income | 171 | 171 | ||||||||||||||||||||||||||
BALANCE at Dec. 31, 2019 | $ 16 | $ 453,242 | $ (294,262) | $ 75 | $ 159,071 | $ 13 | 436,520 | 436,533 | $ 16 | 453,242 | (294,262) | 75 | 159,071 | $ 3 | 16,722 | (294,262) | 75 | (277,462) | ||||||||||
BALANCE (in shares) at Dec. 31, 2019 | 154,913,934 | 128,100,821 | 154,913,934 | 26,813,113 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Exercise of Common Stock options | 136 | 136 | ||||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 314,809 | |||||||||||||||||||||||||||
Vesting of restricted Common Stock | 4 | 4 | ||||||||||||||||||||||||||
Stock-based compensation expense | 2,333 | 2,333 | ||||||||||||||||||||||||||
Common Stock warrants issued and exercised | 211 | 211 | ||||||||||||||||||||||||||
Net loss | (45,570) | (45,570) | ||||||||||||||||||||||||||
Other comprehensive income | (27) | (27) | ||||||||||||||||||||||||||
BALANCE at Jun. 30, 2020 | $ 16 | 455,926 | (339,832) | 48 | $ 116,158 | |||||||||||||||||||||||
BALANCE (in shares) at Jun. 30, 2020 | 158,729,658 | |||||||||||||||||||||||||||
BALANCE at Dec. 31, 2019 | $ (436,533) | $ 436,533 | ||||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2019 | (100,038,109) | 100,038,109 | ||||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2020 | 100,038,109 | |||||||||||||||||||||||||||
BALANCE at Dec. 31, 2019 | $ 16 | $ 453,242 | $ (294,262) | $ 75 | 159,071 | $ 13 | 436,520 | 436,533 | $ 16 | 453,242 | (294,262) | 75 | 159,071 | $ 3 | 16,722 | (294,262) | 75 | $ (277,462) | ||||||||||
BALANCE (in shares) at Dec. 31, 2019 | 154,913,934 | 128,100,821 | 154,913,934 | 26,813,113 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Exercise of Common Stock options | 325 | 325 | ||||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 521,925 | |||||||||||||||||||||||||||
Vesting of restricted Common Stock | $ 1 | 6 | 7 | |||||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 5,307,357 | |||||||||||||||||||||||||||
Issuance of Common Stock for acquisitions | 500 | 500 | ||||||||||||||||||||||||||
Issuance of Common Stock for acquisitions (in shares) | 61,060 | |||||||||||||||||||||||||||
Repurchase of shares for employee tax withholdings | (101) | (101) | ||||||||||||||||||||||||||
Repurchase of shares for employee tax withholdings (in shares) | (9,308) | |||||||||||||||||||||||||||
Stock-based compensation expense | 8,006 | 8,006 | ||||||||||||||||||||||||||
Common Stock warrants issued and exercised | 1,915 | 1,915 | ||||||||||||||||||||||||||
Common Stock warrants issued and exercised (in shares) | 692,366 | |||||||||||||||||||||||||||
Reverse recapitalization, net of transaction costs | $ 6 | 380,295 | 380,301 | |||||||||||||||||||||||||
Reverse recapitalization, net of transaction costs (in shares) | 63,139,263 | |||||||||||||||||||||||||||
Net loss | (90,432) | (34,015) | (34,015) | |||||||||||||||||||||||||
Other comprehensive income | (84) | (84) | ||||||||||||||||||||||||||
BALANCE at Dec. 31, 2020 | 609,253 | $ 23 | 844,188 | (328,277) | (9) | 515,925 | ||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2020 | 224,626,597 | |||||||||||||||||||||||||||
BALANCE at Mar. 31, 2020 | $ (436,533) | $ 436,533 | ||||||||||||||||||||||||||
BALANCE (in shares) at Mar. 31, 2020 | (100,038,109) | 100,038,109 | ||||||||||||||||||||||||||
BALANCE at Mar. 31, 2020 | $ 13 | $ 438,037 | $ 438,050 | $ 16 | $ 454,759 | $ (316,066) | $ (84) | $ 138,625 | $ 3 | 16,722 | (316,066) | (84) | (299,425) | |||||||||||||||
BALANCE (in shares) at Mar. 31, 2020 | 130,138,012 | 156,951,125 | 26,813,113 | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Exercise of Common Stock options | 4 | 4 | ||||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 28,173 | |||||||||||||||||||||||||||
Vesting of restricted Common Stock | 2 | 2 | ||||||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 1,750,360 | |||||||||||||||||||||||||||
Stock-based compensation expense | 1,074 | 1,074 | ||||||||||||||||||||||||||
Common Stock warrants issued and exercised | 87 | 87 | ||||||||||||||||||||||||||
Net loss | (23,766) | (23,766) | ||||||||||||||||||||||||||
Other comprehensive income | 132 | 132 | ||||||||||||||||||||||||||
BALANCE at Jun. 30, 2020 | $ 16 | 455,926 | (339,832) | 48 | $ 116,158 | |||||||||||||||||||||||
BALANCE (in shares) at Jun. 30, 2020 | 158,729,658 | |||||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2020 | 100,038,109 | |||||||||||||||||||||||||||
BALANCE at Dec. 31, 2020 | $ 609,253 | $ 23 | 844,188 | (328,277) | (9) | $ 515,925 | ||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2020 | 224,626,597 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Exercise of Common Stock options | 3,665 | 3,665 | ||||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 2,846,734 | |||||||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 112,030 | |||||||||||||||||||||||||||
Issuance of Common Stock for acquisitions | $ 1 | 208,988 | 208,989 | |||||||||||||||||||||||||
Issuance of Common Stock for acquisitions (in shares) | 9,049,338 | |||||||||||||||||||||||||||
Repurchase of shares for employee tax withholdings (in shares) | (9,172) | |||||||||||||||||||||||||||
Stock-based compensation expense | 6,216 | 6,216 | ||||||||||||||||||||||||||
Net loss | (102,288) | (102,288) | ||||||||||||||||||||||||||
Other comprehensive income | 113 | 113 | ||||||||||||||||||||||||||
BALANCE at Jun. 30, 2021 | $ 26 | 1,387,779 | (430,565) | 104 | 957,344 | |||||||||||||||||||||||
BALANCE (in shares) at Jun. 30, 2021 | 259,545,731 | |||||||||||||||||||||||||||
BALANCE at Mar. 31, 2021 | $ 25 | 1,326,945 | (387,385) | (21) | 939,564 | |||||||||||||||||||||||
BALANCE (in shares) at Mar. 31, 2021 | 252,436,919 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Exercise of Common Stock options | 3,485 | 3,485 | ||||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 2,683,506 | |||||||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 56,015 | |||||||||||||||||||||||||||
Issuance of Common Stock for acquisitions | $ 1 | 49,141 | 49,142 | |||||||||||||||||||||||||
Issuance of Common Stock for acquisitions (in shares) | 4,013,196 | |||||||||||||||||||||||||||
Repurchase of shares for employee tax withholdings (in shares) | (6,931) | |||||||||||||||||||||||||||
Stock-based compensation expense | 3,999 | 3,999 | ||||||||||||||||||||||||||
Net loss | (43,180) | (43,180) | ||||||||||||||||||||||||||
Other comprehensive income | 125 | 125 | ||||||||||||||||||||||||||
BALANCE at Jun. 30, 2021 | $ 26 | $ 1,387,779 | $ (430,565) | $ 104 | $ 957,344 | |||||||||||||||||||||||
BALANCE (in shares) at Jun. 30, 2021 | 259,545,731 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Series E Preferred Stock | |
Stock issuance cost | $ 124 |
Series E1 Preferred Stock | |
Stock issuance cost | $ 22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (34,015) | $ (103,596) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 8,589 | 8,087 |
Stock-based compensation | 8,006 | 5,215 |
Change in fair value of warrant liability | (56,417) | |
Expense related to Common Stock warrants issued | 1,915 | 1,038 |
Loss (gain) on disposal of property and equipment | 18 | (7) |
Gain on investment, related to Make Composites, Inc. | (1,426) | |
Impairment of capitalized software | 444 | |
Amortization (accretion) of discount on investments | 75 | (1,570) |
Amortization of debt financing cost | 19 | 19 |
Provision for bad debt | 377 | 199 |
Net increase in accrued interest related to marketable securities | (3) | (36) |
Deferred tax benefit | (940) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,370) | (1,664) |
Inventory | (1,303) | (1,694) |
Prepaid expenses and other current assets | 901 | 809 |
Accounts payable | (2,637) | (4,455) |
Accrued expenses and other current liabilities | (2,391) | 3,272 |
Customer deposits | (845) | 152 |
Deferred revenue | 774 | (1,693) |
Change in right of use assets and lease liabilities, net | (328) | (296) |
Net cash used in operating activities | (80,575) | (97,202) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,429) | (6,867) |
Purchase of other investments | (3,000) | |
Capitalized software | (321) | |
Purchase of marketable securities | (136,286) | (215,584) |
Proceeds from sales and maturities of marketable securities | 109,016 | 196,836 |
Cash paid for asset acquisition, net of cash acquired | (5,284) | (96) |
Net cash (used in) provided by investing activities | (36,983) | (26,032) |
Cash flows from financing activities: | ||
Proceeds from Preferred Stock issuances, net of issuance cost | 159,644 | |
Proceeds from reverse recapitalization, net of issuance costs | 534,597 | |
Proceeds from exercise of stock options | 325 | 708 |
Proceeds from PPP loan | 5,379 | |
Repayment of PPP loan | (5,379) | |
Net cash provided by financing activities | 534,922 | 160,352 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | 417,364 | 37,118 |
Cash and cash equivalents at beginning of period | 66,161 | 29,043 |
Restricted cash at beginning of period | 612 | 612 |
Cash, cash equivalents, and restricted cash at year-end | 484,137 | 66,773 |
Supplemental cash flow information: | ||
Interest paid | 322 | 485 |
Non-cash investing and financing activities: | ||
Net liabilities assumed from Trine in Business Combination | 152,395 | |
Accrued reverse recapitalization transaction costs | 1,901 | |
Common Stock issued for acquisition of in-process research and development | 500 | 3,563 |
Accrued purchase price for asset acquisition | 200 | |
Tax liabilities related to withholdings on Common Stock issued in connection with acquisitions | $ 102 | |
Additions to right of use assets and lease liabilities | 296 | |
Purchase of property and equipment included in accounts payable | 109 | |
Common Stock forfeited in satisfaction of note receivable | $ 249 |
ORGANIZATION, NATURE OF BUSINES
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES | ||
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES | 1. ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES Organization and Nature of Business Desktop Metal, Inc. is a Delaware corporation headquartered in Burlington, Massachusetts. The company was founded in 2015 with the mission of accelerating the transformation of manufacturing with an expansive portfolio of 3D printing solutions focused on the production of end-use parts. The Company designs, produces and distributes additive manufacturing solutions comprising hardware, software, materials, parts, and services to businesses across a variety of end markets. On December 9, 2020 (the “Closing Date”), Trine Acquisition Corp. (“Trine”) consummated the previously announced merger pursuant to the Agreement and Plan of Merger, dated August 26, 2020, by and among Trine, Desktop Metal, Inc. and Sparrow Merger Sub, Inc., pursuant to which Sparrow Merger Sub, Inc. merged with and into Desktop Metal, Inc., with Desktop Metal, Inc. becoming our wholly owned subsidiary (the “Business Combination”). Upon the closing of the Business Combination, Trine changed its name to Desktop Metal, Inc. and Desktop Metal, Inc. changed its name to Desktop Metal Operating, Inc. Unless otherwise indicated or the context otherwise requires, references in this Quarterly Report on Form 10-Q to the “Company” and “Desktop Metal” refer to the consolidated operations of Desktop Metal, Inc. and its subsidiaries. References to “Trine” refer to the company prior to the consummation of the Business Combination and references to “Legacy Desktop Metal” refer to Desktop Metal Operating, Inc. prior to the consummation of the Business Combination. Legacy Desktop Metal was deemed the accounting acquirer in the Business Combination based on an analysis of the criteria outlined in Accounting Standards Codification (“ASC”) 805. This determination was primarily based on Legacy Desktop Metal’s stockholders prior to the Business Combination having a majority of the voting power in the combined company, Legacy Desktop Metal having the ability to appoint a majority of the Board of Directors of the combined company, Legacy Desktop Metal’s existing management comprising the senior management of the combined company, Legacy Desktop Metal comprising the ongoing operations of the combined company, Legacy Desktop Metal being the larger entity based on historical revenues and business operations, and the combined company assuming Legacy Desktop Metal’s name. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Legacy Desktop Metal issuing stock for the net assets of Trine, accompanied by a recapitalization. The net assets of Trine are stated at historical cost, with no goodwill or other intangible assets recorded. While Trine was the legal acquirer in the Business Combination, because Legacy Desktop Metal was deemed the accounting acquirer, the historical financial statements of Legacy Desktop Metal became the historical financial statements of the combined company upon the consummation of the Business Combination. As a result, the financial statements included in this report reflect (i) the historical operating results of Legacy Desktop Metal prior to the Business Combination; (ii) the combined results of Trine and Legacy Desktop Metal following the close of the Business Combination; (iii) the assets and liabilities of Legacy Desktop Metal at their historical cost; and (iv) the Company’s equity structure for all periods presented. In accordance with guidance applicable to these circumstances, the equity structure has been restated in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to Legacy Desktop Metal’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Desktop Metal convertible preferred stock and Legacy Desktop Metal common stock prior to the Business Combination have been retroactively restated as shares reflecting the exchange ratio of 1.22122 established in the Business Combination. Legacy Desktop Metal’s convertible preferred stock previously classified as mezzanine was retroactively adjusted, converted into Common Stock, and reclassified to permanent as a result of the reverse recapitalization. Risks and Uncertainties The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including, but not limited to, the need for successful development of products, the need for additional funding, competition from substitute products and services from larger companies, protection of proprietary technology, patent litigation, dependence on key individuals, and risks associated with changes in information technology. The Company has financed its operations to date primarily with proceeds from the sale of preferred stock and the Business Combination. The Company’s long-term success is dependent upon its ability to successfully market its products and services; generate revenue; maintain or reduce its operating costs and expenses; meet its obligations; obtain additional capital when needed; and, ultimately, achieve profitable operations. Management believes that existing cash and investments as of June 30, 2021 will be sufficient to fund operating and capital expenditure requirements through at least twelve months from the date of issuance of these consolidated financial statements. | 1. ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES Organization and Nature of Business Desktop Metal, Inc. is a Delaware corporation headquartered in Burlington, Massachusetts. The company was founded in 2015 and is accelerating the transformation of manufacturing with 3D printing solutions for engineers, designers, and manufacturers. The Company designs, produces and markets 3D printing systems to a variety of end customers. On December 9, 2020 (the “Closing Date”), Trine Acquisition Corp. (“Trine”) consummated the previously announced merger pursuant to the Agreement and Plan of Merger, dated August 26, 2020, by and among Trine, Desktop Metal, Inc. and Sparrow Merger Sub, Inc., pursuant to which Sparrow Merger Sub, Inc. merged with and into Desktop Metal, Inc., with Desktop Metal, Inc. becoming our wholly owned subsidiary (the “Business Combination”). Upon the closing of the Business Combination, Trine changed its name to Desktop Metal, Inc. and Desktop Metal, Inc. changed its name to Desktop Metal Operating, Inc. Unless otherwise indicated or the context otherwise requires, references in this Annual Report on Form 10-K/A to the “Company” and “Desktop Metal” refer to the consolidated operations of Desktop Metal, Inc. and its subsidiaries. References to “Trine” refer to the company prior to the consummation of the Business Combination and references to “Legacy Desktop Metal” refer to Desktop Metal Operating, Inc. prior to the consummation of the Business Combination. Legacy Desktop Metal was deemed the accounting acquirer in the Business Combination based on an analysis of the criteria outlined in Accounting Standards Codification (“ASC”) 805. This determination was primarily based on Legacy Desktop Metal’s stockholders prior to the Business Combination having a majority of the voting power in the combined company, Legacy Desktop Metal having the ability to appoint a majority of the Board of Directors of the combined company, Legacy Desktop Metal’s existing management comprising the senior management of the combined company, Legacy Desktop Metal comprising the ongoing operations of the combined company, Legacy Desktop Metal being the larger entity based on historical revenues and business operations, and the combined company assuming Legacy Desktop Metal’s name. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Legacy Desktop Metal issuing stock for the net assets of Trine, accompanied by a recapitalization. The net assets of Trine are stated at historical cost, with no goodwill or other intangible assets recorded. While Trine was the legal acquirer in the Business Combination, because Legacy Desktop Metal was deemed the accounting acquirer, the historical financial statements of Legacy Desktop Metal became the historical financial statements of the combined company upon the consummation of the Business Combination. As a result, the financial statements included in this report reflect (i) the historical operating results of Legacy Desktop Metal prior to the Business Combination; (ii) the combined results of Trine and Legacy Desktop Metal following the close of the Business Combination; (iii) the assets and liabilities of Legacy Desktop Metal at their historical cost; and (iv) the Company’s equity structure for all periods presented. In accordance with guidance applicable to these circumstances, the equity structure has been restated in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to Legacy Desktop Metal’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Desktop Metal convertible preferred stock and Legacy Desktop Metal common stock prior to the Business Combination have been retroactively restated as shares reflecting the exchange ratio of 1.22122 established in the Business Combination. Legacy Desktop Metal’s convertible preferred stock previously classified as mezzanine was retroactively adjusted, converted into Common Stock, and reclassified to permanent as a result of the reverse recapitalization. Risks and Uncertainties The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including, but not limited to, the need for successful development of products, the need for additional funding, competition from substitute products and services from larger companies, protection of proprietary technology, patent litigation, dependence on key individuals, and risks associated with changes in information technology. The Company has financed its operations to date primarily with proceeds from the sale of preferred stock and the Business Combination. The Company’s long-term success is dependent upon its ability to successfully market its products and services; generate revenue; maintain or reduce its operating costs and expenses; meet its obligations; obtain additional capital when needed; and, ultimately, achieve profitable operations. Management believes that existing cash and investments as of December 31, 2020 will be sufficient to fund operating and capital expenditure requirements through at least twelve months from the date of issuance of these consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The condensed consolidated financial statements include the Company’s accounts and those of its subsidiaries. In the opinion of the Company’s management, the financial information for the interim periods presented reflects all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. The results reported in these condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (“COVID-19”) to be a pandemic. As of June 30, 2021, the impact of the COVID-19 pandemic continues to unfold and there has been uncertainty and disruption in the global economy and financial markets. The Company has considered the COVID-19 pandemic related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. The COVID-19 pandemic, as well as the response to mitigate the spread and effects of COVID-19, has impacted the Company and its customers, as well as the demand for its products and services. The impact of COVID-19 on the Company’s operational results in subsequent periods will largely depend on future developments, and cannot be accurately predicted. These developments may include, but are not limited to, new information concerning the severity of COVID-19, the degree of success of actions taken to contain or treat COVID-19 and the reactions by consumers, companies, governmental entities, and capital markets to such actions. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to the financial statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2020. See the below discussion of changes to the Company’s policies for foreign currency translation, products revenue and services revenue, warranty reserve, intangible assets, asset acquisitions, and contingent consideration, due to 2021 business combinations and asset acquisitions. There have been no other changes to the Company’s significant accounting policies during the first six months of fiscal year 2021. Foreign Currency Translation The Company translates assets and liabilities of its foreign subsidiaries from their respective functional currencies to U.S. Dollars at the appropriate spot rates as of the balance sheet date. The functional currency of all wholly owned subsidiaries is U.S. Dollars, except for EnvisionTEC GmbH and Aerosint, for which it is Euros. The functional currency of the Company's operations outside the United States is generally the local currency of the country where the operations are located or U.S. Dollars. The results of operations are translated into U.S. Dollars at a monthly average rate, calculated using daily exchange rates. Differences arising from the translation of opening balance sheets of these entities to the rate at the end of the fiscal period are recognized in accumulated other comprehensive (loss) income. The differences arising from the translation of foreign results at the average rate are also recognized in accumulated other comprehensive (loss) income. Such translation differences are recognized as income or expense in the period in which the Company disposes of the operations. Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. All such differences are recorded in Interest and other income, net in the condensed consolidated statements of operations. Products Revenue and Services Revenue Products revenue include sales of the Company’s additive manufacturing systems as well as sale of related accessories and consumables. These consumables are primarily comprised of materials, which are used by the 3D printers during the printing process to produce parts, as well as replacement parts for items consumed during system operations. Certain on-device software is embedded with the hardware and sold with the product bundle and is included within product revenue. Revenue from products is recognized upon transfer of control, which is generally at the point of shipment. Services revenue consists of installation, training, and post-installation hardware and software support, as well as various software solutions the Company offers to facilitate the operation of the Company’s products. The Company offers multiple software products, which are licensed through either a cloud-based solution and/or on-device software, depending on the product. For the cloud-based solution, the Company typically provides an annual subscription that the customer does not have the right to take possession of and is renewable at expiration. The revenue from the cloud-based solution is recognized ratably over the annual term as the Company considers the services provided under the cloud-based solution to be a series of distinct performance obligations, as the Company provides continuous daily access to the cloud solution. For on-device software subscriptions, the Company typically recognizes revenue once the customer has been given access to the software. When the Company enters into development contracts, control of the development service is transferred over time, and the related revenue is recognized as services are performed. For certain products, the Company offers customers an optional extended warranty beyond the initial warranty period. The optional extended warranty is accounted for as a service-type warranty. Extended warranty revenue is deferred and recognized on a straight-line basis over the service-type warranty period of the contract and the associated costs are recognized as incurred. Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The amount of consideration is typically a fixed price at the contract inception. Consideration from shipping and handling is recorded on a gross basis within product revenue. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Nature of Products and Services The Company sells its products primarily through authorized resellers, independent sales agents, and its own sales force. Revenue from hardware and consumables is recognized upon transfer of control, which is generally at the point of shipment. The Company’s post-installation support is primarily sold through one-year annual contracts and such revenue is recognized ratably over the term of the agreement. Service revenue from installation and training is recognized as performed. The Company’s terms of sale generally provide payment terms that are customary in the countries where the Company transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. Due to the short-term nature of the Company’s contracts, substantially all of the outstanding performance obligations are recognized within one year. Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Significant Judgements The Company enters into contracts with customers that can include various combinations of hardware products, software licenses, and services, which are distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources and (ii) the Company’s promise to transfer the products, software, or services to the customer is separately identifiable from other promises in the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgement is required to determine the standalone selling price (“SSP”). The transaction price is allocated to each distinct performance obligation on a relative standalone selling price basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on historical transaction data of the observable prices of hardware products and consumables sold separately in comparable circumstances to similar customers, observable renewal rates for software and post-installation support, and the Company’s best estimate of the selling price at which the Company would have sold the product regularly on a stand-alone basis for training and installation. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. Warranty Reserve Substantially all of the Company’s hardware and software products are covered by a standard assurance warranty of one year within the United States and 13 months internationally, and estimated warranty obligations are recorded as an expense at the time or revenue recognition. In the event of a failure of hardware product or software covered by this warranty, the Company will repair or replace the software or hardware product. For certain products, the Company offers customers an optional extended warranty after the initial warranty period. The optional extended warranty is accounted for as a service-type warranty; therefore, costs are recognized as incurred and revenue is recognized over the service-type warranty period. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues in its installed base for which the Company expects to incur an obligation. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the adequacy of the warranty reserve is not indicative of future requirements, additional or reduced warranty reserves may be required. Property and Equipment Property and equipment is stated at cost. Expenditures for repairs and maintenance are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the determination of net income or loss. Depreciation is expensed using the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Useful Life Equipment 2-12 years Furniture and fixtures 3-5 years Computer equipment 3 years Tooling 3 years Software 2-3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease Intangible Assets Intangible assets consist of identifiable intangible assets, including developed technology, trade names, and customer relationships, resulting from the Company’s acquisitions. The Company evaluates definite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If indicators of impairment are present, the Company then compares the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value. If such assets are impaired, the impairment recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. To date, there have been no impairments of intangible assets. Intangible assets are amortized over their useful life. Asset Acquisitions Acquisitions of assets or a group of assets that do not meet the definition of a business are accounted for as asset acquisitions using the cost accumulation method, whereby the cost of the acquisition, including certain transaction costs, is allocated to the assets acquired on the basis of relative fair values. No goodwill is recognized in an asset acquisition. Intangible assets that are acquired in an asset acquisition for use in research and development activities which have an alternative future use are capitalized as in-process research and development (“IPR&D”). Acquired IPR&D which has no alternative future use is recorded as research and development expense at acquisition. Contingent Consideration Contingent consideration represents potential future payments that the Company may be required to pay in the event negotiated milestones are met in connection with a business acquisition. Contingent consideration is recorded as a liability at the date of acquisition at fair value. The fair value of contingent consideration related to revenue metrics is estimated using a Monte Carlo simulation in a risk-neutral framework. Under this approach, the value of contingent consideration related to revenue metrics is calculated as the average present value of contingent consideration payments over all simulated paths. The fair value of contingent consideration related to technical developments is estimated using a scenario-based approach, which is a special case of the income approach that uses several possible future scenarios. Under this approach, the value of the technical milestone payment is calculated as the probability-weighted payment across all scenarios. Significant increases or decreases in any of the probabilities of success or changes in expected timelines for achievement of any of the revenue or technical milestones could result in a significantly higher or lower fair value of the contingent consideration liability. The fair value of the contingent consideration at each reporting date is updated by reflecting the changes in fair value reflected within research and development expenses in the Company’s condensed consolidated statements of operations. Recently Issued Accounting Standards Recently Adopted Accounting Guidance In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes, Income Taxes Recent Accounting Guidance Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses. | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). Restatement of Previously Issued Financial Statements On April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the Securities and Exchange Commission 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 Statement”). Specifically, the SEC Statement focused in part on provisions in warrant agreements that provide for potential changes to the settlement amounts dependent upon the characteristics of the warrant holder and because the holder of a warrant is not an input into the pricing of a fixed-for-fixed option on equity shares, such provision would preclude the warrant from being classified in equity and thus the warrant should be classified as a liability. As a result of the SEC Statement, the Company reevaluated the accounting treatment of the warrants assumed as part of the business combination with Trine and associated reverse recapitalization on December 9, 2020. Simultaneously with the consummation of Trine’s initial public offering, Trine Sponsor IH, LLC (the “Sponsor”) purchased warrants to purchase shares of Common Stock (the “Private Placement Warrants”) in a private placement. Trine further issued an unsecured promissory note to the Sponsor, which was converted into additional Private Placement Warrants. The Private Placement Warrants contain exercise and settlement features that may change with a change in the holder, which precludes the Private Placement Warrants from being considered indexed to the Company’s own stock and therefore, precludes the Private Placement Warrants from meeting the scope exception from derivative accounting prescribed by Accounting Standards Codification 815, Derivatives and Hedging (“ASC 815”). As such, the Private Placement Warrants do not meet the conditions to be classified within equity under the Statement and should be presented as a liability. The Company has concluded that the Private Placement Warrants are to be restated and classified as a liability measured at fair value on the Company’s consolidated balance sheet at December 31, 2020, with subsequent changes in fair value of such liability recognized as a gain or loss in the Company’s consolidated statement of operations each reporting period. The Private Placement Warrants are deemed equity instruments for income tax purposes, and accordingly, there is no tax accounting relating to changes in the fair value of the Private Placement Warrants recognized. The impact of this correction to the applicable reporting periods for the financial statement line items impacted is as follows (in thousands, except per share data): Year Ended As Reported Restatement Impact As Restated Consolidated Statements of Operations and Comprehensive Loss: Change in fair value of warrant liability $ — $ 56,417 $ 56,417 Loss before income taxes $ (91,372) $ 56,417 $ (34,955) Net loss $ (90,432) $ 56,417 $ (34,015) Total comprehensive loss, net of taxes of $0 $ (90,516) $ 56,417 $ (34,099) Earnings (loss) per share: Net loss per share - basic and diluted $ (0.57) $ 0.35 $ (0.22) December 31, 2020 As Reported Restatement Impact As Restated Consolidated Balance Sheets: Warrant liability $ — $ 93,328 $ 93,328 Total liabilities $ 32,656 $ 93,328 $ 125,984 Additional paid-in-capital $ 993,933 $ (149,745) $ 844,188 Accumulated deficit $ (384,694) $ 56,417 $ (328,277) Total Stockholders' Equity $ 609,253 $ (93,328) $ 515,925 These errors had a non-cash impact, as such, the statement of cash flows for the year ended December 31, 2020 reflects a decrease in net loss of $56.4 million and a corresponding adjustment of $56.4 million for the change in fair value of warrant liability, within cash used in operating activities, resulting in no change in net cash used in operating activities. This restatement did not have an impact on the Company’s operating, investing or financing cash flows as previously presented. In addition to the restated consolidated financial statements, the information contained in Notes 3, 5, 16, 17, 20 and 21 have been restated. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The functional currency of all wholly owned subsidiaries is U.S. Dollars. All intercompany transactions and balances have been eliminated in consolidation. COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (“COVID-19”) to be a pandemic. As of December 31, 2020, the impact of the COVID-19 pandemic continues to unfold and there has been uncertainty and disruption in the global economy and financial markets. The Company has considered the COVID-19 pandemic related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. The COVID-19 pandemic, as well as the response to mitigate the spread and effects of COVID-19, may impact the Company and its customers, as well as the demand for its products and services. The impact of COVID-19 on the Company’s operational results in subsequent periods will largely depend on future developments, and cannot be accurately predicted. These developments may include, but are not limited to, new information concerning the severity of COVID-19, the degree of success of actions take to contain or treat COVID-19 and the reactions by consumers, companies, governmental entities, and capital markets to such actions. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company’s management to make judgements, estimates and assumptions regarding uncertainties that affect the reported amounts of assets, liabilities and related disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, revenue recognition, collectability of receivables, realizability of inventory, goodwill, intangibles, stock-based compensation, and fair values of common stock. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of standard checking accounts, money market accounts and certain investments. The Company classifies any marketable security with an original maturity date of 90 days or less at the time of purchase as a cash equivalent. Short - Term Investments The Company invests its excess cash in fixed income instruments denominated and payable in U.S. dollars including U.S. treasury securities, commercial paper, corporate bonds and asset-backed securities in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. Short-term investments represent holdings of available-for-sale marketable securities in accordance with the Company’s investment policy and cash management strategy. Investments in marketable securities are recorded at fair value, with any unrealized gains and losses reported within accumulated other comprehensive income as a separate component of stockholders’ equity until realized or until a determination is made that an other-than-temporary decline in market value has occurred. When such reductions occur, the cost of the investment is adjusted to fair value through recording a loss on investments in the consolidated statements of operations. All investments mature within one year. Restricted Cash The Company maintains a letter of credit for the benefit of the landlord for their office facility. The issuer of the letter of credit requires the Company to maintain a deposit in the amount of $0.6 million to secure the letter, which is reported as restricted cash in the consolidated balance sheets. This letter of credit automatically renews every year until it matures on February 7, 2024; therefore, it is classified as long term in nature at December 31, 2020 and 2019. Financial Instruments The Company’s financial instruments are comprised of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and accounts payable. The Company’s other current financial assets and current financial liabilities have fair values that approximate their carrying values due to the short maturity of these balances. Warrant Liability The Private Placement Warrants contain exercise and settlement features that may change with a change in the holder, which precludes the Private Placement Warrants from being considered indexed to the Company’s own stock and therefore, precludes the Private Placement Warrants from meeting the scope exception from derivative accounting prescribed by ASC 815. As such, the Private Placement Warrants do not meet the conditions to be classified within equity under the SEC Statement and should be presented as a liability. The Company has classified the Private Placement Warrants pursuant to ASC 815 as derivative liabilities with subsequent changes in the respective fair values recognized in the consolidated statement of operations at each reporting date. Revenue Product Revenue and Service Revenue Product revenue include sales of the Company’s additive manufacturing systems as well as sale of related accessories and consumables. These consumables are primarily comprised of materials, which are used by the printers during the printing process to produce parts. Certain on-device software is embedded with the hardware and sold with the product bundle and is included within product revenue. Revenue from products is recognized upon transfer of control, which is generally at the point of shipment. Services revenue consists of installation, training, and post-installation hardware and software support, as well as various software solutions the Company offers to facilitate the design of parts and operation of the Company’s products. The Company offers multiple software products, which are licensed through either a cloud-based solution and/or an on-device software subscription, depending on the product. For the cloud-based solution, the Company typically provides an annual subscription that the customer does not have the right to take possession of and is renewable at expiration. The revenue from the cloud-based solution is recognized ratably over the annual term as the Company considers the services provided under the cloud-based solution to be a series of distinct performance obligations, as the Company provides continuous daily access to the cloud solution. For on-device software subscriptions, the Company typically recognizes revenue once the customer has been given access to the software. When the Company enters into development contracts, control of the development service is transferred over time, and the related revenue is recognized as services are performed. Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The amount of consideration is typically a fixed price at the contract inception. Consideration from shipping and handling is recorded on a gross basis within product revenue. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Nature of Products and Services The Company sells its products primarily through authorized resellers, independent sales agents, and its own sales force. Revenue from hardware and consumables is recognized upon transfer of control, which is generally at the point of shipment. The Company’s post-installation support is primarily sold through one-year annual contracts and such revenue is recognized ratably over the term of the agreement. Service revenue from installation and training is recognized as performed. The Company’s terms of sale generally provide payment terms that are customary in the countries where the Company transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. Due to the short-term nature of the Company’s contracts substantially all of the outstanding performance obligations are recognized within one year Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Significant Judgements The Company enters into contracts with customers that can include various combinations of hardware products, software licenses, and services, which are distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources and (ii) the Company’s promise to transfer the products, software, or services to the customer is separately identifiable from other promises in the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgement is required to determine the standalone selling price (“SSP”). The transaction price is allocated to each distinct performance obligation on a relative standalone selling price basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based historical transaction data of the observable prices of hardware products sold separately in comparable circumstances to similar customers, observable renewal rates for software and post- installation support, and the Company’s best estimate of the selling price at which the Company would have sold the product regularly on a stand-alone basis for training and installation. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, customer deposits and deferred revenues (contract liabilities) on the consolidated balance sheets. Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable at the time of invoicing. For most contracts, customers are invoiced when products are shipped or when services are performed. The Company will typically bill in advance for post-installation support and cloud-based software licenses, resulting in deferred revenue. The Company’s deferred revenue balance was $3.0 million and $2.2 million as of December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, the Company recognized $2.2 million of deferred revenue from 2019. The deferred revenue consists primarily of billed post-installation support and cloud-based software licenses that are recognized ratably over the term of the agreement, as well as contracts that have outstanding performance obligations or contracts that have acceptance terms that have not yet been fulfilled. When products have been delivered, but the product revenue associated with the arrangement has been deferred the Company includes the costs for the delivered items in deferred costs of sales on the consolidated balance sheets until recognition of the related revenue occurs, at which time it is recognized in cost of sales. The Company’s deferred cost of sales balance was $0.5 and $0.3 million as of December 31, 2020 and 2019, respectively. The Company’s contracts are primarily one year or less, so substantially all deferred revenue outstanding at the end of the fiscal year is recognized during the following year. The Company primarily sells products through a reseller network. Under this arrangement, the reseller is determined to be the Company’s customer, and revenue is recognized based on the amounts the Company is entitled to, reduced by any payments owed to the resellers. On certain contracts, the Company utilizes external partners and an internal sales team to sell direct to the end user. The Company acts as a principal in the contracts with users when utilizing external partners because the Company controls the product, establishing the price, and bearing the risk of nonperformance, until it is transferred to the end user. The Company records the revenue on a gross basis and commissions are recorded as a sales and marketing expense in the statement of operations. The Company recognizes its commission expense as a point-in-time expense as contract obligations are primarily completed within a one-year contract period. During the years ended December 31, 2020 and 2019, the Company paid $0.6 million and $0.4 million of commission expense, respectively. Allowance for Doubtful Accounts In evaluating the collectability of accounts receivable, the Company assesses a number of factors, including specific customers’ abilities to meet their financial obligations, the length of time receivables are past due, and historical collection experience. If circumstances related to specific customers change, or economic conditions deteriorate such that past collection experience is no longer relevant, the Company’s estimate of the recoverability of accounts receivable could be further reduced from the levels provided for in the consolidated financial statements. The Company evaluates specific accounts for which it is believed a customer may have an inability to meet their financial obligations. In these cases, judgment is applied, based on available facts and circumstances, and a specific reserve is recorded for that customer to reduce the receivable to an amount expected to be collected. These specific reserves are reevaluated and adjusted as additional information is received that impacts the amount reserved. As of December 31, 2020, and 2019, the Company has recorded $0.5 million and $0.2 million respectively, in allowance of doubtful accounts. In the years ended December 31, 2020 and 2019 the Company recorded bad debt expense of $0.4 million and $0.2 million, respectively. Net Loss Per share The Company presents basic and diluted loss per share amounts. Basic loss per share is calculated by dividing net loss available to holders of Common Stock by the weighted average number of shares of Common Stock outstanding during the applicable period. The denominator for diluted earnings per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive shares outstanding include the dilutive effect of in-the-money options and unvested Restricted Stock Agreements (“RSAs”), and unvested Restricted Stock Units (“RSUs”) using the treasury stock method. In periods in which the Company reports a net loss, diluted net loss per share is the same as basic net loss per share because dilutive shares are not assumed to have been issued if their effect is anti-dilutive. See Note 20 for further information. Warranty Reserve Substantially all of the Company’s hardware and software products are covered by a standard assurance warranty of one year, and estimated warranty obligations are recorded as an expense at the time or revenue recognition. In the event of a failure of hardware product or software covered by this warranty, the Company will repair or replace the software or hardware product. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues in its installed base for which the Company expects to incur an obligation. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the adequacy of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be required. As of December 31, 2020, and 2019 the Company has recorded $1.6 million and $1.5 million, respectively, of warranty reserve within accrued expenses and other current liabilities on the consolidated balance sheets. Warranty reserve consisted of the following (in thousands): 2020 2019 Warranty reserve, at the beginning of the year $ 1,491 $ 116 Additions to warranty reserve 346 2,352 Claims fulfilled (284) (977) Warranty reserve, at the end of the year $ 1,553 $ 1,491 Warranty reserve is recorded through cost of sales in the consolidated statements of operations. Inventory Inventory is stated at the lower of cost or net realizable value, determined on a first-in, first-out basis, and consists of the following (in thousands): December 31, 2020 2019 Work in process $ 2,896 $ 1,081 Finished goods 6,812 7,324 Total inventory $ 9,708 $ 8,405 The Company provides for inventory losses based on obsolescence and levels in excess of forecasted demand. Inventory is reduced to the estimated net realizable value based on historical usage and expected demand. Inventory provisions based on obsolescence and inventory in excess of forecasted demand are recorded through cost of sales in the consolidated statements of operations. Concentrations of Credit Risk and Off-Balance-Sheet Risk The Company has no significant off-balance-sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist mainly of cash and cash equivalents. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high-credit standing. As of December 31, 2020, and 2019, no single customer accounted for more than 10% of revenue. As of December 31, 2020 and 2019, no single customer accounted for more than 10% of total accounts receivables. Customer Deposits Payments received from customers who have placed reservations or purchase orders in advance of shipment are refundable upon cancellation or non-delivery by the Company and are included within customer deposits on the consolidated balance sheets. Other Investments The Company periodically makes investments in companies within the additive manufacturing industry. The Company monitors events or changes in circumstances that may have a significant effect on the fair value of investments, either due to impairment or based on observable price changes, and records necessary adjustments. Property and Equipment Property and equipment is stated at cost. Expenditures for repairs and maintenance are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the determination of net income or loss. Depreciation is expensed using the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Useful Life Equipment 3‑5 years Furniture and fixtures 3 years Computer equipment 3 years Tooling 3 years Software 3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease Leases The Company determines if an arrangement is a lease at inception. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. The Company assesses it plans to renew its material leases on an annual basis. Operating leases are included in other assets, current portion of lease liability, and lease liability, net of current portion on the Company’s consolidated balance sheets. Right of use (“ROU”) assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the expected remaining lease term. As the interest rate implicit in the Company’s leases is typically not readily determinable, the Company uses its incremental borrowing rate for a similar term of lease payments based on the information available at commencement date in determining the present value of future payments. The Company elected the short-term lease recognition and therefore, the Company does not recognize right of use assets or lease liabilities for leases with less than a twelve-month duration. The Company also elected the practical expedient to account for lease agreements which contain both lease and non-lease components as a single lease component. Business Combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The Company generally values the identifiable intangible assets acquired using a discounted cash flow model. The significant estimates used in valuing certain of the intangible assets, include, but are not limited to future expected cash flows of the asset, discount rates to determine the present value of the future cash flows and expected technology life cycles. Intangible assets are amortized over their estimated useful life; the period over which the Company anticipates generating economic benefit from the asset. Fair value adjustments subsequent to the acquisition date, that are not measurement period adjustments, are recognized in earnings. Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that is not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Goodwill is not amortized but is tested for impairment at least annually (as of the first day of the fourth quarter) or as circumstances indicate the value may no longer be recoverable. To assess if goodwill is impaired, the Company performs a qualitative assessment to determine whether further impairment testing is necessary. The Company then compares the carrying amount of the single reporting unit to the fair value of the reporting unit. An excess carrying value over fair value would indicate that goodwill may be impaired. The Company performed a qualitative assessment during its annual impairment review for 2020 as of October 1, 2020 and concluded that it is more likely than not that the fair value of the Company’s single reporting unit is not less than its carrying amount. Therefore, the two-step goodwill impairment test for the reporting unit was not necessary in 2020. Acquired Technology Intangible assets consist of identifiable intangible assets, including developed technology, resulting from the Company’s acquisitions. The Company evaluates definite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If indicators of impairment are present, the Company then compares the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value. If such assets are impaired, the impairment recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. To date, there have been no impairments of intangible assets. Intangible assets are amortized over their useful life. Impairment of Long-Lived Assets The Company evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant revision or that the carrying value of these assets may be impaired. The Company does not believe that any events have occurred through December 31, 2020, that would indicate its long-lived assets are impaired. Research and Development Research and development costs are expensed as incurred. Research and development expense includes costs, primarily related to salaries and benefits for employees, prototypes and design expenses, incurred to develop intellectual property and is charged to expense as incurred. Capitalized Software Costs incurred internally in researching and developing a software product to be sold to customers are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, costs incurred during the application development phase are capitalized only when the Company believes it is probable the development will result in new or additional functionality, and such software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. The Company has determined that technological feasibility for software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released, such that there are no material costs to capitalize. The Company capitalizes certain costs related to the development and implementation of cloud computing software. The types of costs capitalized during the application development phase include employee compensation, as well as consulting fees for third-party developers working on these projects. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the asset, which is typically 3 years. Advertising Expense Advertising expense is included within sales and marketing expense in the consolidated statements of operations and was $0.04 million and $0.1 million for the years ended years ended December 31, 2020 and 2019, respectively. It primarily includes promotional expenditures and is expensed as incurred; as such, efforts have not met the direct-response criteria required for capitalization. Stock-Based Compensation The Company accounts for all stock options granted to employees and nonemployees using a fair value method. The fair value of options on the date of grant is calculated using the Black-Scholes option pricing model based on key assumptions such as stock price, expected volatility and expected term. The Company’s estimates of these assumptions are primarily based on the fair value of the Company’s stock, historical data, peer company data and judgment regarding future trends and factors. In determining the exercise prices for options granted, the Company’s Board of Directors has considered the fair value of the common stock as of the measurement date. Prior to the Business Combination, the fair value of the common stock has been determined by the Board of Directors at each award grant date based |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACQUISITIONS | ||
ACQUISITIONS | 3. ACQUISITIONS 2021 Acquisitions Acquisition of EnvisionTEC On February 16, 2021, the Company acquired EnvisionTEC US, LLC and its subsidiaries (“EnvisionTEC”) pursuant to a Purchase Agreement and Plan of Merger dated January 15, 2021. This acquisition adds a comprehensive portfolio in additive manufacturing across metals, polymers and composites and grow distribution channels both in quantity and through the addition of a vertically-focused channel. The Company paid consideration of $143.8 million in cash and issued 5,036,142 shares of the Company’s Common Stock with a fair value of $159.8 million as of the close of business on the transaction date. The total purchase price was allocated to the identifiable assets acquired and liabilities assumed based on the Company’s preliminary estimates of their fair values on the acquisition date. The fair values assigned to EnvisionTEC’s tangible and intangible assets and liabilities assumed, and the related deferred tax assets and liabilities, are considered preliminary and are based on the information available at the date of the acquisition. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands): At February 16, 2021 Assets acquired: Cash and cash equivalents $ 859 Restricted cash 5,004 Accounts receivable 2,982 Inventory 8,852 Prepaid expenses and other current assets 1,081 Restricted cash - noncurrent 285 Property and equipment 1,440 Intangible assets 137,300 Other noncurrent assets 1,801 Total assets acquired $ 159,604 Liabilities assumed: Accounts payable $ 1,443 Customer deposits 2,461 Current portion of lease liability 605 Accrued expenses and other current liabilities 13,711 Liability for income taxes 480 Deferred revenue 300 Current portion of long-term debt 898 Long-term debt 285 Deferred tax liability 32,966 Lease liability, net of current portion 1,189 Total liabilities assumed $ 54,338 Net assets acquired $ 105,266 Goodwill $ 198,369 The estimated useful lives of the identifiable intangible assets acquired is as follows: Gross Value Estimated Life Acquired technology $ 77,800 7 – 12 years Trade name 8,600 13 years Customer relationships 50,900 10 years Total intangible assets $ 137,300 The goodwill resulting from the purchase price allocation is attributable to the workforce of the acquired business (which is not eligible for separate recognition as an identifiable intangible asset) and the expected synergistic benefits of expanding the combined companies’ target markets both geographically and across industries. $36.6 million of the goodwill recognized is deductible for income tax purposes. The Company incurred $4.8 million of acquisition-related and other transactional charges, including integration costs, related to this acquisition, which are included in general and administrative expenses in the condensed consolidated statements of operations. EnvisionTEC’s results are included in the Company’s consolidated results for the period from February 16, 2021 to June 30, 2021. For this period, EnvisionTEC’s net revenues were approximately $15.7 million and net loss was approximately $4.8 million. Acquisition of Adaptive 3D On May 7, 2021, the Company acquired Adaptive 3D Holdings, Inc. and its affiliates (“Adaptive 3D”) pursuant to a Purchase Agreement and Plan of Merger dated as of May 7, 2021. This acquisition expands the Company’s materials library to include photopolymer elastomers. The total purchase price is $61.8 million, consisting of $24.1 million paid in cash and 3,133,276 shares of the Company’s Common Stock with a fair value of $37.7 million as of the close of business on the transaction date. The acquisition is accounted for as a business combination using the acquisition method of accounting. The total purchase price was allocated to the identifiable assets acquired and liabilities assumed based on the Company’s preliminary estimates of their fair values on the acquisition date. The fair values assigned to Adaptive 3D’s tangible and intangible assets and liabilities assumed, and the related deferred tax assets and liabilities, are considered preliminary and are based on the information available at the date of the acquisition. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands): At May 7, 2021 Assets acquired: Cash and cash equivalents $ 2,852 Restricted cash 4,046 Accounts receivable 504 Inventory 305 Prepaid expenses and other current assets 462 Property and equipment 558 Intangible assets 27,300 Other noncurrent assets 654 Total assets acquired $ 36,681 Liabilities assumed: Accounts payable $ 280 Customer deposits Current portion of lease liability 151 Accrued expenses and other current liabilities 4,146 PPP loan payable 311 Deferred revenue 12 Lease liability, net of current portion 502 Deferred tax liability 4,768 Total liabilities assumed 10,170 Net assets acquired $ 26,511 Goodwill $ 35,265 The estimated useful lives of the identifiable intangible assets acquired is as follows: Gross Value Estimated Life Acquired technology $ 27,000 14 years Trade name 300 5 years Total intangible assets $ 27,300 The goodwill resulting from the purchase price allocation is attributable to the workforce of the acquired business (which is not eligible for separate recognition as an identifiable intangible asset) and the expected synergistic benefits of expanding the combined companies’ target markets both geographically and across industries. The goodwill recognized is not deductible for income tax purposes. The Company incurred $0.3 million of acquisition-related and other transactional charges, including integration costs, related to this acquisition, which are included in general and administrative expenses in the condensed consolidated statements of operations. Adaptive 3D’s results are included in the Company’s consolidated results for the period from May 7, 2021 to June 30, 2021. For this period, Adaptive 3D’s revenues were approximately $0.3 million, and its net loss was approximately $0.7 million. Acquisition of Aerosint On June 24, 2021, the Company entered into a Share Purchase Agreement with DM Belgium BV/SRL, Aerosint SA, the sellers named therein and representatives of such sellers (collectively “Aerosint”), pursuant to which the Company acquired all outstanding securities of Aerosint. Through this acquisition, the Company expands its portfolio of technologies with the addition of multi-material printing capabilities. The total purchase price is $17.7 million, consisting of $6.2 million paid in cash and 879,922 shares of the Company’s Common Stock with a fair value of $11.5 million as of the close of business on the transaction date. Additionally, the Company may be required to pay contingent consideration based on the achievement of revenue metrics and technical milestones over the three-year period following the transaction date, with a fair value of $6.1 million as of the transaction date. The acquisition is accounted for as a business combination using the acquisition method of accounting. The total purchase price was allocated to the identifiable assets acquired and liabilities assumed based on the Company’s preliminary estimates of their fair values on the acquisition date. The fair values assigned to Aerosint’s tangible and intangible assets and liabilities assumed, and the related deferred tax assets and liabilities, are considered preliminary and are based on the information available at the date of the acquisition. The Company is in the process of finalizing its purchase price allocation, and the tax basis of the assets and liabilities acquired. This may result in potential adjustments to the carrying value of the respective recorded assets and liabilities, establishment of certain intangible assets, revisions of useful lives of intangible assets, establishment of potential acquisition contingencies, and the determination of any residual amount that will be allocated to goodwill. Adjustments that impact the deferred tax liability recorded in the business combination could result in an increase or decrease in the Company’s recorded valuation allowance that will be recognized in the accompanying statement of operations. The Aerosint Acquisition included contingent consideration related to revenue metrics and technical milestones, of which $1.4 million is expected to be paid out over the next twelve months and is therefore classified as a current liability. The Company will pay up to $5.5 million of contingent consideration based on stated revenue metric, which has a fair value of $4.6 million as of the date of acquisition and as of June 30, 2021. If Aerosint reaches certain product mass production technical milestones, the Company will pay out a maximum of $2.0 million in contingent consideration, which has a fair value of $1.5 million as of the date of acquisition and as of June 30, 2021. As of the date of acquisition and as of June 30, 2021, $1.4 million of contingent consideration is recorded in current portion of contingent consideration in the consolidated balance sheet, and the remaining $4.7 million is recorded in contingent consideration, net of current portion in the condensed consolidated balance sheets. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands): At June 24, 2021 Assets acquired: Cash and cash equivalents $ 419 Accounts receivable 34 Inventory 166 Prepaid expenses and other current assets 697 Property and equipment 369 Intangible assets 11,726 Other noncurrent assets 336 Total assets acquired $ 13,747 Liabilities assumed: Accounts payable $ 58 Customer deposits 283 Current portion of lease liability 100 Accrued expenses and other current liabilities 169 Deferred revenue 810 Current portion of contingent consideration 1,429 Lease liability, net of current portion 226 Contingent consideration, net of current portion 4,655 Deferred tax liability 3,524 Total liabilities assumed $ 11,254 Net assets acquired $ 2,493 Goodwill $ 15,174 The estimated useful lives of the identifiable intangible assets acquired is as follows: Gross Value Estimated Life Acquired technology $ 11,547 11.5 years Trade name 179 4.5 years Total intangible assets $ 11,726 The goodwill resulting from the purchase price allocation is attributable to the workforce of the acquired business (which is not eligible for separate recognition as an identifiable intangible asset) and the expected synergistic benefits of expanding the combined companies’ target markets both geographically and across industries. The goodwill recognized is not deductible for income tax purposes. The Company incurred $0.9 million of acquisition-related and other transactional charges, including integration costs, related to this acquisition, which are included in general and administrative expenses in the condensed consolidated statements of operations. Aerosint’s results are included in the Company’s consolidated results for the period from June 24, 2021 to June 30, 2021. For this period, Aerosint’s revenues and net loss were immaterial. Pro Forma Information The following pro forma financial information is based on the historical financial statements of the Company and presents the Company’s results as if the acquisitions of EnvisionTEC, Adaptive 3D and Aerosint had occurred on January 1, 2020 (in thousands): Six Months Ended June 30, 2021 2020 Net revenues $ 34,883 $ 28,974 Net income (loss) $ (108,357) $ (53,497) The pro forma financial information was computed by combining the historical financial information of the Company and EnvisionTEC, Adaptive 3D and Aerosint along with the effects of the acquisition method of accounting for business combinations as though the companies were combined on January 1, 2020. The pro forma information does not reflect the potential benefits of cost and funding synergies, opportunities to earn additional revenues, or other factors, and therefore does not represent what the actual net revenues and net income (loss) would have been had the companies been combined as of this date. 2021 Asset Acquisition Acquisition of Beacon Bio On June 10, 2021, the Company acquired Beacon Bio, Inc. (“Beacon Bio”) pursuant to a Stock Purchase Agreement. The purchase price consisted of cash consideration of $6.1 million, including transaction costs of $0.2 million, and 334,370 shares of Common Stock with a fair value of $4.3 million as of the close of business on the transaction date. The cash consideration includes a simple agreement for future equity investment of $1.0 million made by the Company in advance of the acquisition that was settled in the acquisition. Beacon Bio is engaged in research and development of PhonoGraft technology. The Company concluded the arrangement did not result in the acquisition of a business, as substantially all of the fair value of the gross assets acquired was concentrated in in-process research and development for which there was no alternative future use. Therefore, the Company accounted for the arrangement as an asset acquisition. In connection with the acquisition, the Company issued additional restricted stock units to retain research and development employees and contractors of Beacon Bio through the expected term to complete the development, which vest over a service period of 3 years and are accounted for as post-combination expense. The acquired in-process research and development asset consists of a license to commercialize the PhonoGraft technology. Due to the stage of development of this license at the date of the acquisition, significant research, development, and risk remained, and it was not yet probable that there was future economic benefit from this asset. Absent successful clinical results and regulatory approval for this asset, there was no alternative future use associated with this asset. Accordingly, the value of the asset was expensed in the condensed consolidated statements of operations and no deferred tax liability has been recorded. 2020 Acquisition Business Combination On December 9, 2020, the Company and Trine consummated the Business Combination, with Legacy Desktop Metal surviving the merger as a wholly-owned subsidiary of Trine. Upon the consummation of the Business Combination, each share of Legacy Desktop Metal capital stock issued and outstanding was converted into the right to receive 1.22122 shares (the “Exchange Ratio”) of the Company’s common stock (the “Per Share Merger Consideration”). Upon the closing of the Business Combination, Trine’s certificate of incorporation was amended and restated to, among other things, increase the total number of authorized shares of all classes of capital stock to 550,000,000 shares, of which 500,000,000 shares were designated common stock; $0.0001 par value per share, and of which 50,000,000 shares were designated preferred stock, $0.0001 par value per share. In connection with the execution of the definitive agreement for the Business Combination, Trine entered into separate subscription agreements (each, a “Subscription Agreement”) with a number of investors (each, a “Subscriber”), pursuant to which the Subscribers agreed to purchase, and Trine agreed to sell to the Subscribers, an aggregate of 27,497,500 shares of the Company’s Common Stock, for a purchase price of $10.00 per share and an aggregate purchase price of $275 million, in a private placement pursuant to the subscription agreements (the “PIPE financing”). The PIPE financing closed simultaneously with the consummation of the Business Combination. The Business Combination is accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Trine was treated as the “acquired” company for financial reporting purposes. See Note 1 “Organization and Nature of Business” for further details. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Desktop Metal issuing stock for the net assets of Trine, accompanied by a recapitalization. The net assets of Trine are stated at historical cost, with no goodwill or other intangible assets recorded. Prior to the Business Combination, Legacy Desktop Metal and Trine filed separate standalone federal, state and local income tax returns. As a result of the Business Combination, structured as a reverse recapitalization for tax purposes, Desktop Metal, Inc. (f/k/a Trine Acquisition Corp.), became the parent of the consolidated filing group, with Desktop Metal Operating, Inc. (f/k/a Desktop Metal, Inc.) as a subsidiary. The following table reconciles the elements of the Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity for the year ended December 31, 2020: Recapitalization Cash – Trine's trust and cash (net of redemptions) $ 305,084,695 Cash – PIPE financing 274,975,000 Less: transaction costs and advisory fees paid (45,463,074) Net proceeds from reverse recapitalization 534,596,621 Plus: non-cash net liabilities assumed( 1) (152,394,714) Less: accrued transaction costs and advisory fees (1,900,793) Net contributions from reverse recapitalization $ 380,301,114 (1) Includes $149.7 million of non-cash warrant liability assumed. The number of shares of common stock issued immediately following the consummation of the Business Combination: Number of Shares Common stock, outstanding prior to Business Combination 30,015,000 Less: redemption of Trine shares (26,049) Common stock of Trine 29,988,951 Trine Founder Shares 5,552,812 Trine Director Shares 100,000 Shares issued in PIPE financing 27,497,500 Business Combination and PIPE financing shares 63,139,263 Legacy Desktop Metal shares (1) 161,487,334 Total shares of common stock immediately after Business Combination 224,626,597 (1) The number of Legacy Desktop Metal shares was determined from the shares of Legacy Desktop Metal shares outstanding immediately prior to the closing of the Business Combination converted at the Exchange Ratio of 1.22122 . All fractional shares were rounded down. In connection with the Business Combination, 7,403,750 Trine Founder Shares were issued. Pursuant to the Business Combination agreement, 75% of the Founder shares, or 5,552,812 shares, vested at the close of the Business Combination, with the remaining 25%, or 1,850,938 shares, vesting if the Company trades at $12.50 per share or higher for any 20 trading days within a 30-day window by the fifth anniversary of the Business Combination. The vesting criteria was met on January 8, 2021. | 3. ACQUISITIONS Business Combination On December 9, 2020, the Company and Trine consummated the Business Combination, with Legacy Desktop Metal surviving the merger as a wholly-owned subsidiary of Trine. Upon the consummation of the Business Combination, each share of Legacy Desktop Metal capital stock issued and outstanding was converted into the right to receive 1.22122 shares (the “Exchange Ratio”) of the Company’s common stock (the “Per Share Merger Consideration”). Upon the closing of the Business Combination, Trine’s certificate of incorporation was amended and restated to, among other things, increase the total number of authorized shares of all classes of capital stock to 550,000,000 shares, of which 500,000,000 shares were designated common stock; $0.0001 par value per share, and of which 50,000,000 shares were designated preferred stock, $0.0001 par value per share. In connection with the execution of the definitive agreement for the Business Combination, Trine entered into separate subscription agreements (each, a “Subscription Agreement”) with a number of investors (each, a “Subscriber”), pursuant to which the Subscribers agreed to purchase, and Trine agreed to sell to the Subscribers, an aggregate of 27,497,500 shares of the Company’s Common Stock, for a purchase price of $10.00 per share and an aggregate purchase price of $275 million, in a private placement pursuant to the subscription agreements (the “PIPE financing”). The PIPE financing closed simultaneously with the consummation of the Business Combination. The Business Combination is accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Trine was treated as the “acquired” company for financial reporting purposes. See Note 1 “Organization and Nature of Business” for further details. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Desktop Metal issuing stock for the net assets of Trine, accompanied by a recapitalization. The net assets of Trine are stated at historical cost, with no goodwill or other intangible assets recorded. Prior to the Business Combination, Legacy Desktop Metal and Trine filed separate standalone federal, state and local income tax returns. As a result of the Business Combination, structured as a reverse recapitalization for tax purposes, Desktop Metal, Inc. (f/k/a Trine Acquisition Corp.), became the parent of the consolidated filing group, with Desktop Metal Operating, Inc. (f/k/a Desktop Metal, Inc.) as a subsidiary. The following table reconciles the elements of the Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity for the year ended December 31, 2020: Recapitalization Cash – Trine's trust and cash (net of redemptions) $ 305,084,695 Cash – PIPE financing 274,975,000 Less: transaction costs and advisory fees paid (45,463,074) Net proceeds from reverse recapitalization 534,596,621 Plus: non-cash net liabilities assumed (1) (152,394,714) Less: accrued transaction costs and advisory fees (1,900,793) Net contributions from reverse recapitalization $ 380,301,114 (1) Includes $149.7 million of non-cash warrant liability assumed. The number of shares of common stock issued immediately following the consummation of the Business Combination: Number of Shares Common stock, outstanding prior to Business Combination 30,015,000 Less: redemption of Trine shares (26,049) Common stock of Trine 29,988,951 Trine Founder Shares 5,552,812 Trine Director Shares 100,000 Shares issued in PIPE financing 27,497,500 Business Combination and PIPE financing shares 63,139,263 Legacy Desktop Metal shares (1) 161,487,334 Total shares of common stock immediately after Business Combination 224,626,597 (1) The number of Legacy Desktop Metal shares was determined from the shares of Legacy Desktop Metal shares outstanding immediately prior to the closing of the Business Combination converted at the Exchange Ratio of 1.22122 . All fractional shares were rounded down. In connection with the Business Combination, 7,403,750 Trine Founder Shares were issued. Pursuant to the Business Combination agreement, 75% of the Founder shares, or 5,552,812 shares, vested at the close of the Business Combination, with the remaining 25%, or 1,850,938 shares, vesting if the Company trades at $12.50 per share or higher for any 20 trading days within a 30-day window by the fifth anniversary of the Business Combination. As of December 31, 2020, 20 trading days had not yet passed since the date of the Business Combination, and the shares remained unvested and held in escrow. The vesting criteria was met on January 8, 2021. 2020 Acquisitions In December 2020, the Company acquired all issued and outstanding membership interests of Figur Machine Tools, LLC (“Figur”) for a total purchase price of $3.5 million. Figur is engaged in research and development of 3D metal forming for sheet metal. The Company concluded the arrangement did not result in the acquisition of a business, as substantially all of the fair value of the gross assets acquired was concentrated in a single acquired technology asset and the Company did not obtain any substantive processes in connection with this acquisition. Therefore, the Company accounted for the arrangement as an asset acquisition. The fair value attributable to the acquired assets was $3.5 million, which was recorded as acquired technology in the Company’s consolidated balance sheet. In October 2020, the Company acquired all outstanding shares of Forust Corporation (“Forust”) for a total purchase price of $2.5 million. The purchase price consisted of cash consideration of $2.0 million and $0.5 million of consideration relating to 61,061 shares of Common Stock. The Company paid $1.8 million at closing and will pay the additional $0.2 million within one year. Forust is engaged in research and development of 3D printing of wood products using sawdust in the process of additive manufacturing. The Company concluded the arrangement did not result in the acquisition of a business, as substantially all of the fair value of the gross assets acquired was concentrated in a single acquired technology asset and the Company did not obtain any substantive processes in connection with this acquisition. Therefore, the Company accounted for the arrangement as an asset acquisition. The fair value attributable to the acquired assets was $2.5 million, which was recorded as acquired technology in the Company’s consolidated balance sheet. In connection with the acquisition, the Company issued additional restricted stock units to employees and contractors of Forust which vest over a service period of two years and are accounted for as post-combination expense. 2019 Acquisitions In July 2019, the Company acquired all outstanding shares of Make Composites, Inc. (“Make”) for a total purchase price of $5.4 million through the issuance of 873,203 shares of the Company’s Common Stock. Make is a composite printer research and development company that was acquired primarily for the complementary technology. The Company incurred transaction costs totaling $0.1 million that are included in general and administrative expenses in the consolidated statements of operations. The purchase price was allocated with $1.9 million to goodwill, $3.2 million to acquired technology, and $0.3 million to acquired tangible assets, consisting primarily of cash. The Company recorded a gain of $1.4 million on its original non-controlling investment of Make. This gain is recorded in interest and other income, net in the consolidated statements of operations. The goodwill acquired is deductible for income tax purposes. As of December 31, 2019, the Company’s accounting for the acquisition is complete. In connection with the acquisition, the Company issued restricted stock, options and warrants to employees and contractors of Make which have future service obligations to vest and are accounted for as post-combination expense. In March 2019, the Company acquired all outstanding shares of addLEAP AB, a Swedish3D printer research and development company, for a purchase price of $0.4 million paid in cash. The acquisition was completed to further the Company’s advances in 3D printing. The purchase price was allocated to $0.3 million of goodwill and $0.1 million of acquired technology. Total transaction costs of $0.1 million are included in general and administrative expenses in the consolidated statements of operations. The goodwill acquired is deductible for income tax purposes. As of December 31, 2019, the Company’s accounting for the acquisition is complete. In connection with the acquisition, the Company issued 74,843 shares of restricted stock that have future service obligations to vest and are accounted for as post-combination expense. |
CASH EQUIVALENTS AND SHORT-TERM
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | ||
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 4. CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The Company’s cash equivalents and short-term investments are invested in the following (in thousands): June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 180,998 $ — $ — $ 180,998 Total cash equivalents 180,998 — — 180,998 Commercial paper 159,591 — — 159,591 Corporate bonds 104,758 9 (12) 104,755 Government bonds 36,736 1 (9) 36,728 Asset-backed securities 25,246 1 (3) 25,244 Total short-term investments 326,331 11 (24) 326,318 Total cash equivalents and short-term investments $ 507,329 $ 11 $ (24) $ 507,316 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 75,374 $ — $ — $ 75,374 Money market funds 407,512 — — 407,512 Total cash equivalents 482,886 — — 482,886 U.S. Treasury securities 19,995 2 — 19,997 Commercial paper 43,911 — — 43,911 Corporate bonds 47,970 — (11) 47,959 Total short-term investments 111,876 2 (11) 111,867 Total cash equivalents and short-term investments $ 594,762 $ 2 $ (11) $ 594,753 | 4. CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The Company’s cash equivalents and short-term investments are invested in the following (in thousands): December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 75,374 $ — $ — $ 75,374 Money market funds 407,512 — — 407,512 Total cash equivalents 482,886 — — 482,886 U.S Treasury securities 19,995 2 — 19,997 Commercial paper 43,911 — — 43,911 Corporate bonds 47,970 — (11) 47,959 Total short-term investments 111,876 2 (11) 111,867 Total cash equivalents and short-term investments $ 594,762 $ 2 $ (11) $ 594,753 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Repurchase agreements $ 25,001 $ — $ — $ 25,001 Money market funds 40,454 — — 40,454 Total cash equivalents 65,455 — — 65,455 Asset‑backed securities 16,786 20 — 16,806 Commercial paper 19,938 — — 19,938 Corporate bonds 47,955 55 — 48,010 Total short-term investments 84,679 75 — 84,754 Total cash equivalents and short-term investments $ 150,134 $ 75 $ — $ 150,209 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | ||
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS The Company uses the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring the fair values for certain of its assets and liabilities: Level 1 is based on observable inputs, such as quoted prices in active markets; Level 2 is based on inputs other than the quoted prices in active markets that are observable either directly or indirectly; and Level 3 is based on unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Items measured at fair value on a recurring basis include money market funds. The following fair value hierarchy table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): June 30, 2021 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 180,998 $ — $ — $ 180,998 Commercial paper — 159,591 — 159,591 Corporate bonds — 104,755 — 104,755 Government bonds — 36,727 — 36,727 Asset-backed securities — 25,245 — 25,245 Other investments — — 7,137 7,137 Total assets $ 180,998 $ 326,318 $ 7,137 $ 514,453 Liabilities: Contingent consideration $ — $ — $ 6,084 $ 6,084 Subscription agreement — — 474 474 Total liabilities $ — $ — $ 6,558 $ 6,558 December 31, 2020 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 407,512 $ — $ — $ 407,512 Commercial paper — 119,285 — 119,285 Corporate bonds — 47,959 — 47,959 U.S. Treasury securities 19,997 — — 19,997 Other investments — — 3,000 3,000 Total assets $ 427,509 $ 167,244 $ 3,000 $ 597,753 Liabilities: Private placement warrants $ — $ — $ 93,328 $ 93,328 Total liabilities $ — $ — $ 93,328 $ 93,328 The Company has determined that the estimated fair value of its corporate bonds and commercial paper are reported as Level 2 financial assets as they are based on model-driven valuations in which all significant inputs are observable, or can be derived from or corroborated by observable market data for substantially the full term of the asset. The other investments are reported as a Level 3 financial asset because the methodology used to develop the estimated fair values includes significant unobservable inputs reflecting management’s own assumptions, including the rights and obligations of the notes the Company holds as well as the probability of a qualified financing event, acquisition, or change in control. The subscription agreement is reported as a Level 3 investment with fair value determined using inputs including stock price, volatility assumptions, probability and timing of the transaction, and a discount for the lack of marketability determined using various models. The fair value of the Private Placement Warrants is estimated using the Black-Scholes option pricing model and is classified as a Level 3 financial instrument. The significant assumptions used in the model were the Company’s stock price, exercise price, expected term, volatility, interest rate, and dividend yield. The contingent consideration liability was valued using a Monte Carlo simulation in a risk-neutral framework as well as a scenario based approach (both special cases of the income approach), based on key inputs that are not all observable in the market and is classified as a Level 3 liability. The Company assess the fair value of the contingent consideration liability at each reporting period, with any subsequent changes to the fair value of the liability reflected in the condensed consolidated statement of operations until the liability is settled. There were no transfers between fair value measure levels during the six months ended June 30, 2021 and 2020. The following table presents information about the Company’s movement in Level 3 assets measured at fair value (in thousands): Six Months Ended June 30, 2021 2020 Balance at beginning of period $ 3,000 $ — Additions 3,620 — Changes in fair value 517 — Balance at end of period $ 7,137 $ — The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): Six Months Ended June 30, 2021 2020 Balance at beginning of period $ 93,328 $ — Additions 6,558 — Changes in fair value 56,576 — Exercise of private placement warrants (149,904) — Balance at end of period $ 6,558 $ — | 5. FAIR VALUE MEASUREMENTS The Company uses the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring the fair values for certain of its assets and liabilities: Level 1 is based on observable inputs, such as quoted prices in active markets; Level 2 is based on inputs other than the quoted prices in active markets that are observable either directly or indirectly; and Level 3 is based on unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Items measured at fair value on a recurring basis include money market funds. The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): December 31, 2020 (as restated) Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 407,512 $ — $ — $ 407,512 Commercial paper — 119,285 — 119,285 Corporate bonds — 47,959 — 47,959 U.S. Treasury securities 19,997 — — 19,997 Other investments — — 3,000 3,000 Total assets $ 427,509 $ 167,244 $ 3,000 $ 597,753 Liabilities: Private placement warrants $ — $ — $ 93,328 $ 93,328 Total liabilities $ — $ — $ 93,328 $ 93,328 December 31, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 40,454 $ — $ — $ 40,454 Commercial paper — 19,938 — 19,938 Corporate bonds — 48,010 — 48,010 Asset‑backed securities — 16,806 — 16,806 Repurchase agreements — 25,001 — 25,001 Total assets $ 40,454 $ 109,755 $ — $ 150,209 The Company has determined that the estimated fair value of its repurchase agreements, corporate bonds, commercial paper, and asset-backed securities are reported as Level 2 financial assets as they are based on model-driven valuations in which all significant inputs are observable, or can be derived from or corroborated by observable market data for substantially the full term of the asset. The other investment is reported as a Level 3 financial asset because the methodology used to develop the estimated fair value includes significant unobservable inputs reflecting management’s own assumptions, including the rights and obligations of the securities the Company holds as well as the probability of a qualified financing event, acquisition, or change in control. The fair value of the Private Placement Warrants is estimated using the Black-Scholes option pricing model and are classified as Level 3 financial instruments. The significant assumptions used in the model were the Company’s stock price, exercise price, expected term, volatility, interest rate, and dividend yield. There were no transfers between fair value measure levels during the years ended December 31, 2020 and 2019. The following table presents information about the Company’s movement in Level 3 assets measured at fair value (in thousands): 2020 2019 Balance at beginning of year $ — $ — Additions 3,000 — Balance at end of year $ 3,000 $ — The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): 2020 2019 Balance at beginning of year $ — $ — Warrant liability assumed 149,745 Change in fair value of warrant liability (56,417) Balance at end of year $ 93,328 $ — |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE | ||
ACCOUNTS RECEIVABLE | 6. ACCOUNTS RECEIVABLE The components of accounts receivable are as follows (in thousands): June 30, December 31, 2021 2020 Trade receivables $ 13,750 $ 7,016 Allowance for doubtful accounts (309) (500) Total accounts receivable $ 13,441 $ 6,516 The following table summarizes activity in the allowance for doubtful accounts (in thousands): June 30, December 31, 2021 2020 Balance at beginning of period $ 500 $ 199 Provision for uncollectible accounts (164) 377 Uncollectible accounts written off (27) (76) Balance at end of period $ 309 $ 500 | 6. ACCOUNTS RECEIVABLE The components of accounts receivable are as follows (in thousands): December 31, 2020 2019 Trade receivables $ 7,016 $ 4,722 Allowance for doubtful accounts (500) (199) Total accounts receivable $ 6,516 $ 4,523 The following table summarizes activity in the allowance for doubtful accounts (in thousands): Years Ended December 31, 2020 2019 Balance at beginning of year $ 199 $ — Provision for uncollectible accounts 377 199 Uncollectible accounts written off (76) — Balance at end of year $ 500 $ 199 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 8. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consists of the following (in thousands): June 30, December 31, 2021 2020 Prepaid insurance 1,850 121 Prepaid operating expenses 1,873 68 Prepaid dues and subscriptions 823 189 Prepaid taxes 598 — Government grants 653 — Escrow deposits 311 — Prepaid rent 158 118 Deferred cost of goods sold — 454 Other 812 26 Total prepaid expenses and other current assets $ 7,078 $ 976 | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consists of the following (in thousands): December 31, 2020 2019 Deferred cost of goods sold $ 454 $ 262 Prepaid operating expenses 68 585 Prepaid dues and subscriptions 189 503 Prepaid insurance 121 45 Prepaid rent 118 11 Other 26 482 Total prepaid expenses and other current assets $ 976 $ 1,888 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT | ||
PROPERTY AND EQUIPMENT | 9. PROPERTY AND EQUIPMENT Property and equipment, net consists of the following (in thousands): June 30, December 31, 2021 2020 Equipment $ 15,672 $ 13,708 Furniture and fixtures 1,033 895 Computer equipment 1,139 1,089 Tooling 1,805 1,805 Software 1,439 1,249 Leasehold improvements 14,564 13,870 Construction in process 1,617 879 Property and equipment, gross 37,269 33,495 Less: accumulated depreciation (24,041) (21,335) Total property and equipment, net $ 13,228 $ 12,160 Depreciation and amortization expense was $1.3 million and $2.8 million for the three and six months ended June 30, 2021, respectively. Depreciation and amortization expense was $2.1 million and $4.2 million for the three and six months ended June 30, 2020, respectively. | 8. PROPERTY AND EQUIPMENT Property and equipment, net consists of the following (in thousands): December 31, 2020 2019 Equipment $ 13,708 $ 13,358 Furniture and fixtures 895 895 Computer equipment 1,089 1,089 Tooling 1,805 1,823 Software 1,249 954 Leasehold improvements 13,870 13,880 Construction in process 879 170 Property and equipment, gross 33,495 32,169 Less: accumulated depreciation (21,335) (13,782) Total property and equipment, net $ 12,160 $ 18,387 Depreciation and amortization expense was $7.6 million and $7.6 million for the years ended years ended December 31, 2020 and 2019, respectively. |
ACQUIRED TECHNOLOGY
ACQUIRED TECHNOLOGY | 12 Months Ended |
Dec. 31, 2020 | |
ACQUIRED TECHNOLOGY | |
ACQUIRED TECHNOLOGY | 9. ACQUIRED TECHNOLOGY Acquired technology consisted of the following (in thousands): Accumulated Balance Gross Value Estimated Life Amortization December 31, 2020 Acquired technology $ 10,193 5 years $ 1,091 $ 9,102 The Company recognized $0.8 million and $0.3 million of amortization expense as of December 31, 2020 and 2019, respectively, and expects to recognize $2.0 million of amortization expense annually in the years ended December 31, 2021 2023 , years. |
CAPITALIZED SOFTWARE
CAPITALIZED SOFTWARE | 12 Months Ended |
Dec. 31, 2020 | |
CAPITALIZED SOFTWARE | |
CAPITALIZED SOFTWARE | 10. CAPITALIZED SOFTWARE Capitalized software consists of the following (in thousands): Years Ended December 31, 2020 2019 Capitalized software development costs $ 1,127 $ 1,127 Accumulated amortization (815) (237) Impairment — (444) Total capitalized software, net $ 312 $ 446 The Company incurred $0.1 million and $0.2 million in amortization expense for the years ended December 31, 2020 and 2019, respectively, which is recorded in research and development operating expenses in the consolidated statements of operations. The Company recorded impairment charges of $0.0 million and $0.4 million in the years ended December 31, 2020 and 2019, for software that will no longer be utilized by the Company. The Company expects to incur amortization expense of $0.2 million, $0.1 million for the years ending 2021 2022, respectively and immaterial amortization expense for the year ending 2023. |
OTHER NONCURRENT ASSETS
OTHER NONCURRENT ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
OTHER NONCURRENT ASSETS | ||
OTHER NONCURRENT ASSETS | 11. OTHER NONCURRENT ASSETS The following table summarizes the Company’s components of other noncurrent assets (in thousands): June 30, December 31, 2021 2020 Other investments $ 7,137 $ 3,000 Right of use asset 4,816 1,810 Long-term deposits 135 69 Other 122 — Total other noncurrent assets $ 12,210 $ 4,879 During the year ended December 31, 2020, the Company made an investment in a privately held company in the form of convertible debt for $3.0 million. Under the terms of this agreement, the debt will be converted to common stock of the investee upon the closing of a qualified financing, acquisition or change in control. The full principal balance plus 3% annual interest is due in two years and does not allow voluntary prepayment. The Company has elected the fair value option for this investment and recognized an immaterial gain during the three months ended June 30, 2021, and a gain of $0.3 million during the six months ended June 30, 2021, in other income in the condensed consolidated statement of operations. In April 2021, the Company made an investment in a privately held company by purchasing a convertible promissory note for principal amount of $1.6 million. Under the terms of this note, the debt will convert to equity securities of the applicable investee upon the closing of a qualified financing, acquisition or other change in control. The full principal balance plus 3% annual interest is due in two years and does not allow voluntary prepayment. The Company has elected the fair value option for this investment and recognized a gain of $0.2 million during the three and six months ended June 30, 2021, in other income in the condensed consolidated statements of operations. In April 2021, the Company made an investment in a privately held company by purchasing a convertible promissory note for a principal amount of $2.0 million. Under the terms of this note, the debt will convert to cash or equity securities upon the closing of a qualified financing, acquisition or other change in control. The full principal balance plus 3% annual interest is due in five years and does not allow voluntary prepayment. The Company has elected the fair value option for this investment, and there was no change in fair value during the three months ended June 30, 2021. | 11. OTHER NONCURRENT ASSETS The following table summarizes the Company’s components of other noncurrent assets (in thousands): December 31, 2020 2019 Other investments $ 3,000 $ — Right of use asset 1,810 2,289 Long-term deposits 69 — Total other noncurrent assets $ 4,879 $ 2,289 During the year ended December 31, 2020, the Company made an investment in a privately held company in the form of convertible debt for $3.0 million. Under the terms of this agreement, the debt will be converted to common stock of the investee upon the closing of a qualified financing, acquisition or change in control. The full principal balance plus 3% annual interest is due in two years and does not allow voluntary prepayment. As of December 31, 2020, the balance of other investments was $3.0 million. As of December 31, 2019, there were no other investments. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): June 30, December 31, 2021 2020 Professional services $ 3,897 $ 2,508 Compensation and benefits related 7,359 2,068 Warranty reserve 2,030 1,553 Inventory purchases 1,506 86 Income tax payable 1,331 — Sales and use and franchise taxes 224 586 Franchise and royalty fees 227 159 Goods received payable 1,201 — Other 3,193 605 Total accrued expenses and other current liabilities $ 20,968 $ 7,565 As of June 30, 2021, and December 31, 2020, the Company has recorded $2.0 million and $1.6 million, respectively, of warranty reserve within accrued expenses and other current liabilities in the condensed consolidated balance sheets. Warranty reserve consisted of the following (in thousands): 2021 2020 Warranty reserve, at the beginning of the period $ 1,553 $ 1,491 Warranty reserve assumed in acquisition 316 — Additions to warranty reserve 797 346 Claims fulfilled (636) (284) Warranty reserve, at the end of the period $ 2,030 $ 1,553 | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): December 31, 2020 2019 Professional services $ 2,508 $ 780 Compensation and benefits related 2,068 897 Warranty reserve 1,553 1,491 Sales and use and franchise taxes 586 578 Franchise and royalty fees 159 — Inventory purchases 86 620 Other 605 687 Total accrued expenses and other current liabilities $ 7,565 $ 5,053 |
DEBT
DEBT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
DEBT | ||
DEBT | 13. DEBT Term Loan PPP Loan— Small Business Administration rules. The outstanding borrowings may be prepaid by the Company at any time prior to maturity with no prepayment penalties. On May 14, 2021, the outstanding loan balance was forgiven and the restricted cash that was held back from the initial purchase price in the event the loan was not forgiven was released to the seller. There is no outstanding PPP loan balance for EnvisionTEC as of June 30, 2021. In connection with the acquisition of Adaptive 3D, the Company acquired $0.3 million in PPP loans. As of June 30, 2021, $0.3 million of the PPP loans is recorded in current portion of long-term debt, net of deferred financing costs in the condensed consolidated balance sheets. As of June 30, 2021, forgiveness of the loan has been requested and remains outstanding. Deferred Financing Costs | 13. DEBT Term Loan The outstanding amount as of December 31, 2020 and 2019 was $10.0 million in both periods. The $10.0 million is due in June 2021. PPP Loan— Deferred Financing Costs costs. As of December 31, 2020, and 2019, the remaining unamortized balance of deferred financing costs is immaterial, and is included as a component of current portion of long-term debt, net of deferred financing costs in the consolidated balance sheets. |
LEASES
LEASES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
LEASES | 14. LEASES At June 30, 2021, the Company recorded $4.8 million as a right of use asset and $5.9 million as an operating lease liability. At December 31, 2020, the Company recorded $1.8 million as a right of use asset and $3.0 million as an operating lease liability. The Company assesses its right of use asset and other lease-related assets for impairment. There were no impairments recorded related to these assets during the three and six months ended June 30, 2021 and the year ended December 31, 2020. As a result of the acquisition of EnvisionTEC, the Company acquired operating, short-term, and finance leases for corporate offices, manufacturing and warehouse facilities, and machineries, increasing the Company’s right of use asset by $1.8 million. The operating leases consist of five real estate leases and six equipment leases with current terms extending from 2021 to 2024. The Company’s finance leases are immaterial as of June 30, 2021. As a result of the acquisition of Adaptive 3D, the Company acquired operating leases for corporate offices, research and development, and manufacturing, increasing the Company’s right of use asset by $0.7 million. The operating leases consist of two real estate leases with current terms extending from 2024 to 2025. As a result of the acquisition of Aerosint, the Company acquired operating leases for corporate office and lab space, as well as company cars, increasing the Company’s right of use asset by $0.4 million. The operating leases consist of one real estate lease and three leases for company cars with current terms extending through 2025. The Company reviews all supplier, vendor, and service provider contracts to determine whether any service arrangements contain a lease component. The Company identified two service agreements that contain an embedded lease. The agreements do not contain fixed or minimum payments, and the variable lease expense was immaterial during the three and six months ended June 30, 2021 and 2020. Information about other lease-related balances is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease cost Operating lease cost $ 422 $ 186 $ 745 $ 374 Short‑term lease cost 34 3 45 3 Variable lease cost 46 2 85 12 Total lease cost $ 502 $ 191 $ 875 $ 389 Other Information Operating cash flows used in operating leases $ 655 $ 269 $ 899 $ 536 Weighted‑average remaining lease term—operating leases (years) 2.6 3.7 2.6 3.7 Weighted‑average discount rate—operating leases 5.1 % 7.6 % 5.1 % 7.6 % The rate implicit in the lease is not readily determinable in most of the Company’s leases, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. Future minimum lease payments under noncancelable operating leases, including immaterial future minimum lease payments under finance leases, at June 30, 2021, are as follows (in thousands): Operating Leases 2021 (remaining 6 months) $ 1,114 2022 2,258 2023 2,072 2024 700 2025 192 2026 53 Total lease payments 6,389 Less amount representing interest (447) Total lease liability 5,942 Less current portion of lease liability (1,983) Lease liability, net of current portion $ 3,959 As of June 30, 2021, the Company does not have material operating or finance leases that have not commenced. | 14. LEASES At December 31, 2020, the Company recorded $1.8 million as a right of use asset and $3.0 million as an operating lease liability. At December 31, 2019, the Company recorded $2.3 million as a right of use asset and $3.8 million as an operating lease liability. The Company assesses its right of use asset and other lease-related assets for impairment. There were no impairments recorded related to these assets during the years ended December 31, 2020 and 2019. The Company identified one service agreement that contained an embedded lease. The agreement does not contain fixed or minimum payments, but the Company has concluded that the variable lease expense was immaterial during the years ended December 31, 2020 and 2019, respectively. Information about other lease-related balances is as follows (in thousands): Years Ended December 31, 2020 2019 Lease cost Operating lease cost $ 746 $ 655 Short‑term lease cost — 32 Variable lease cost 40 40 Total lease cost $ 786 $ 727 Other Information Operating cash flows from operating leases $ 1,073 $ 951 Weighted‑average remaining lease term—operating leases (years) 3.2 4.2 Weighted‑average discount rate—operating leases 7.6 % 7.6 % The rate implicit in the lease is not readily determinable in most of the Company’s leases, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. Future minimum lease payments under noncancelable operating leases at December 31, 2020, are as follows (in thousands): 2021 $ 1,071 2022 1,069 2023 1,028 2024 258 2025 — Total lease payments 3,426 Less amount representing interest (401) Total lease liability 3,025 Less current portion of lease liability (868) Lease liability, net of current portion $ 2,157 As of December 31, 2020, the Company does not have material operating leases that have not commenced. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may face legal claims or actions in the normal course of business. At each reporting date, the Company evaluates whether a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any current legal proceedings will have a material adverse impact on the Company’s condensed consolidated financial statements. Commitments The Company has entered into legally binding agreements with certain suppliers to purchase materials used in the manufacturing of the Company’s products. As of June 30, 2021, the Company had outstanding purchase orders with contract manufacturers in the amount of $21.8 million which are not included in the condensed consolidated balance sheets. The Company has also entered into licensing and royalty agreements with certain manufacturing and software companies and universities related to the use of patented technology. Under the terms of each agreement, the Company has made initial, one-time payments of $0.3 million and is obligated to pay a set percentage, ranging from 2.75% - 13%, of all consideration received by the Company for sales of related products and services, until the agreements are terminated at various dates through 2037. The Company’s aggregate minimum annual commitment under these contracts is $0.5 million. During the three and six months ended June 30, 2021 and 2020, the Company recorded immaterial licensing and royalty fees. On April 28, 2021 the Company entered into a stock subscription agreement with Galileo Acquisition Corp. (“Galileo”). Pursuant to the agreement, the Company will purchase $20.0 million of Galileo common stock upon the closing of Galileo’s announced merger transaction. The Company expects this investment to facilitate the development of a strategic partnership with Galileo’s merger target, Shapeways, Inc., to accelerate access to, and adoption of, its additive manufacturing solutions by businesses across a range of applications. The Company recognized $0.4 million of revenue from Shapeways, Inc. during the three and six months ended June 30, 2021, and expects to enter into additional sales agreements in the future. | 15. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may face legal claims or actions in the normal course of business. At each reporting date, the Company evaluates whether a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. The Company was engaged in arbitration with Markforged, Inc., a competitor in the 3D printing industry, regarding claims against the Company alleging false and misleading statements about Markforged, Inc’s products in violation of a settlement agreement that the Company entered into with Markforged, Inc. to settle a prior dispute regarding patent infringement and trade secret misappropriation. The hearing was held in December 2020 and the arbitrator has ruled that that the Company does not owe Markforged any damages in association with the claim. Manufacturing Commitments As of December 31, 2020, the Company had outstanding purchase orders with contract manufacturers in the amount of $9.5 million. |
INCOME TAXES
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
INCOME TAXES | 16. INCOME TAXES The Company’s provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items arising in that quarter. The Company’s effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on its deferred tax assets as it is more likely than not that some or all of the Company’s deferred tax assets will not be realized as well as the partial release of the valuation allowance as part of the EnvisionTEC and Adaptive 3D acquisitions. During the three and six months ended June 30, 2021, the Company recorded an income tax benefit of $4.3 million and $32.2 million, respectively. There was no income tax benefit for the three and six months ended June 30, 2020. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements and tax returns. Deferred tax assets and liabilities are determined based upon the differences between the consolidated financial statements carrying amounts and the tax bases of existing assets and liabilities and for loss and credit carryforwards, using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. The Company has provided a full valuation allowance against the net deferred tax assets as the Company has determined that it was more likely than not that the Company would not realize the benefits of federal and state net deferred tax assets. As a result of the recent acquisitions of EnvisionTEC and Adaptive 3D, the Company recorded a U.S. deferred tax liability related to non-tax-deductible intangible assets recognized in the financial statements. The acquired deferred tax liability is a source of income to support recognition of the Company’s existing deferred tax assets. Accordingly, the Company recorded an income tax benefit of $4.3 million and $32.2 million for the release in the valuation allowance related to the acquired intangibles in the three and six months ended June 30, 2021, respectively. The Company provides reserves for potential payments of taxes to various tax authorities related to uncertain tax positions. Amounts recognized are based on a determination of whether a tax benefit taken by the Company in its tax filings or positions is “more likely than not” to be sustained on audit. The amount associated with uncertain tax positions are recorded as a component of income tax expense. As of June 30, 2021, the Company has accrued uncertain tax positions of approximately $1.2 million related to the EnvisionTEC acquisition. The amounts relate to U.S. state and foreign tax positions. Included in the balance of unrecognized tax benefits as of June 30, 2021 are amounts that, if recognized, would impact the effective tax rate. As of December 31, 2020, the Company has not identified any uncertain tax positions for which reserves would be required. | 16. INCOME TAXES During the years ended December 31, 2020 and 2019, the Company recorded ($940) and $0 of income tax (benefit)/provision which was primarily driven by a partial valuation allowance release. For financial reporting purposes, loss before provision for income taxes, includes the following components (in thousands): Years Ended December 31, 2020 2019 United States $ (34,285) $ (103,596) Foreign (670) — Loss before income taxes $ (34,955) $ (103,596) The provision (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2020 2019 Current $ — $ — Deferred (940) — Provision (benefit) for income taxes $ (940) $ — A reconciliation of the expected income tax (benefit)/provision computed using the federal statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2020 and 2019 is as follows: Years Ended December 31, 2020 2019 Effective income tax rate: Expected income tax benefit at the federal statutory rate 21 % 21 % State taxes 6 % 6 % Change in valuation allowance (68) % (30) % Research and development credit carryover 2 % 2 % Permanent differences 42 % 1 % Effective income tax rate 3 % — % As of December 31, 2020, and 2019, deferred tax assets consist of the following (in thousands): Years Ended December 31, 2020 2019 Deferred tax assets: Federal and state net operating carryforwards $ 77,463 $ 56,333 Research and development and other credits 13,555 11,072 Capitalized start‑up costs 15,717 17,032 Compensation‑related items 2,257 1,286 Deferred lease liability 872 1,111 Depreciation 1,503 — Other deferred tax assets 2,272 2,068 Total gross deferred tax asset 113,639 88,902 Valuation allowance (111,494) (87,370) Net deferred tax asset 2,145 1,532 Deferred tax liabilities: Right‑of‑use asset (522) (664) Acquired technology (1,623) (868) Total deferred tax liabilities (2,145) (1,532) Net deferred tax asset $ — $ — Realization of deferred tax assets is dependent upon the generation of future taxable income. As required by ASC 740 Income Taxes Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2020 and 2019 were as follows (in thousands): Years Ended December 31, 2020 2019 Valuation allowance at beginning of the year $ 87,370 $ 56,405 Increases recorded to income tax provision 25,058 30,965 Decreases recorded as a benefit to income tax provision (934) — Valuation allowance at end of year $ 111,494 $ 87,370 As of December 31, 2020, and 2019, the Company had federal net operating loss carryforwards of $273.8 million and $197.7 million, respectively, which may be available to reduce future taxable income. These carryforwards generated in 2017 and prior years expire at various dates through 2037. The $228.3 million in carryforwards generated from 2018 forward do not expire. As of December 31, 2020, and 2019, the Company had state net operating loss carryforwards of $243.2 million and $184.2 million, respectively, which may be available to reduce future taxable income. These carryforwards expire at various dates through 2040. In addition, the Company had federal and state research and development tax credit carryforwards of $13.5 million available to reduce future tax liabilities, which will expire at various dates through 2040. Utilization of the Company’s net operating loss (“NOL”) carryforwards and research and development (“R&D”) credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that have occurred previously or that could occur in the future in accordance with Section 382 of the Internal Revenue Code of 1986 (“Section 382”) as well as similar state provisions. These ownership changes may limit the amount of NOL and R&D credit carryforwards that can be utilized annually to offset future taxable income and taxes, respectively. In general, an ownership change as defined by Section 382 results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50% over a three-year period. The Company has not conducted a study to assess whether a change of control has occurred or whether there have been multiple changes of control since inception due to significant complexity with such a study. If the Company has experienced a change of control, as defined by Section 382, at any time since inception, utilization of the net operating loss carryforward or research and development tax credits carryforwards would be subject to an annual limitation under Section 382. Although the Company has not completed its analysis, it is reasonably possible that its federal NOLs available to offset future taxable income could materially decrease. This reduction would be offset by an equal and offsetting adjustment to the existing valuation allowance. Given the offsetting adjustments to the existing valuation allowance, any ownership change is not expected to have an adverse material effect on the Company’s consolidated financial statements. Any limitation may result in expiration of a portion of the net operating loss carryforward or research and development tax credit carryforwards before utilization. The Company files income tax returns in the U.S. federal tax jurisdiction, Massachusetts and Rhode Island. Since the Company is in a loss carryforward position, the Company is generally subject to examination by the U.S. federal, state and local income tax authorities for all tax years in which a loss carryforward is available. The Company is currently not under examination by the Internal Revenue Service of any other jurisdiction for any tax years. The Company has not recorded any interest or penalties on any unrecognized tax benefits since inception. The Company does not believe material uncertain tax positions have arisen to date. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
STOCKHOLDERS' EQUITY | ||
STOCKHOLDERS' EQUITY | 17. STOCKHOLDERS’ EQUITY As of June 30, 2021, the Company’s authorized shares consisted of 500,000,000 shares of Class A Common Stock, $0.0001 par value (the “Common Stock”) and 50,000,000 shares of Preferred Stock, $0.0001 par value (the “Preferred Stock”). Common Stock Restricted Stock Agreements In connection with prior acquisitions, the Company has issued shares of restricted stock that are considered post-combination expense and accounted for as stock-based compensation as the shares vest. The activity for stock subject to vesting as of June 30, 2021 is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Purchase Price Balance of unvested shares as of January 1, 2021 280 $0.0001 Issuance of additional shares — — Vested (112) $0.0001 Balance of unvested shares as of June 30, 2021 168 $0.0001 At June 30, 2021, the remaining weighted-average vesting period for the stock subject to vesting was 0.7 years. Common Stock Warrants In May 2017, the Company entered into a strategic collaboration agreement with an investor allowing the investor’s resellers to sell and distribute the Company’s products. In consideration for this agreement, the Company agreed to issue warrants to purchase up to 2,442,440 shares of Common Stock. The investor was eligible to receive a warrant to purchase one share of Common Stock for every $35.00 in revenue generated by the Company from the investor’s resellers. Each warrant was issued at an exercise price equal to $3.34 per share (subject to appropriate adjustment in the event of a stock dividend, stock split, combination, or other similar recapitalization) and was set to expire on December 31, 2027. The Company issued no warrants during the six months ended June 30, 2021. During the six months ended June 30, 2020, the Company issued 99,960 warrants and recorded immaterial expense related to the fair value of the warrants, calculated using the Black-Scholes warrant-pricing model with the following assumptions: Six Months Ended June 30, 2020 Risk‑free interest rate 2.0 % Expected volatility 52.5 % Expected life (in years) 7.8 Expected dividend yield — Fair value of Common Stock $ 3.34 756,498 warrants were converted to 447,938 shares of Common Stock through a cashless exercise in connection with the Business Combination. Trine Warrants In Trine’s initial public offering, it sold units at a price of $10.00 per unit, which consisted of one share of Common Stock, $0.0001 par value, and one Company’s Common Stock is at least $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which notice of redemption is given. If the Company redeems the Public Warrants as described above, it will have the option to require all Public Warrant holders that wish to exercise to do so on a “cashless basis”. On February 26, 2021, the Company delivered a notice to redeem all of its outstanding Public Warrants that remain unexercised at 5:00 p.m. New York City time on March 29, 2021. During 2021, Public Warrants for 14,840,589 shares of the Company’s Common Stock were exercised for cash, resulting in the Company receiving net proceeds of $170.7 million. On March 29, 2021, the 166,905 outstanding Public Warrants were redeemed by the Company for $0.01 per Public Warrant. Effective March 29, 2021, all of the Public Warrants were exercised or redeemed. The Warrant Agreement, dated as of March 14, 2019, by and between the Company and Continental Stock Transfer & Trust Company also obligated the Company to use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of the issuance of the shares of Common Stock issuable upon exercise of the Public Warrants, and to cause the same to become effective and remain effective while the Public Warrants remain outstanding. On February 4, 2021, the Company’s registration statement covering such shares became effective. Simultaneously with the consummation of Trine’s initial public offering, Trine Sponsor IH, LLC (the “Sponsor”) purchased an aggregate of 8,503,000 warrants to purchase one share of Common Stock at an exercise price of $11.50 (the “Private Placement Warrants”) at a price of $1.00 per warrant ($8,503,000) in the aggregate in a private placement. The Private Placement Warrants are identical to the Public Warrants except that the Private Placement Warrants are not redeemable by Desktop Metal, and may be exercised for cash or on a cashless basis so long as they are held by the Sponsor or any of its permitted transferees. Additionally, pursuant to the terms of the amended and restated registration rights agreement entered in connection with the Business Combination, the Sponsor had the right to have the resale of the shares of Common Stock acquired upon exercise of the Private Placement Warrants registered under the Securities Act. On February 4, 2021, the Company’s registration statement covering such shares became effective. On February 24, 2020, Trine issued an unsecured promissory note (the “2020 Note”) to the Sponsor. The 2020 Note bore no interest and was repayable in full upon consummation of the Business Combination. The Sponsor had the option to convert any unpaid balance of the 2020 Note into warrants equal to the principal amount of the 2020 Note so converted divided by $1.00. Upon closing of the Business Combination, the 2020 Note was converted into a Private Placement Warrant for 1,500,000 shares of Common Stock, with an exercise price of $11.50. The terms of these warrants are identical to the terms of the Private Placement Warrants. Pursuant to the terms of the amended and restated registration rights agreement entered in connection with the Business Combination, the Sponsor had the right to have the resale of the shares of Common Stock acquired upon exercise of such warrant registered under the Securities Act. On February 4, 2021, the Company’s registration statement covering such shares became effective. The Company’s Private Placement Warrants are classified as liabilities, and are measured at fair value through earnings. During the six months ended June 30, 2021, the Company recorded a $56.6 million loss related to the change in fair value of the Private Placement Warrants, which were remeasured through the date of each exercise, calculated using the Black-Scholes warrant pricing model with the following assumptions: Six Months Ended June 30, 2021 Risk‑free interest rate 0.4% – 0.6 % Expected volatility 55.0 % Expected life (in years) 4.8 Expected dividend yield — Fair value of Common Stock $ 19.82 – 30.49 Exercise price $ 11.50 All of the Private Placement Warrants were exercised on a cashless basis prior to March 2, 2021, and an aggregate of 5,850,346 shares of the Company’s Common Stock were issued in connection with these exercises. Effective March 2, 2021, all Private Placement Warrants were exercised. | 17. STOCKHOLDERS’ EQUITY As of December 31, 2020, the Company’s authorized shares consisted of 500,000,000 shares of Class A Common Stock, $0.0001 par value (the “Common Stock”) and 50,000,000 shares of Preferred Stock, $0.0001 par value (the “Preferred Stock”). Common Stock Restricted Stock Agreements During the year ended December 31, 2019, as part of the Company’s acquisitions, the Company issued 607,300 shares of restricted stock with a value of $2.0 million which are considered post-combination consideration and accounted for as stock-based compensation as the shares vest. The shares vest over a four-year service period. The activity for stock subject to vesting for years ended December 31, 2020 and 2019, are as follows (shares in thousands): Shares subject Weighted Average to Vesting Purchase Price Balance of unvested shares as of January 1, 2020 5,587 $0.0001 Issuance of additional shares — — Vested (5,307) $0.001 Balance of unvested shares as of December 31, 2020 280 $0.001 At December 31, 2020, the remaining weighted-average vesting period for the stock subject to vesting was 0.6 years. Promissory Note Shares In March 2018, the Company issued a promissory note totaling $0.2 million in exchange for 340,923 shares of Common Stock. The note accrued interest at the rate of 2.57% per annum and was fully collateralized by the assets of the holder. The Company has accounted for the note as recourse note and has recorded it as a deduction from stockholders’ equity. The note plus immaterial interest was settled with the Company through the repurchase of 76,461 shares of Common Stock by the Company, at the then current fair value in March 2019. Common Stock Warrants In May 2017, the Company entered into a strategic collaboration agreement with an investor allowing the investor’s resellers to sell and distribute the Company’s products. In consideration for this agreement, the Company agreed to issue warrants to purchase up to 2,442,440 shares of Common Stock. The investor was eligible to receive a warrant to purchase one share of Common Stock for every $35.00 in revenue generated by the Company from the investor’s resellers. Each warrant was issued at an exercise price equal to $3.34 per share (subject to appropriate adjustment in the event of a stock dividend, stock split, combination, or other similar recapitalization) and was set to expire on December 31, 2027. The Company issued 122,073 warrants in 2020 and 611,969 warrants in 2019. The Company recorded $0.2 million related to the fair value of the warrants in 2020 and $1.0 million in 2019, calculated using the Black-Scholes warrant-pricing model with the following assumptions: Years Ended December 31, 2020 2019 Risk‑free interest rate 2.0 % 2.0 % Expected volatility 52.5 % 52.5 % Expected life (in years) 8.0 8.0 – 8.8 Expected dividend yield — — Fair value of Common Stock $ 3.34 $ 3.34 756,498 warrants were converted to 447,938 shares of Common Stock through a cashless exercise in connection with the Business Combination. In August 2020, the Company issued a warrant to purchase up to 366,366 shares of common stock, par value $0.0001, in exchange for technical research and development advisor services. Each warrant was issued at an exercise price of $3.34 per share (subject to appropriate adjustment in the event of a stock dividend, stock split, combination, or other similar recapitalization) and was set to expire on August 22, 2027. The Company recorded $1.7 million related to the fair value of the warrants in 2020, calculated using the Black-Scholes warrant-pricing model with the following assumptions: Year Ended December 31, 2020 Risk‑free interest rate 0.5 % Expected volatility 52.5 % Expected life (in years) 0.3 Expected dividend yield — Fair value of Common Stock $ 7.98 366,366 warrants vested upon a change in control and were converted to 244,428 shares of Common Stock through a cashless exercise in connection with the Business Combination. Trine Warrants In Trine’s initial public offering, it sold units at a price of $10.00 per unit, which consisted of one share of Common Stock, $0.0001 par value, and one from the date of the Business Combination. Unless earlier redeemed, the Public Warrants will expire The Warrant Agreement, dated as of March 14, 2019, by and between the Company and Continental Stock Transfer & Trust Company also obligated the Company to use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of the issuance of the shares of Common Stock issuable upon exercise of the Public Warrants, and to cause the same to become effective and remain effective while the Public Warrants remain outstanding. On February 4, 2021, the Company’s registration statement covering such shares became effective. Simultaneously with the consummation of Trine’s initial public offering, Trine Sponsor IH, LLC purchased an aggregate of 8,503,000 warrants to purchase one share of Common Stock at an exercise price of $11.50 at a price of $1.00 per warrant ($8,503,000) in the aggregate in a private placement. The Private Placement Warrants are identical to the Public Warrants except that the Private Placement Warrants are not redeemable by Desktop Metal, and may be exercised for cash or on a cashless basis so long as they are held by the Sponsor or any of its permitted transferees. Additionally, pursuant to the terms of the amended and restated registration rights agreement entered in connection with the Business Combination, the Sponsor had the right to have the resale of the shares of Common Stock acquired upon exercise of the Private Placement Warrants registered under the Securities Act. On February 4, 2021, the Company’s registration statement covering such shares became effective. On February 24, 2020, Trine issued an unsecured promissory note (the “2020 Note”) to the Sponsor. The 2020 Note bore no interest and was repayable in full upon consummation of the Business Combination. The Sponsor had the option to convert any unpaid balance of the 2020 Note into warrants equal to the principal amount of the 2020 Note so converted divided by $1.00. Upon closing of the Business Combination, the 2020 Note was converted into additional Private Placement Warrants for 1,500,000 shares of Common Stock, with an exercise price of $11.50. The terms of these warrants are identical to the terms of the Private Placement Warrants. Pursuant to the terms of the amended and restated registration rights agreement entered in connection with the Business Combination, the Sponsor had the right to have the resale of the shares of Common Stock acquired upon exercise of such warrant registered under the Securities Act. On February 4, 2021, the Company’s registration statement covering such shares became effective. The Company has classified the Private Placement Warrants as liabilities, and will subsequently measure them at fair value through earnings. The Company recorded a $56.4 million gain related to the change in the fair value of the warrants in 2020, calculated using the Black-Scholes warrant-pricing model with the following assumptions: As of December 31, 2020 As of December 9, 2020 Risk‑free interest rate 0.4 % 0.4 % Expected volatility 50.0 % 40.0 % Expected life (in years) 4.9 5 Expected dividend yield — — Fair value of Common Stock $ 17.20 $ 24.77 Legacy Desktop Metal Convertible Preferred Stock In connection with the Business Combination, Legacy Desktop Metal’s Convertible Preferred Stock (“Legacy Convertible Preferred Stock”) previously classified as mezzanine was retroactively adjusted, converted into Common Stock, and reclassified to permanent equity as a result of the reverse recapitalization. As of December 31, 2020, there is no Legacy Convertible Preferred Stock authorized, issued or outstanding. The following table summarizes details of Legacy Convertible Preferred Stock authorized, issued and outstanding immediately prior to the Business Combination ($ in thousands): Prior to Business Combination Legacy Convertible Preferred Stock Classes Shares Authorized, Issued and Outstanding Preferred Stock Series A Legacy Convertible Preferred Stock, $0.0001 par value 26,189,545 $ 13,878 Series B Legacy Convertible Preferred Stock, $0.0001 par value 23,675,035 37,806 Series C Legacy Convertible Preferred Stock, $0.0001 par value 13,152,896 44,852 Series D Legacy Convertible Preferred Stock, $0.0001 par value 21,075,193 180,353 Series E Legacy Convertible Preferred Stock, $0.0001 par value 13,450,703 134,667 Series E‑1 Legacy Convertible Preferred Stock, $0.0001 par value 2,494,737 24,977 Total 100,038,109 $ 436,533 The following describes the rights and preferences of the Company’s Legacy Convertible Preferred Stock prior to conversion to common stock in the Business Combination: Voting Dividends Liquidation Conversion conversion price then in effect, which was equal to $0.53372 per share for the Series A Legacy Convertible Preferred Stock, $1.6013 per share for Series B Legacy Convertible Preferred Stock, $3.4213 per share for the Series C Legacy Convertible Preferred Stock, $8.5656 per share for the Series D Legacy Convertible Preferred Stock, and $10.0211 per share for the Series E and Series E-1 Legacy Convertible Preferred Stock. The conversion price was subject to adjustment if certain dilutive events occurred. Conversion was mandatory in the event of a firm-commitment underwritten initial public offering of the Company’s Legacy Desktop Metal common stock with a value of at least $5.13 per common share and $50 million in proceeds to the Company or upon the election of a majority of the holders of Legacy Convertible Preferred Stock, voting as a single class on an as-converted basis. Redemption |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
STOCK BASED COMPENSATION | ||
STOCK BASED COMPENSATION | 18. STOCK BASED COMPENSATION Stock Incentive Plan As part of the acquisition of Make Composites, Inc. (“Make”) in 2019, the Company assumed the 2018 equity incentive plan of Make (the “Make Plan”). The Make Plan allows for the award of incentive and nonqualified stock options and warrants for those employees and contractors that were hired as part of the acquisition. The Make Plan allowed for 232,304 options and warrants to be issued, which were issued in 2019, with no additional options to be issued in the future. Option awards expire 10 years from the grant date and generally vest over four years; however, vesting conditions can vary at the discretion of our Board of Directors. In December 2020, the Board of Directors and stockholders of the Company approved the adoption of the 2020 Incentive Award Plan (the “2020 Plan” and together with the 2015 Plan and the Make Plan, the “Plans”), which became effective on the date of the Business Combination. Upon effectiveness of the 2020 Plan, the Company ceased granting new awards under the 2015 Plan. The 2020 Plan allows for the award of incentive and nonqualified stock options, restricted stock, and other stock-based awards to employees, officers, directors, consultants, and advisers of the Company. The number of shares of common stock initially available for issuance under the 2020 Plan was 12,400,813 shares of common stock plus the number of shares subject to awards outstanding under the 2015 Plan that expire, lapse, terminate, or are exchanged for cash, surrendered, repurchased, or canceled without having been fully exercised or forfeited. In addition, the number of shares of common stock available for issuance under the 2020 Plan is subject to an annual increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030 equal to the lesser of (i) 5% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Board. On January 1, 2021, 11,337,837 shares were added to the plan. The Company grants stock options at exercise prices deemed by the Board of Directors to be equal to the fair value of the Common Stock at the time of grant. The fair value of Common Stock has been determined by the Board of Directors of the Company at each stock option measurement date based on a variety of different factors, including the results obtained from independent third-party appraisals, the Company’s consolidated financial position and historical financial performance, the status of technological development within the Company, the composition and ability of the current engineering and management team, an evaluation and benchmark of the Company’s competition, the current climate in the marketplace, the illiquid nature of the Common Stock, arm’s-length sales of the Company’s capital stock, and the prospects of a liquidity event, among others. During the three and six months ended June 30, 2021, the Company did not grant any options to purchase shares of Common Stock to employees. During the three and six months ended June 30, 2020, the Company granted options to purchase 4,182,389 and 4,656,013 shares of Common Stock to employees with fair values of $2.9 million and $3.6 million, respectively, calculated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Risk‑free interest rate 0.4 % – 0.9 % 0.4 % – 0.9 % Expected volatility 52.7 % – 54.2 % 52.7 % – 54.2 % Expected life (in years) 5.9 – 6.3 5.9 – 6.3 Expected dividend yield — — Fair value of Common Stock $ 3.34 $ 3.34 During the three and six months ended June 30, 2021, the Company did not grant any options to purchase shares of Common Stock to non-employees. During the three months ended June 30, 2020, the Company did not grant any options to purchase shares of Common stock to non-employees. During the six months ended June 30, 2020, the Company granted options to purchase 12,212 shares of Common Stock to consultants with a fair value of $0.1 million, calculated using the Black-Scholes option-pricing model with the following assumptions: Six Months Ended June 30, 2020 Risk‑free interest rate 0.8 % Expected volatility 54.3 % Expected life (in years) 10.0 Expected dividend yield — Fair value of Common Stock $ 3.34 The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of the related stock options. The expected life of stock options was calculated using the average of the contractual term of the option and the weighted-average vesting period of the option, as the Company does not have sufficient history to use an alternative method to the simplified method to calculate an expected life for employees. The Company has not paid a dividend and is not expected to pay a dividend in the foreseeable future. Expected volatility for the Common Stock was determined based on an average of the historical volatility of a peer group of similar public companies. At June 30, 2021, the total unrecognized stock-based compensation expense related to unvested stock options aggregated $11.2 million. The costs are expected to be recognized over a weighted-average period of 2.9 years. There were 21,810,237 shares available for award under the 2020 Plan at June 30, 2021. The option activity of the Plans for the six months ended June 30, 2021, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2021 19,553 $ 1.53 7.75 $ 306,408 Granted — $ — Exercised (2,846) $ 1.29 Forfeited/expired (313) $ 1.43 Outstanding at June 30, 2021 16,394 $ 1.57 7.40 $ 162,737 Options vested at June 30, 2021 9,451 $ 1.62 6.27 $ 93,385 Options vested or expected to vest at June 30, 2021 15,807 $ 1.58 7.34 $ 156,825 The weighted-average grant-date fair value for options granted during the six months ended June 30, 2021 was $0.98. The aggregate intrinsic value of options exercised during the six months ended June 30, 2021 and 2020, was $37.0 million and $5.0 million, respectively. Restricted Stock Units RSU activity under the 2020 Plan for the six months ended June 30, 2021 is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2021 683 $ 8.02 Granted 4,461 $ 15.38 Vested (44) $ 8.13 Cancelled/Forfeited (5) $ 7.98 Balance of unvested shares as of June 30, 2021 5,095 $ 14.52 Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the condensed consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 1,838 $ 569 $ 2,755 $ 1,283 General and administrative expense 1,355 217 2,194 454 Sales and marketing expense 577 213 921 421 Cost of sales 229 75 346 175 Total stock-based compensation expenses $ 3,999 $ 1,074 $ 6,216 $ 2,333 | 18. STOCK BASED COMPENSATION Stock Incentive Plan As part of the acquisition of Make in 2019, the Company assumed the 2018 equity incentive plan of Make Composites, Inc. (the “Make Plan”). The Make Plan allows for the award of incentive and nonqualified stock options and warrants for those employees and contractors that were hired as part of the acquisition. The Make Plan allowed for 232,304 options and warrants to be issued, which were issued in 2019, with no additional options to be issued in the future. Option awards expire 10 years from the grant date and generally vest over four years; however, vesting conditions can vary at the discretion of our Board of Directors. In December 2020, the Board of Directors and stockholders of the Company approved the adoption of the 2020 Incentive Award Plan (the “2020 Plan” and together with the 2015 Plan and the Make Plan, the “Plans”), which became effective on the date of the Business Combination. Upon effectiveness of the 2020 Plan, the company ceased granting new awards under the 2015 Plan. The 2020 Plan allows for the award of incentive and nonqualified stock options, restricted stock, and other stock-based awards to employees, officers, directors, consultants, and advisers of the Company. The number of shares of common stock initially available for issuance under the 2020 Plan was 12,400,813 shares of common stock plus the number of shares subject to awards outstanding under the 2015 Plan that expire, lapse, terminate, or are exchanged for cash, surrendered, repurchased, or canceled without having been fully exercised or forfeited. In addition, the number of shares of common stock available for issuance under the 2020 Plan is subject to an annual increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030 equal to the lesser of (i) 5% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Board. The Company grants stock options at exercise prices deemed by the Board of Directors to be equal to the fair value of the Common Stock at the time of grant. The fair value of Common Stock has been determined by the Board of Directors of the Company at each stock option measurement date based on a variety of different factors, including the results obtained from independent third-party appraisals, the Company’s consolidated financial position and historical financial performance, the status of technological development within the Company, the composition and ability of the current engineering and management team, an evaluation and benchmark of the Company’s competition, the current climate in the marketplace, the illiquid nature of the Common Stock, arm’s-length sales of the Company’s capital stock, and the prospects of a liquidity event, among others. In July 2020 in order to incentivize and retain personnel, the Company repriced certain employee unvested stock options held by employees to have an exercise price equal to the most recent 409A private stock valuation. Vested awards were not eligible for repricing. Employees were allowed to opt out of the repricing of unvested stock option grants by providing notice to the Company within a month following the repricing. If an employee did not opt out of the repricing, all unvested options held by such employee were repriced and subject to a new vesting schedule. Repriced options vest over a period of four years from the date of the repricing, with one-year cliff vesting and monthly vesting thereafter. The repricing affected 116 employees, at an incremental compensation cost of $3.6 million to the Company, which will be recognized over the vesting period. During years ended December 31, 2020 and 2019, the Company granted options to purchase 8,450,799 shares and 5,730,586 shares of Common Stock to employees with a fair value of $29.8 million and $10.1 million, respectively, calculated using the Black-Scholes option-pricing model with the following assumptions: Years Ended December 31, 2020 2019 Risk‑free interest rate 0.3% – 1.7 % 1.7% – 2.6 % Expected volatility 52.7% – 54.2 % 52.7% – 53.6 % Expected life (in years) 5.9 – 6.3 5.6 – 6.1 Expected dividend yield — — Fair value of Common Stock $ 1.40 – 7.98 $ 3.34 During the years ended December 31, 2020, and 2019, the Company granted options to purchase 12,212 shares and 119,581 shares of Common Stock to consultants with a fair value of $0.1 million and $0.6 million, respectively, calculated using the Black-Scholes option-pricing model with the following assumptions: Years Ended December 31, 2020 2019 Risk‑free interest rate 0.6% – 0.8 % 1.4% – 3.1 % Expected volatility 54.3% – 54.8 % 52.4% – 61.5 % Expected life (in years) 9.4 – 10.0 6.2 – 10.0 Expected dividend yield — — Fair value of Common Stock $ 1.40 – 7.98 $ 3.34 The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of the related stock options. The expected life of stock options was calculated using the average of the contractual term of the option and the weighted-average vesting period of the option, as the Company does not have sufficient history to use an alternative method to the simplified method to calculate an expected life for employees. The Company has not paid a dividend and is not expected to pay a dividend in the foreseeable future. Expected volatility for the Common Stock was determined based on an average of the historical volatility of a peer group of similar public companies. At December 31, 2020 and 2019, the total unrecognized stock-based compensation expense related to unvested stock options aggregated $13.7 million and $13.0 million, respectively. The costs are expected to be recognized over a weighted-average period of 2.8 years. Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the consolidated statements of operations as follows (in thousands): Years Ended December 31, 2020 2019 Research and development $ 3,276 $ 2,713 General and administrative expense 3,464 941 Sales and marketing expense 894 1,373 Cost of sales 372 188 Total stock-based compensation expenses $ 8,006 $ 5,215 There were 14,379,052 shares available for award under the 2020 Plan at December 31, 2020. The option activity of the 2015 Plan and Make Plan for the year ended December 31, 2020, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2020 18,072 $ 2.01 7.84 $ 24,045 Granted 8,463 $ 1.51 Exercised (522) $ 0.62 Forfeited/expired (6,460) $ 2.92 Outstanding at December 31, 2020 19,553 $ 1.53 7.75 $ 306,408 Options vested at December 31, 2020 10,905 $ 1.53 6.52 $ 170,868 Options vested or expected to vest at December 31, 2020 18,818 $ 1.53 7.69 $ 294,824 The weighted-average grant-date fair value for options granted during 2020 and 2019 was approximately $3.52 and $1.78, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2020 and 2019, was $1.8 million and $3.4 million, respectively. On September 28, 2020 the Company modified the vesting conditions for certain awards granted to one of our officers such that in the event of a change in control, half of the outstanding unvested options would vest. Upon the Business Combination, the total incremental compensation expense resulting from the modification was approximately $1.8 million. Restricted Stock Units 1-year RSU activity under the 2020 Plan for the year ended December 31, 2020 is as follows (shares in thousands): Shares subject Weighted Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2020 — — Granted 683 $ 8.02 Vested — — Balance of unvested shares as of December 31, 2020 683 $ 8.02 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SEGMENT INFORMATION | ||
SEGMENT INFORMATION | 20. SEGMENT INFORMATION In its operation of the business, management, including the Company’s chief operating decision maker, who is also Chief Executive Officer, reviews the business as one segment. The Company currently ships its product to markets in the Americas, Europe Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”). Disaggregated revenue data for those markets is as follows (in thousands): Revenue for the three months ended June 30, 2021 Americas EMEA APAC Total Products $ 10,497 $ 3,769 $ 3,294 $ 17,560 Services 904 381 132 1,417 Total $ 11,401 $ 4,150 $ 3,426 $ 18,977 Revenue for the three months ended June 30, 2020 Americas EMEA APAC Total Products $ 613 $ 634 $ 284 $ 1,531 Services 282 333 43 658 Total $ 895 $ 967 $ 327 $ 2,189 Revenue for the six months ended June 30, 2021 Americas EMEA APAC Total Products $ 16,350 $ 6,296 $ 5,225 $ 27,871 Services 1,610 596 213 2,419 Total $ 17,960 $ 6,892 $ 5,438 $ 30,290 Revenue for the six months ended June 30, 2020 Americas EMEA APAC Total Products $ 1,515 $ 2,162 $ 548 $ 4,225 Services 609 656 84 1,349 Total $ 2,124 $ 2,818 $ 632 $ 5,574 During the three and six months ended June 30, 2021 and 2020, the Company recognized the following revenue from service contracts and cloud-based software licenses over time, and hardware and consumable product shipments and subscription software at a point in time (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue recognized at a point in time $ 17,560 $ 1,531 $ 27,871 $ 4,225 Revenue recognized over time 1,417 658 2,419 1,349 Total $ 18,977 $ 2,189 $ 30,290 $ 5,574 The Company’s operations are principally in the United States. The locations of long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, are summarized as follows (in thousands): June 30, December 31, 2021 2020 Americas $ 16,031 $ 12,160 EMEA 1,712 — Total long-lived assets $ 17,744 $ 12,160 | 19. SEGMENT INFORMATION In its operation of the business, management, including the Company’s chief operating decision maker, who is also Chief Executive Officer, reviews the business as one segment. The Company currently ships its product to markets in the Americas, Europe Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”). Disaggregated revenue data for those markets is as follows (in thousands): Revenue during the year ended December 31, 2020 Americas EMEA APAC Total Product $ 5,250 $ 6,629 $ 1,839 $ 13,718 Services 1,415 1,159 178 2,752 Total $ 6,665 $ 7,788 $ 2,017 $ 16,470 Revenue during the year ended December 31, 2019 Americas EMEA APAC Total Product $ 12,746 $ 8,430 $ 1,582 $ 22,758 Services 3,055 563 63 3,681 Total $ 15,801 $ 8,993 $ 1,645 $ 26,439 During the years ended December 31, 2020 and 2019, the Company recognized the following revenue from service contracts and cloud-based software licenses over time, and hardware and consumable product shipments and subscription software at a point in time (in thousands): Years Ended December 31, 2020 2019 Revenue recognized at a point in time $ 13,718 $ 22,758 Revenue recognized over time 2,752 3,681 Total $ 16,470 $ 26,439 The Company’s long-lived assets are substantially all located in the United States where the Company’s primary operations are located. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET LOSS PER SHARE | ||
NET LOSS PER SHARE | 21. NET LOSS PER SHARE The Company computes basic loss per share using net loss attributable to Common Stockholders and the weighted-average number of Common Stock shares outstanding during each period. Diluted earnings per share include shares issuable upon exercise of outstanding stock options and stock-based awards where the conversion of such instruments would be dilutive. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator for basic and diluted net loss per share: Net loss attributable to Common Stockholders $ (43,180) $ (23,766) $ (102,288) $ (45,570) Denominator for basic and diluted net loss per share: Weighted-average shares 255,098 158,124 246,717 157,187 Net loss per share—Basic and Diluted $ (0.17) $ (0.15) $ (0.41) $ (0.29) The Company’s potential dilutive securities, which include outstanding Common Stock options, unvested restricted stock units, unvested restricted stock awards and outstanding Common Stock warrants, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding as of June 30, 2021 and 2020, from the computation of diluted net loss per share attributable to common stockholders because including them would have an anti-dilutive effect (in thousands): Six Months Ended June 30, 2021 2020 Common Stock options outstanding 16,394 12,964 Unvested restricted stock units outstanding 5,095 — Unvested restricted stock awards outstanding 168 1,317 Common Stock warrants outstanding — 619 Total shares 21,657 14,900 | 20. NET LOSS PER SHARE The Company computes basic loss per share using net loss attributable to Common Stockholders and the weighted-average number of Common Stock shares outstanding during each period. Diluted earnings per share include shares issuable upon exercise of outstanding stock options and stock-based awards where the conversion of such instruments would be dilutive. Years Ended December 31, 2020 (in thousands, except per share amounts) (as restated) 2019 Numerator for basic and diluted net loss per share: Net loss attributable to Common Stockholders $ (34,015) $ (103,596) Denominator for basic and diluted net loss per share: Weighted average shares 157,906 150,002 Net loss per share—Basic and Diluted $ (0.22) $ (0.69) The Company’s potential dilutive securities, which include outstanding Common Stock options, unvested restricted stock units, unvested restricted stock awards, outstanding Common Stock warrants, and Trine Founder Shares held in escrow, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding as of December 31, 2020 and 2019, from the computation of diluted net loss per share attributable to common stockholders because including them would have an anti-dilutive effect (in thousands): Years Ended December 31, 2020 2019 Common Stock options outstanding 19,553 18,072 Unvested restricted stock units outstanding 683 — Unvested restricted stock awards outstanding 279 5,587 Common Stock warrants outstanding 25,010 634 Unvested Trine Founder Shares, held in escrow 1,851 — Total shares 47,376 24,293 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUBSEQUENT EVENTS | ||
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS On July 2, 2021, The Company entered into a Stock Purchase Agreement with A.I.D.R.O Srl and its shareholders (“Aidro”), to purchase the issued and outstanding capital stock of Aidro; subject to customary regulatory approvals and other customary closing conditions, the acquisition is expected to close in September. The Company expects this acquisition to expand the Company’s part production capabilities and application expertise in the hydraulics industry. The aggregate purchase price for the Aidro acquisition is (i) $6.0 million in cash, with such cash amount being subject to customary adjustments based on, among other things, the amount of cash, debt and working capital at Aidro at the closing date and (ii) restricted stock units equal to a number of shares of Common Stock determined by dividing $3.2 million by the closing price of the Company’s Common Stock on the date immediately preceding the closing date, which are subject to a four year vesting period and continuing employment. On July 30, 2021, the Company acquired Dental Arts Laboratories, Inc., pursuant to a Stock Purchase Agreement of the same date, expanding its portfolio in additive manufacturing within the healthcare industry. The aggregate purchase price was $26.3 million in cash. In connection with the acquisition, the Company also promised to grant restricted stock units equal to a number of shares of Common Stock determined by dividing On August 11, 2021, the Company entered into an Agreement and Plan of Merger to acquire all of the outstanding shares of capital stock of The ExOne Company (“ExOne”) for a mix of cash and stock consideration initially representing $25.50 per share of ExOne common stock (the Merger). The Company expects this acquisition to accelerate the adoption of additive manufacturing for mass production applications. The merger consideration to be paid for each share of ExOne common stock is comprised of (i) $8.50 in cash and (ii) a number of shares of Class A Common Stock, par value $0.0001 per share, of the Company based on the average Company stock price at the time of the closing of the Merger. If the average Company stock price is between (or equal to) $9.70 and $7.94 per share, the initial exchange ratio of 1.9274 will be modified by multiplying such exchange ratio by the quotient of $8.82 divided by the average Company stock price. If the average Company stock price is greater than $9.70, the exchange ratio will be 1.7522. If the average Company stock price is less than $7.94, the exchange ratio will be 2.1416. If the average Company stock price is between (or equal to) $9.70 and $7.94 per share, at closing, ExOne stockholders will receive total consideration of $575 million, consisting of $192 million in cash and $383 million in shares of Company Common Stock, subject to the collar mechanism on the stock consideration component described above. Following the closing of the merger, ExOne shareholders will own between 12% and 15% of the Company’s Common Stock on a fully-diluted basis based on the number of Company shares outstanding. The cash portion of the purchase price will be financed with cash on hand at the Company and ExOne. The closing of the Merger is subject to customary conditions, including regulatory approval and approval by the stockholders of ExOne. The transaction is currently expected to close in the fourth quarter of 2021. | 21. SUBSEQUENT EVENTS On February 16, 2021, the Company acquired EnvisionTEC US, LLC and certain of its affiliates (“EnvisionTEC”) pursuant to a Purchase Agreement and Plan of Merger dated as of January 15, 2021. The Company expects this acquisition to create a comprehensive portfolio across metals, polymers and composites and grow distribution channels both in quantity and through the addition of a vertically-focused channel. The Company paid consideration of $143.8 million in cash and issued 5,036,142 shares of the Company’s Common Stock with a fair value of $159.8 million as of the close of business on the transaction date. In connection with the transaction, the Company also agreed to grant restricted stock units totaling 475,848 shares of the Company’s Common Stock to key EnvisionTEC employees. The acquisition will be accounted for as a business combination using the acquisition method of accounting. The Company is currently finalizing the allocation of the purchase price and expects the purchase price to be allocated primarily to goodwill and intangible assets. On February 26, 2021, the Company delivered a notice to redeem all of its outstanding Public Warrants that remain unexercised at 5:00 p.m. New York City time on March 29, 2021. From January 1, 2021 through March 10, 2021, Public Warrants for 11,898,122 shares of Common Stock were exercised for cash, resulting in the Company receiving net proceeds of $136.8 million. An aggregate of 11,898,122 shares of the Company’s Common Stock were issued in connection with these exercises. From January 1, 2021 through March 10, 2021, 10,003,000 Private Placement Warrants were exercised on a cashless basis. An aggregate of 5,850,346 shares of the Company’s Common Stock were issued in connection with these exercises. As of March 31, 2021, there were no Public or Private Placement Warrants outstanding. Management has evaluated subsequent events occurring through March 15, 2021, the date that these consolidated financial statements were issued and determined that no additional subsequent events occurred that would require recognition or disclosure in these consolidated financial statements other than those in this note. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The condensed consolidated financial statements include the Company’s accounts and those of its subsidiaries. In the opinion of the Company’s management, the financial information for the interim periods presented reflects all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. The results reported in these condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. | Basis of Presentation The consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). |
Restatement of Previously Issued Financial Statements | Restatement of Previously Issued Financial Statements On April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the Securities and Exchange Commission 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 Statement”). Specifically, the SEC Statement focused in part on provisions in warrant agreements that provide for potential changes to the settlement amounts dependent upon the characteristics of the warrant holder and because the holder of a warrant is not an input into the pricing of a fixed-for-fixed option on equity shares, such provision would preclude the warrant from being classified in equity and thus the warrant should be classified as a liability. As a result of the SEC Statement, the Company reevaluated the accounting treatment of the warrants assumed as part of the business combination with Trine and associated reverse recapitalization on December 9, 2020. Simultaneously with the consummation of Trine’s initial public offering, Trine Sponsor IH, LLC (the “Sponsor”) purchased warrants to purchase shares of Common Stock (the “Private Placement Warrants”) in a private placement. Trine further issued an unsecured promissory note to the Sponsor, which was converted into additional Private Placement Warrants. The Private Placement Warrants contain exercise and settlement features that may change with a change in the holder, which precludes the Private Placement Warrants from being considered indexed to the Company’s own stock and therefore, precludes the Private Placement Warrants from meeting the scope exception from derivative accounting prescribed by Accounting Standards Codification 815, Derivatives and Hedging (“ASC 815”). As such, the Private Placement Warrants do not meet the conditions to be classified within equity under the Statement and should be presented as a liability. The Company has concluded that the Private Placement Warrants are to be restated and classified as a liability measured at fair value on the Company’s consolidated balance sheet at December 31, 2020, with subsequent changes in fair value of such liability recognized as a gain or loss in the Company’s consolidated statement of operations each reporting period. The Private Placement Warrants are deemed equity instruments for income tax purposes, and accordingly, there is no tax accounting relating to changes in the fair value of the Private Placement Warrants recognized. The impact of this correction to the applicable reporting periods for the financial statement line items impacted is as follows (in thousands, except per share data): Year Ended As Reported Restatement Impact As Restated Consolidated Statements of Operations and Comprehensive Loss: Change in fair value of warrant liability $ — $ 56,417 $ 56,417 Loss before income taxes $ (91,372) $ 56,417 $ (34,955) Net loss $ (90,432) $ 56,417 $ (34,015) Total comprehensive loss, net of taxes of $0 $ (90,516) $ 56,417 $ (34,099) Earnings (loss) per share: Net loss per share - basic and diluted $ (0.57) $ 0.35 $ (0.22) December 31, 2020 As Reported Restatement Impact As Restated Consolidated Balance Sheets: Warrant liability $ — $ 93,328 $ 93,328 Total liabilities $ 32,656 $ 93,328 $ 125,984 Additional paid-in-capital $ 993,933 $ (149,745) $ 844,188 Accumulated deficit $ (384,694) $ 56,417 $ (328,277) Total Stockholders' Equity $ 609,253 $ (93,328) $ 515,925 These errors had a non-cash impact, as such, the statement of cash flows for the year ended December 31, 2020 reflects a decrease in net loss of $56.4 million and a corresponding adjustment of $56.4 million for the change in fair value of warrant liability, within cash used in operating activities, resulting in no change in net cash used in operating activities. This restatement did not have an impact on the Company’s operating, investing or financing cash flows as previously presented. In addition to the restated consolidated financial statements, the information contained in Notes 3, 5, 16, 17, 20 and 21 have been restated. | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The functional currency of all wholly owned subsidiaries is U.S. Dollars. All intercompany transactions and balances have been eliminated in consolidation. |
COVID-19 Pandemic | COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (“COVID-19”) to be a pandemic. As of June 30, 2021, the impact of the COVID-19 pandemic continues to unfold and there has been uncertainty and disruption in the global economy and financial markets. The Company has considered the COVID-19 pandemic related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. The COVID-19 pandemic, as well as the response to mitigate the spread and effects of COVID-19, has impacted the Company and its customers, as well as the demand for its products and services. The impact of COVID-19 on the Company’s operational results in subsequent periods will largely depend on future developments, and cannot be accurately predicted. These developments may include, but are not limited to, new information concerning the severity of COVID-19, the degree of success of actions taken to contain or treat COVID-19 and the reactions by consumers, companies, governmental entities, and capital markets to such actions. | COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (“COVID-19”) to be a pandemic. As of December 31, 2020, the impact of the COVID-19 pandemic continues to unfold and there has been uncertainty and disruption in the global economy and financial markets. The Company has considered the COVID-19 pandemic related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. The COVID-19 pandemic, as well as the response to mitigate the spread and effects of COVID-19, may impact the Company and its customers, as well as the demand for its products and services. The impact of COVID-19 on the Company’s operational results in subsequent periods will largely depend on future developments, and cannot be accurately predicted. These developments may include, but are not limited to, new information concerning the severity of COVID-19, the degree of success of actions take to contain or treat COVID-19 and the reactions by consumers, companies, governmental entities, and capital markets to such actions. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company’s management to make judgements, estimates and assumptions regarding uncertainties that affect the reported amounts of assets, liabilities and related disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, revenue recognition, collectability of receivables, realizability of inventory, goodwill, intangibles, stock-based compensation, and fair values of common stock. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of standard checking accounts, money market accounts and certain investments. The Company classifies any marketable security with an original maturity date of 90 days or less at the time of purchase as a cash equivalent. | |
Short-Term Investments | Short - Term Investments The Company invests its excess cash in fixed income instruments denominated and payable in U.S. dollars including U.S. treasury securities, commercial paper, corporate bonds and asset-backed securities in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. Short-term investments represent holdings of available-for-sale marketable securities in accordance with the Company’s investment policy and cash management strategy. Investments in marketable securities are recorded at fair value, with any unrealized gains and losses reported within accumulated other comprehensive income as a separate component of stockholders’ equity until realized or until a determination is made that an other-than-temporary decline in market value has occurred. When such reductions occur, the cost of the investment is adjusted to fair value through recording a loss on investments in the consolidated statements of operations. All investments mature within one year. | |
Restricted Cash | Restricted Cash The Company maintains a letter of credit for the benefit of the landlord for their office facility. The issuer of the letter of credit requires the Company to maintain a deposit in the amount of $0.6 million to secure the letter, which is reported as restricted cash in the consolidated balance sheets. This letter of credit automatically renews every year until it matures on February 7, 2024; therefore, it is classified as long term in nature at December 31, 2020 and 2019. | |
Financial Instruments | Financial Instruments The Company’s financial instruments are comprised of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and accounts payable. The Company’s other current financial assets and current financial liabilities have fair values that approximate their carrying values due to the short maturity of these balances. | |
Warrant Liability | Warrant Liability The Private Placement Warrants contain exercise and settlement features that may change with a change in the holder, which precludes the Private Placement Warrants from being considered indexed to the Company’s own stock and therefore, precludes the Private Placement Warrants from meeting the scope exception from derivative accounting prescribed by ASC 815. As such, the Private Placement Warrants do not meet the conditions to be classified within equity under the SEC Statement and should be presented as a liability. The Company has classified the Private Placement Warrants pursuant to ASC 815 as derivative liabilities with subsequent changes in the respective fair values recognized in the consolidated statement of operations at each reporting date. | |
Revenue | Products Revenue and Services Revenue Products revenue include sales of the Company’s additive manufacturing systems as well as sale of related accessories and consumables. These consumables are primarily comprised of materials, which are used by the 3D printers during the printing process to produce parts, as well as replacement parts for items consumed during system operations. Certain on-device software is embedded with the hardware and sold with the product bundle and is included within product revenue. Revenue from products is recognized upon transfer of control, which is generally at the point of shipment. Services revenue consists of installation, training, and post-installation hardware and software support, as well as various software solutions the Company offers to facilitate the operation of the Company’s products. The Company offers multiple software products, which are licensed through either a cloud-based solution and/or on-device software, depending on the product. For the cloud-based solution, the Company typically provides an annual subscription that the customer does not have the right to take possession of and is renewable at expiration. The revenue from the cloud-based solution is recognized ratably over the annual term as the Company considers the services provided under the cloud-based solution to be a series of distinct performance obligations, as the Company provides continuous daily access to the cloud solution. For on-device software subscriptions, the Company typically recognizes revenue once the customer has been given access to the software. When the Company enters into development contracts, control of the development service is transferred over time, and the related revenue is recognized as services are performed. For certain products, the Company offers customers an optional extended warranty beyond the initial warranty period. The optional extended warranty is accounted for as a service-type warranty. Extended warranty revenue is deferred and recognized on a straight-line basis over the service-type warranty period of the contract and the associated costs are recognized as incurred. Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The amount of consideration is typically a fixed price at the contract inception. Consideration from shipping and handling is recorded on a gross basis within product revenue. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Nature of Products and Services The Company sells its products primarily through authorized resellers, independent sales agents, and its own sales force. Revenue from hardware and consumables is recognized upon transfer of control, which is generally at the point of shipment. The Company’s post-installation support is primarily sold through one-year annual contracts and such revenue is recognized ratably over the term of the agreement. Service revenue from installation and training is recognized as performed. The Company’s terms of sale generally provide payment terms that are customary in the countries where the Company transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. Due to the short-term nature of the Company’s contracts, substantially all of the outstanding performance obligations are recognized within one year. Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Significant Judgements The Company enters into contracts with customers that can include various combinations of hardware products, software licenses, and services, which are distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources and (ii) the Company’s promise to transfer the products, software, or services to the customer is separately identifiable from other promises in the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgement is required to determine the standalone selling price (“SSP”). The transaction price is allocated to each distinct performance obligation on a relative standalone selling price basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on historical transaction data of the observable prices of hardware products and consumables sold separately in comparable circumstances to similar customers, observable renewal rates for software and post-installation support, and the Company’s best estimate of the selling price at which the Company would have sold the product regularly on a stand-alone basis for training and installation. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. | Revenue Product Revenue and Service Revenue Product revenue include sales of the Company’s additive manufacturing systems as well as sale of related accessories and consumables. These consumables are primarily comprised of materials, which are used by the printers during the printing process to produce parts. Certain on-device software is embedded with the hardware and sold with the product bundle and is included within product revenue. Revenue from products is recognized upon transfer of control, which is generally at the point of shipment. Services revenue consists of installation, training, and post-installation hardware and software support, as well as various software solutions the Company offers to facilitate the design of parts and operation of the Company’s products. The Company offers multiple software products, which are licensed through either a cloud-based solution and/or an on-device software subscription, depending on the product. For the cloud-based solution, the Company typically provides an annual subscription that the customer does not have the right to take possession of and is renewable at expiration. The revenue from the cloud-based solution is recognized ratably over the annual term as the Company considers the services provided under the cloud-based solution to be a series of distinct performance obligations, as the Company provides continuous daily access to the cloud solution. For on-device software subscriptions, the Company typically recognizes revenue once the customer has been given access to the software. When the Company enters into development contracts, control of the development service is transferred over time, and the related revenue is recognized as services are performed. Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The amount of consideration is typically a fixed price at the contract inception. Consideration from shipping and handling is recorded on a gross basis within product revenue. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Nature of Products and Services The Company sells its products primarily through authorized resellers, independent sales agents, and its own sales force. Revenue from hardware and consumables is recognized upon transfer of control, which is generally at the point of shipment. The Company’s post-installation support is primarily sold through one-year annual contracts and such revenue is recognized ratably over the term of the agreement. Service revenue from installation and training is recognized as performed. The Company’s terms of sale generally provide payment terms that are customary in the countries where the Company transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. Due to the short-term nature of the Company’s contracts substantially all of the outstanding performance obligations are recognized within one year Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Significant Judgements The Company enters into contracts with customers that can include various combinations of hardware products, software licenses, and services, which are distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources and (ii) the Company’s promise to transfer the products, software, or services to the customer is separately identifiable from other promises in the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgement is required to determine the standalone selling price (“SSP”). The transaction price is allocated to each distinct performance obligation on a relative standalone selling price basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based historical transaction data of the observable prices of hardware products sold separately in comparable circumstances to similar customers, observable renewal rates for software and post- installation support, and the Company’s best estimate of the selling price at which the Company would have sold the product regularly on a stand-alone basis for training and installation. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, customer deposits and deferred revenues (contract liabilities) on the consolidated balance sheets. Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable at the time of invoicing. For most contracts, customers are invoiced when products are shipped or when services are performed. The Company will typically bill in advance for post-installation support and cloud-based software licenses, resulting in deferred revenue. The Company’s deferred revenue balance was $3.0 million and $2.2 million as of December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, the Company recognized $2.2 million of deferred revenue from 2019. The deferred revenue consists primarily of billed post-installation support and cloud-based software licenses that are recognized ratably over the term of the agreement, as well as contracts that have outstanding performance obligations or contracts that have acceptance terms that have not yet been fulfilled. When products have been delivered, but the product revenue associated with the arrangement has been deferred the Company includes the costs for the delivered items in deferred costs of sales on the consolidated balance sheets until recognition of the related revenue occurs, at which time it is recognized in cost of sales. The Company’s deferred cost of sales balance was $0.5 and $0.3 million as of December 31, 2020 and 2019, respectively. The Company’s contracts are primarily one year or less, so substantially all deferred revenue outstanding at the end of the fiscal year is recognized during the following year. The Company primarily sells products through a reseller network. Under this arrangement, the reseller is determined to be the Company’s customer, and revenue is recognized based on the amounts the Company is entitled to, reduced by any payments owed to the resellers. On certain contracts, the Company utilizes external partners and an internal sales team to sell direct to the end user. The Company acts as a principal in the contracts with users when utilizing external partners because the Company controls the product, establishing the price, and bearing the risk of nonperformance, until it is transferred to the end user. The Company records the revenue on a gross basis and commissions are recorded as a sales and marketing expense in the statement of operations. The Company recognizes its commission expense as a point-in-time expense as contract obligations are primarily completed within a one-year contract period. During the years ended December 31, 2020 and 2019, the Company paid $0.6 million and $0.4 million of commission expense, respectively. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts In evaluating the collectability of accounts receivable, the Company assesses a number of factors, including specific customers’ abilities to meet their financial obligations, the length of time receivables are past due, and historical collection experience. If circumstances related to specific customers change, or economic conditions deteriorate such that past collection experience is no longer relevant, the Company’s estimate of the recoverability of accounts receivable could be further reduced from the levels provided for in the consolidated financial statements. The Company evaluates specific accounts for which it is believed a customer may have an inability to meet their financial obligations. In these cases, judgment is applied, based on available facts and circumstances, and a specific reserve is recorded for that customer to reduce the receivable to an amount expected to be collected. These specific reserves are reevaluated and adjusted as additional information is received that impacts the amount reserved. As of December 31, 2020, and 2019, the Company has recorded $0.5 million and $0.2 million respectively, in allowance of doubtful accounts. In the years ended December 31, 2020 and 2019 the Company recorded bad debt expense of $0.4 million and $0.2 million, respectively. | |
Net Loss Per share | Net Loss Per share The Company presents basic and diluted loss per share amounts. Basic loss per share is calculated by dividing net loss available to holders of Common Stock by the weighted average number of shares of Common Stock outstanding during the applicable period. The denominator for diluted earnings per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive shares outstanding include the dilutive effect of in-the-money options and unvested Restricted Stock Agreements (“RSAs”), and unvested Restricted Stock Units (“RSUs”) using the treasury stock method. In periods in which the Company reports a net loss, diluted net loss per share is the same as basic net loss per share because dilutive shares are not assumed to have been issued if their effect is anti-dilutive. See Note 20 for further information. | |
Warranty Reserve | Warranty Reserve Substantially all of the Company’s hardware and software products are covered by a standard assurance warranty of one year within the United States and 13 months internationally, and estimated warranty obligations are recorded as an expense at the time or revenue recognition. In the event of a failure of hardware product or software covered by this warranty, the Company will repair or replace the software or hardware product. For certain products, the Company offers customers an optional extended warranty after the initial warranty period. The optional extended warranty is accounted for as a service-type warranty; therefore, costs are recognized as incurred and revenue is recognized over the service-type warranty period. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues in its installed base for which the Company expects to incur an obligation. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the adequacy of the warranty reserve is not indicative of future requirements, additional or reduced warranty reserves may be required. | Warranty Reserve Substantially all of the Company’s hardware and software products are covered by a standard assurance warranty of one year, and estimated warranty obligations are recorded as an expense at the time or revenue recognition. In the event of a failure of hardware product or software covered by this warranty, the Company will repair or replace the software or hardware product. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues in its installed base for which the Company expects to incur an obligation. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the adequacy of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be required. As of December 31, 2020, and 2019 the Company has recorded $1.6 million and $1.5 million, respectively, of warranty reserve within accrued expenses and other current liabilities on the consolidated balance sheets. Warranty reserve consisted of the following (in thousands): 2020 2019 Warranty reserve, at the beginning of the year $ 1,491 $ 116 Additions to warranty reserve 346 2,352 Claims fulfilled (284) (977) Warranty reserve, at the end of the year $ 1,553 $ 1,491 Warranty reserve is recorded through cost of sales in the consolidated statements of operations. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value, determined on a first-in, first-out basis, and consists of the following (in thousands): December 31, 2020 2019 Work in process $ 2,896 $ 1,081 Finished goods 6,812 7,324 Total inventory $ 9,708 $ 8,405 The Company provides for inventory losses based on obsolescence and levels in excess of forecasted demand. Inventory is reduced to the estimated net realizable value based on historical usage and expected demand. Inventory provisions based on obsolescence and inventory in excess of forecasted demand are recorded through cost of sales in the consolidated statements of operations. | |
Concentrations of Credit Risk and Off-Balance-Sheet Risk | Concentrations of Credit Risk and Off-Balance-Sheet Risk The Company has no significant off-balance-sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist mainly of cash and cash equivalents. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high-credit standing. As of December 31, 2020, and 2019, no single customer accounted for more than 10% of revenue. As of December 31, 2020 and 2019, no single customer accounted for more than 10% of total accounts receivables. | |
Customer Deposits | Customer Deposits Payments received from customers who have placed reservations or purchase orders in advance of shipment are refundable upon cancellation or non-delivery by the Company and are included within customer deposits on the consolidated balance sheets. | |
Other Investments | Other Investments The Company periodically makes investments in companies within the additive manufacturing industry. The Company monitors events or changes in circumstances that may have a significant effect on the fair value of investments, either due to impairment or based on observable price changes, and records necessary adjustments. | |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Expenditures for repairs and maintenance are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the determination of net income or loss. Depreciation is expensed using the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Useful Life Equipment 2-12 years Furniture and fixtures 3-5 years Computer equipment 3 years Tooling 3 years Software 2-3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease | Property and Equipment Property and equipment is stated at cost. Expenditures for repairs and maintenance are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the determination of net income or loss. Depreciation is expensed using the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Useful Life Equipment 3‑5 years Furniture and fixtures 3 years Computer equipment 3 years Tooling 3 years Software 3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease |
Leases | Leases The Company determines if an arrangement is a lease at inception. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. The Company assesses it plans to renew its material leases on an annual basis. Operating leases are included in other assets, current portion of lease liability, and lease liability, net of current portion on the Company’s consolidated balance sheets. Right of use (“ROU”) assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the expected remaining lease term. As the interest rate implicit in the Company’s leases is typically not readily determinable, the Company uses its incremental borrowing rate for a similar term of lease payments based on the information available at commencement date in determining the present value of future payments. The Company elected the short-term lease recognition and therefore, the Company does not recognize right of use assets or lease liabilities for leases with less than a twelve-month duration. The Company also elected the practical expedient to account for lease agreements which contain both lease and non-lease components as a single lease component. | |
Business Combinations | Business Combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The Company generally values the identifiable intangible assets acquired using a discounted cash flow model. The significant estimates used in valuing certain of the intangible assets, include, but are not limited to future expected cash flows of the asset, discount rates to determine the present value of the future cash flows and expected technology life cycles. Intangible assets are amortized over their estimated useful life; the period over which the Company anticipates generating economic benefit from the asset. Fair value adjustments subsequent to the acquisition date, that are not measurement period adjustments, are recognized in earnings. | |
Goodwill | Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that is not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Goodwill is not amortized but is tested for impairment at least annually (as of the first day of the fourth quarter) or as circumstances indicate the value may no longer be recoverable. To assess if goodwill is impaired, the Company performs a qualitative assessment to determine whether further impairment testing is necessary. The Company then compares the carrying amount of the single reporting unit to the fair value of the reporting unit. An excess carrying value over fair value would indicate that goodwill may be impaired. The Company performed a qualitative assessment during its annual impairment review for 2020 as of October 1, 2020 and concluded that it is more likely than not that the fair value of the Company’s single reporting unit is not less than its carrying amount. Therefore, the two-step goodwill impairment test for the reporting unit was not necessary in 2020. | |
Acquired Technology | Intangible Assets Intangible assets consist of identifiable intangible assets, including developed technology, trade names, and customer relationships, resulting from the Company’s acquisitions. The Company evaluates definite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If indicators of impairment are present, the Company then compares the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value. If such assets are impaired, the impairment recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. To date, there have been no impairments of intangible assets. Intangible assets are amortized over their useful life. | Acquired Technology Intangible assets consist of identifiable intangible assets, including developed technology, resulting from the Company’s acquisitions. The Company evaluates definite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If indicators of impairment are present, the Company then compares the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value. If such assets are impaired, the impairment recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. To date, there have been no impairments of intangible assets. Intangible assets are amortized over their useful life. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant revision or that the carrying value of these assets may be impaired. The Company does not believe that any events have occurred through December 31, 2020, that would indicate its long-lived assets are impaired. | |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development expense includes costs, primarily related to salaries and benefits for employees, prototypes and design expenses, incurred to develop intellectual property and is charged to expense as incurred. | |
Capitalized Software | Capitalized Software Costs incurred internally in researching and developing a software product to be sold to customers are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, costs incurred during the application development phase are capitalized only when the Company believes it is probable the development will result in new or additional functionality, and such software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. The Company has determined that technological feasibility for software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released, such that there are no material costs to capitalize. The Company capitalizes certain costs related to the development and implementation of cloud computing software. The types of costs capitalized during the application development phase include employee compensation, as well as consulting fees for third-party developers working on these projects. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the asset, which is typically 3 years. | |
Advertising Expense | Advertising Expense Advertising expense is included within sales and marketing expense in the consolidated statements of operations and was $0.04 million and $0.1 million for the years ended years ended December 31, 2020 and 2019, respectively. It primarily includes promotional expenditures and is expensed as incurred; as such, efforts have not met the direct-response criteria required for capitalization. | |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for all stock options granted to employees and nonemployees using a fair value method. The fair value of options on the date of grant is calculated using the Black-Scholes option pricing model based on key assumptions such as stock price, expected volatility and expected term. The Company’s estimates of these assumptions are primarily based on the fair value of the Company’s stock, historical data, peer company data and judgment regarding future trends and factors. In determining the exercise prices for options granted, the Company’s Board of Directors has considered the fair value of the common stock as of the measurement date. Prior to the Business Combination, the fair value of the common stock has been determined by the Board of Directors at each award grant date based upon a variety of factors, including the results obtained from an independent third-party valuation, the Company’s financial position and historical financial performance, the status of technological developments within the Company’s proposed products, an evaluation or benchmark of the Company’s competition, the current business climate in the marketplace, the illiquid nature of the common stock, arm’s length sales of the Company’s capital stock, including convertible preferred stock, the effect of the rights and preferences of the preferred shareholders, and the prospects of a liquidity event, among others. Stock-based compensation is measured at the grant-date fair value of the award and is then recognized as the related services are rendered, typically over the vesting period. The Company estimates forfeitures that will occur in their determination of the expense recorded. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over the employees' requisite service period, which is the vesting period, on a straight-line basis. Prior to the adoption of Accounting Standards Update (“ASU”) No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting | |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements and tax returns. Deferred tax assets and liabilities are determined based upon the differences between the consolidated financial statements carrying amounts and the tax bases of existing assets and liabilities and for loss and credit carryforwards, using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that these assets may not be realized. The Company provides reserves for potential payments of taxes to various tax authorities related to uncertain tax positions. Amounts recognized are based on a determination of whether a tax benefit taken by the Company in its tax filings or positions is “more likely than not” to be sustained on audit. The amount recognized is equal to the largest amount that is more than 50% likely to be sustained. Interest and penalties associated with uncertain tax positions are recorded as a component of income tax expense. As of December 31, 2020, and 2019, the Company has not identified any uncertain tax positions for which reserves would be required. | |
Comprehensive Loss | Comprehensive Loss The Company’s comprehensive loss consists of its net loss and unrealized gain and loss from investments in debt securities. | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Adopted Accounting Guidance In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes, Income Taxes Recent Accounting Guidance Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses. | Recently Issued Accounting Standards Recently Adopted Accounting Guidance In June 2018, the FASB issued ASU No. 2018-07 which substantially aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. The ASU also clarifies that any share-based payment issued to a customer should be evaluated by the new revenue recognition standard. The new ASU requires a modified retrospective transition approach. The Company has adopted the ASU as of January 1, 2020, which did not have a material effect on the Company’s consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes, Income Taxes In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of impact of correction applicable to reporting periods | The impact of this correction to the applicable reporting periods for the financial statement line items impacted is as follows (in thousands, except per share data): Year Ended As Reported Restatement Impact As Restated Consolidated Statements of Operations and Comprehensive Loss: Change in fair value of warrant liability $ — $ 56,417 $ 56,417 Loss before income taxes $ (91,372) $ 56,417 $ (34,955) Net loss $ (90,432) $ 56,417 $ (34,015) Total comprehensive loss, net of taxes of $0 $ (90,516) $ 56,417 $ (34,099) Earnings (loss) per share: Net loss per share - basic and diluted $ (0.57) $ 0.35 $ (0.22) | |
Schedule of Accrued warranty | 2020 2019 Warranty reserve, at the beginning of the year $ 1,491 $ 116 Additions to warranty reserve 346 2,352 Claims fulfilled (284) (977) Warranty reserve, at the end of the year $ 1,553 $ 1,491 | |
Schedule of Inventory | Inventory consists of the following (in thousands): June 30, December 31, 2021 2020 Raw materials $ 5,678 $ — Work in process 4,346 2,896 Finished goods 15,383 6,812 Total inventory $ 25,407 $ 9,708 | Inventory is stated at the lower of cost or net realizable value, determined on a first-in, first-out basis, and consists of the following (in thousands): December 31, 2020 2019 Work in process $ 2,896 $ 1,081 Finished goods 6,812 7,324 Total inventory $ 9,708 $ 8,405 |
Schedule of estimated useful lives of the assets | Asset Classification Useful Life Equipment 2-12 years Furniture and fixtures 3-5 years Computer equipment 3 years Tooling 3 years Software 2-3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease | Asset Classification Useful Life Equipment 3‑5 years Furniture and fixtures 3 years Computer equipment 3 years Tooling 3 years Software 3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACQUISITIONS | ||
Schedule of reconciliation of business combination to Statement of Cash Flows and Statement of Changes in Equity | Recapitalization Cash – Trine's trust and cash (net of redemptions) $ 305,084,695 Cash – PIPE financing 274,975,000 Less: transaction costs and advisory fees paid (45,463,074) Net proceeds from reverse recapitalization 534,596,621 Plus: non-cash net liabilities assumed( 1) (152,394,714) Less: accrued transaction costs and advisory fees (1,900,793) Net contributions from reverse recapitalization $ 380,301,114 (1) Includes $149.7 million of non-cash warrant liability assumed. | Recapitalization Cash – Trine's trust and cash (net of redemptions) $ 305,084,695 Cash – PIPE financing 274,975,000 Less: transaction costs and advisory fees paid (45,463,074) Net proceeds from reverse recapitalization 534,596,621 Plus: non-cash net liabilities assumed (1) (152,394,714) Less: accrued transaction costs and advisory fees (1,900,793) Net contributions from reverse recapitalization $ 380,301,114 (1) Includes $149.7 million of non-cash warrant liability assumed. |
Schedule of number of shares issued on consummation of business combination | Number of Shares Common stock, outstanding prior to Business Combination 30,015,000 Less: redemption of Trine shares (26,049) Common stock of Trine 29,988,951 Trine Founder Shares 5,552,812 Trine Director Shares 100,000 Shares issued in PIPE financing 27,497,500 Business Combination and PIPE financing shares 63,139,263 Legacy Desktop Metal shares (1) 161,487,334 Total shares of common stock immediately after Business Combination 224,626,597 (1) The number of Legacy Desktop Metal shares was determined from the shares of Legacy Desktop Metal shares outstanding immediately prior to the closing of the Business Combination converted at the Exchange Ratio of 1.22122 . All fractional shares were rounded down. | Number of Shares Common stock, outstanding prior to Business Combination 30,015,000 Less: redemption of Trine shares (26,049) Common stock of Trine 29,988,951 Trine Founder Shares 5,552,812 Trine Director Shares 100,000 Shares issued in PIPE financing 27,497,500 Business Combination and PIPE financing shares 63,139,263 Legacy Desktop Metal shares (1) 161,487,334 Total shares of common stock immediately after Business Combination 224,626,597 (1) The number of Legacy Desktop Metal shares was determined from the shares of Legacy Desktop Metal shares outstanding immediately prior to the closing of the Business Combination converted at the Exchange Ratio of 1.22122 . All fractional shares were rounded down. |
CASH EQUIVALENTS AND SHORT-TE_2
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | ||
Schedule of cash equivalents and shortterm investments | The Company’s cash equivalents and short-term investments are invested in the following (in thousands): June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 180,998 $ — $ — $ 180,998 Total cash equivalents 180,998 — — 180,998 Commercial paper 159,591 — — 159,591 Corporate bonds 104,758 9 (12) 104,755 Government bonds 36,736 1 (9) 36,728 Asset-backed securities 25,246 1 (3) 25,244 Total short-term investments 326,331 11 (24) 326,318 Total cash equivalents and short-term investments $ 507,329 $ 11 $ (24) $ 507,316 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 75,374 $ — $ — $ 75,374 Money market funds 407,512 — — 407,512 Total cash equivalents 482,886 — — 482,886 U.S. Treasury securities 19,995 2 — 19,997 Commercial paper 43,911 — — 43,911 Corporate bonds 47,970 — (11) 47,959 Total short-term investments 111,876 2 (11) 111,867 Total cash equivalents and short-term investments $ 594,762 $ 2 $ (11) $ 594,753 | The Company’s cash equivalents and short-term investments are invested in the following (in thousands): December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 75,374 $ — $ — $ 75,374 Money market funds 407,512 — — 407,512 Total cash equivalents 482,886 — — 482,886 U.S Treasury securities 19,995 2 — 19,997 Commercial paper 43,911 — — 43,911 Corporate bonds 47,970 — (11) 47,959 Total short-term investments 111,876 2 (11) 111,867 Total cash equivalents and short-term investments $ 594,762 $ 2 $ (11) $ 594,753 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Repurchase agreements $ 25,001 $ — $ — $ 25,001 Money market funds 40,454 — — 40,454 Total cash equivalents 65,455 — — 65,455 Asset‑backed securities 16,786 20 — 16,806 Commercial paper 19,938 — — 19,938 Corporate bonds 47,955 55 — 48,010 Total short-term investments 84,679 75 — 84,754 Total cash equivalents and short-term investments $ 150,134 $ 75 $ — $ 150,209 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | ||
Schedule of financial assets measured at fair value on a recurring basis | The following fair value hierarchy table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): June 30, 2021 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 180,998 $ — $ — $ 180,998 Commercial paper — 159,591 — 159,591 Corporate bonds — 104,755 — 104,755 Government bonds — 36,727 — 36,727 Asset-backed securities — 25,245 — 25,245 Other investments — — 7,137 7,137 Total assets $ 180,998 $ 326,318 $ 7,137 $ 514,453 Liabilities: Contingent consideration $ — $ — $ 6,084 $ 6,084 Subscription agreement — — 474 474 Total liabilities $ — $ — $ 6,558 $ 6,558 December 31, 2020 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 407,512 $ — $ — $ 407,512 Commercial paper — 119,285 — 119,285 Corporate bonds — 47,959 — 47,959 U.S. Treasury securities 19,997 — — 19,997 Other investments — — 3,000 3,000 Total assets $ 427,509 $ 167,244 $ 3,000 $ 597,753 Liabilities: Private placement warrants $ — $ — $ 93,328 $ 93,328 Total liabilities $ — $ — $ 93,328 $ 93,328 | The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): December 31, 2020 (as restated) Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 407,512 $ — $ — $ 407,512 Commercial paper — 119,285 — 119,285 Corporate bonds — 47,959 — 47,959 U.S. Treasury securities 19,997 — — 19,997 Other investments — — 3,000 3,000 Total assets $ 427,509 $ 167,244 $ 3,000 $ 597,753 Liabilities: Private placement warrants $ — $ — $ 93,328 $ 93,328 Total liabilities $ — $ — $ 93,328 $ 93,328 December 31, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 40,454 $ — $ — $ 40,454 Commercial paper — 19,938 — 19,938 Corporate bonds — 48,010 — 48,010 Asset‑backed securities — 16,806 — 16,806 Repurchase agreements — 25,001 — 25,001 Total assets $ 40,454 $ 109,755 $ — $ 150,209 |
Schedule of Level 3 assets measured at fair value | Six Months Ended June 30, 2021 2020 Balance at beginning of period $ 3,000 $ — Additions 3,620 — Changes in fair value 517 — Balance at end of period $ 7,137 $ — | 2020 2019 Balance at beginning of year $ — $ — Additions 3,000 — Balance at end of year $ 3,000 $ — |
Schedule of Movement in Level 3 liabilities measured at fair value | The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): Six Months Ended June 30, 2021 2020 Balance at beginning of period $ 93,328 $ — Additions 6,558 — Changes in fair value 56,576 — Exercise of private placement warrants (149,904) — Balance at end of period $ 6,558 $ — | The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): 2020 2019 Balance at beginning of year $ — $ — Warrant liability assumed 149,745 Change in fair value of warrant liability (56,417) Balance at end of year $ 93,328 $ — |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE | ||
Schedule of accounts receivable | The components of accounts receivable are as follows (in thousands): June 30, December 31, 2021 2020 Trade receivables $ 13,750 $ 7,016 Allowance for doubtful accounts (309) (500) Total accounts receivable $ 13,441 $ 6,516 | The components of accounts receivable are as follows (in thousands): December 31, 2020 2019 Trade receivables $ 7,016 $ 4,722 Allowance for doubtful accounts (500) (199) Total accounts receivable $ 6,516 $ 4,523 |
Schedule of allowance for doubtful accounts | The following table summarizes activity in the allowance for doubtful accounts (in thousands): June 30, December 31, 2021 2020 Balance at beginning of period $ 500 $ 199 Provision for uncollectible accounts (164) 377 Uncollectible accounts written off (27) (76) Balance at end of period $ 309 $ 500 | The following table summarizes activity in the allowance for doubtful accounts (in thousands): Years Ended December 31, 2020 2019 Balance at beginning of year $ 199 $ — Provision for uncollectible accounts 377 199 Uncollectible accounts written off (76) — Balance at end of year $ 500 $ 199 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Schedule of Prepaid expenses and other current assets | Prepaid expenses and other current assets consists of the following (in thousands): June 30, December 31, 2021 2020 Prepaid insurance 1,850 121 Prepaid operating expenses 1,873 68 Prepaid dues and subscriptions 823 189 Prepaid taxes 598 — Government grants 653 — Escrow deposits 311 — Prepaid rent 158 118 Deferred cost of goods sold — 454 Other 812 26 Total prepaid expenses and other current assets $ 7,078 $ 976 | Prepaid expenses and other current assets consists of the following (in thousands): December 31, 2020 2019 Deferred cost of goods sold $ 454 $ 262 Prepaid operating expenses 68 585 Prepaid dues and subscriptions 189 503 Prepaid insurance 121 45 Prepaid rent 118 11 Other 26 482 Total prepaid expenses and other current assets $ 976 $ 1,888 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT | ||
Schedule of property and equipment-net | Property and equipment, net consists of the following (in thousands): June 30, December 31, 2021 2020 Equipment $ 15,672 $ 13,708 Furniture and fixtures 1,033 895 Computer equipment 1,139 1,089 Tooling 1,805 1,805 Software 1,439 1,249 Leasehold improvements 14,564 13,870 Construction in process 1,617 879 Property and equipment, gross 37,269 33,495 Less: accumulated depreciation (24,041) (21,335) Total property and equipment, net $ 13,228 $ 12,160 | Property and equipment, net consists of the following (in thousands): December 31, 2020 2019 Equipment $ 13,708 $ 13,358 Furniture and fixtures 895 895 Computer equipment 1,089 1,089 Tooling 1,805 1,823 Software 1,249 954 Leasehold improvements 13,870 13,880 Construction in process 879 170 Property and equipment, gross 33,495 32,169 Less: accumulated depreciation (21,335) (13,782) Total property and equipment, net $ 12,160 $ 18,387 |
ACQUIRED TECHNOLOGY (Tables)
ACQUIRED TECHNOLOGY (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACQUIRED TECHNOLOGY | ||
Schedule of acquired technology | Intangible assets consisted of the following (in thousands): Accumulated Balance Gross Value Estimated Life Amortization June 30, 2021 Acquired technology $ 126,540 5 – 12 years $ 5,514 $ 121,026 Trade name 9,079 13 years 251 8,828 Customer relationships 50,900 10 years 1,894 49,006 Total intangible assets $ 186,519 $ 7,659 $ 178,860 | Acquired technology consisted of the following (in thousands): Accumulated Balance Gross Value Estimated Life Amortization December 31, 2020 Acquired technology $ 10,193 5 years $ 1,091 $ 9,102 |
CAPITALIZED SOFTWARE (Tables)
CAPITALIZED SOFTWARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CAPITALIZED SOFTWARE | |
Schedule of capitalized software | Capitalized software consists of the following (in thousands): Years Ended December 31, 2020 2019 Capitalized software development costs $ 1,127 $ 1,127 Accumulated amortization (815) (237) Impairment — (444) Total capitalized software, net $ 312 $ 446 |
OTHER NONCURRENT ASSETS (Tables
OTHER NONCURRENT ASSETS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
OTHER NONCURRENT ASSETS | ||
Schedule of components of other noncurrent assets | The following table summarizes the Company’s components of other noncurrent assets (in thousands): June 30, December 31, 2021 2020 Other investments $ 7,137 $ 3,000 Right of use asset 4,816 1,810 Long-term deposits 135 69 Other 122 — Total other noncurrent assets $ 12,210 $ 4,879 | The following table summarizes the Company’s components of other noncurrent assets (in thousands): December 31, 2020 2019 Other investments $ 3,000 $ — Right of use asset 1,810 2,289 Long-term deposits 69 — Total other noncurrent assets $ 4,879 $ 2,289 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Schedule of Accrued Expenses and Other Current Liabilities | The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): June 30, December 31, 2021 2020 Professional services $ 3,897 $ 2,508 Compensation and benefits related 7,359 2,068 Warranty reserve 2,030 1,553 Inventory purchases 1,506 86 Income tax payable 1,331 — Sales and use and franchise taxes 224 586 Franchise and royalty fees 227 159 Goods received payable 1,201 — Other 3,193 605 Total accrued expenses and other current liabilities $ 20,968 $ 7,565 | The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): December 31, 2020 2019 Professional services $ 2,508 $ 780 Compensation and benefits related 2,068 897 Warranty reserve 1,553 1,491 Sales and use and franchise taxes 586 578 Franchise and royalty fees 159 — Inventory purchases 86 620 Other 605 687 Total accrued expenses and other current liabilities $ 7,565 $ 5,053 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
Schedule of other lease related balances | Information about other lease-related balances is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease cost Operating lease cost $ 422 $ 186 $ 745 $ 374 Short‑term lease cost 34 3 45 3 Variable lease cost 46 2 85 12 Total lease cost $ 502 $ 191 $ 875 $ 389 Other Information Operating cash flows used in operating leases $ 655 $ 269 $ 899 $ 536 Weighted‑average remaining lease term—operating leases (years) 2.6 3.7 2.6 3.7 Weighted‑average discount rate—operating leases 5.1 % 7.6 % 5.1 % 7.6 % | Information about other lease-related balances is as follows (in thousands): Years Ended December 31, 2020 2019 Lease cost Operating lease cost $ 746 $ 655 Short‑term lease cost — 32 Variable lease cost 40 40 Total lease cost $ 786 $ 727 Other Information Operating cash flows from operating leases $ 1,073 $ 951 Weighted‑average remaining lease term—operating leases (years) 3.2 4.2 Weighted‑average discount rate—operating leases 7.6 % 7.6 % |
Schedule of future minimum lease payments | Future minimum lease payments under noncancelable operating leases, including immaterial future minimum lease payments under finance leases, at June 30, 2021, are as follows (in thousands): Operating Leases 2021 (remaining 6 months) $ 1,114 2022 2,258 2023 2,072 2024 700 2025 192 2026 53 Total lease payments 6,389 Less amount representing interest (447) Total lease liability 5,942 Less current portion of lease liability (1,983) Lease liability, net of current portion $ 3,959 | Future minimum lease payments under noncancelable operating leases at December 31, 2020, are as follows (in thousands): 2021 $ 1,071 2022 1,069 2023 1,028 2024 258 2025 — Total lease payments 3,426 Less amount representing interest (401) Total lease liability 3,025 Less current portion of lease liability (868) Lease liability, net of current portion $ 2,157 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of components Income (Loss) before provision for income taxes | Years Ended December 31, 2020 2019 United States $ (34,285) $ (103,596) Foreign (670) — Loss before income taxes $ (34,955) $ (103,596) |
Schedule of provision (benefit) for income taxes | The provision (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2020 2019 Current $ — $ — Deferred (940) — Provision (benefit) for income taxes $ (940) $ — |
Schedule of Reconciliation of the expected income tax (benefit) computed using the federal statutory income tax rate | Years Ended December 31, 2020 2019 Effective income tax rate: Expected income tax benefit at the federal statutory rate 21 % 21 % State taxes 6 % 6 % Change in valuation allowance (68) % (30) % Research and development credit carryover 2 % 2 % Permanent differences 42 % 1 % Effective income tax rate 3 % — % |
Schedule of deferred net tax assets | As of December 31, 2020, and 2019, deferred tax assets consist of the following (in thousands): Years Ended December 31, 2020 2019 Deferred tax assets: Federal and state net operating carryforwards $ 77,463 $ 56,333 Research and development and other credits 13,555 11,072 Capitalized start‑up costs 15,717 17,032 Compensation‑related items 2,257 1,286 Deferred lease liability 872 1,111 Depreciation 1,503 — Other deferred tax assets 2,272 2,068 Total gross deferred tax asset 113,639 88,902 Valuation allowance (111,494) (87,370) Net deferred tax asset 2,145 1,532 Deferred tax liabilities: Right‑of‑use asset (522) (664) Acquired technology (1,623) (868) Total deferred tax liabilities (2,145) (1,532) Net deferred tax asset $ — $ — |
Schedule of changes in the valuation allowance for deferred tax assets | Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2020 and 2019 were as follows (in thousands): Years Ended December 31, 2020 2019 Valuation allowance at beginning of the year $ 87,370 $ 56,405 Increases recorded to income tax provision 25,058 30,965 Decreases recorded as a benefit to income tax provision (934) — Valuation allowance at end of year $ 111,494 $ 87,370 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSU activity under the Plan | The activity for stock subject to vesting as of June 30, 2021 is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Purchase Price Balance of unvested shares as of January 1, 2021 280 $0.0001 Issuance of additional shares — — Vested (112) $0.0001 Balance of unvested shares as of June 30, 2021 168 $0.0001 | The activity for stock subject to vesting for years ended December 31, 2020 and 2019, are as follows (shares in thousands): Shares subject Weighted Average to Vesting Purchase Price Balance of unvested shares as of January 1, 2020 5,587 $0.0001 Issuance of additional shares — — Vested (5,307) $0.001 Balance of unvested shares as of December 31, 2020 280 $0.001 |
Schedule of warrants-pricing model | Six Months Ended June 30, 2020 Risk‑free interest rate 2.0 % Expected volatility 52.5 % Expected life (in years) 7.8 Expected dividend yield — Fair value of Common Stock $ 3.34 | |
Schedule of Preferred Stock authorized, issued and outstanding | Prior to Business Combination Legacy Convertible Preferred Stock Classes Shares Authorized, Issued and Outstanding Preferred Stock Series A Legacy Convertible Preferred Stock, $0.0001 par value 26,189,545 $ 13,878 Series B Legacy Convertible Preferred Stock, $0.0001 par value 23,675,035 37,806 Series C Legacy Convertible Preferred Stock, $0.0001 par value 13,152,896 44,852 Series D Legacy Convertible Preferred Stock, $0.0001 par value 21,075,193 180,353 Series E Legacy Convertible Preferred Stock, $0.0001 par value 13,450,703 134,667 Series E‑1 Legacy Convertible Preferred Stock, $0.0001 par value 2,494,737 24,977 Total 100,038,109 $ 436,533 | |
Collaboration Agreement | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of warrants-pricing model | Years Ended December 31, 2020 2019 Risk‑free interest rate 2.0 % 2.0 % Expected volatility 52.5 % 52.5 % Expected life (in years) 8.0 8.0 – 8.8 Expected dividend yield — — Fair value of Common Stock $ 3.34 $ 3.34 | |
Technical Technical Research and Development Advisor Services | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of warrants-pricing model | Year Ended December 31, 2020 Risk‑free interest rate 0.5 % Expected volatility 52.5 % Expected life (in years) 0.3 Expected dividend yield — Fair value of Common Stock $ 7.98 | |
Private Placement Warrants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of warrants-pricing model | Six Months Ended June 30, 2021 Risk‑free interest rate 0.4% – 0.6 % Expected volatility 55.0 % Expected life (in years) 4.8 Expected dividend yield — Fair value of Common Stock $ 19.82 – 30.49 Exercise price $ 11.50 | As of December 31, 2020 As of December 9, 2020 Risk‑free interest rate 0.4 % 0.4 % Expected volatility 50.0 % 40.0 % Expected life (in years) 4.9 5 Expected dividend yield — — Fair value of Common Stock $ 17.20 $ 24.77 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of stock-based compensation expense | Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the condensed consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 1,838 $ 569 $ 2,755 $ 1,283 General and administrative expense 1,355 217 2,194 454 Sales and marketing expense 577 213 921 421 Cost of sales 229 75 346 175 Total stock-based compensation expenses $ 3,999 $ 1,074 $ 6,216 $ 2,333 | Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the consolidated statements of operations as follows (in thousands): Years Ended December 31, 2020 2019 Research and development $ 3,276 $ 2,713 General and administrative expense 3,464 941 Sales and marketing expense 894 1,373 Cost of sales 372 188 Total stock-based compensation expenses $ 8,006 $ 5,215 |
Schedule of option activity | There were 21,810,237 shares available for award under the 2020 Plan at June 30, 2021. The option activity of the Plans for the six months ended June 30, 2021, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2021 19,553 $ 1.53 7.75 $ 306,408 Granted — $ — Exercised (2,846) $ 1.29 Forfeited/expired (313) $ 1.43 Outstanding at June 30, 2021 16,394 $ 1.57 7.40 $ 162,737 Options vested at June 30, 2021 9,451 $ 1.62 6.27 $ 93,385 Options vested or expected to vest at June 30, 2021 15,807 $ 1.58 7.34 $ 156,825 | There were 14,379,052 shares available for award under the 2020 Plan at December 31, 2020. The option activity of the 2015 Plan and Make Plan for the year ended December 31, 2020, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2020 18,072 $ 2.01 7.84 $ 24,045 Granted 8,463 $ 1.51 Exercised (522) $ 0.62 Forfeited/expired (6,460) $ 2.92 Outstanding at December 31, 2020 19,553 $ 1.53 7.75 $ 306,408 Options vested at December 31, 2020 10,905 $ 1.53 6.52 $ 170,868 Options vested or expected to vest at December 31, 2020 18,818 $ 1.53 7.69 $ 294,824 |
Schedule of RSU activity | RSU activity under the 2020 Plan for the six months ended June 30, 2021 is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2021 683 $ 8.02 Granted 4,461 $ 15.38 Vested (44) $ 8.13 Cancelled/Forfeited (5) $ 7.98 Balance of unvested shares as of June 30, 2021 5,095 $ 14.52 | RSU activity under the 2020 Plan for the year ended December 31, 2020 is as follows (shares in thousands): Shares subject Weighted Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2020 — — Granted 683 $ 8.02 Vested — — Balance of unvested shares as of December 31, 2020 683 $ 8.02 |
Consultant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of assumptions using Black-Scholes option-pricing model | Six Months Ended June 30, 2020 Risk‑free interest rate 0.8 % Expected volatility 54.3 % Expected life (in years) 10.0 Expected dividend yield — Fair value of Common Stock $ 3.34 | Years Ended December 31, 2020 2019 Risk‑free interest rate 0.6% – 0.8 % 1.4% – 3.1 % Expected volatility 54.3% – 54.8 % 52.4% – 61.5 % Expected life (in years) 9.4 – 10.0 6.2 – 10.0 Expected dividend yield — — Fair value of Common Stock $ 1.40 – 7.98 $ 3.34 |
Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of assumptions using Black-Scholes option-pricing model | Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Risk‑free interest rate 0.4 % – 0.9 % 0.4 % – 0.9 % Expected volatility 52.7 % – 54.2 % 52.7 % – 54.2 % Expected life (in years) 5.9 – 6.3 5.9 – 6.3 Expected dividend yield — — Fair value of Common Stock $ 3.34 $ 3.34 | Years Ended December 31, 2020 2019 Risk‑free interest rate 0.3% – 1.7 % 1.7% – 2.6 % Expected volatility 52.7% – 54.2 % 52.7% – 53.6 % Expected life (in years) 5.9 – 6.3 5.6 – 6.1 Expected dividend yield — — Fair value of Common Stock $ 1.40 – 7.98 $ 3.34 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SEGMENT INFORMATION | ||
Schedule of disaggregation of revenue by geographic areas | Revenue for the three months ended June 30, 2021 Americas EMEA APAC Total Products $ 10,497 $ 3,769 $ 3,294 $ 17,560 Services 904 381 132 1,417 Total $ 11,401 $ 4,150 $ 3,426 $ 18,977 Revenue for the three months ended June 30, 2020 Americas EMEA APAC Total Products $ 613 $ 634 $ 284 $ 1,531 Services 282 333 43 658 Total $ 895 $ 967 $ 327 $ 2,189 Revenue for the six months ended June 30, 2021 Americas EMEA APAC Total Products $ 16,350 $ 6,296 $ 5,225 $ 27,871 Services 1,610 596 213 2,419 Total $ 17,960 $ 6,892 $ 5,438 $ 30,290 Revenue for the six months ended June 30, 2020 Americas EMEA APAC Total Products $ 1,515 $ 2,162 $ 548 $ 4,225 Services 609 656 84 1,349 Total $ 2,124 $ 2,818 $ 632 $ 5,574 | Revenue during the year ended December 31, 2020 Americas EMEA APAC Total Product $ 5,250 $ 6,629 $ 1,839 $ 13,718 Services 1,415 1,159 178 2,752 Total $ 6,665 $ 7,788 $ 2,017 $ 16,470 Revenue during the year ended December 31, 2019 Americas EMEA APAC Total Product $ 12,746 $ 8,430 $ 1,582 $ 22,758 Services 3,055 563 63 3,681 Total $ 15,801 $ 8,993 $ 1,645 $ 26,439 |
Schedule of disaggregation of revenue | During the three and six months ended June 30, 2021 and 2020, the Company recognized the following revenue from service contracts and cloud-based software licenses over time, and hardware and consumable product shipments and subscription software at a point in time (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue recognized at a point in time $ 17,560 $ 1,531 $ 27,871 $ 4,225 Revenue recognized over time 1,417 658 2,419 1,349 Total $ 18,977 $ 2,189 $ 30,290 $ 5,574 | Years Ended December 31, 2020 2019 Revenue recognized at a point in time $ 13,718 $ 22,758 Revenue recognized over time 2,752 3,681 Total $ 16,470 $ 26,439 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET LOSS PER SHARE | ||
Schedule of Net Loss Per Share, Basic and Diluted | Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator for basic and diluted net loss per share: Net loss attributable to Common Stockholders $ (43,180) $ (23,766) $ (102,288) $ (45,570) Denominator for basic and diluted net loss per share: Weighted-average shares 255,098 158,124 246,717 157,187 Net loss per share—Basic and Diluted $ (0.17) $ (0.15) $ (0.41) $ (0.29) | Years Ended December 31, 2020 (in thousands, except per share amounts) (as restated) 2019 Numerator for basic and diluted net loss per share: Net loss attributable to Common Stockholders $ (34,015) $ (103,596) Denominator for basic and diluted net loss per share: Weighted average shares 157,906 150,002 Net loss per share—Basic and Diluted $ (0.22) $ (0.69) |
Schedule of antidilutive securities excluded from computation of earnings per share | The Company excluded the following potential common shares, presented based on amounts outstanding as of June 30, 2021 and 2020, from the computation of diluted net loss per share attributable to common stockholders because including them would have an anti-dilutive effect (in thousands): Six Months Ended June 30, 2021 2020 Common Stock options outstanding 16,394 12,964 Unvested restricted stock units outstanding 5,095 — Unvested restricted stock awards outstanding 168 1,317 Common Stock warrants outstanding — 619 Total shares 21,657 14,900 | Years Ended December 31, 2020 2019 Common Stock options outstanding 19,553 18,072 Unvested restricted stock units outstanding 683 — Unvested restricted stock awards outstanding 279 5,587 Common Stock warrants outstanding 25,010 634 Unvested Trine Founder Shares, held in escrow 1,851 — Total shares 47,376 24,293 |
ORGANIZATION, NATURE OF BUSIN_2
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES (Details) | Dec. 09, 2020$ / shares | Jun. 30, 2021$ / shares | Dec. 31, 2020$ / shares | Aug. 31, 2020$ / shares | Dec. 31, 2019$ / shares |
Number of months cash and Investments sufficient to fund operating and capital expenditure | 12 months | 12 months | |||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Trine | |||||
Exchange ratio | 1.22122 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer | Dec. 31, 2018USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Term of annual contract | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true | true | |||
Deferred revenue recognized | $ 3,000 | $ 2,200 | |||
Deferred revenue | $ 4,814 | 3,004 | 2,230 | ||
Deferred cost of sales | 500 | 300 | |||
Commission expense | 600 | 400 | |||
Allowance for doubtful accounts | 500 | 200 | |||
Bad debt expense | $ 164 | $ 285 | 377 | 199 | |
Warranty reserve | $ 1,553 | $ 1,491 | $ 116 | ||
Accounts receivables | |||||
Significant Accounting Policies [Line Items] | |||||
Number of customers | customer | 0 | 0 | |||
Revenue | |||||
Significant Accounting Policies [Line Items] | |||||
Number of customers | customer | 0 | 0 | |||
Customer Concentration Risk [Member] | Accounts receivables | Customer | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration of credit risk, percentage | 10.00% | 10.00% | |||
Customer Concentration Risk [Member] | Revenue | Customer | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration of credit risk, percentage | 10.00% | 10.00% | |||
Sales and marketing expense | |||||
Significant Accounting Policies [Line Items] | |||||
Advertising Expense | $ 40 | $ 100 | |||
Accrued expenses and other current liabilities | |||||
Significant Accounting Policies [Line Items] | |||||
Warranty reserve | 1,600 | $ 1,500 | |||
Restricted Cash | |||||
Significant Accounting Policies [Line Items] | |||||
Security deposit | $ 600 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restatement of Previously Issued Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Change in fair value of warrant liability | $ (56,576) | $ 56,417 | |||||||
Loss before income taxes | (34,955) | ||||||||
Net loss | $ (43,180) | $ (23,766) | (102,288) | $ (45,570) | (34,015) | $ (103,596) | |||
Total comprehensive loss, net of taxes of $0 | (43,055) | (23,634) | (102,175) | (45,597) | $ (34,099) | $ (103,425) | |||
Earnings (loss) per share: | |||||||||
Net loss per share-basic and diluted | $ (0.22) | $ (0.69) | |||||||
Tax on Comprehensive income (loss) | 0 | 0 | 0 | 0 | $ 0 | $ 0 | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
Warrant liability | 93,328 | ||||||||
Total current liabilities | 41,548 | 41,548 | 30,499 | 20,642 | |||||
Total liabilities | 59,359 | 59,359 | 125,984 | 33,640 | |||||
Additional paid-in capital | 1,387,779 | 1,387,779 | 844,188 | 453,242 | |||||
Accumulated deficit | (430,565) | (430,565) | (328,277) | (294,262) | |||||
Total Stockholders' Equity | $ 957,344 | $ 116,158 | 957,344 | 116,158 | 515,925 | (277,462) | $ 939,564 | $ (299,425) | $ (184,569) |
Cash flows from operating activities: | |||||||||
Net loss | $ (102,288) | $ (45,570) | (34,015) | (103,596) | |||||
As Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Loss before income taxes | (91,372) | ||||||||
Net loss | (90,432) | ||||||||
Total comprehensive loss, net of taxes of $0 | $ (90,516) | ||||||||
Earnings (loss) per share: | |||||||||
Net loss per share-basic and diluted | $ (0.57) | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
Total liabilities | $ 32,656 | ||||||||
Additional paid-in capital | 993,933 | ||||||||
Accumulated deficit | (384,694) | ||||||||
Total Stockholders' Equity | 609,253 | $ 159,071 | |||||||
Restatement Impact | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Change in fair value of warrant liability | 56,417 | ||||||||
Loss before income taxes | 56,417 | ||||||||
Net loss | 56,417 | ||||||||
Total comprehensive loss, net of taxes of $0 | $ 56,417 | ||||||||
Earnings (loss) per share: | |||||||||
Net loss per share-basic and diluted | $ 0.35 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
Warrant liability | $ 93,328 | ||||||||
Total liabilities | 93,328 | ||||||||
Additional paid-in capital | (149,745) | ||||||||
Accumulated deficit | 56,417 | ||||||||
Total Stockholders' Equity | (93,328) | ||||||||
Cash flows from operating activities: | |||||||||
Net loss | $ 56,400 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Warranty Reserve (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Standard assurance warranty period | 1 year | 1 year | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty reserve, at the beginning of the year | $ 1,553 | $ 1,491 | $ 116 |
Additions to warranty reserve | 797 | 346 | 2,352 |
Claims fulfilled | $ (636) | (284) | (977) |
Warranty reserve, at the end of the period | $ 1,553 | $ 1,491 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory | |||
Work in process | $ 2,896 | $ 1,081 | |
Finished goods | 6,812 | 7,324 | |
Inventory | $ 25,407 | $ 9,708 | $ 8,405 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | 3 years |
Tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | 3 years |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | 3 years |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum | Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Maximum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 12 years | 5 years |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum | Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Impairment of goodwill or intangible assets | $ 0 | $ 0 |
ACQUISITIONS - Business Combina
ACQUISITIONS - Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |
Net proceeds from reverse recapitalization | $ 534,597,000 |
Trine | |
Business Acquisition [Line Items] | |
Cash - Trine's trust and cash (net of redemptions) | 305,084,695 |
Cash - PIPE financing | 274,975,000 |
Less: transaction costs and advisory fees paid | (45,463,074) |
Net proceeds from reverse recapitalization | 534,596,621 |
Plus: non-cash net liabilities assumed | (152,394,714) |
Less: accrued transaction costs and advisory fees | (1,900,793) |
Net contributions from reverse recapitalization | 380,301,114 |
Non-cash warranty liability assumed | $ 149,700,000 |
ACQUISITIONS - Business Combi_2
ACQUISITIONS - Business Combination common shares issued (Details) | Dec. 09, 2020D$ / sharesshares | Dec. 31, 2020Dshares |
Business Acquisition [Line Items] | ||
Number of trading days | D | 20 | |
Number of days window by fifth anniversary of business combination | D | 30 | |
Number of trading days not yet passed since the date of business combination | D | 20 | |
Tranche One | ||
Business Acquisition [Line Items] | ||
Trine Founder Shares | 5,552,812 | |
Vesting percentage | 75.00% | |
Tranche Two | ||
Business Acquisition [Line Items] | ||
Trine Founder Shares | 1,850,938 | |
Vesting percentage | 25.00% | |
Trine | ||
Business Acquisition [Line Items] | ||
BALANCE (in shares) | 30,015,000 | |
Less: redemption of Trine shares | (26,049) | |
Common stock of Trine | 29,988,951 | |
Trine Founder Shares | 5,552,812 | 7,403,750 |
Trine Director Shares | 100,000 | |
Share price | $ / shares | $ 12.50 | |
Shares issued in PIPE | 27,497,500 | |
Business Combination and PIPE financing shares | 63,139,263 | |
Legacy Desktop Metal shares (1) | 161,487,334 | |
BALANCE (in shares) | 224,626,597 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) | Dec. 09, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Oct. 31, 2020USD ($)shares | Jul. 31, 2019USD ($)shares | Mar. 31, 2019USD ($)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Aug. 31, 2020$ / shares | Aug. 20, 2020shares | Jun. 30, 2020USD ($) |
Business Acquisition [Line Items] | |||||||||||
Shares authorized | shares | 550,000,000 | ||||||||||
Common stock, shares authorized | shares | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 366,366 | |||||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Preferred stock, shares authorized | shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||
Preferred stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Intangible asset excluding goodwill | $ 9,102,000 | $ 9,102,000 | $ 2,994,000 | $ 178,860,000 | |||||||
Vesting period | 1 year | ||||||||||
Goodwill | 2,252,000 | $ 2,252,000 | $ 2,252,000 | $ 251,060,000 | $ 2,300,000 | ||||||
Figur Machine Tools LLC. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible asset excluding goodwill | $ 3,500,000 | $ 3,500,000 | |||||||||
Forust Corporation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible asset excluding goodwill | $ 2,500,000 | ||||||||||
Payments to Acquire Productive Assets | 2,000,000 | ||||||||||
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable | $ 500,000 | ||||||||||
Asset Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 61,061 | ||||||||||
Asset Acquisition, Payment made at Closing | $ 1,800,000 | ||||||||||
Additional payment | $ 200,000 | ||||||||||
Vesting period | 2 years | ||||||||||
Restricted Stock awards | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Vesting period | 4 years | ||||||||||
Preferred Stock | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Preferred stock, shares authorized | shares | 50,000,000 | 50,000,000 | |||||||||
Trine | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Exchange ratio | 1.22122 | ||||||||||
Shares issued in PIPE | shares | 27,497,500 | ||||||||||
Business acquisition, share price | $ / shares | $ 12.50 | ||||||||||
Cash - PIPE financing | $ 274,975,000 | ||||||||||
Trine | Business Combination Subscription Agreement | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Shares issued in PIPE | shares | 27,497,500 | ||||||||||
Business acquisition, share price | $ / shares | $ 10 | ||||||||||
Cash - PIPE financing | $ 275,000,000 | ||||||||||
Figur Machine Tools LLC. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | $ 3,500,000 | ||||||||||
Forust Corporation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase consideration | $ 2,500,000 | ||||||||||
Make Composites, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase consideration | $ 5,400,000 | ||||||||||
Issuance of Common Stock for acquisitions (in shares) | shares | 873,203 | ||||||||||
Goodwill | $ 1,900,000 | ||||||||||
Acquired technology | 3,200,000 | ||||||||||
Acquired tangible assets | 300,000 | ||||||||||
Amount of gain on its original non controlling investment | 1,400,000 | ||||||||||
Make Composites, Inc. | General and administrative expenses | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Transaction costs | $ 100,000 | ||||||||||
addLEAP AB | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 300,000 | ||||||||||
Acquired technology | 100,000 | ||||||||||
Payment to acquire business | $ 400,000 | ||||||||||
addLEAP AB | Restricted Stock awards | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Issuance of Common Stock for acquisitions (in shares) | shares | 74,843 | ||||||||||
addLEAP AB | General and administrative expenses | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Transaction costs | $ 100,000 |
CASH EQUIVALENTS AND SHORT TERM
CASH EQUIVALENTS AND SHORT TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | |||
Cash equivalents | $ 180,998 | $ 482,886 | $ 65,455 |
Amortized Cost | 326,331 | 111,876 | 84,679 |
Unrealized Gains | 11 | 2 | 75 |
Unrealized losses | (24) | (11) | 0 |
Fair Value | 326,318 | 111,867 | 84,754 |
Total cash equivalents and short-term investments, Amortized Cost | 507,329 | 594,762 | 150,134 |
Total cash equivalents and short-term investments, Fair Value | 507,316 | 594,753 | 150,209 |
Assetbacked securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 25,246 | 16,786 | |
Unrealized Gains | 1 | 20 | |
Unrealized losses | (3) | 0 | |
Fair Value | 25,244 | 16,806 | |
U.S Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 19,995 | ||
Unrealized Gains | 2 | ||
Fair Value | 19,997 | ||
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 159,591 | 43,911 | 19,938 |
Unrealized losses | 0 | ||
Fair Value | 159,591 | 43,911 | 19,938 |
Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 104,758 | 47,970 | 47,955 |
Unrealized Gains | 9 | 55 | |
Unrealized losses | (12) | (11) | 0 |
Fair Value | 104,755 | 47,959 | 48,010 |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cash equivalents | 75,374 | ||
Repurchase agreements | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cash equivalents | 25,001 | ||
Money market funds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cash equivalents | $ 180,998 | $ 407,512 | $ 40,454 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets measured on recurring basis (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liabilities: | ||||
Total liabilities at fair value | $ 6,558,000 | |||
Level 1 to Level 2 transfer | 0 | $ 0 | $ 0 | $ 0 |
Level 2 to Level 1 transfer | 0 | 0 | 0 | 0 |
Transfer into Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | $ 0 | 0 | 0 |
Level 3 | ||||
Liabilities: | ||||
Total liabilities at fair value | 6,558,000 | |||
Balance at beginning of year | 3,000,000 | |||
Additions | 3,620,000 | 3,000,000 | ||
Balance at end of year | 7,137,000 | 3,000,000 | ||
Recurring | ||||
Assets: | ||||
Total assets at fair value | 514,453,000 | 597,753,000 | 150,209,000 | |
Liabilities: | ||||
Total liabilities at fair value | 93,328,000 | |||
Recurring | Private Placement Warrants | ||||
Liabilities: | ||||
Total liabilities at fair value | 93,328,000 | |||
Recurring | Money market funds | ||||
Assets: | ||||
Total assets at fair value | 180,998,000 | 407,512,000 | 40,454,000 | |
Recurring | Commercial paper | ||||
Assets: | ||||
Total assets at fair value | 159,591,000 | 119,285,000 | 19,938,000 | |
Recurring | Corporate bonds | ||||
Assets: | ||||
Total assets at fair value | 104,755,000 | 47,959,000 | 48,010,000 | |
Recurring | U.S Treasury securities | ||||
Assets: | ||||
Total assets at fair value | 19,997,000 | |||
Recurring | Other investments | ||||
Assets: | ||||
Total assets at fair value | 7,137,000 | 3,000,000 | ||
Recurring | Assetbacked securities | ||||
Assets: | ||||
Total assets at fair value | 25,245,000 | 16,806,000 | ||
Recurring | Repurchase agreements | ||||
Assets: | ||||
Total assets at fair value | 25,001,000 | |||
Recurring | Level 1 | ||||
Assets: | ||||
Total assets at fair value | 180,998,000 | 427,509,000 | 40,454,000 | |
Recurring | Level 1 | Money market funds | ||||
Assets: | ||||
Total assets at fair value | 180,998,000 | 407,512,000 | 40,454,000 | |
Recurring | Level 1 | U.S Treasury securities | ||||
Assets: | ||||
Total assets at fair value | 19,997,000 | |||
Recurring | Level 2 | ||||
Assets: | ||||
Total assets at fair value | 326,318,000 | 167,244,000 | 109,755,000 | |
Recurring | Level 2 | Commercial paper | ||||
Assets: | ||||
Total assets at fair value | 159,591,000 | 119,285,000 | 19,938,000 | |
Recurring | Level 2 | Corporate bonds | ||||
Assets: | ||||
Total assets at fair value | 104,755,000 | 47,959,000 | 48,010,000 | |
Recurring | Level 2 | Assetbacked securities | ||||
Assets: | ||||
Total assets at fair value | 25,245,000 | 16,806,000 | ||
Recurring | Level 2 | Repurchase agreements | ||||
Assets: | ||||
Total assets at fair value | $ 25,001,000 | |||
Recurring | Level 3 | ||||
Assets: | ||||
Total assets at fair value | 7,137,000 | 3,000,000 | ||
Liabilities: | ||||
Total liabilities at fair value | 93,328,000 | |||
Recurring | Level 3 | Private Placement Warrants | ||||
Liabilities: | ||||
Total liabilities at fair value | 93,328,000 | |||
Recurring | Level 3 | Other investments | ||||
Assets: | ||||
Total assets at fair value | $ 7,137,000 | $ 3,000,000 |
FAIR VALUE MEASUREMENTS - Movem
FAIR VALUE MEASUREMENTS - Movement in Level 3 liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at beginning of period | $ 0 |
Warrant liability assumed | 149,745 |
Change in fair value of warrant liability | (56,417) |
Balance at end of period | $ 93,328 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ACCOUNTS RECEIVABLE | |||
Trade receivables | $ 13,750 | $ 7,016 | $ 4,722 |
Allowance for doubtful accounts | (309) | (500) | (199) |
Total accounts receivable | $ 13,441 | $ 6,516 | $ 4,523 |
ACCOUNTS RECEIVABLE - Allowance
ACCOUNTS RECEIVABLE - Allowance for doubtful accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
ACCOUNTS RECEIVABLE | ||||
Balance at beginning of period | $ 500 | $ 199 | $ 199 | |
Provision for bad debt | 164 | $ 285 | 377 | $ 199 |
Uncollectible accounts written off | (27) | (76) | ||
Balance at end of period | $ 309 | $ 500 | $ 199 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||
Deferred cost of goods sold | $ 454 | $ 262 | |
Prepaid operating expenses | $ 1,873 | 68 | 585 |
Prepaid dues and subscriptions | 823 | 189 | 503 |
Prepaid insurance | 1,850 | 121 | 45 |
Prepaid rent | 158 | 118 | 11 |
Other | 812 | 26 | 482 |
Total prepaid expenses and other current assets | $ 7,078 | $ 976 | $ 1,888 |
PROPERTY AND EQUIPMENT - Proper
PROPERTY AND EQUIPMENT - Property and Equipment - Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment-gross | $ 37,269 | $ 37,269 | $ 33,495 | $ 32,169 | ||
Less: accumulated depreciation | (24,041) | (24,041) | (21,335) | (13,782) | ||
Total property and equipment, net | 13,228 | 13,228 | 12,160 | 18,387 | ||
Depreciation and amortization expense | 9,524 | $ 4,475 | 8,589 | 8,087 | ||
Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment-gross | 15,672 | 15,672 | 13,708 | 13,358 | ||
Furniture and fixtures | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment-gross | 1,033 | 1,033 | 895 | 895 | ||
Computer equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment-gross | 1,139 | 1,139 | 1,089 | 1,089 | ||
Tooling | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment-gross | 1,805 | 1,805 | 1,805 | 1,823 | ||
Software | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment-gross | 1,439 | 1,439 | 1,249 | 954 | ||
Leasehold improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment-gross | 14,564 | 14,564 | 13,870 | 13,880 | ||
Construction in process | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment-gross | 1,617 | 1,617 | 879 | 170 | ||
PPE not including acquired technology or capitalized software | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciation and amortization expense | $ 1,300 | $ 2,100 | $ 2,800 | $ 4,200 | $ 7,600 | $ 7,600 |
ACQUIRED TECHNOLOGY (Details)
ACQUIRED TECHNOLOGY (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Value | $ 186,519 | $ 186,519 | ||||
Accumulated Amortization | 7,659 | 7,659 | ||||
Total intangible assets | 178,860 | 178,860 | $ 9,102 | $ 2,994 | ||
Amortization expense | 4,300 | $ 200 | $ 6,600 | $ 400 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Weighted-average remaining amortization period | 10 years | |||||
Acquired technology | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Value | 126,540 | $ 126,540 | $ 10,193 | |||
Estimated Life | 5 years | |||||
Accumulated Amortization | 5,514 | 5,514 | $ 1,091 | |||
Total intangible assets | $ 121,026 | $ 121,026 | 9,102 | |||
Amortization expense | 800 | $ 300 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
2021 | 2,000 | |||||
2022 | 2,000 | |||||
2023 | 2,000 | |||||
2024 | 1,800 | |||||
2025 | $ 1,300 | |||||
Weighted-average remaining amortization period | 4 years 7 months 6 days |
CAPITALIZED SOFTWARE (Details)
CAPITALIZED SOFTWARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total capitalized software costs | $ 312 | $ 446 | $ 226 |
Capitalized Software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 100 | 200 | |
Capitalized software development costs | 1,127 | 1,127 | |
Accumulated amortization | (815) | (237) | |
Impairment | 0 | (444) | |
Total capitalized software costs | 312 | $ 446 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2021 | 200 | ||
2022 | $ 100 |
OTHER NONCURRENT ASSETS - Compo
OTHER NONCURRENT ASSETS - Components of other noncurrent assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
OTHER NONCURRENT ASSETS | |||
Other investments | $ 7,137 | $ 3,000 | |
Right-of-use asset | 4,816 | 1,810 | $ 2,289 |
Long-term deposits | 135 | 69 | |
Total other noncurrent assets | $ 12,210 | $ 4,879 | $ 2,289 |
OTHER NONCURRENT ASSETS - Chang
OTHER NONCURRENT ASSETS - Change in the balance of other investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OTHER NONCURRENT ASSETS | ||
Percentage of annual interest rate due in two years | 3.00% | |
Period of annual interest due | 2 years | |
Change in fair value, net | $ 3,000 | $ 0 |
Ending balance | $ 3,000 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Professional services | $ 3,897 | $ 2,508 | $ 780 |
Compensation and benefits related | 7,359 | 2,068 | 897 |
Warranty reserve | 2,030 | 1,553 | 1,491 |
Sales and use and franchise taxes | 224 | 586 | 578 |
Franchise and royalty fees | 227 | 159 | |
Inventory purchases | 1,506 | 86 | 620 |
Other | 3,193 | 605 | 687 |
Total accrued expenses and other current liabilities | $ 20,968 | $ 7,565 | $ 5,053 |
DEBT (Details)
DEBT (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2020USD ($) | Jun. 30, 2018USD ($)item | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Proceeds from PPP loan | $ 5,379 | $ 5,379 | ||||
Cash and Investments | 30,000 | |||||
Outstanding amount | 10,000 | $ 10,000 | ||||
Debt, current | 10,000 | |||||
Deferred financing costs | $ 100 | $ 100 | ||||
Term loan | ||||||
Debt Instrument [Line Items] | ||||||
Nominal amount | $ 20,000 | |||||
Term of loan | 36 months | |||||
Proceeds from PPP loan | $ 10,000 | |||||
Remaining borrowing capacity | $ 10,000 | |||||
Threshold Number of times additional amount drawn | item | 3 | |||||
Minimum amount to be drawn | $ 2,000 | |||||
Outstanding amount | $ 0 | |||||
Term loan | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Spread percentage | 0.50% | 0.50% | 0.50% | |||
Interest rate | 3.25% | 3.25% | 4.75% | |||
Interest rate | 2.75% | 2.75% | 4.25% | |||
Paycheck Protection Program | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.00% | |||||
Outstanding amount | $ 0 | |||||
Loan Proceeds | $ 5,400 |
LEASES (Details)
LEASES (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)agreement | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)agreement | Dec. 31, 2019USD ($) | |
LEASES | ||||||
Right of use assets | $ 4,816,000 | $ 4,816,000 | $ 1,810,000 | $ 2,289,000 | ||
Total lease liability | 5,942,000 | 5,942,000 | 3,025,000 | 3,800,000 | ||
Impairment loss | 0 | 0 | 0 | 0 | ||
Variable lease expenses | $ 46,000 | $ 2,000 | $ 85,000 | $ 12,000 | $ 40,000 | $ 40,000 |
Number of service agreements contained embedded lease | agreement | 2 | 1 |
LEASES - Other lease related ba
LEASES - Other lease related balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease cost | ||||||
Operating lease cost | $ 422 | $ 186 | $ 745 | $ 374 | $ 746 | $ 655 |
Short-term lease cost | 34 | 3 | 45 | 3 | 32 | |
Variable lease cost | 46 | 2 | 85 | 12 | 40 | 40 |
Total lease cost | 502 | 191 | 875 | 389 | 786 | 727 |
Operating cash flows from operating leases | $ 655 | $ 269 | $ 899 | $ 536 | $ 1,073 | $ 951 |
Weighted-average remaining lease term-operating leases (years) | 2 years 7 months 6 days | 3 years 8 months 12 days | 2 years 7 months 6 days | 3 years 8 months 12 days | 3 years 2 months 12 days | 4 years 2 months 12 days |
Weighted-average discount rate-operating leases | 5.10% | 7.60% | 5.10% | 7.60% | 7.60% | 7.60% |
LEASES - Future minimum lease p
LEASES - Future minimum lease payments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
COMMITMENTS AND CONTINGENCIES | |||
2021 | $ 2,258 | $ 1,071 | |
2022 | 2,072 | 1,069 | |
2023 | 700 | 1,028 | |
2024 | 192 | 258 | |
2025 | 53 | 0 | |
Total lease payments | 6,389 | 3,426 | |
Less amount representing interest | (447) | (401) | |
Total lease liability | 5,942 | 3,025 | $ 3,800 |
Less current portion of lease liability | (1,983) | (868) | (806) |
Lease liability, net of current portion | $ 3,959 | $ 2,157 | $ 3,026 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
COMMITMENTS AND CONTINGENCIES | ||
Purchase orders with contract manufacturers | $ 21.8 | $ 9.5 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||||||
Income tax benefit | $ (4,318) | $ 0 | $ (32,238) | $ 0 | $ (940) | $ 0 |
United States | (34,285) | (103,596) | ||||
Foreign | (670) | |||||
Loss before income taxes | $ (47,498) | $ (23,766) | $ (134,526) | $ (45,570) | $ (34,955) | $ (103,596) |
INCOME TAXES - provision (benef
INCOME TAXES - provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||||||
Current | $ 0 | $ 0 | ||||
Deferred | (940) | |||||
Provision (benefit) for income taxes | $ (4,318) | $ 0 | $ (32,238) | $ 0 | $ (940) | $ 0 |
INCOME TAXES - Components Incom
INCOME TAXES - Components Income (Loss) Before Provision for Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effective income tax rate: | ||
Expected income tax benefit at the federal statutory rate | 21.00% | 21.00% |
State taxes | 6.00% | 6.00% |
Change in valuation allowance | (68.00%) | (30.00%) |
Research and development credit carryover | 2.00% | 2.00% |
Permanent differences | 42.00% | 1.00% |
Effective income tax rate | 3.00% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | |||
Federal and state net operating carryforwards | $ 77,463 | $ 56,333 | |
Research and development and other credits | 13,555 | 11,072 | |
Capitalized startup costs | 15,717 | 17,032 | |
Compensation-related items | 2,257 | 1,286 | |
Deferred lease liability | 872 | 1,111 | |
Depreciation | 1,503 | ||
Other deferred tax assets | 2,272 | 2,068 | |
Total gross deferred tax asset | 113,639 | 88,902 | |
Valuation allowance | (111,494) | (87,370) | $ (56,405) |
Net deferred tax asset | 2,145 | 1,532 | |
Deferred tax liabilities: | |||
Right-of-use asset | (522) | (664) | |
Acquired technology | (1,623) | (868) | |
Total deferred tax liabilities | $ (2,145) | $ (1,532) |
INCOME TAXES - Valuation Allowa
INCOME TAXES - Valuation Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||||
Valuation allowance at beginning of the year | $ 111,494 | $ 87,370 | $ 56,405 | |
Increases recorded to income tax provision | 25,058 | 30,965 | ||
Decreases recorded as a benefit to income tax provision | $ 4,300 | $ 32,200 | (934) | |
Valuation allowance at end of year | $ 111,494 | $ 87,370 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, not subject to expiration | $ 228.3 | ||
Federal and state research and development tax credit carryforwards | $ 13.5 | ||
Federal tax | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 273.8 | $ 197.7 | |
State and local jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 243.2 | $ 184.2 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 09, 2020 | Aug. 31, 2020 | Aug. 20, 2020 | Dec. 31, 2019 |
Convertible Preferred Stock and Stockholders' Equity | ||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 366,366 | 500,000,000 | |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||
Preferred stock par value (in dollars per share) | $ 0.0001 | |||||
Common Class A | ||||||
Convertible Preferred Stock and Stockholders' Equity | ||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Preferred Stock | ||||||
Convertible Preferred Stock and Stockholders' Equity | ||||||
Preferred stock, shares authorized | 50,000,000 | |||||
Preferred stock par value (in dollars per share) | $ 0.0001 |
STOCKHOLDERS' EQUITY - Restrict
STOCKHOLDERS' EQUITY - Restricted Stock Agreements (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting of restricted Common Stock | $ 2 | $ 4 | $ 7 | $ 8 | |||
Vesting period | 1 year | ||||||
Weighted-average remaining contractual term (in years) | 7 years 4 months 24 days | 7 years 9 months | 7 years 10 months 2 days | ||||
Amount of convertible notes issued | $ 200 | ||||||
Shares issues upon conversion | 340,923 | ||||||
Accrued interest rate | 2.57% | ||||||
Repurchase of common stock | 76,461 | ||||||
Restricted Stock awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued | 34,010,977 | ||||||
Share price | $ 0.0001 | ||||||
Vesting of restricted Common Stock (in shares) | 607,300 | ||||||
Vesting of restricted Common Stock | $ 2,000 | ||||||
Vesting period | 4 years | ||||||
Weighted-average remaining contractual term (in years) | 8 months 12 days | 7 months 6 days |
STOCKHOLDERS' EQUITY - The acti
STOCKHOLDERS' EQUITY - The activity for stock subject to vesting (Details) - Restricted Stock awards - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Shared subject to vesting | ||
Balance at beginning of period, unvested shares (in shares) | 280 | 5,587 |
Vested (in shares) | (112) | (5,307) |
Balance at end of period, unvested shares (in shares) | 168 | 280 |
Weighted Average Grant Date Fair Value | ||
Balance at beginning of Period, unvested shares (in dollars per share) | $ 0.0001 | |
Vested (in dollars per share) | 0.0001 | |
Balance at end of Period, unvested shares (in dollars per share) | 0.0001 | $ 0.0001 |
As Reported | ||
Weighted Average Grant Date Fair Value | ||
Balance at beginning of Period, unvested shares (in dollars per share) | $ 0.001 | 0.0001 |
Vested (in dollars per share) | 0.001 | |
Balance at end of Period, unvested shares (in dollars per share) | $ 0.001 |
STOCKHOLDERS' EQUITY - Warrants
STOCKHOLDERS' EQUITY - Warrants (Details) | Feb. 24, 2020$ / sharesshares | Jun. 30, 2021USD ($)D$ / sharesshares | Dec. 31, 2020USD ($)D$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 09, 2020$ / shares | Aug. 31, 2020USD ($)$ / shares | Jun. 30, 2020shares | May 31, 2017$ / sharesshares |
Class of Warrant or Right [Line Items] | ||||||||
Warrants to purchase shares | shares | 0 | 99,960 | 2,442,440 | |||||
Number of common stock purchased by each warrant | shares | 1 | |||||||
Revenue generated per share | $ 35 | |||||||
Exercise price | $ 3.34 | $ 3.34 | ||||||
Warrants and Rights Outstanding | $ | $ 93,328,000 | |||||||
Fair value of the warrants | $ | $ 200,000 | $ 1,000,000 | $ 1,700,000 | |||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Warrants issued | shares | 122,073 | 611,969 | ||||||
Class of Warrant or Right, Outstanding | shares | 15,007,494 | |||||||
Divisional Factor for Conversion of Debt to Warrants | $ 1 | |||||||
Common Class A | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Common stock par value (in dollars per share) | 0.0001 | $ 0.0001 | ||||||
Trine Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Exercise price | $ 11.50 | 11.50 | 11.50 | |||||
Warrant redemption price | 0.01 | 0.01 | ||||||
Share Price | $ 10 | $ 10 | ||||||
Warrant exercisable term | 30 days | 30 days | ||||||
Warrants and Rights Outstanding, Term | 5 years | 5 years | ||||||
Debt Instrument, Convertible, Threshold Trading Days | D | 20 | 20 | ||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | D | 30 | 30 | ||||||
Debt Conversion, Converted Instrument, Warrants or Options Issued | shares | 1,500,000 | |||||||
Trine Warrants | Common Class A | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Number of common stock purchased by each warrant | shares | 1 | 1 | ||||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||||
Trine Warrants | Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Number of common stock purchased by each warrant | shares | 0.5 | 0.5 | ||||||
Private Placement Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Warrants to purchase shares | shares | 8,503,000 | 8,503,000 | ||||||
Number of common stock purchased by each warrant | shares | 1 | |||||||
Exercise price | $ 11.50 | $ 11.50 | ||||||
Warrant redemption price | $ 1 | $ 1 | ||||||
Warrants and Rights Outstanding | $ | $ 8,503,000 | $ 8,503,000 | ||||||
Fair value of the warrants | $ | $ 56,600,000 | |||||||
Minimum | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Share Price | $ 5.13 | |||||||
Minimum | Trine Warrants | Common Class A | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Share Price | $ 18 | $ 18 |
STOCKHOLDERS' EQUITY - Common S
STOCKHOLDERS' EQUITY - Common Stock Warrants (Details) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($)Yshares | Dec. 31, 2020USD ($)Y$ / sharesshares | Dec. 09, 2020$ / shares | Jun. 30, 2020Y | Dec. 31, 2019Y$ / shares | |
Class of Warrant or Right [Line Items] | |||||
Change in fair value of warrant liability | $ | $ 56,576,000 | $ (56,417,000) | |||
Common Stock Warrants Converted | 756,498 | ||||
Shares issued on exercise of warrants | 447,938 | ||||
Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.020 | ||||
Expected volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.525 | ||||
Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 0.078 | ||||
Minimum | |||||
Class of Warrant or Right [Line Items] | |||||
Share price | $ / shares | $ 5.13 | ||||
Collaboration Agreement | |||||
Class of Warrant or Right [Line Items] | |||||
Share price | $ / shares | $ 3.34 | $ 3.34 | |||
Common Stock Warrants Converted | 756,498 | ||||
Shares issued on exercise of warrants | 447,938 | ||||
Collaboration Agreement | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 2 | 2 | |||
Collaboration Agreement | Expected volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 52.5 | 52.5 | |||
Collaboration Agreement | Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 8 | ||||
Collaboration Agreement | Maximum | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 8.8 | ||||
Collaboration Agreement | Minimum | Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 8 | ||||
Technical Technical Research and Development Advisor Services | |||||
Class of Warrant or Right [Line Items] | |||||
Share price | $ / shares | $ 7.98 | ||||
Common Stock Warrants Converted | 366,366 | ||||
Shares issued on exercise of warrants | 244,428 | ||||
Technical Technical Research and Development Advisor Services | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.5 | ||||
Technical Technical Research and Development Advisor Services | Expected volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 52.5 | ||||
Technical Technical Research and Development Advisor Services | Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 0.3 | ||||
Private Placement Warrants | |||||
Class of Warrant or Right [Line Items] | |||||
Change in fair value of warrant liability | $ | $ (56,400,000) | ||||
Private Placement Warrants | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.4 | 0.4 | |||
Private Placement Warrants | Expected volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.550 | 50 | 40 | ||
Private Placement Warrants | Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.048 | 4.9 | 5 | ||
Private Placement Warrants | Expected dividend yield | |||||
Class of Warrant or Right [Line Items] | |||||
Share price | $ / shares | $ 17.20 | $ 24.77 | |||
Private Placement Warrants | Maximum | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.006 | ||||
Private Placement Warrants | Minimum | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.004 |
STOCKHOLDERS' EQUITY - Legacy D
STOCKHOLDERS' EQUITY - Legacy Desktop Metal Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)director$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Convertible Preferred Stock, Authorized | shares | 100,038,109 |
Convertible Preferred Stock, Issued | shares | 100,038,109 |
Convertible Preferred Stock, Outstanding | shares | 100,038,109 |
Preferred stock authorized | $ 436,533 |
Preferred stock issued | 436,533 |
Preferred stock outstanding | $ 436,533 |
Dividend rate (as a percent) | 8.00% |
Dividends declared | $ 0 |
Proceeds from Issuance Initial Public Offering | $ 50,000 |
Series A Legacy Preferred Stock | |
Class of Warrant or Right [Line Items] | |
Par value (in dollars per share) | $ / shares | $ 0.0001 |
Convertible Preferred Stock, Authorized | shares | 26,189,545 |
Convertible Preferred Stock, Issued | shares | 26,189,545 |
Convertible Preferred Stock, Outstanding | shares | 26,189,545 |
Preferred stock authorized | $ 13,878 |
Preferred stock issued | 13,878 |
Preferred stock outstanding | $ 13,878 |
Number of directors entitled to elect | director | 1 |
Preferred stock liquidation preference Per Share | $ / shares | $ 0.53372 |
Preferred Stock Convertible conversion price | $ / shares | 0.53372 |
Series B Legacy Preferred Stock | |
Class of Warrant or Right [Line Items] | |
Par value (in dollars per share) | $ / shares | $ 0.0001 |
Convertible Preferred Stock, Authorized | shares | 23,675,035 |
Convertible Preferred Stock, Issued | shares | 23,675,035 |
Convertible Preferred Stock, Outstanding | shares | 23,675,035 |
Preferred stock authorized | $ 37,806 |
Preferred stock issued | 37,806 |
Preferred stock outstanding | $ 37,806 |
Number of directors entitled to elect | director | 2 |
Preferred stock liquidation preference Per Share | $ / shares | $ 1.6013 |
Preferred Stock Convertible conversion price | $ / shares | 1.6013 |
Series C Legacy Preferred Stock | |
Class of Warrant or Right [Line Items] | |
Par value (in dollars per share) | $ / shares | $ 0.0001 |
Convertible Preferred Stock, Authorized | shares | 13,152,896 |
Convertible Preferred Stock, Issued | shares | 13,152,896 |
Convertible Preferred Stock, Outstanding | shares | 13,152,896 |
Preferred stock authorized | $ 44,852 |
Preferred stock issued | 44,852 |
Preferred stock outstanding | $ 44,852 |
Number of directors entitled to elect | director | 1 |
Preferred stock liquidation preference Per Share | $ / shares | $ 3.4213 |
Preferred Stock Convertible conversion price | $ / shares | 3.4213 |
Series D Legacy Preferred Stock | |
Class of Warrant or Right [Line Items] | |
Par value (in dollars per share) | $ / shares | $ 0.0001 |
Convertible Preferred Stock, Authorized | shares | 21,075,193 |
Convertible Preferred Stock, Issued | shares | 21,075,193 |
Convertible Preferred Stock, Outstanding | shares | 21,075,193 |
Preferred stock authorized | $ 180,353 |
Preferred stock issued | 180,353 |
Preferred stock outstanding | $ 180,353 |
Preferred stock liquidation preference Per Share | $ / shares | $ 8.5656 |
Preferred Stock Convertible conversion price | $ / shares | 8.5656 |
Series E Legacy Preferred Stock | |
Class of Warrant or Right [Line Items] | |
Par value (in dollars per share) | $ / shares | $ 0.0001 |
Convertible Preferred Stock, Authorized | shares | 13,450,703 |
Convertible Preferred Stock, Issued | shares | 13,450,703 |
Convertible Preferred Stock, Outstanding | shares | 13,450,703 |
Preferred stock authorized | $ 134,667 |
Preferred stock issued | 134,667 |
Preferred stock outstanding | $ 134,667 |
Number of directors entitled to elect | director | 1 |
Series E-1 Legacy Preferred Stock | |
Class of Warrant or Right [Line Items] | |
Par value (in dollars per share) | $ / shares | $ 0.0001 |
Convertible Preferred Stock, Authorized | shares | 2,494,737 |
Convertible Preferred Stock, Issued | shares | 2,494,737 |
Convertible Preferred Stock, Outstanding | shares | 2,494,737 |
Preferred stock authorized | $ 24,977 |
Preferred stock issued | 24,977 |
Preferred stock outstanding | $ 24,677 |
Preferred stock liquidation preference Per Share | $ / shares | $ 10.0211 |
Preferred Stock Convertible conversion price | $ / shares | 10.0211 |
Minimum | |
Class of Warrant or Right [Line Items] | |
Share price | $ / shares | $ 5.13 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Incentive Plan (Details) $ in Thousands | Sep. 28, 2020USD ($) | Dec. 31, 2020USD ($)shares | Jul. 31, 2020USD ($)employee | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | Dec. 31, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 1 year | ||||||||||
Number of employees affected by repricing | employee | 116 | ||||||||||
Expenses recognized | $ | $ 3,600 | ||||||||||
Granted (in shares) | 8,463,000 | ||||||||||
Unrecognized stock-based compensation expense, stock options | $ | $ 13,700 | $ 11,200 | $ 11,200 | $ 13,700 | $ 13,000 | ||||||
Weighted-average period | 2 years 10 months 24 days | 2 years 9 months 18 days | |||||||||
Shares available for grant | 14,379,052 | 21,810,237 | 21,810,237 | 14,379,052 | |||||||
Compensation expenses | $ | $ 1,800 | $ 3,999 | $ 1,074 | $ 6,216 | $ 2,333 | $ 8,006 | $ 5,215 | ||||
Consultant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 12,212 | 12,212 | 119,581 | ||||||||
Fair value of shares | $ | $ 100 | $ 100 | $ 600 | ||||||||
Employee | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 0 | 4,182,389 | 0 | 4,656,013 | 8,450,799 | 5,730,586 | |||||
Fair value of shares | $ | $ 2,900 | $ 3,600 | $ 29,800 | $ 10,100 | |||||||
2015 stock incentive plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Awards made under the plan | 26,283,789 | ||||||||||
Vesting period | 4 years | ||||||||||
Expiration period | 10 years | ||||||||||
Make Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 4 years | 4 years | |||||||||
Expiration period | 10 years | 10 years | |||||||||
Options and warrants to be issued | 232,304 | 232,304 | |||||||||
Granted (in shares) | 0 | 0 | |||||||||
2020 Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock available for future issuance | 12,400,813 | 12,400,813 | |||||||||
Percentage of stock outstanding | 5.00% |
STOCK BASED COMPENSATION - Comm
STOCK BASED COMPENSATION - Common Stock to Employees (Details) - Employee - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate, Minimum | 0.40% | 0.40% | 0.30% | 1.70% |
Risk-free interest rate, Maximum | 0.90% | 0.90% | 1.70% | 2.60% |
Expected volatility, Minimum | 52.70% | 52.70% | 52.70% | 52.70% |
Expected volatility, Maximum | 54.20% | 54.20% | 54.20% | 53.60% |
Expected life, Minimum (in years) | 5 years 10 months 24 days | 5 years 10 months 24 days | 5 years 10 months 24 days | 5 years 7 months 6 days |
Expected life, Maximum (in years) | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 1 month 6 days |
Fair value of Common Stock, Minimum | $ 1.40 | |||
Fair value of Common Stock, Maximum | $ 7.98 | |||
Fair value of Common Stock | $ 3.34 | $ 3.34 | $ 3.34 |
STOCK BASED COMPENSATION - Co_2
STOCK BASED COMPENSATION - Common Stock to Consultants (Details) - Consultant - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 0.60% | 1.40% | |
Risk-free interest rate, Maximum | 0.80% | 3.10% | |
Expected volatility, Minimum | 54.30% | 52.40% | |
Expected volatility, Maximum | 54.80% | 61.50% | |
Expected life, Minimum (in years) | 9 years 4 months 24 days | 6 years 2 months 12 days | |
Expected life, Maximum (in years) | 10 years | 10 years | |
Fair value of Common Stock, Minimum | $ 1.40 | ||
Fair value of Common Stock, Maximum | $ 7.98 | ||
Fair value of Common Stock | $ 3.34 | $ 3.34 |
STOCK BASED COMPENSATION - St_2
STOCK BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | Sep. 28, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | $ 1,800 | $ 3,999 | $ 1,074 | $ 6,216 | $ 2,333 | $ 8,006 | $ 5,215 |
Research and development | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | 1,838 | 569 | 2,755 | 1,283 | 3,276 | 2,713 | |
General and administrative expenses | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | 1,355 | 217 | 2,194 | 454 | 3,464 | 941 | |
Sales and marketing expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | 577 | 213 | 921 | 421 | 894 | 1,373 | |
Cost of sales | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | $ 229 | $ 75 | $ 346 | $ 175 | $ 372 | $ 188 |
STOCK BASED COMPENSATION - Opti
STOCK BASED COMPENSATION - Option Activity of the Plan (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of shares | |||
Outstanding at beginning of period (in shares) | 19,553 | 18,072 | |
Granted (in shares) | 8,463 | ||
Exercised (in shares) | (2,846) | (522) | |
Forfeited/expired (in shares) | (313) | (6,460) | |
Outstanding at end of period (in shares) | 16,394 | 19,553 | 18,072 |
Options vested at end of period (in shares) | 9,451 | 10,905 | |
Options vested or expected to vest at end of period (in shares) | 15,807 | 18,818 | |
Weighted-Average Exercise Price per share | |||
Outstanding at beginning of period (in dollars per share) | $ 1.53 | $ 2.01 | |
Granted (in dollars per share) | 1.51 | ||
Exercised (in dollars per share) | 1.29 | 0.62 | |
Forfeited/expired (in dollars per share) | 1.43 | 2.92 | |
Outstanding at end of period (in dollars per share) | 1.57 | 1.53 | $ 2.01 |
Options vested at end of period (in dollars per share) | 1.62 | 1.53 | |
Options vested or expected to vest at December 31, 2020 | $ 1.58 | $ 1.53 | |
Weighted-average remaining contractual term (in years) | 7 years 4 months 24 days | 7 years 9 months | 7 years 10 months 2 days |
Options vested at December 31, 2020 | 6 years 3 months 7 days | 6 years 6 months 7 days | |
Options vested or expected to vest at December 31, 2020 | 7 years 4 months 2 days | 7 years 8 months 8 days | |
Aggregate intrinsic value of options outstanding | $ 162,737 | $ 306,408 | $ 24,045 |
Weighted average grant date fair value for options granted | $ 0.98 | $ 3.52 | $ 1.78 |
Aggregate intrinsic value of options exercised | $ 1,800 | $ 3,400 | |
Options vested (in dollars) | $ 93,385 | 170,868 | |
Options vested or expected to vest (in dollars) | $ 156,825 | $ 294,824 |
STOCK BASED COMPENSATION - Rest
STOCK BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Cliff Vesting Period | 4 years | |||
Weighted-average period | 2 years 10 months 24 days | 2 years 9 months 18 days | ||
Expenses recognized | $ 3.6 | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | 4 years | ||
Cliff Vesting Period | 1 year | 1 year | ||
Unrecognized compensation costs, non-vested RSUs | $ 67.8 | $ 67.8 | $ 4.8 | |
Weighted-average period | 3 years 7 months 6 days | 3 years 3 months 18 days | ||
Expenses recognized | $ 2.7 | $ 3.4 | $ 0.6 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Balance at beginning of period, unvested shares (in shares) | 683 | |||
Issuance of additional shares (in shares) | 4,461 | 683 | ||
Vested (in shares) | 44 | |||
Balance at end of period, unvested shares (in shares) | 5,095 | 5,095 | 683 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Balance at beginning of Period, unvested shares (in dollars per share) | $ 8.02 | |||
Issuance of additional shares (in dollars per share) | 15.38 | $ 8.02 | ||
Vested (in dollars per share) | 8.13 | |||
Balance at end of Period, unvested shares (in dollars per share) | $ 14.52 | $ 14.52 | $ 8.02 |
STOCK BASED COMPENSATION - Co_3
STOCK BASED COMPENSATION - Common Stock Reserved for Future Issuance (Details) - shares | Jun. 30, 2021 | Dec. 31, 2020 |
STOCK BASED COMPENSATION | ||
Shares available for issuance under the Plan | 21,810,237 | 14,379,052 |
Common Stock warrants outstanding | 15,007,494 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Information | ||||||
Number of segments | 1 | 1 | ||||
Revenue | $ 18,977,000 | $ 2,189,000 | $ 30,290,000 | $ 5,574,000 | $ 16,470,000 | $ 26,439,000 |
Revenue recognized at a point in time | ||||||
Segment Information | ||||||
Revenue | 17,560,000 | 1,531,000 | 27,871,000 | 4,225,000 | 13,718,000 | 22,758,000 |
Revenue recognized over time | ||||||
Segment Information | ||||||
Revenue | 1,417,000 | 658,000 | 2,419,000 | 1,349,000 | 2,752,000 | 3,681,000 |
Products | ||||||
Segment Information | ||||||
Revenue | 17,560,000 | 1,531,000 | 27,871,000 | 4,225,000 | 13,718,000 | 22,758,000 |
Services | ||||||
Segment Information | ||||||
Revenue | 1,417,000 | 658,000 | 2,419,000 | 1,349,000 | 2,752,000 | 3,681,000 |
Americas | ||||||
Segment Information | ||||||
Revenue | 11,401,000 | 895,000 | 17,960,000 | 2,124,000 | 6,665,000 | 15,801,000 |
Americas | Products | ||||||
Segment Information | ||||||
Revenue | 10,497,000 | 613,000 | 16,350,000 | 1,515,000 | 5,250,000 | 12,746,000 |
Americas | Services | ||||||
Segment Information | ||||||
Revenue | 904,000 | 282,000 | 1,610,000 | 609,000 | 1,415,000 | 3,055,000 |
EMEA | ||||||
Segment Information | ||||||
Revenue | 4,150,000 | 967,000 | 6,892,000 | 2,818,000 | 7,788,000 | 8,993,000 |
EMEA | Products | ||||||
Segment Information | ||||||
Revenue | 3,769,000 | 634,000 | 6,296,000 | 2,162,000 | 6,629,000 | 8,430,000 |
EMEA | Services | ||||||
Segment Information | ||||||
Revenue | 381,000 | 333,000 | 596,000 | 656,000 | 1,159,000 | 563,000 |
APAC | ||||||
Segment Information | ||||||
Revenue | 3,426,000 | 327,000 | 5,438,000 | 632,000 | 2,017,000 | 1,645,000 |
APAC | Products | ||||||
Segment Information | ||||||
Revenue | 3,294,000 | 284,000 | 5,225,000 | 548,000 | 1,839,000 | 1,582,000 |
APAC | Services | ||||||
Segment Information | ||||||
Revenue | $ 132,000 | $ 43,000 | $ 213,000 | $ 84,000 | $ 178,000 | $ 63,000 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator for basic and diluted net loss per share: | ||||||
Net loss attributable to Common Stockholders | $ (43,180) | $ (23,766) | $ (102,288) | $ (45,570) | $ (34,015) | $ (103,596) |
Denominator for basic and diluted net loss per share: | ||||||
Weighted average shares outstanding, basic and diluted | 157,906 | 150,002 | ||||
Net loss per share-Basic and Diluted | $ (0.22) | $ (0.69) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive securities excluded from computation of earnings per share (Details) - shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 21,657,000 | 14,900,000 | 47,376 | 24,293 |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 16,394,000 | 12,964,000 | 19,553 | 18,072 |
Restricted Stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 168,000 | 1,317,000 | 683 | |
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 5,095,000 | 279 | 5,587 | |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 619,000 | 25,010 | 634 | |
Unvested Trine Founder Shares, held in escrow | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 1,851 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Feb. 26, 2021 | Feb. 16, 2021 | Mar. 10, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 |
Subsequent Event [Line Items] | ||||||||
Issuance of Common Stock for acquisitions | $ 49,142 | $ 208,989 | $ 500 | $ 3,563 | ||||
Net proceeds from warrant exercises | $ 170,665 | |||||||
Shares issued on exercise of warrants | 447,938 | |||||||
Common Stock warrants outstanding | 15,007,494 | |||||||
Restricted Stock Units | ||||||||
Subsequent Event [Line Items] | ||||||||
Issuance of additional shares (in shares) | 4,461,000 | 683,000 | ||||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Shares issued on exercise of warrants | 11,898,122 | |||||||
Common Stock warrants outstanding | 0 | |||||||
Subsequent Event | Private Placement Warrants | ||||||||
Subsequent Event [Line Items] | ||||||||
Shares issued on exercise of warrants | 5,850,346 | |||||||
Warrants exercised on a cashless basis | 10,003,000 | |||||||
Subsequent Event | Warrants | ||||||||
Subsequent Event [Line Items] | ||||||||
Warrants exercised for cash | 11,898,122 | |||||||
Net proceeds from warrant exercises | $ 136,800 | |||||||
EnvisionTEC US, LLC And Affiliates | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Payment to acquire business | $ 143,800 | |||||||
Issuance of Common Stock for acquisitions (in shares) | 5,036,142 | |||||||
Issuance of Common Stock for acquisitions | $ 159,800 | |||||||
EnvisionTEC US, LLC And Affiliates | Subsequent Event | Restricted Stock Units | ||||||||
Subsequent Event [Line Items] | ||||||||
Issuance of additional shares (in shares) | 475,848 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS $ in Thousands | Jun. 30, 2021USD ($) |
Current assets: | |
Cash and cash equivalents | $ 188,199 |
Short-term investments | 326,318 |
Accounts receivable | 13,441 |
Inventory | 25,407 |
Prepaid expenses and other current assets | 7,078 |
Total current assets | 560,443 |
Restricted cash | 676 |
Property and equipment, net | 13,228 |
Capitalized software, net | 226 |
Goodwill | 251,060 |
Intangible assets, net | 178,860 |
Other noncurrent assets | 12,210 |
Total Assets | 1,016,703 |
Current liabilities: | |
Accounts payable | 9,214 |
Customer deposits | 2,829 |
Current portion of lease liability | 1,983 |
Accrued expenses and other current liabilities | 20,968 |
Deferred revenue | 4,814 |
Current portion of contingent consideration | 1,429 |
Current portion of long term debt, net of deferred financing costs | 311 |
Total current liabilities | 41,548 |
Subscription agreement | 474 |
Contingent consideration, net of current portion | 4,655 |
Lease liability, net of current portion | 3,959 |
Deferred tax liability | 8,723 |
Total liabilities | 59,359 |
Commitments and Contingences (Note 15) | |
Stockholders' Equity | |
Preferred Stock, $0.0001 par value-authorized, 50,000,000 shares; no shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | |
Common Stock, $0.0001 par value-500,000,000 shares authorized; 259,712,899 and 226,756,733 shares issued at June 30, 2021 and December 31, 2020, respectively, 259,545,731 and 224,626,597 shares outstanding at June 30, 2021 and December 31, 2020, respectively | 26 |
Additional paid-in capital | 1,387,779 |
Accumulated deficit | (430,565) |
Accumulated other comprehensive income (loss) | 104 |
Total Stockholders' Equity | 957,344 |
Total Liabilities and Stockholders' Equity | $ 1,016,703 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 09, 2020 | Aug. 31, 2020 | Aug. 20, 2020 | Dec. 31, 2019 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||
Preferred stock, shares, issued | 0 | 0 | 0 | |||
Preferred Stock, shares, outstanding | 0 | 0 | 0 | |||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 366,366 | 500,000,000 | |
Common stock, shares, issued | 259,712,899 | 226,756,733 | 160,500,702 | |||
Common stock, shares, outstanding | 259,545,731 | 224,626,597 | 154,913,934 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | ||||||
Total revenues | $ 18,977 | $ 2,189 | $ 30,290 | $ 5,574 | $ 16,470 | $ 26,439 |
Cost of sales | ||||||
Total cost of sales | 16,605 | 10,478 | 28,505 | 16,682 | 31,519 | 50,796 |
Gross profit/(loss) | 2,372 | (8,289) | 1,785 | (11,108) | (15,049) | (24,357) |
Operating expenses | ||||||
Research and development | 15,651 | 9,827 | 26,509 | 22,167 | 43,136 | 54,656 |
Sales and marketing | 10,894 | 2,958 | 16,343 | 7,452 | 13,136 | 18,749 |
General and administrative | 13,142 | 2,964 | 26,988 | 5,589 | 20,734 | 11,283 |
In-process research and development assets acquired | 10,400 | 10,400 | ||||
Total operating expenses | 50,087 | 15,749 | 80,240 | 35,208 | 77,006 | 84,688 |
Loss from operations | (47,715) | (24,038) | (78,455) | (46,316) | (92,055) | (109,045) |
Change in fair value of warrant liability | (56,576) | 56,417 | ||||
Interest expense | (51) | (51) | (125) | (155) | (328) | (503) |
Interest and other income, net | 268 | 323 | 630 | 901 | 1,011 | 5,952 |
Loss before income taxes | (34,955) | |||||
Loss before income taxes | (47,498) | (23,766) | (134,526) | (45,570) | (34,955) | (103,596) |
Income tax benefit | 4,318 | 0 | 32,238 | 0 | 940 | 0 |
Net loss | $ (43,180) | $ (23,766) | $ (102,288) | $ (45,570) | $ (34,015) | $ (103,596) |
Net loss per share-Basic | $ (0.17) | $ (0.15) | $ (0.41) | $ (0.29) | ||
Net loss per share-Diluted | $ (0.17) | $ (0.15) | $ (0.41) | $ (0.29) | ||
Weighted average shares outstanding basic | 255,097,905 | 158,124,160 | 246,717,400 | 157,186,939 | ||
Weighted average shares outstanding diluted | 255,098,000 | 158,124,000 | 246,717,000 | 157,187,000 | ||
Net loss per share-basic and diluted | $ (0.22) | $ (0.69) | ||||
Weighted average shares outstanding, basic and diluted | 157,906,000 | 150,002,000 | ||||
Products | ||||||
Revenues | ||||||
Total revenues | $ 17,560 | $ 1,531 | $ 27,871 | $ 4,225 | $ 13,718 | $ 22,758 |
Cost of sales | ||||||
Total cost of sales | 15,490 | 9,372 | 25,977 | 14,413 | 26,945 | 45,268 |
Services | ||||||
Revenues | ||||||
Total revenues | 1,417 | 658 | 2,419 | 1,349 | 2,752 | 3,681 |
Cost of sales | ||||||
Total cost of sales | $ 1,115 | $ 1,106 | $ 2,528 | $ 2,269 | $ 4,574 | $ 5,528 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Net loss | $ (43,180) | $ (102,288) |
Other comprehensive (loss) income, net of taxes: | ||
Unrealized gain (loss) on available-for-sale marketable securities, net | (5) | (4) |
Foreign currency translation adjustment | 130 | 117 |
Total comprehensive loss, net of taxes of $0 | $ (43,055) | $ (102,175) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||
Comprehensive loss, net of taxes | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, AdjustmentLegacy Convertible Preferred Stock | Cumulative Effect, Period of Adoption, AdjustmentCommon Stock | Cumulative Effect, Period of Adoption, AdjustmentAdditional Paid-In Capital | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted BalanceCommon Stock | Cumulative Effect, Period of Adoption, Adjusted BalanceAdditional Paid-In Capital | Cumulative Effect, Period of Adoption, Adjusted BalanceAccumulated Deficit | Cumulative Effect, Period of Adoption, Adjusted BalanceAccumulated Other Comprehensive (Loss) Income | Cumulative Effect, Period of Adoption, Adjusted BalanceNotes Receivable | Cumulative Effect, Period of Adoption, Adjusted Balance | Legacy Convertible Preferred Stock | Series E Preferred StockCommon Stock | Series E Preferred StockAdditional Paid-In Capital | Series E Preferred Stock | Series E1 Preferred StockCommon Stock | Series E1 Preferred StockAdditional Paid-In Capital | Series E1 Preferred Stock | Common StockIn-process research and development | Common Stock | Additional Paid-In CapitalIn-process research and development | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Notes Receivable | In-process research and development | Total |
BALANCE at Dec. 31, 2018 | $ (276,889) | $ 276,889 | ||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2018 | (84,092,669) | 84,092,669 | ||||||||||||||||||||||||
BALANCE at Dec. 31, 2019 | $ (436,533) | $ 436,533 | ||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2019 | (100,038,109) | 100,038,109 | ||||||||||||||||||||||||
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Abstract] | ||||||||||||||||||||||||||
Issuance of Preferred Stock (in shares) | 16,426,267 | 3,046,623 | ||||||||||||||||||||||||
Issuance of Preferred Stock | $ 2 | $ 134,665 | $ 134,667 | $ 24,977 | $ 24,977 | |||||||||||||||||||||
BALANCE at Dec. 31, 2018 | $ 11 | $ 276,878 | $ 276,889 | $ 13 | $ 283,318 | $ (190,666) | $ (96) | $ (249) | $ 92,320 | $ 2 | $ 6,440 | $ (190,666) | $ (96) | $ (249) | $ (184,569) | |||||||||||
BALANCE (in shares) at Dec. 31, 2018 | 106,977,440 | 126,329,695 | 19,352,255 | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Exercise of Common Stock options | 708 | 708 | ||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 1,217,255 | |||||||||||||||||||||||||
Vesting of restricted Common Stock | $ 1 | 7 | 8 | |||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 6,904,182 | |||||||||||||||||||||||||
Issuance of Common Stock for acquisitions | 3,563 | 3,563 | ||||||||||||||||||||||||
Issuance of Common Stock for acquisitions (in shares) | 1,066,373 | |||||||||||||||||||||||||
Issuance of common stock for acquired in-process research and development | 3,563 | |||||||||||||||||||||||||
Stock-based compensation expense | 5,215 | 5,215 | ||||||||||||||||||||||||
Common Stock warrants issued | 1,038 | 1,038 | ||||||||||||||||||||||||
Net loss | (103,596) | (103,596) | ||||||||||||||||||||||||
Other comprehensive income (loss) | 171 | 171 | ||||||||||||||||||||||||
BALANCE at Dec. 31, 2019 | $ 13 | 436,520 | 436,533 | $ 16 | 453,242 | (294,262) | 75 | 159,071 | $ 3 | 16,722 | (294,262) | 75 | (277,462) | |||||||||||||
BALANCE (in shares) at Dec. 31, 2019 | 128,100,821 | 154,913,934 | 26,813,113 | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Repayment of notes receivable | (249) | $ 249 | ||||||||||||||||||||||||
Repayment of notes receivable (in shares) | (76,461) | |||||||||||||||||||||||||
Exercise of Common Stock options | 136 | 136 | ||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 314,809 | |||||||||||||||||||||||||
Vesting of restricted Common Stock | 4 | 4 | ||||||||||||||||||||||||
Vesting of restricted stock units (in shares) | 3,500,915 | |||||||||||||||||||||||||
Stock-based compensation expense | 2,333 | 2,333 | ||||||||||||||||||||||||
Common Stock warrants issued | 211 | 211 | ||||||||||||||||||||||||
Net loss | (45,570) | (45,570) | ||||||||||||||||||||||||
Other comprehensive income (loss) | (27) | (27) | ||||||||||||||||||||||||
BALANCE at Jun. 30, 2020 | $ 16 | 455,926 | (339,832) | 48 | $ 116,158 | |||||||||||||||||||||
BALANCE (in shares) at Jun. 30, 2020 | 158,729,658 | |||||||||||||||||||||||||
BALANCE at Dec. 31, 2019 | $ (436,533) | $ 436,533 | ||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2019 | (100,038,109) | 100,038,109 | ||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2020 | 100,038,109 | |||||||||||||||||||||||||
BALANCE at Dec. 31, 2019 | $ 13 | 436,520 | 436,533 | $ 16 | 453,242 | (294,262) | 75 | 159,071 | $ 3 | 16,722 | (294,262) | 75 | $ (277,462) | |||||||||||||
BALANCE (in shares) at Dec. 31, 2019 | 128,100,821 | 154,913,934 | 26,813,113 | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Exercise of Common Stock options | 325 | 325 | ||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 521,925 | |||||||||||||||||||||||||
Vesting of restricted Common Stock | $ 1 | 6 | 7 | |||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 5,307,357 | |||||||||||||||||||||||||
Repurchase of shares for employee tax withholdings (in shares) | (9,308) | |||||||||||||||||||||||||
Issuance of Common Stock for acquisitions | 500 | 500 | ||||||||||||||||||||||||
Issuance of Common Stock for acquisitions (in shares) | 61,060 | |||||||||||||||||||||||||
Issuance of common stock for acquired in-process research and development | 500 | |||||||||||||||||||||||||
Stock-based compensation expense | 8,006 | 8,006 | ||||||||||||||||||||||||
Common Stock warrants issued | 1,915 | 1,915 | ||||||||||||||||||||||||
Common Stock warrants issued (in shares) | 692,366 | |||||||||||||||||||||||||
Net loss | (34,015) | (34,015) | ||||||||||||||||||||||||
Other comprehensive income (loss) | (84) | (84) | ||||||||||||||||||||||||
BALANCE at Dec. 31, 2020 | $ 23 | 844,188 | (328,277) | (9) | 515,925 | |||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2020 | 224,626,597 | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Reverse recapitalization, net of transaction costs | $ 6 | 380,295 | 380,301 | |||||||||||||||||||||||
Reverse recapitalization, net of transaction costs (in shares) | 63,139,263 | |||||||||||||||||||||||||
BALANCE at Mar. 31, 2020 | $ (436,533) | $ 436,533 | ||||||||||||||||||||||||
BALANCE (in shares) at Mar. 31, 2020 | (100,038,109) | 100,038,109 | ||||||||||||||||||||||||
BALANCE at Mar. 31, 2020 | $ 13 | $ 438,037 | $ 438,050 | $ 16 | $ 454,759 | $ (316,066) | $ (84) | $ 138,625 | $ 3 | 16,722 | (316,066) | (84) | (299,425) | |||||||||||||
BALANCE (in shares) at Mar. 31, 2020 | 130,138,012 | 156,951,125 | 26,813,113 | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Exercise of Common Stock options | 4 | 4 | ||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 28,173 | |||||||||||||||||||||||||
Vesting of restricted Common Stock | 2 | 2 | ||||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 1,750,360 | |||||||||||||||||||||||||
Stock-based compensation expense | 1,074 | 1,074 | ||||||||||||||||||||||||
Common Stock warrants issued | 87 | 87 | ||||||||||||||||||||||||
Net loss | (23,766) | (23,766) | ||||||||||||||||||||||||
Other comprehensive income (loss) | 132 | 132 | ||||||||||||||||||||||||
BALANCE at Jun. 30, 2020 | $ 16 | 455,926 | (339,832) | 48 | $ 116,158 | |||||||||||||||||||||
BALANCE (in shares) at Jun. 30, 2020 | 158,729,658 | |||||||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2020 | 100,038,109 | |||||||||||||||||||||||||
BALANCE at Dec. 31, 2020 | $ 23 | 844,188 | (328,277) | (9) | $ 515,925 | |||||||||||||||||||||
BALANCE (in shares) at Dec. 31, 2020 | 224,626,597 | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Exercise of Common Stock options | 3,665 | 3,665 | ||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 2,846,734 | |||||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 112,030 | |||||||||||||||||||||||||
Vesting of restricted stock units (in shares) | 43,921 | |||||||||||||||||||||||||
Repurchase of shares for employee tax withholdings | (145) | (145) | ||||||||||||||||||||||||
Repurchase of shares for employee tax withholdings (in shares) | (9,172) | |||||||||||||||||||||||||
Issuance of Common Stock for acquisitions | $ 1 | 208,988 | 208,989 | |||||||||||||||||||||||
Issuance of Common Stock for acquisitions (in shares) | 9,049,338 | |||||||||||||||||||||||||
Issuance of common stock for acquired in-process research and development | $ 4,300 | $ 4,300 | ||||||||||||||||||||||||
Issuance of common stock for acquired in-process research and development (in shares) | 334,370 | |||||||||||||||||||||||||
Stock-based compensation expense | 6,216 | 6,216 | ||||||||||||||||||||||||
Vesting of Trine Founder shares (in shares) | 1,850,938 | |||||||||||||||||||||||||
Exercise of warrants | $ 2 | 320,567 | 320,569 | |||||||||||||||||||||||
Exercise of warrants (in shares) | 20,690,975 | |||||||||||||||||||||||||
Net loss | (102,288) | (102,288) | ||||||||||||||||||||||||
Other comprehensive income (loss) | 113 | 113 | ||||||||||||||||||||||||
BALANCE at Jun. 30, 2021 | $ 26 | 1,387,779 | (430,565) | 104 | 957,344 | |||||||||||||||||||||
BALANCE (in shares) at Jun. 30, 2021 | 259,545,731 | |||||||||||||||||||||||||
BALANCE at Mar. 31, 2021 | $ 25 | 1,326,945 | (387,385) | (21) | 939,564 | |||||||||||||||||||||
BALANCE (in shares) at Mar. 31, 2021 | 252,436,919 | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||
Exercise of Common Stock options | 3,485 | 3,485 | ||||||||||||||||||||||||
Exercise of Common Stock options (in shares) | 2,683,506 | |||||||||||||||||||||||||
Vesting of restricted Common Stock (in shares) | 56,015 | |||||||||||||||||||||||||
Vesting of restricted stock units (in shares) | 28,656 | |||||||||||||||||||||||||
Repurchase of shares for employee tax withholdings | (91) | (91) | ||||||||||||||||||||||||
Repurchase of shares for employee tax withholdings (in shares) | (6,931) | |||||||||||||||||||||||||
Issuance of Common Stock for acquisitions | $ 1 | 49,141 | 49,142 | |||||||||||||||||||||||
Issuance of Common Stock for acquisitions (in shares) | 4,013,196 | |||||||||||||||||||||||||
Issuance of common stock for acquired in-process research and development | $ 4,300 | $ 4,300 | ||||||||||||||||||||||||
Issuance of common stock for acquired in-process research and development (in shares) | 334,370 | |||||||||||||||||||||||||
Stock-based compensation expense | 3,999 | 3,999 | ||||||||||||||||||||||||
Net loss | (43,180) | (43,180) | ||||||||||||||||||||||||
Other comprehensive income (loss) | 125 | 125 | ||||||||||||||||||||||||
BALANCE at Jun. 30, 2021 | $ 26 | $ 1,387,779 | $ (430,565) | $ 104 | $ 957,344 | |||||||||||||||||||||
BALANCE (in shares) at Jun. 30, 2021 | 259,545,731 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||||
Net loss | $ (102,288) | $ (45,570) | $ (34,015) | $ (103,596) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 9,524 | 4,475 | 8,589 | 8,087 |
Stock-based compensation | 6,216 | 2,333 | 8,006 | 5,215 |
Change in fair value of warrant liability | 56,576 | (56,417) | ||
Change in fair value of subscription agreement | 474 | |||
Expense related to Common Stock warrants issued | 43 | 1,915 | 1,038 | |
Amortization (accretion) of discount on investments | 1,304 | 75 | (1,570) | |
Amortization of debt financing cost | 9 | 10 | 19 | 19 |
Provision for bad debt | 164 | 285 | 377 | 199 |
Acquired in-process research and development | 10,400 | |||
(Gain) loss on disposal of property and equipment | (7) | 10 | 18 | (7) |
Gain on investment, related to Make Composites, Inc. | 120 | |||
Net increase in accrued interest related to marketable securities | (1,062) | (3) | (36) | |
Net unrealized (gain) loss on other investments | (517) | |||
Deferred tax benefit | (32,535) | (940) | ||
Impairment of capitalized software | 444 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (3,584) | 1,562 | (2,370) | (1,664) |
Inventory | (6,635) | (1,378) | (1,303) | (1,694) |
Prepaid expenses and other current assets | (3,732) | 1,033 | 901 | 809 |
Other assets | (170) | |||
Accounts payable | (155) | (1,178) | (2,637) | (4,455) |
Accrued expenses and other current liabilities | (5,119) | (1,074) | (2,391) | 3,272 |
Customer deposits | (1,372) | (57) | (845) | 152 |
Deferred revenue | 693 | (756) | 774 | (1,693) |
Change in right of use assets and lease liabilities, net | (92) | (162) | (328) | (296) |
Net cash used in operating activities | (71,908) | (40,304) | (80,575) | (97,202) |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (1,355) | (1,819) | ||
Purchase of other investments | (3,620) | (3,000) | ||
Purchase of marketable securities | (281,438) | (24,142) | (136,286) | (215,584) |
Proceeds from sales and maturities of marketable securities | 66,741 | 74,616 | 109,016 | 196,836 |
Cash paid to acquire in-process research and development | (6,050) | |||
Cash paid for acquisitions, net of cash acquired | (161,837) | (5,284) | (96) | |
Net cash (used in) provided by investing activities | (387,559) | 48,655 | (36,983) | (26,032) |
Capitalized software | (321) | |||
Cash flows from financing activities: | ||||
Proceeds from the exercise of stock options | 3,665 | 135 | 325 | 708 |
Proceeds from the exercise of stock warrants | 170,665 | |||
Payment of taxes related to net share settlement of upon vesting of restricted stock units | (145) | |||
Proceeds from PPP loan | 5,379 | 5,379 | ||
Repayment of PPP loan | (5,379) | (5,379) | ||
Repayment of term loan | (10,000) | |||
Net cash provided by financing activities | 164,185 | 135 | 534,922 | 160,352 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (295,282) | 8,486 | 417,364 | 37,118 |
Effect of exchange rate changes | 20 | |||
Cash and cash equivalents at beginning of period | 483,525 | 66,161 | 66,161 | 29,043 |
Restricted cash at beginning of period | 612 | 612 | 612 | 612 |
Cash and cash equivalents at end of period | 188,199 | 74,647 | 483,525 | 66,161 |
Restricted cash at end of period | 676 | 612 | 612 | 612 |
Total cash, cash equivalents and restricted cash, end of period | 188,875 | 75,259 | 484,137 | 66,773 |
Proceeds from Preferred Stock issuances, net of issuance cost | 159,644 | |||
Supplemental cash flow information: | ||||
Interest paid | 125 | 182 | 322 | 485 |
Taxes paid | 150 | |||
Non-cash investing and financing activities: | ||||
Net unrealized loss on investments | 4 | (1,426) | ||
Exercise of private placement warrants | 149,904 | |||
Common Stock issued for acquisitions | 208,989 | 500 | 3,563 | |
Common Stock issued for acquisition of in-process research and development | 500 | 3,563 | ||
Cash held back in acquisitions | 50 | |||
Additions to right of use assets and lease liabilities | 852 | 296 | ||
Purchase of property and equipment included in accounts payable | 33 | 139 | 109 | |
Purchase of property and equipment included in accrued expense | 33 | $ 139 | 109 | |
Contingent consideration in connection with acquisitions | 6 | |||
Net liabilities assumed from Trine in Business Combination | 152,395 | |||
Accrued reverse recapitalization transaction costs | 1,901 | |||
Common Stock forfeited in satisfaction of note receivable | $ 249 | |||
Accrued purchase price for asset acquisition | $ 200 | |||
In-process research and development | ||||
Non-cash investing and financing activities: | ||||
Common Stock issued for acquisition of in-process research and development | $ 4,300 |
ORGANIZATION, NATURE OF BUSIN_3
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES | ||
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES | 1. ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES Organization and Nature of Business Desktop Metal, Inc. is a Delaware corporation headquartered in Burlington, Massachusetts. The company was founded in 2015 with the mission of accelerating the transformation of manufacturing with an expansive portfolio of 3D printing solutions focused on the production of end-use parts. The Company designs, produces and distributes additive manufacturing solutions comprising hardware, software, materials, parts, and services to businesses across a variety of end markets. On December 9, 2020 (the “Closing Date”), Trine Acquisition Corp. (“Trine”) consummated the previously announced merger pursuant to the Agreement and Plan of Merger, dated August 26, 2020, by and among Trine, Desktop Metal, Inc. and Sparrow Merger Sub, Inc., pursuant to which Sparrow Merger Sub, Inc. merged with and into Desktop Metal, Inc., with Desktop Metal, Inc. becoming our wholly owned subsidiary (the “Business Combination”). Upon the closing of the Business Combination, Trine changed its name to Desktop Metal, Inc. and Desktop Metal, Inc. changed its name to Desktop Metal Operating, Inc. Unless otherwise indicated or the context otherwise requires, references in this Quarterly Report on Form 10-Q to the “Company” and “Desktop Metal” refer to the consolidated operations of Desktop Metal, Inc. and its subsidiaries. References to “Trine” refer to the company prior to the consummation of the Business Combination and references to “Legacy Desktop Metal” refer to Desktop Metal Operating, Inc. prior to the consummation of the Business Combination. Legacy Desktop Metal was deemed the accounting acquirer in the Business Combination based on an analysis of the criteria outlined in Accounting Standards Codification (“ASC”) 805. This determination was primarily based on Legacy Desktop Metal’s stockholders prior to the Business Combination having a majority of the voting power in the combined company, Legacy Desktop Metal having the ability to appoint a majority of the Board of Directors of the combined company, Legacy Desktop Metal’s existing management comprising the senior management of the combined company, Legacy Desktop Metal comprising the ongoing operations of the combined company, Legacy Desktop Metal being the larger entity based on historical revenues and business operations, and the combined company assuming Legacy Desktop Metal’s name. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Legacy Desktop Metal issuing stock for the net assets of Trine, accompanied by a recapitalization. The net assets of Trine are stated at historical cost, with no goodwill or other intangible assets recorded. While Trine was the legal acquirer in the Business Combination, because Legacy Desktop Metal was deemed the accounting acquirer, the historical financial statements of Legacy Desktop Metal became the historical financial statements of the combined company upon the consummation of the Business Combination. As a result, the financial statements included in this report reflect (i) the historical operating results of Legacy Desktop Metal prior to the Business Combination; (ii) the combined results of Trine and Legacy Desktop Metal following the close of the Business Combination; (iii) the assets and liabilities of Legacy Desktop Metal at their historical cost; and (iv) the Company’s equity structure for all periods presented. In accordance with guidance applicable to these circumstances, the equity structure has been restated in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to Legacy Desktop Metal’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Desktop Metal convertible preferred stock and Legacy Desktop Metal common stock prior to the Business Combination have been retroactively restated as shares reflecting the exchange ratio of 1.22122 established in the Business Combination. Legacy Desktop Metal’s convertible preferred stock previously classified as mezzanine was retroactively adjusted, converted into Common Stock, and reclassified to permanent as a result of the reverse recapitalization. Risks and Uncertainties The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including, but not limited to, the need for successful development of products, the need for additional funding, competition from substitute products and services from larger companies, protection of proprietary technology, patent litigation, dependence on key individuals, and risks associated with changes in information technology. The Company has financed its operations to date primarily with proceeds from the sale of preferred stock and the Business Combination. The Company’s long-term success is dependent upon its ability to successfully market its products and services; generate revenue; maintain or reduce its operating costs and expenses; meet its obligations; obtain additional capital when needed; and, ultimately, achieve profitable operations. Management believes that existing cash and investments as of June 30, 2021 will be sufficient to fund operating and capital expenditure requirements through at least twelve months from the date of issuance of these consolidated financial statements. | 1. ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES Organization and Nature of Business Desktop Metal, Inc. is a Delaware corporation headquartered in Burlington, Massachusetts. The company was founded in 2015 and is accelerating the transformation of manufacturing with 3D printing solutions for engineers, designers, and manufacturers. The Company designs, produces and markets 3D printing systems to a variety of end customers. On December 9, 2020 (the “Closing Date”), Trine Acquisition Corp. (“Trine”) consummated the previously announced merger pursuant to the Agreement and Plan of Merger, dated August 26, 2020, by and among Trine, Desktop Metal, Inc. and Sparrow Merger Sub, Inc., pursuant to which Sparrow Merger Sub, Inc. merged with and into Desktop Metal, Inc., with Desktop Metal, Inc. becoming our wholly owned subsidiary (the “Business Combination”). Upon the closing of the Business Combination, Trine changed its name to Desktop Metal, Inc. and Desktop Metal, Inc. changed its name to Desktop Metal Operating, Inc. Unless otherwise indicated or the context otherwise requires, references in this Annual Report on Form 10-K/A to the “Company” and “Desktop Metal” refer to the consolidated operations of Desktop Metal, Inc. and its subsidiaries. References to “Trine” refer to the company prior to the consummation of the Business Combination and references to “Legacy Desktop Metal” refer to Desktop Metal Operating, Inc. prior to the consummation of the Business Combination. Legacy Desktop Metal was deemed the accounting acquirer in the Business Combination based on an analysis of the criteria outlined in Accounting Standards Codification (“ASC”) 805. This determination was primarily based on Legacy Desktop Metal’s stockholders prior to the Business Combination having a majority of the voting power in the combined company, Legacy Desktop Metal having the ability to appoint a majority of the Board of Directors of the combined company, Legacy Desktop Metal’s existing management comprising the senior management of the combined company, Legacy Desktop Metal comprising the ongoing operations of the combined company, Legacy Desktop Metal being the larger entity based on historical revenues and business operations, and the combined company assuming Legacy Desktop Metal’s name. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Legacy Desktop Metal issuing stock for the net assets of Trine, accompanied by a recapitalization. The net assets of Trine are stated at historical cost, with no goodwill or other intangible assets recorded. While Trine was the legal acquirer in the Business Combination, because Legacy Desktop Metal was deemed the accounting acquirer, the historical financial statements of Legacy Desktop Metal became the historical financial statements of the combined company upon the consummation of the Business Combination. As a result, the financial statements included in this report reflect (i) the historical operating results of Legacy Desktop Metal prior to the Business Combination; (ii) the combined results of Trine and Legacy Desktop Metal following the close of the Business Combination; (iii) the assets and liabilities of Legacy Desktop Metal at their historical cost; and (iv) the Company’s equity structure for all periods presented. In accordance with guidance applicable to these circumstances, the equity structure has been restated in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to Legacy Desktop Metal’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Desktop Metal convertible preferred stock and Legacy Desktop Metal common stock prior to the Business Combination have been retroactively restated as shares reflecting the exchange ratio of 1.22122 established in the Business Combination. Legacy Desktop Metal’s convertible preferred stock previously classified as mezzanine was retroactively adjusted, converted into Common Stock, and reclassified to permanent as a result of the reverse recapitalization. Risks and Uncertainties The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including, but not limited to, the need for successful development of products, the need for additional funding, competition from substitute products and services from larger companies, protection of proprietary technology, patent litigation, dependence on key individuals, and risks associated with changes in information technology. The Company has financed its operations to date primarily with proceeds from the sale of preferred stock and the Business Combination. The Company’s long-term success is dependent upon its ability to successfully market its products and services; generate revenue; maintain or reduce its operating costs and expenses; meet its obligations; obtain additional capital when needed; and, ultimately, achieve profitable operations. Management believes that existing cash and investments as of December 31, 2020 will be sufficient to fund operating and capital expenditure requirements through at least twelve months from the date of issuance of these consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The condensed consolidated financial statements include the Company’s accounts and those of its subsidiaries. In the opinion of the Company’s management, the financial information for the interim periods presented reflects all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. The results reported in these condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (“COVID-19”) to be a pandemic. As of June 30, 2021, the impact of the COVID-19 pandemic continues to unfold and there has been uncertainty and disruption in the global economy and financial markets. The Company has considered the COVID-19 pandemic related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. The COVID-19 pandemic, as well as the response to mitigate the spread and effects of COVID-19, has impacted the Company and its customers, as well as the demand for its products and services. The impact of COVID-19 on the Company’s operational results in subsequent periods will largely depend on future developments, and cannot be accurately predicted. These developments may include, but are not limited to, new information concerning the severity of COVID-19, the degree of success of actions taken to contain or treat COVID-19 and the reactions by consumers, companies, governmental entities, and capital markets to such actions. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to the financial statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2020. See the below discussion of changes to the Company’s policies for foreign currency translation, products revenue and services revenue, warranty reserve, intangible assets, asset acquisitions, and contingent consideration, due to 2021 business combinations and asset acquisitions. There have been no other changes to the Company’s significant accounting policies during the first six months of fiscal year 2021. Foreign Currency Translation The Company translates assets and liabilities of its foreign subsidiaries from their respective functional currencies to U.S. Dollars at the appropriate spot rates as of the balance sheet date. The functional currency of all wholly owned subsidiaries is U.S. Dollars, except for EnvisionTEC GmbH and Aerosint, for which it is Euros. The functional currency of the Company's operations outside the United States is generally the local currency of the country where the operations are located or U.S. Dollars. The results of operations are translated into U.S. Dollars at a monthly average rate, calculated using daily exchange rates. Differences arising from the translation of opening balance sheets of these entities to the rate at the end of the fiscal period are recognized in accumulated other comprehensive (loss) income. The differences arising from the translation of foreign results at the average rate are also recognized in accumulated other comprehensive (loss) income. Such translation differences are recognized as income or expense in the period in which the Company disposes of the operations. Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. All such differences are recorded in Interest and other income, net in the condensed consolidated statements of operations. Products Revenue and Services Revenue Products revenue include sales of the Company’s additive manufacturing systems as well as sale of related accessories and consumables. These consumables are primarily comprised of materials, which are used by the 3D printers during the printing process to produce parts, as well as replacement parts for items consumed during system operations. Certain on-device software is embedded with the hardware and sold with the product bundle and is included within product revenue. Revenue from products is recognized upon transfer of control, which is generally at the point of shipment. Services revenue consists of installation, training, and post-installation hardware and software support, as well as various software solutions the Company offers to facilitate the operation of the Company’s products. The Company offers multiple software products, which are licensed through either a cloud-based solution and/or on-device software, depending on the product. For the cloud-based solution, the Company typically provides an annual subscription that the customer does not have the right to take possession of and is renewable at expiration. The revenue from the cloud-based solution is recognized ratably over the annual term as the Company considers the services provided under the cloud-based solution to be a series of distinct performance obligations, as the Company provides continuous daily access to the cloud solution. For on-device software subscriptions, the Company typically recognizes revenue once the customer has been given access to the software. When the Company enters into development contracts, control of the development service is transferred over time, and the related revenue is recognized as services are performed. For certain products, the Company offers customers an optional extended warranty beyond the initial warranty period. The optional extended warranty is accounted for as a service-type warranty. Extended warranty revenue is deferred and recognized on a straight-line basis over the service-type warranty period of the contract and the associated costs are recognized as incurred. Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The amount of consideration is typically a fixed price at the contract inception. Consideration from shipping and handling is recorded on a gross basis within product revenue. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Nature of Products and Services The Company sells its products primarily through authorized resellers, independent sales agents, and its own sales force. Revenue from hardware and consumables is recognized upon transfer of control, which is generally at the point of shipment. The Company’s post-installation support is primarily sold through one-year annual contracts and such revenue is recognized ratably over the term of the agreement. Service revenue from installation and training is recognized as performed. The Company’s terms of sale generally provide payment terms that are customary in the countries where the Company transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. Due to the short-term nature of the Company’s contracts, substantially all of the outstanding performance obligations are recognized within one year. Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Significant Judgements The Company enters into contracts with customers that can include various combinations of hardware products, software licenses, and services, which are distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources and (ii) the Company’s promise to transfer the products, software, or services to the customer is separately identifiable from other promises in the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgement is required to determine the standalone selling price (“SSP”). The transaction price is allocated to each distinct performance obligation on a relative standalone selling price basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on historical transaction data of the observable prices of hardware products and consumables sold separately in comparable circumstances to similar customers, observable renewal rates for software and post-installation support, and the Company’s best estimate of the selling price at which the Company would have sold the product regularly on a stand-alone basis for training and installation. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. Warranty Reserve Substantially all of the Company’s hardware and software products are covered by a standard assurance warranty of one year within the United States and 13 months internationally, and estimated warranty obligations are recorded as an expense at the time or revenue recognition. In the event of a failure of hardware product or software covered by this warranty, the Company will repair or replace the software or hardware product. For certain products, the Company offers customers an optional extended warranty after the initial warranty period. The optional extended warranty is accounted for as a service-type warranty; therefore, costs are recognized as incurred and revenue is recognized over the service-type warranty period. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues in its installed base for which the Company expects to incur an obligation. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the adequacy of the warranty reserve is not indicative of future requirements, additional or reduced warranty reserves may be required. Property and Equipment Property and equipment is stated at cost. Expenditures for repairs and maintenance are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the determination of net income or loss. Depreciation is expensed using the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Useful Life Equipment 2-12 years Furniture and fixtures 3-5 years Computer equipment 3 years Tooling 3 years Software 2-3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease Intangible Assets Intangible assets consist of identifiable intangible assets, including developed technology, trade names, and customer relationships, resulting from the Company’s acquisitions. The Company evaluates definite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If indicators of impairment are present, the Company then compares the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value. If such assets are impaired, the impairment recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. To date, there have been no impairments of intangible assets. Intangible assets are amortized over their useful life. Asset Acquisitions Acquisitions of assets or a group of assets that do not meet the definition of a business are accounted for as asset acquisitions using the cost accumulation method, whereby the cost of the acquisition, including certain transaction costs, is allocated to the assets acquired on the basis of relative fair values. No goodwill is recognized in an asset acquisition. Intangible assets that are acquired in an asset acquisition for use in research and development activities which have an alternative future use are capitalized as in-process research and development (“IPR&D”). Acquired IPR&D which has no alternative future use is recorded as research and development expense at acquisition. Contingent Consideration Contingent consideration represents potential future payments that the Company may be required to pay in the event negotiated milestones are met in connection with a business acquisition. Contingent consideration is recorded as a liability at the date of acquisition at fair value. The fair value of contingent consideration related to revenue metrics is estimated using a Monte Carlo simulation in a risk-neutral framework. Under this approach, the value of contingent consideration related to revenue metrics is calculated as the average present value of contingent consideration payments over all simulated paths. The fair value of contingent consideration related to technical developments is estimated using a scenario-based approach, which is a special case of the income approach that uses several possible future scenarios. Under this approach, the value of the technical milestone payment is calculated as the probability-weighted payment across all scenarios. Significant increases or decreases in any of the probabilities of success or changes in expected timelines for achievement of any of the revenue or technical milestones could result in a significantly higher or lower fair value of the contingent consideration liability. The fair value of the contingent consideration at each reporting date is updated by reflecting the changes in fair value reflected within research and development expenses in the Company’s condensed consolidated statements of operations. Recently Issued Accounting Standards Recently Adopted Accounting Guidance In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes, Income Taxes Recent Accounting Guidance Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses. | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). Restatement of Previously Issued Financial Statements On April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the Securities and Exchange Commission 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 Statement”). Specifically, the SEC Statement focused in part on provisions in warrant agreements that provide for potential changes to the settlement amounts dependent upon the characteristics of the warrant holder and because the holder of a warrant is not an input into the pricing of a fixed-for-fixed option on equity shares, such provision would preclude the warrant from being classified in equity and thus the warrant should be classified as a liability. As a result of the SEC Statement, the Company reevaluated the accounting treatment of the warrants assumed as part of the business combination with Trine and associated reverse recapitalization on December 9, 2020. Simultaneously with the consummation of Trine’s initial public offering, Trine Sponsor IH, LLC (the “Sponsor”) purchased warrants to purchase shares of Common Stock (the “Private Placement Warrants”) in a private placement. Trine further issued an unsecured promissory note to the Sponsor, which was converted into additional Private Placement Warrants. The Private Placement Warrants contain exercise and settlement features that may change with a change in the holder, which precludes the Private Placement Warrants from being considered indexed to the Company’s own stock and therefore, precludes the Private Placement Warrants from meeting the scope exception from derivative accounting prescribed by Accounting Standards Codification 815, Derivatives and Hedging (“ASC 815”). As such, the Private Placement Warrants do not meet the conditions to be classified within equity under the Statement and should be presented as a liability. The Company has concluded that the Private Placement Warrants are to be restated and classified as a liability measured at fair value on the Company’s consolidated balance sheet at December 31, 2020, with subsequent changes in fair value of such liability recognized as a gain or loss in the Company’s consolidated statement of operations each reporting period. The Private Placement Warrants are deemed equity instruments for income tax purposes, and accordingly, there is no tax accounting relating to changes in the fair value of the Private Placement Warrants recognized. The impact of this correction to the applicable reporting periods for the financial statement line items impacted is as follows (in thousands, except per share data): Year Ended As Reported Restatement Impact As Restated Consolidated Statements of Operations and Comprehensive Loss: Change in fair value of warrant liability $ — $ 56,417 $ 56,417 Loss before income taxes $ (91,372) $ 56,417 $ (34,955) Net loss $ (90,432) $ 56,417 $ (34,015) Total comprehensive loss, net of taxes of $0 $ (90,516) $ 56,417 $ (34,099) Earnings (loss) per share: Net loss per share - basic and diluted $ (0.57) $ 0.35 $ (0.22) December 31, 2020 As Reported Restatement Impact As Restated Consolidated Balance Sheets: Warrant liability $ — $ 93,328 $ 93,328 Total liabilities $ 32,656 $ 93,328 $ 125,984 Additional paid-in-capital $ 993,933 $ (149,745) $ 844,188 Accumulated deficit $ (384,694) $ 56,417 $ (328,277) Total Stockholders' Equity $ 609,253 $ (93,328) $ 515,925 These errors had a non-cash impact, as such, the statement of cash flows for the year ended December 31, 2020 reflects a decrease in net loss of $56.4 million and a corresponding adjustment of $56.4 million for the change in fair value of warrant liability, within cash used in operating activities, resulting in no change in net cash used in operating activities. This restatement did not have an impact on the Company’s operating, investing or financing cash flows as previously presented. In addition to the restated consolidated financial statements, the information contained in Notes 3, 5, 16, 17, 20 and 21 have been restated. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The functional currency of all wholly owned subsidiaries is U.S. Dollars. All intercompany transactions and balances have been eliminated in consolidation. COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (“COVID-19”) to be a pandemic. As of December 31, 2020, the impact of the COVID-19 pandemic continues to unfold and there has been uncertainty and disruption in the global economy and financial markets. The Company has considered the COVID-19 pandemic related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. The COVID-19 pandemic, as well as the response to mitigate the spread and effects of COVID-19, may impact the Company and its customers, as well as the demand for its products and services. The impact of COVID-19 on the Company’s operational results in subsequent periods will largely depend on future developments, and cannot be accurately predicted. These developments may include, but are not limited to, new information concerning the severity of COVID-19, the degree of success of actions take to contain or treat COVID-19 and the reactions by consumers, companies, governmental entities, and capital markets to such actions. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company’s management to make judgements, estimates and assumptions regarding uncertainties that affect the reported amounts of assets, liabilities and related disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, revenue recognition, collectability of receivables, realizability of inventory, goodwill, intangibles, stock-based compensation, and fair values of common stock. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of standard checking accounts, money market accounts and certain investments. The Company classifies any marketable security with an original maturity date of 90 days or less at the time of purchase as a cash equivalent. Short - Term Investments The Company invests its excess cash in fixed income instruments denominated and payable in U.S. dollars including U.S. treasury securities, commercial paper, corporate bonds and asset-backed securities in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. Short-term investments represent holdings of available-for-sale marketable securities in accordance with the Company’s investment policy and cash management strategy. Investments in marketable securities are recorded at fair value, with any unrealized gains and losses reported within accumulated other comprehensive income as a separate component of stockholders’ equity until realized or until a determination is made that an other-than-temporary decline in market value has occurred. When such reductions occur, the cost of the investment is adjusted to fair value through recording a loss on investments in the consolidated statements of operations. All investments mature within one year. Restricted Cash The Company maintains a letter of credit for the benefit of the landlord for their office facility. The issuer of the letter of credit requires the Company to maintain a deposit in the amount of $0.6 million to secure the letter, which is reported as restricted cash in the consolidated balance sheets. This letter of credit automatically renews every year until it matures on February 7, 2024; therefore, it is classified as long term in nature at December 31, 2020 and 2019. Financial Instruments The Company’s financial instruments are comprised of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and accounts payable. The Company’s other current financial assets and current financial liabilities have fair values that approximate their carrying values due to the short maturity of these balances. Warrant Liability The Private Placement Warrants contain exercise and settlement features that may change with a change in the holder, which precludes the Private Placement Warrants from being considered indexed to the Company’s own stock and therefore, precludes the Private Placement Warrants from meeting the scope exception from derivative accounting prescribed by ASC 815. As such, the Private Placement Warrants do not meet the conditions to be classified within equity under the SEC Statement and should be presented as a liability. The Company has classified the Private Placement Warrants pursuant to ASC 815 as derivative liabilities with subsequent changes in the respective fair values recognized in the consolidated statement of operations at each reporting date. Revenue Product Revenue and Service Revenue Product revenue include sales of the Company’s additive manufacturing systems as well as sale of related accessories and consumables. These consumables are primarily comprised of materials, which are used by the printers during the printing process to produce parts. Certain on-device software is embedded with the hardware and sold with the product bundle and is included within product revenue. Revenue from products is recognized upon transfer of control, which is generally at the point of shipment. Services revenue consists of installation, training, and post-installation hardware and software support, as well as various software solutions the Company offers to facilitate the design of parts and operation of the Company’s products. The Company offers multiple software products, which are licensed through either a cloud-based solution and/or an on-device software subscription, depending on the product. For the cloud-based solution, the Company typically provides an annual subscription that the customer does not have the right to take possession of and is renewable at expiration. The revenue from the cloud-based solution is recognized ratably over the annual term as the Company considers the services provided under the cloud-based solution to be a series of distinct performance obligations, as the Company provides continuous daily access to the cloud solution. For on-device software subscriptions, the Company typically recognizes revenue once the customer has been given access to the software. When the Company enters into development contracts, control of the development service is transferred over time, and the related revenue is recognized as services are performed. Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The amount of consideration is typically a fixed price at the contract inception. Consideration from shipping and handling is recorded on a gross basis within product revenue. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Nature of Products and Services The Company sells its products primarily through authorized resellers, independent sales agents, and its own sales force. Revenue from hardware and consumables is recognized upon transfer of control, which is generally at the point of shipment. The Company’s post-installation support is primarily sold through one-year annual contracts and such revenue is recognized ratably over the term of the agreement. Service revenue from installation and training is recognized as performed. The Company’s terms of sale generally provide payment terms that are customary in the countries where the Company transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. Due to the short-term nature of the Company’s contracts substantially all of the outstanding performance obligations are recognized within one year Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Significant Judgements The Company enters into contracts with customers that can include various combinations of hardware products, software licenses, and services, which are distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources and (ii) the Company’s promise to transfer the products, software, or services to the customer is separately identifiable from other promises in the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgement is required to determine the standalone selling price (“SSP”). The transaction price is allocated to each distinct performance obligation on a relative standalone selling price basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based historical transaction data of the observable prices of hardware products sold separately in comparable circumstances to similar customers, observable renewal rates for software and post- installation support, and the Company’s best estimate of the selling price at which the Company would have sold the product regularly on a stand-alone basis for training and installation. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, customer deposits and deferred revenues (contract liabilities) on the consolidated balance sheets. Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable at the time of invoicing. For most contracts, customers are invoiced when products are shipped or when services are performed. The Company will typically bill in advance for post-installation support and cloud-based software licenses, resulting in deferred revenue. The Company’s deferred revenue balance was $3.0 million and $2.2 million as of December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, the Company recognized $2.2 million of deferred revenue from 2019. The deferred revenue consists primarily of billed post-installation support and cloud-based software licenses that are recognized ratably over the term of the agreement, as well as contracts that have outstanding performance obligations or contracts that have acceptance terms that have not yet been fulfilled. When products have been delivered, but the product revenue associated with the arrangement has been deferred the Company includes the costs for the delivered items in deferred costs of sales on the consolidated balance sheets until recognition of the related revenue occurs, at which time it is recognized in cost of sales. The Company’s deferred cost of sales balance was $0.5 and $0.3 million as of December 31, 2020 and 2019, respectively. The Company’s contracts are primarily one year or less, so substantially all deferred revenue outstanding at the end of the fiscal year is recognized during the following year. The Company primarily sells products through a reseller network. Under this arrangement, the reseller is determined to be the Company’s customer, and revenue is recognized based on the amounts the Company is entitled to, reduced by any payments owed to the resellers. On certain contracts, the Company utilizes external partners and an internal sales team to sell direct to the end user. The Company acts as a principal in the contracts with users when utilizing external partners because the Company controls the product, establishing the price, and bearing the risk of nonperformance, until it is transferred to the end user. The Company records the revenue on a gross basis and commissions are recorded as a sales and marketing expense in the statement of operations. The Company recognizes its commission expense as a point-in-time expense as contract obligations are primarily completed within a one-year contract period. During the years ended December 31, 2020 and 2019, the Company paid $0.6 million and $0.4 million of commission expense, respectively. Allowance for Doubtful Accounts In evaluating the collectability of accounts receivable, the Company assesses a number of factors, including specific customers’ abilities to meet their financial obligations, the length of time receivables are past due, and historical collection experience. If circumstances related to specific customers change, or economic conditions deteriorate such that past collection experience is no longer relevant, the Company’s estimate of the recoverability of accounts receivable could be further reduced from the levels provided for in the consolidated financial statements. The Company evaluates specific accounts for which it is believed a customer may have an inability to meet their financial obligations. In these cases, judgment is applied, based on available facts and circumstances, and a specific reserve is recorded for that customer to reduce the receivable to an amount expected to be collected. These specific reserves are reevaluated and adjusted as additional information is received that impacts the amount reserved. As of December 31, 2020, and 2019, the Company has recorded $0.5 million and $0.2 million respectively, in allowance of doubtful accounts. In the years ended December 31, 2020 and 2019 the Company recorded bad debt expense of $0.4 million and $0.2 million, respectively. Net Loss Per share The Company presents basic and diluted loss per share amounts. Basic loss per share is calculated by dividing net loss available to holders of Common Stock by the weighted average number of shares of Common Stock outstanding during the applicable period. The denominator for diluted earnings per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive shares outstanding include the dilutive effect of in-the-money options and unvested Restricted Stock Agreements (“RSAs”), and unvested Restricted Stock Units (“RSUs”) using the treasury stock method. In periods in which the Company reports a net loss, diluted net loss per share is the same as basic net loss per share because dilutive shares are not assumed to have been issued if their effect is anti-dilutive. See Note 20 for further information. Warranty Reserve Substantially all of the Company’s hardware and software products are covered by a standard assurance warranty of one year, and estimated warranty obligations are recorded as an expense at the time or revenue recognition. In the event of a failure of hardware product or software covered by this warranty, the Company will repair or replace the software or hardware product. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues in its installed base for which the Company expects to incur an obligation. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the adequacy of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be required. As of December 31, 2020, and 2019 the Company has recorded $1.6 million and $1.5 million, respectively, of warranty reserve within accrued expenses and other current liabilities on the consolidated balance sheets. Warranty reserve consisted of the following (in thousands): 2020 2019 Warranty reserve, at the beginning of the year $ 1,491 $ 116 Additions to warranty reserve 346 2,352 Claims fulfilled (284) (977) Warranty reserve, at the end of the year $ 1,553 $ 1,491 Warranty reserve is recorded through cost of sales in the consolidated statements of operations. Inventory Inventory is stated at the lower of cost or net realizable value, determined on a first-in, first-out basis, and consists of the following (in thousands): December 31, 2020 2019 Work in process $ 2,896 $ 1,081 Finished goods 6,812 7,324 Total inventory $ 9,708 $ 8,405 The Company provides for inventory losses based on obsolescence and levels in excess of forecasted demand. Inventory is reduced to the estimated net realizable value based on historical usage and expected demand. Inventory provisions based on obsolescence and inventory in excess of forecasted demand are recorded through cost of sales in the consolidated statements of operations. Concentrations of Credit Risk and Off-Balance-Sheet Risk The Company has no significant off-balance-sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist mainly of cash and cash equivalents. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high-credit standing. As of December 31, 2020, and 2019, no single customer accounted for more than 10% of revenue. As of December 31, 2020 and 2019, no single customer accounted for more than 10% of total accounts receivables. Customer Deposits Payments received from customers who have placed reservations or purchase orders in advance of shipment are refundable upon cancellation or non-delivery by the Company and are included within customer deposits on the consolidated balance sheets. Other Investments The Company periodically makes investments in companies within the additive manufacturing industry. The Company monitors events or changes in circumstances that may have a significant effect on the fair value of investments, either due to impairment or based on observable price changes, and records necessary adjustments. Property and Equipment Property and equipment is stated at cost. Expenditures for repairs and maintenance are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the determination of net income or loss. Depreciation is expensed using the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Useful Life Equipment 3‑5 years Furniture and fixtures 3 years Computer equipment 3 years Tooling 3 years Software 3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease Leases The Company determines if an arrangement is a lease at inception. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. The Company assesses it plans to renew its material leases on an annual basis. Operating leases are included in other assets, current portion of lease liability, and lease liability, net of current portion on the Company’s consolidated balance sheets. Right of use (“ROU”) assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the expected remaining lease term. As the interest rate implicit in the Company’s leases is typically not readily determinable, the Company uses its incremental borrowing rate for a similar term of lease payments based on the information available at commencement date in determining the present value of future payments. The Company elected the short-term lease recognition and therefore, the Company does not recognize right of use assets or lease liabilities for leases with less than a twelve-month duration. The Company also elected the practical expedient to account for lease agreements which contain both lease and non-lease components as a single lease component. Business Combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The Company generally values the identifiable intangible assets acquired using a discounted cash flow model. The significant estimates used in valuing certain of the intangible assets, include, but are not limited to future expected cash flows of the asset, discount rates to determine the present value of the future cash flows and expected technology life cycles. Intangible assets are amortized over their estimated useful life; the period over which the Company anticipates generating economic benefit from the asset. Fair value adjustments subsequent to the acquisition date, that are not measurement period adjustments, are recognized in earnings. Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that is not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Goodwill is not amortized but is tested for impairment at least annually (as of the first day of the fourth quarter) or as circumstances indicate the value may no longer be recoverable. To assess if goodwill is impaired, the Company performs a qualitative assessment to determine whether further impairment testing is necessary. The Company then compares the carrying amount of the single reporting unit to the fair value of the reporting unit. An excess carrying value over fair value would indicate that goodwill may be impaired. The Company performed a qualitative assessment during its annual impairment review for 2020 as of October 1, 2020 and concluded that it is more likely than not that the fair value of the Company’s single reporting unit is not less than its carrying amount. Therefore, the two-step goodwill impairment test for the reporting unit was not necessary in 2020. Acquired Technology Intangible assets consist of identifiable intangible assets, including developed technology, resulting from the Company’s acquisitions. The Company evaluates definite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If indicators of impairment are present, the Company then compares the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value. If such assets are impaired, the impairment recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. To date, there have been no impairments of intangible assets. Intangible assets are amortized over their useful life. Impairment of Long-Lived Assets The Company evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant revision or that the carrying value of these assets may be impaired. The Company does not believe that any events have occurred through December 31, 2020, that would indicate its long-lived assets are impaired. Research and Development Research and development costs are expensed as incurred. Research and development expense includes costs, primarily related to salaries and benefits for employees, prototypes and design expenses, incurred to develop intellectual property and is charged to expense as incurred. Capitalized Software Costs incurred internally in researching and developing a software product to be sold to customers are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, costs incurred during the application development phase are capitalized only when the Company believes it is probable the development will result in new or additional functionality, and such software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. The Company has determined that technological feasibility for software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released, such that there are no material costs to capitalize. The Company capitalizes certain costs related to the development and implementation of cloud computing software. The types of costs capitalized during the application development phase include employee compensation, as well as consulting fees for third-party developers working on these projects. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the asset, which is typically 3 years. Advertising Expense Advertising expense is included within sales and marketing expense in the consolidated statements of operations and was $0.04 million and $0.1 million for the years ended years ended December 31, 2020 and 2019, respectively. It primarily includes promotional expenditures and is expensed as incurred; as such, efforts have not met the direct-response criteria required for capitalization. Stock-Based Compensation The Company accounts for all stock options granted to employees and nonemployees using a fair value method. The fair value of options on the date of grant is calculated using the Black-Scholes option pricing model based on key assumptions such as stock price, expected volatility and expected term. The Company’s estimates of these assumptions are primarily based on the fair value of the Company’s stock, historical data, peer company data and judgment regarding future trends and factors. In determining the exercise prices for options granted, the Company’s Board of Directors has considered the fair value of the common stock as of the measurement date. Prior to the Business Combination, the fair value of the common stock has been determined by the Board of Directors at each award grant date based |
ACQUISITIONS_2
ACQUISITIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACQUISITIONS | ||
ACQUISITIONS | 3. ACQUISITIONS 2021 Acquisitions Acquisition of EnvisionTEC On February 16, 2021, the Company acquired EnvisionTEC US, LLC and its subsidiaries (“EnvisionTEC”) pursuant to a Purchase Agreement and Plan of Merger dated January 15, 2021. This acquisition adds a comprehensive portfolio in additive manufacturing across metals, polymers and composites and grow distribution channels both in quantity and through the addition of a vertically-focused channel. The Company paid consideration of $143.8 million in cash and issued 5,036,142 shares of the Company’s Common Stock with a fair value of $159.8 million as of the close of business on the transaction date. The total purchase price was allocated to the identifiable assets acquired and liabilities assumed based on the Company’s preliminary estimates of their fair values on the acquisition date. The fair values assigned to EnvisionTEC’s tangible and intangible assets and liabilities assumed, and the related deferred tax assets and liabilities, are considered preliminary and are based on the information available at the date of the acquisition. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands): At February 16, 2021 Assets acquired: Cash and cash equivalents $ 859 Restricted cash 5,004 Accounts receivable 2,982 Inventory 8,852 Prepaid expenses and other current assets 1,081 Restricted cash - noncurrent 285 Property and equipment 1,440 Intangible assets 137,300 Other noncurrent assets 1,801 Total assets acquired $ 159,604 Liabilities assumed: Accounts payable $ 1,443 Customer deposits 2,461 Current portion of lease liability 605 Accrued expenses and other current liabilities 13,711 Liability for income taxes 480 Deferred revenue 300 Current portion of long-term debt 898 Long-term debt 285 Deferred tax liability 32,966 Lease liability, net of current portion 1,189 Total liabilities assumed $ 54,338 Net assets acquired $ 105,266 Goodwill $ 198,369 The estimated useful lives of the identifiable intangible assets acquired is as follows: Gross Value Estimated Life Acquired technology $ 77,800 7 – 12 years Trade name 8,600 13 years Customer relationships 50,900 10 years Total intangible assets $ 137,300 The goodwill resulting from the purchase price allocation is attributable to the workforce of the acquired business (which is not eligible for separate recognition as an identifiable intangible asset) and the expected synergistic benefits of expanding the combined companies’ target markets both geographically and across industries. $36.6 million of the goodwill recognized is deductible for income tax purposes. The Company incurred $4.8 million of acquisition-related and other transactional charges, including integration costs, related to this acquisition, which are included in general and administrative expenses in the condensed consolidated statements of operations. EnvisionTEC’s results are included in the Company’s consolidated results for the period from February 16, 2021 to June 30, 2021. For this period, EnvisionTEC’s net revenues were approximately $15.7 million and net loss was approximately $4.8 million. Acquisition of Adaptive 3D On May 7, 2021, the Company acquired Adaptive 3D Holdings, Inc. and its affiliates (“Adaptive 3D”) pursuant to a Purchase Agreement and Plan of Merger dated as of May 7, 2021. This acquisition expands the Company’s materials library to include photopolymer elastomers. The total purchase price is $61.8 million, consisting of $24.1 million paid in cash and 3,133,276 shares of the Company’s Common Stock with a fair value of $37.7 million as of the close of business on the transaction date. The acquisition is accounted for as a business combination using the acquisition method of accounting. The total purchase price was allocated to the identifiable assets acquired and liabilities assumed based on the Company’s preliminary estimates of their fair values on the acquisition date. The fair values assigned to Adaptive 3D’s tangible and intangible assets and liabilities assumed, and the related deferred tax assets and liabilities, are considered preliminary and are based on the information available at the date of the acquisition. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands): At May 7, 2021 Assets acquired: Cash and cash equivalents $ 2,852 Restricted cash 4,046 Accounts receivable 504 Inventory 305 Prepaid expenses and other current assets 462 Property and equipment 558 Intangible assets 27,300 Other noncurrent assets 654 Total assets acquired $ 36,681 Liabilities assumed: Accounts payable $ 280 Customer deposits Current portion of lease liability 151 Accrued expenses and other current liabilities 4,146 PPP loan payable 311 Deferred revenue 12 Lease liability, net of current portion 502 Deferred tax liability 4,768 Total liabilities assumed 10,170 Net assets acquired $ 26,511 Goodwill $ 35,265 The estimated useful lives of the identifiable intangible assets acquired is as follows: Gross Value Estimated Life Acquired technology $ 27,000 14 years Trade name 300 5 years Total intangible assets $ 27,300 The goodwill resulting from the purchase price allocation is attributable to the workforce of the acquired business (which is not eligible for separate recognition as an identifiable intangible asset) and the expected synergistic benefits of expanding the combined companies’ target markets both geographically and across industries. The goodwill recognized is not deductible for income tax purposes. The Company incurred $0.3 million of acquisition-related and other transactional charges, including integration costs, related to this acquisition, which are included in general and administrative expenses in the condensed consolidated statements of operations. Adaptive 3D’s results are included in the Company’s consolidated results for the period from May 7, 2021 to June 30, 2021. For this period, Adaptive 3D’s revenues were approximately $0.3 million, and its net loss was approximately $0.7 million. Acquisition of Aerosint On June 24, 2021, the Company entered into a Share Purchase Agreement with DM Belgium BV/SRL, Aerosint SA, the sellers named therein and representatives of such sellers (collectively “Aerosint”), pursuant to which the Company acquired all outstanding securities of Aerosint. Through this acquisition, the Company expands its portfolio of technologies with the addition of multi-material printing capabilities. The total purchase price is $17.7 million, consisting of $6.2 million paid in cash and 879,922 shares of the Company’s Common Stock with a fair value of $11.5 million as of the close of business on the transaction date. Additionally, the Company may be required to pay contingent consideration based on the achievement of revenue metrics and technical milestones over the three-year period following the transaction date, with a fair value of $6.1 million as of the transaction date. The acquisition is accounted for as a business combination using the acquisition method of accounting. The total purchase price was allocated to the identifiable assets acquired and liabilities assumed based on the Company’s preliminary estimates of their fair values on the acquisition date. The fair values assigned to Aerosint’s tangible and intangible assets and liabilities assumed, and the related deferred tax assets and liabilities, are considered preliminary and are based on the information available at the date of the acquisition. The Company is in the process of finalizing its purchase price allocation, and the tax basis of the assets and liabilities acquired. This may result in potential adjustments to the carrying value of the respective recorded assets and liabilities, establishment of certain intangible assets, revisions of useful lives of intangible assets, establishment of potential acquisition contingencies, and the determination of any residual amount that will be allocated to goodwill. Adjustments that impact the deferred tax liability recorded in the business combination could result in an increase or decrease in the Company’s recorded valuation allowance that will be recognized in the accompanying statement of operations. The Aerosint Acquisition included contingent consideration related to revenue metrics and technical milestones, of which $1.4 million is expected to be paid out over the next twelve months and is therefore classified as a current liability. The Company will pay up to $5.5 million of contingent consideration based on stated revenue metric, which has a fair value of $4.6 million as of the date of acquisition and as of June 30, 2021. If Aerosint reaches certain product mass production technical milestones, the Company will pay out a maximum of $2.0 million in contingent consideration, which has a fair value of $1.5 million as of the date of acquisition and as of June 30, 2021. As of the date of acquisition and as of June 30, 2021, $1.4 million of contingent consideration is recorded in current portion of contingent consideration in the consolidated balance sheet, and the remaining $4.7 million is recorded in contingent consideration, net of current portion in the condensed consolidated balance sheets. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands): At June 24, 2021 Assets acquired: Cash and cash equivalents $ 419 Accounts receivable 34 Inventory 166 Prepaid expenses and other current assets 697 Property and equipment 369 Intangible assets 11,726 Other noncurrent assets 336 Total assets acquired $ 13,747 Liabilities assumed: Accounts payable $ 58 Customer deposits 283 Current portion of lease liability 100 Accrued expenses and other current liabilities 169 Deferred revenue 810 Current portion of contingent consideration 1,429 Lease liability, net of current portion 226 Contingent consideration, net of current portion 4,655 Deferred tax liability 3,524 Total liabilities assumed $ 11,254 Net assets acquired $ 2,493 Goodwill $ 15,174 The estimated useful lives of the identifiable intangible assets acquired is as follows: Gross Value Estimated Life Acquired technology $ 11,547 11.5 years Trade name 179 4.5 years Total intangible assets $ 11,726 The goodwill resulting from the purchase price allocation is attributable to the workforce of the acquired business (which is not eligible for separate recognition as an identifiable intangible asset) and the expected synergistic benefits of expanding the combined companies’ target markets both geographically and across industries. The goodwill recognized is not deductible for income tax purposes. The Company incurred $0.9 million of acquisition-related and other transactional charges, including integration costs, related to this acquisition, which are included in general and administrative expenses in the condensed consolidated statements of operations. Aerosint’s results are included in the Company’s consolidated results for the period from June 24, 2021 to June 30, 2021. For this period, Aerosint’s revenues and net loss were immaterial. Pro Forma Information The following pro forma financial information is based on the historical financial statements of the Company and presents the Company’s results as if the acquisitions of EnvisionTEC, Adaptive 3D and Aerosint had occurred on January 1, 2020 (in thousands): Six Months Ended June 30, 2021 2020 Net revenues $ 34,883 $ 28,974 Net income (loss) $ (108,357) $ (53,497) The pro forma financial information was computed by combining the historical financial information of the Company and EnvisionTEC, Adaptive 3D and Aerosint along with the effects of the acquisition method of accounting for business combinations as though the companies were combined on January 1, 2020. The pro forma information does not reflect the potential benefits of cost and funding synergies, opportunities to earn additional revenues, or other factors, and therefore does not represent what the actual net revenues and net income (loss) would have been had the companies been combined as of this date. 2021 Asset Acquisition Acquisition of Beacon Bio On June 10, 2021, the Company acquired Beacon Bio, Inc. (“Beacon Bio”) pursuant to a Stock Purchase Agreement. The purchase price consisted of cash consideration of $6.1 million, including transaction costs of $0.2 million, and 334,370 shares of Common Stock with a fair value of $4.3 million as of the close of business on the transaction date. The cash consideration includes a simple agreement for future equity investment of $1.0 million made by the Company in advance of the acquisition that was settled in the acquisition. Beacon Bio is engaged in research and development of PhonoGraft technology. The Company concluded the arrangement did not result in the acquisition of a business, as substantially all of the fair value of the gross assets acquired was concentrated in in-process research and development for which there was no alternative future use. Therefore, the Company accounted for the arrangement as an asset acquisition. In connection with the acquisition, the Company issued additional restricted stock units to retain research and development employees and contractors of Beacon Bio through the expected term to complete the development, which vest over a service period of 3 years and are accounted for as post-combination expense. The acquired in-process research and development asset consists of a license to commercialize the PhonoGraft technology. Due to the stage of development of this license at the date of the acquisition, significant research, development, and risk remained, and it was not yet probable that there was future economic benefit from this asset. Absent successful clinical results and regulatory approval for this asset, there was no alternative future use associated with this asset. Accordingly, the value of the asset was expensed in the condensed consolidated statements of operations and no deferred tax liability has been recorded. 2020 Acquisition Business Combination On December 9, 2020, the Company and Trine consummated the Business Combination, with Legacy Desktop Metal surviving the merger as a wholly-owned subsidiary of Trine. Upon the consummation of the Business Combination, each share of Legacy Desktop Metal capital stock issued and outstanding was converted into the right to receive 1.22122 shares (the “Exchange Ratio”) of the Company’s common stock (the “Per Share Merger Consideration”). Upon the closing of the Business Combination, Trine’s certificate of incorporation was amended and restated to, among other things, increase the total number of authorized shares of all classes of capital stock to 550,000,000 shares, of which 500,000,000 shares were designated common stock; $0.0001 par value per share, and of which 50,000,000 shares were designated preferred stock, $0.0001 par value per share. In connection with the execution of the definitive agreement for the Business Combination, Trine entered into separate subscription agreements (each, a “Subscription Agreement”) with a number of investors (each, a “Subscriber”), pursuant to which the Subscribers agreed to purchase, and Trine agreed to sell to the Subscribers, an aggregate of 27,497,500 shares of the Company’s Common Stock, for a purchase price of $10.00 per share and an aggregate purchase price of $275 million, in a private placement pursuant to the subscription agreements (the “PIPE financing”). The PIPE financing closed simultaneously with the consummation of the Business Combination. The Business Combination is accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Trine was treated as the “acquired” company for financial reporting purposes. See Note 1 “Organization and Nature of Business” for further details. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Desktop Metal issuing stock for the net assets of Trine, accompanied by a recapitalization. The net assets of Trine are stated at historical cost, with no goodwill or other intangible assets recorded. Prior to the Business Combination, Legacy Desktop Metal and Trine filed separate standalone federal, state and local income tax returns. As a result of the Business Combination, structured as a reverse recapitalization for tax purposes, Desktop Metal, Inc. (f/k/a Trine Acquisition Corp.), became the parent of the consolidated filing group, with Desktop Metal Operating, Inc. (f/k/a Desktop Metal, Inc.) as a subsidiary. The following table reconciles the elements of the Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity for the year ended December 31, 2020: Recapitalization Cash – Trine's trust and cash (net of redemptions) $ 305,084,695 Cash – PIPE financing 274,975,000 Less: transaction costs and advisory fees paid (45,463,074) Net proceeds from reverse recapitalization 534,596,621 Plus: non-cash net liabilities assumed( 1) (152,394,714) Less: accrued transaction costs and advisory fees (1,900,793) Net contributions from reverse recapitalization $ 380,301,114 (1) Includes $149.7 million of non-cash warrant liability assumed. The number of shares of common stock issued immediately following the consummation of the Business Combination: Number of Shares Common stock, outstanding prior to Business Combination 30,015,000 Less: redemption of Trine shares (26,049) Common stock of Trine 29,988,951 Trine Founder Shares 5,552,812 Trine Director Shares 100,000 Shares issued in PIPE financing 27,497,500 Business Combination and PIPE financing shares 63,139,263 Legacy Desktop Metal shares (1) 161,487,334 Total shares of common stock immediately after Business Combination 224,626,597 (1) The number of Legacy Desktop Metal shares was determined from the shares of Legacy Desktop Metal shares outstanding immediately prior to the closing of the Business Combination converted at the Exchange Ratio of 1.22122 . All fractional shares were rounded down. In connection with the Business Combination, 7,403,750 Trine Founder Shares were issued. Pursuant to the Business Combination agreement, 75% of the Founder shares, or 5,552,812 shares, vested at the close of the Business Combination, with the remaining 25%, or 1,850,938 shares, vesting if the Company trades at $12.50 per share or higher for any 20 trading days within a 30-day window by the fifth anniversary of the Business Combination. The vesting criteria was met on January 8, 2021. | 3. ACQUISITIONS Business Combination On December 9, 2020, the Company and Trine consummated the Business Combination, with Legacy Desktop Metal surviving the merger as a wholly-owned subsidiary of Trine. Upon the consummation of the Business Combination, each share of Legacy Desktop Metal capital stock issued and outstanding was converted into the right to receive 1.22122 shares (the “Exchange Ratio”) of the Company’s common stock (the “Per Share Merger Consideration”). Upon the closing of the Business Combination, Trine’s certificate of incorporation was amended and restated to, among other things, increase the total number of authorized shares of all classes of capital stock to 550,000,000 shares, of which 500,000,000 shares were designated common stock; $0.0001 par value per share, and of which 50,000,000 shares were designated preferred stock, $0.0001 par value per share. In connection with the execution of the definitive agreement for the Business Combination, Trine entered into separate subscription agreements (each, a “Subscription Agreement”) with a number of investors (each, a “Subscriber”), pursuant to which the Subscribers agreed to purchase, and Trine agreed to sell to the Subscribers, an aggregate of 27,497,500 shares of the Company’s Common Stock, for a purchase price of $10.00 per share and an aggregate purchase price of $275 million, in a private placement pursuant to the subscription agreements (the “PIPE financing”). The PIPE financing closed simultaneously with the consummation of the Business Combination. The Business Combination is accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Trine was treated as the “acquired” company for financial reporting purposes. See Note 1 “Organization and Nature of Business” for further details. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Desktop Metal issuing stock for the net assets of Trine, accompanied by a recapitalization. The net assets of Trine are stated at historical cost, with no goodwill or other intangible assets recorded. Prior to the Business Combination, Legacy Desktop Metal and Trine filed separate standalone federal, state and local income tax returns. As a result of the Business Combination, structured as a reverse recapitalization for tax purposes, Desktop Metal, Inc. (f/k/a Trine Acquisition Corp.), became the parent of the consolidated filing group, with Desktop Metal Operating, Inc. (f/k/a Desktop Metal, Inc.) as a subsidiary. The following table reconciles the elements of the Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity for the year ended December 31, 2020: Recapitalization Cash – Trine's trust and cash (net of redemptions) $ 305,084,695 Cash – PIPE financing 274,975,000 Less: transaction costs and advisory fees paid (45,463,074) Net proceeds from reverse recapitalization 534,596,621 Plus: non-cash net liabilities assumed (1) (152,394,714) Less: accrued transaction costs and advisory fees (1,900,793) Net contributions from reverse recapitalization $ 380,301,114 (1) Includes $149.7 million of non-cash warrant liability assumed. The number of shares of common stock issued immediately following the consummation of the Business Combination: Number of Shares Common stock, outstanding prior to Business Combination 30,015,000 Less: redemption of Trine shares (26,049) Common stock of Trine 29,988,951 Trine Founder Shares 5,552,812 Trine Director Shares 100,000 Shares issued in PIPE financing 27,497,500 Business Combination and PIPE financing shares 63,139,263 Legacy Desktop Metal shares (1) 161,487,334 Total shares of common stock immediately after Business Combination 224,626,597 (1) The number of Legacy Desktop Metal shares was determined from the shares of Legacy Desktop Metal shares outstanding immediately prior to the closing of the Business Combination converted at the Exchange Ratio of 1.22122 . All fractional shares were rounded down. In connection with the Business Combination, 7,403,750 Trine Founder Shares were issued. Pursuant to the Business Combination agreement, 75% of the Founder shares, or 5,552,812 shares, vested at the close of the Business Combination, with the remaining 25%, or 1,850,938 shares, vesting if the Company trades at $12.50 per share or higher for any 20 trading days within a 30-day window by the fifth anniversary of the Business Combination. As of December 31, 2020, 20 trading days had not yet passed since the date of the Business Combination, and the shares remained unvested and held in escrow. The vesting criteria was met on January 8, 2021. 2020 Acquisitions In December 2020, the Company acquired all issued and outstanding membership interests of Figur Machine Tools, LLC (“Figur”) for a total purchase price of $3.5 million. Figur is engaged in research and development of 3D metal forming for sheet metal. The Company concluded the arrangement did not result in the acquisition of a business, as substantially all of the fair value of the gross assets acquired was concentrated in a single acquired technology asset and the Company did not obtain any substantive processes in connection with this acquisition. Therefore, the Company accounted for the arrangement as an asset acquisition. The fair value attributable to the acquired assets was $3.5 million, which was recorded as acquired technology in the Company’s consolidated balance sheet. In October 2020, the Company acquired all outstanding shares of Forust Corporation (“Forust”) for a total purchase price of $2.5 million. The purchase price consisted of cash consideration of $2.0 million and $0.5 million of consideration relating to 61,061 shares of Common Stock. The Company paid $1.8 million at closing and will pay the additional $0.2 million within one year. Forust is engaged in research and development of 3D printing of wood products using sawdust in the process of additive manufacturing. The Company concluded the arrangement did not result in the acquisition of a business, as substantially all of the fair value of the gross assets acquired was concentrated in a single acquired technology asset and the Company did not obtain any substantive processes in connection with this acquisition. Therefore, the Company accounted for the arrangement as an asset acquisition. The fair value attributable to the acquired assets was $2.5 million, which was recorded as acquired technology in the Company’s consolidated balance sheet. In connection with the acquisition, the Company issued additional restricted stock units to employees and contractors of Forust which vest over a service period of two years and are accounted for as post-combination expense. 2019 Acquisitions In July 2019, the Company acquired all outstanding shares of Make Composites, Inc. (“Make”) for a total purchase price of $5.4 million through the issuance of 873,203 shares of the Company’s Common Stock. Make is a composite printer research and development company that was acquired primarily for the complementary technology. The Company incurred transaction costs totaling $0.1 million that are included in general and administrative expenses in the consolidated statements of operations. The purchase price was allocated with $1.9 million to goodwill, $3.2 million to acquired technology, and $0.3 million to acquired tangible assets, consisting primarily of cash. The Company recorded a gain of $1.4 million on its original non-controlling investment of Make. This gain is recorded in interest and other income, net in the consolidated statements of operations. The goodwill acquired is deductible for income tax purposes. As of December 31, 2019, the Company’s accounting for the acquisition is complete. In connection with the acquisition, the Company issued restricted stock, options and warrants to employees and contractors of Make which have future service obligations to vest and are accounted for as post-combination expense. In March 2019, the Company acquired all outstanding shares of addLEAP AB, a Swedish3D printer research and development company, for a purchase price of $0.4 million paid in cash. The acquisition was completed to further the Company’s advances in 3D printing. The purchase price was allocated to $0.3 million of goodwill and $0.1 million of acquired technology. Total transaction costs of $0.1 million are included in general and administrative expenses in the consolidated statements of operations. The goodwill acquired is deductible for income tax purposes. As of December 31, 2019, the Company’s accounting for the acquisition is complete. In connection with the acquisition, the Company issued 74,843 shares of restricted stock that have future service obligations to vest and are accounted for as post-combination expense. |
CASH EQUIVALENTS AND SHORT-TE_3
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | ||
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 4. CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The Company’s cash equivalents and short-term investments are invested in the following (in thousands): June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 180,998 $ — $ — $ 180,998 Total cash equivalents 180,998 — — 180,998 Commercial paper 159,591 — — 159,591 Corporate bonds 104,758 9 (12) 104,755 Government bonds 36,736 1 (9) 36,728 Asset-backed securities 25,246 1 (3) 25,244 Total short-term investments 326,331 11 (24) 326,318 Total cash equivalents and short-term investments $ 507,329 $ 11 $ (24) $ 507,316 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 75,374 $ — $ — $ 75,374 Money market funds 407,512 — — 407,512 Total cash equivalents 482,886 — — 482,886 U.S. Treasury securities 19,995 2 — 19,997 Commercial paper 43,911 — — 43,911 Corporate bonds 47,970 — (11) 47,959 Total short-term investments 111,876 2 (11) 111,867 Total cash equivalents and short-term investments $ 594,762 $ 2 $ (11) $ 594,753 | 4. CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The Company’s cash equivalents and short-term investments are invested in the following (in thousands): December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 75,374 $ — $ — $ 75,374 Money market funds 407,512 — — 407,512 Total cash equivalents 482,886 — — 482,886 U.S Treasury securities 19,995 2 — 19,997 Commercial paper 43,911 — — 43,911 Corporate bonds 47,970 — (11) 47,959 Total short-term investments 111,876 2 (11) 111,867 Total cash equivalents and short-term investments $ 594,762 $ 2 $ (11) $ 594,753 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Repurchase agreements $ 25,001 $ — $ — $ 25,001 Money market funds 40,454 — — 40,454 Total cash equivalents 65,455 — — 65,455 Asset‑backed securities 16,786 20 — 16,806 Commercial paper 19,938 — — 19,938 Corporate bonds 47,955 55 — 48,010 Total short-term investments 84,679 75 — 84,754 Total cash equivalents and short-term investments $ 150,134 $ 75 $ — $ 150,209 |
FAIR VALUE MEASUREMENTS_2
FAIR VALUE MEASUREMENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | ||
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS The Company uses the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring the fair values for certain of its assets and liabilities: Level 1 is based on observable inputs, such as quoted prices in active markets; Level 2 is based on inputs other than the quoted prices in active markets that are observable either directly or indirectly; and Level 3 is based on unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Items measured at fair value on a recurring basis include money market funds. The following fair value hierarchy table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): June 30, 2021 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 180,998 $ — $ — $ 180,998 Commercial paper — 159,591 — 159,591 Corporate bonds — 104,755 — 104,755 Government bonds — 36,727 — 36,727 Asset-backed securities — 25,245 — 25,245 Other investments — — 7,137 7,137 Total assets $ 180,998 $ 326,318 $ 7,137 $ 514,453 Liabilities: Contingent consideration $ — $ — $ 6,084 $ 6,084 Subscription agreement — — 474 474 Total liabilities $ — $ — $ 6,558 $ 6,558 December 31, 2020 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 407,512 $ — $ — $ 407,512 Commercial paper — 119,285 — 119,285 Corporate bonds — 47,959 — 47,959 U.S. Treasury securities 19,997 — — 19,997 Other investments — — 3,000 3,000 Total assets $ 427,509 $ 167,244 $ 3,000 $ 597,753 Liabilities: Private placement warrants $ — $ — $ 93,328 $ 93,328 Total liabilities $ — $ — $ 93,328 $ 93,328 The Company has determined that the estimated fair value of its corporate bonds and commercial paper are reported as Level 2 financial assets as they are based on model-driven valuations in which all significant inputs are observable, or can be derived from or corroborated by observable market data for substantially the full term of the asset. The other investments are reported as a Level 3 financial asset because the methodology used to develop the estimated fair values includes significant unobservable inputs reflecting management’s own assumptions, including the rights and obligations of the notes the Company holds as well as the probability of a qualified financing event, acquisition, or change in control. The subscription agreement is reported as a Level 3 investment with fair value determined using inputs including stock price, volatility assumptions, probability and timing of the transaction, and a discount for the lack of marketability determined using various models. The fair value of the Private Placement Warrants is estimated using the Black-Scholes option pricing model and is classified as a Level 3 financial instrument. The significant assumptions used in the model were the Company’s stock price, exercise price, expected term, volatility, interest rate, and dividend yield. The contingent consideration liability was valued using a Monte Carlo simulation in a risk-neutral framework as well as a scenario based approach (both special cases of the income approach), based on key inputs that are not all observable in the market and is classified as a Level 3 liability. The Company assess the fair value of the contingent consideration liability at each reporting period, with any subsequent changes to the fair value of the liability reflected in the condensed consolidated statement of operations until the liability is settled. There were no transfers between fair value measure levels during the six months ended June 30, 2021 and 2020. The following table presents information about the Company’s movement in Level 3 assets measured at fair value (in thousands): Six Months Ended June 30, 2021 2020 Balance at beginning of period $ 3,000 $ — Additions 3,620 — Changes in fair value 517 — Balance at end of period $ 7,137 $ — The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): Six Months Ended June 30, 2021 2020 Balance at beginning of period $ 93,328 $ — Additions 6,558 — Changes in fair value 56,576 — Exercise of private placement warrants (149,904) — Balance at end of period $ 6,558 $ — | 5. FAIR VALUE MEASUREMENTS The Company uses the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring the fair values for certain of its assets and liabilities: Level 1 is based on observable inputs, such as quoted prices in active markets; Level 2 is based on inputs other than the quoted prices in active markets that are observable either directly or indirectly; and Level 3 is based on unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Items measured at fair value on a recurring basis include money market funds. The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): December 31, 2020 (as restated) Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 407,512 $ — $ — $ 407,512 Commercial paper — 119,285 — 119,285 Corporate bonds — 47,959 — 47,959 U.S. Treasury securities 19,997 — — 19,997 Other investments — — 3,000 3,000 Total assets $ 427,509 $ 167,244 $ 3,000 $ 597,753 Liabilities: Private placement warrants $ — $ — $ 93,328 $ 93,328 Total liabilities $ — $ — $ 93,328 $ 93,328 December 31, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 40,454 $ — $ — $ 40,454 Commercial paper — 19,938 — 19,938 Corporate bonds — 48,010 — 48,010 Asset‑backed securities — 16,806 — 16,806 Repurchase agreements — 25,001 — 25,001 Total assets $ 40,454 $ 109,755 $ — $ 150,209 The Company has determined that the estimated fair value of its repurchase agreements, corporate bonds, commercial paper, and asset-backed securities are reported as Level 2 financial assets as they are based on model-driven valuations in which all significant inputs are observable, or can be derived from or corroborated by observable market data for substantially the full term of the asset. The other investment is reported as a Level 3 financial asset because the methodology used to develop the estimated fair value includes significant unobservable inputs reflecting management’s own assumptions, including the rights and obligations of the securities the Company holds as well as the probability of a qualified financing event, acquisition, or change in control. The fair value of the Private Placement Warrants is estimated using the Black-Scholes option pricing model and are classified as Level 3 financial instruments. The significant assumptions used in the model were the Company’s stock price, exercise price, expected term, volatility, interest rate, and dividend yield. There were no transfers between fair value measure levels during the years ended December 31, 2020 and 2019. The following table presents information about the Company’s movement in Level 3 assets measured at fair value (in thousands): 2020 2019 Balance at beginning of year $ — $ — Additions 3,000 — Balance at end of year $ 3,000 $ — The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): 2020 2019 Balance at beginning of year $ — $ — Warrant liability assumed 149,745 Change in fair value of warrant liability (56,417) Balance at end of year $ 93,328 $ — |
ACCOUNTS RECEIVABLE_2
ACCOUNTS RECEIVABLE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE | ||
ACCOUNTS RECEIVABLE | 6. ACCOUNTS RECEIVABLE The components of accounts receivable are as follows (in thousands): June 30, December 31, 2021 2020 Trade receivables $ 13,750 $ 7,016 Allowance for doubtful accounts (309) (500) Total accounts receivable $ 13,441 $ 6,516 The following table summarizes activity in the allowance for doubtful accounts (in thousands): June 30, December 31, 2021 2020 Balance at beginning of period $ 500 $ 199 Provision for uncollectible accounts (164) 377 Uncollectible accounts written off (27) (76) Balance at end of period $ 309 $ 500 | 6. ACCOUNTS RECEIVABLE The components of accounts receivable are as follows (in thousands): December 31, 2020 2019 Trade receivables $ 7,016 $ 4,722 Allowance for doubtful accounts (500) (199) Total accounts receivable $ 6,516 $ 4,523 The following table summarizes activity in the allowance for doubtful accounts (in thousands): Years Ended December 31, 2020 2019 Balance at beginning of year $ 199 $ — Provision for uncollectible accounts 377 199 Uncollectible accounts written off (76) — Balance at end of year $ 500 $ 199 |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 30, 2021 | |
INVENTORY | |
INVENTORY | 7. INVENTORY Inventory consists of the following (in thousands): June 30, December 31, 2021 2020 Raw materials $ 5,678 $ — Work in process 4,346 2,896 Finished goods 15,383 6,812 Total inventory $ 25,407 $ 9,708 |
PREPAID EXPENSES AND OTHER CU_4
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 8. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consists of the following (in thousands): June 30, December 31, 2021 2020 Prepaid insurance 1,850 121 Prepaid operating expenses 1,873 68 Prepaid dues and subscriptions 823 189 Prepaid taxes 598 — Government grants 653 — Escrow deposits 311 — Prepaid rent 158 118 Deferred cost of goods sold — 454 Other 812 26 Total prepaid expenses and other current assets $ 7,078 $ 976 | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consists of the following (in thousands): December 31, 2020 2019 Deferred cost of goods sold $ 454 $ 262 Prepaid operating expenses 68 585 Prepaid dues and subscriptions 189 503 Prepaid insurance 121 45 Prepaid rent 118 11 Other 26 482 Total prepaid expenses and other current assets $ 976 $ 1,888 |
PROPERTY AND EQUIPMENT_2
PROPERTY AND EQUIPMENT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT | ||
PROPERTY AND EQUIPMENT | 9. PROPERTY AND EQUIPMENT Property and equipment, net consists of the following (in thousands): June 30, December 31, 2021 2020 Equipment $ 15,672 $ 13,708 Furniture and fixtures 1,033 895 Computer equipment 1,139 1,089 Tooling 1,805 1,805 Software 1,439 1,249 Leasehold improvements 14,564 13,870 Construction in process 1,617 879 Property and equipment, gross 37,269 33,495 Less: accumulated depreciation (24,041) (21,335) Total property and equipment, net $ 13,228 $ 12,160 Depreciation and amortization expense was $1.3 million and $2.8 million for the three and six months ended June 30, 2021, respectively. Depreciation and amortization expense was $2.1 million and $4.2 million for the three and six months ended June 30, 2020, respectively. | 8. PROPERTY AND EQUIPMENT Property and equipment, net consists of the following (in thousands): December 31, 2020 2019 Equipment $ 13,708 $ 13,358 Furniture and fixtures 895 895 Computer equipment 1,089 1,089 Tooling 1,805 1,823 Software 1,249 954 Leasehold improvements 13,870 13,880 Construction in process 879 170 Property and equipment, gross 33,495 32,169 Less: accumulated depreciation (21,335) (13,782) Total property and equipment, net $ 12,160 $ 18,387 Depreciation and amortization expense was $7.6 million and $7.6 million for the years ended years ended December 31, 2020 and 2019, respectively. |
GOODWILL & INTANGIBLE ASSETS
GOODWILL & INTANGIBLE ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACQUIRED TECHNOLOGY | ||
INTANGIBLE ASSETS | 9. ACQUIRED TECHNOLOGY Acquired technology consisted of the following (in thousands): Accumulated Balance Gross Value Estimated Life Amortization December 31, 2020 Acquired technology $ 10,193 5 years $ 1,091 $ 9,102 The Company recognized $0.8 million and $0.3 million of amortization expense as of December 31, 2020 and 2019, respectively, and expects to recognize $2.0 million of amortization expense annually in the years ended December 31, 2021 2023 , years. | |
GOODWILL & INTANGIBLE ASSETS | 10. GOODWILL & INTANGIBLE ASSETS The carrying amount of goodwill at June 30, 2021 and 2020 was $251.1 million and $2.3 million, respectively, and has been recorded in connection with the Company’s acquisitions. The goodwill activity is as follows (in thousands): Goodwill Balance at December 31, 2019 $ 2,252 Balance at December 31, 2020 $ 2,252 Acquisition of EnvisionTEC 198,369 Acquisition of Adaptive3D 35,265 Acquisition of Aerosint 15,174 Balance at June 30, 2021 $ 251,060 The Company has no accumulated impairment losses on goodwill. Intangible assets consisted of the following (in thousands): Accumulated Balance Gross Value Estimated Life Amortization June 30, 2021 Acquired technology $ 126,540 5 – 12 years $ 5,514 $ 121,026 Trade name 9,079 13 years 251 8,828 Customer relationships 50,900 10 years 1,894 49,006 Total intangible assets $ 186,519 $ 7,659 $ 178,860 The Company recognized $4.3 million and $6.6 million of amortization expense during the three and six months ended June 30, 2021, respectively. The Company recognized $0.2 million and $0.4 million of amortization expense during the three and six months ended June 30, 2020, respectively. The weighted-average remaining amortization period is 10.0 years. Amortization of acquired technology, trade names, and customer relationships is recognized in cost of sales and research and development, research and development, and sales and marketing, respectively, in the condensed consolidated statements of operations. |
OTHER NONCURRENT ASSETS_2
OTHER NONCURRENT ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
OTHER NONCURRENT ASSETS | ||
OTHER NONCURRENT ASSETS | 11. OTHER NONCURRENT ASSETS The following table summarizes the Company’s components of other noncurrent assets (in thousands): June 30, December 31, 2021 2020 Other investments $ 7,137 $ 3,000 Right of use asset 4,816 1,810 Long-term deposits 135 69 Other 122 — Total other noncurrent assets $ 12,210 $ 4,879 During the year ended December 31, 2020, the Company made an investment in a privately held company in the form of convertible debt for $3.0 million. Under the terms of this agreement, the debt will be converted to common stock of the investee upon the closing of a qualified financing, acquisition or change in control. The full principal balance plus 3% annual interest is due in two years and does not allow voluntary prepayment. The Company has elected the fair value option for this investment and recognized an immaterial gain during the three months ended June 30, 2021, and a gain of $0.3 million during the six months ended June 30, 2021, in other income in the condensed consolidated statement of operations. In April 2021, the Company made an investment in a privately held company by purchasing a convertible promissory note for principal amount of $1.6 million. Under the terms of this note, the debt will convert to equity securities of the applicable investee upon the closing of a qualified financing, acquisition or other change in control. The full principal balance plus 3% annual interest is due in two years and does not allow voluntary prepayment. The Company has elected the fair value option for this investment and recognized a gain of $0.2 million during the three and six months ended June 30, 2021, in other income in the condensed consolidated statements of operations. In April 2021, the Company made an investment in a privately held company by purchasing a convertible promissory note for a principal amount of $2.0 million. Under the terms of this note, the debt will convert to cash or equity securities upon the closing of a qualified financing, acquisition or other change in control. The full principal balance plus 3% annual interest is due in five years and does not allow voluntary prepayment. The Company has elected the fair value option for this investment, and there was no change in fair value during the three months ended June 30, 2021. | 11. OTHER NONCURRENT ASSETS The following table summarizes the Company’s components of other noncurrent assets (in thousands): December 31, 2020 2019 Other investments $ 3,000 $ — Right of use asset 1,810 2,289 Long-term deposits 69 — Total other noncurrent assets $ 4,879 $ 2,289 During the year ended December 31, 2020, the Company made an investment in a privately held company in the form of convertible debt for $3.0 million. Under the terms of this agreement, the debt will be converted to common stock of the investee upon the closing of a qualified financing, acquisition or change in control. The full principal balance plus 3% annual interest is due in two years and does not allow voluntary prepayment. As of December 31, 2020, the balance of other investments was $3.0 million. As of December 31, 2019, there were no other investments. |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): June 30, December 31, 2021 2020 Professional services $ 3,897 $ 2,508 Compensation and benefits related 7,359 2,068 Warranty reserve 2,030 1,553 Inventory purchases 1,506 86 Income tax payable 1,331 — Sales and use and franchise taxes 224 586 Franchise and royalty fees 227 159 Goods received payable 1,201 — Other 3,193 605 Total accrued expenses and other current liabilities $ 20,968 $ 7,565 As of June 30, 2021, and December 31, 2020, the Company has recorded $2.0 million and $1.6 million, respectively, of warranty reserve within accrued expenses and other current liabilities in the condensed consolidated balance sheets. Warranty reserve consisted of the following (in thousands): 2021 2020 Warranty reserve, at the beginning of the period $ 1,553 $ 1,491 Warranty reserve assumed in acquisition 316 — Additions to warranty reserve 797 346 Claims fulfilled (636) (284) Warranty reserve, at the end of the period $ 2,030 $ 1,553 | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): December 31, 2020 2019 Professional services $ 2,508 $ 780 Compensation and benefits related 2,068 897 Warranty reserve 1,553 1,491 Sales and use and franchise taxes 586 578 Franchise and royalty fees 159 — Inventory purchases 86 620 Other 605 687 Total accrued expenses and other current liabilities $ 7,565 $ 5,053 |
DEBT_2
DEBT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
DEBT | ||
DEBT | 13. DEBT Term Loan PPP Loan— Small Business Administration rules. The outstanding borrowings may be prepaid by the Company at any time prior to maturity with no prepayment penalties. On May 14, 2021, the outstanding loan balance was forgiven and the restricted cash that was held back from the initial purchase price in the event the loan was not forgiven was released to the seller. There is no outstanding PPP loan balance for EnvisionTEC as of June 30, 2021. In connection with the acquisition of Adaptive 3D, the Company acquired $0.3 million in PPP loans. As of June 30, 2021, $0.3 million of the PPP loans is recorded in current portion of long-term debt, net of deferred financing costs in the condensed consolidated balance sheets. As of June 30, 2021, forgiveness of the loan has been requested and remains outstanding. Deferred Financing Costs | 13. DEBT Term Loan The outstanding amount as of December 31, 2020 and 2019 was $10.0 million in both periods. The $10.0 million is due in June 2021. PPP Loan— Deferred Financing Costs costs. As of December 31, 2020, and 2019, the remaining unamortized balance of deferred financing costs is immaterial, and is included as a component of current portion of long-term debt, net of deferred financing costs in the consolidated balance sheets. |
LEASES_2
LEASES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
LEASES | 14. LEASES At June 30, 2021, the Company recorded $4.8 million as a right of use asset and $5.9 million as an operating lease liability. At December 31, 2020, the Company recorded $1.8 million as a right of use asset and $3.0 million as an operating lease liability. The Company assesses its right of use asset and other lease-related assets for impairment. There were no impairments recorded related to these assets during the three and six months ended June 30, 2021 and the year ended December 31, 2020. As a result of the acquisition of EnvisionTEC, the Company acquired operating, short-term, and finance leases for corporate offices, manufacturing and warehouse facilities, and machineries, increasing the Company’s right of use asset by $1.8 million. The operating leases consist of five real estate leases and six equipment leases with current terms extending from 2021 to 2024. The Company’s finance leases are immaterial as of June 30, 2021. As a result of the acquisition of Adaptive 3D, the Company acquired operating leases for corporate offices, research and development, and manufacturing, increasing the Company’s right of use asset by $0.7 million. The operating leases consist of two real estate leases with current terms extending from 2024 to 2025. As a result of the acquisition of Aerosint, the Company acquired operating leases for corporate office and lab space, as well as company cars, increasing the Company’s right of use asset by $0.4 million. The operating leases consist of one real estate lease and three leases for company cars with current terms extending through 2025. The Company reviews all supplier, vendor, and service provider contracts to determine whether any service arrangements contain a lease component. The Company identified two service agreements that contain an embedded lease. The agreements do not contain fixed or minimum payments, and the variable lease expense was immaterial during the three and six months ended June 30, 2021 and 2020. Information about other lease-related balances is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease cost Operating lease cost $ 422 $ 186 $ 745 $ 374 Short‑term lease cost 34 3 45 3 Variable lease cost 46 2 85 12 Total lease cost $ 502 $ 191 $ 875 $ 389 Other Information Operating cash flows used in operating leases $ 655 $ 269 $ 899 $ 536 Weighted‑average remaining lease term—operating leases (years) 2.6 3.7 2.6 3.7 Weighted‑average discount rate—operating leases 5.1 % 7.6 % 5.1 % 7.6 % The rate implicit in the lease is not readily determinable in most of the Company’s leases, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. Future minimum lease payments under noncancelable operating leases, including immaterial future minimum lease payments under finance leases, at June 30, 2021, are as follows (in thousands): Operating Leases 2021 (remaining 6 months) $ 1,114 2022 2,258 2023 2,072 2024 700 2025 192 2026 53 Total lease payments 6,389 Less amount representing interest (447) Total lease liability 5,942 Less current portion of lease liability (1,983) Lease liability, net of current portion $ 3,959 As of June 30, 2021, the Company does not have material operating or finance leases that have not commenced. | 14. LEASES At December 31, 2020, the Company recorded $1.8 million as a right of use asset and $3.0 million as an operating lease liability. At December 31, 2019, the Company recorded $2.3 million as a right of use asset and $3.8 million as an operating lease liability. The Company assesses its right of use asset and other lease-related assets for impairment. There were no impairments recorded related to these assets during the years ended December 31, 2020 and 2019. The Company identified one service agreement that contained an embedded lease. The agreement does not contain fixed or minimum payments, but the Company has concluded that the variable lease expense was immaterial during the years ended December 31, 2020 and 2019, respectively. Information about other lease-related balances is as follows (in thousands): Years Ended December 31, 2020 2019 Lease cost Operating lease cost $ 746 $ 655 Short‑term lease cost — 32 Variable lease cost 40 40 Total lease cost $ 786 $ 727 Other Information Operating cash flows from operating leases $ 1,073 $ 951 Weighted‑average remaining lease term—operating leases (years) 3.2 4.2 Weighted‑average discount rate—operating leases 7.6 % 7.6 % The rate implicit in the lease is not readily determinable in most of the Company’s leases, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. Future minimum lease payments under noncancelable operating leases at December 31, 2020, are as follows (in thousands): 2021 $ 1,071 2022 1,069 2023 1,028 2024 258 2025 — Total lease payments 3,426 Less amount representing interest (401) Total lease liability 3,025 Less current portion of lease liability (868) Lease liability, net of current portion $ 2,157 As of December 31, 2020, the Company does not have material operating leases that have not commenced. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may face legal claims or actions in the normal course of business. At each reporting date, the Company evaluates whether a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any current legal proceedings will have a material adverse impact on the Company’s condensed consolidated financial statements. Commitments The Company has entered into legally binding agreements with certain suppliers to purchase materials used in the manufacturing of the Company’s products. As of June 30, 2021, the Company had outstanding purchase orders with contract manufacturers in the amount of $21.8 million which are not included in the condensed consolidated balance sheets. The Company has also entered into licensing and royalty agreements with certain manufacturing and software companies and universities related to the use of patented technology. Under the terms of each agreement, the Company has made initial, one-time payments of $0.3 million and is obligated to pay a set percentage, ranging from 2.75% - 13%, of all consideration received by the Company for sales of related products and services, until the agreements are terminated at various dates through 2037. The Company’s aggregate minimum annual commitment under these contracts is $0.5 million. During the three and six months ended June 30, 2021 and 2020, the Company recorded immaterial licensing and royalty fees. On April 28, 2021 the Company entered into a stock subscription agreement with Galileo Acquisition Corp. (“Galileo”). Pursuant to the agreement, the Company will purchase $20.0 million of Galileo common stock upon the closing of Galileo’s announced merger transaction. The Company expects this investment to facilitate the development of a strategic partnership with Galileo’s merger target, Shapeways, Inc., to accelerate access to, and adoption of, its additive manufacturing solutions by businesses across a range of applications. The Company recognized $0.4 million of revenue from Shapeways, Inc. during the three and six months ended June 30, 2021, and expects to enter into additional sales agreements in the future. | 15. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may face legal claims or actions in the normal course of business. At each reporting date, the Company evaluates whether a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. The Company was engaged in arbitration with Markforged, Inc., a competitor in the 3D printing industry, regarding claims against the Company alleging false and misleading statements about Markforged, Inc’s products in violation of a settlement agreement that the Company entered into with Markforged, Inc. to settle a prior dispute regarding patent infringement and trade secret misappropriation. The hearing was held in December 2020 and the arbitrator has ruled that that the Company does not owe Markforged any damages in association with the claim. Manufacturing Commitments As of December 31, 2020, the Company had outstanding purchase orders with contract manufacturers in the amount of $9.5 million. |
INCOME TAXES_2
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
INCOME TAXES | 16. INCOME TAXES The Company’s provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items arising in that quarter. The Company’s effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on its deferred tax assets as it is more likely than not that some or all of the Company’s deferred tax assets will not be realized as well as the partial release of the valuation allowance as part of the EnvisionTEC and Adaptive 3D acquisitions. During the three and six months ended June 30, 2021, the Company recorded an income tax benefit of $4.3 million and $32.2 million, respectively. There was no income tax benefit for the three and six months ended June 30, 2020. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements and tax returns. Deferred tax assets and liabilities are determined based upon the differences between the consolidated financial statements carrying amounts and the tax bases of existing assets and liabilities and for loss and credit carryforwards, using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. The Company has provided a full valuation allowance against the net deferred tax assets as the Company has determined that it was more likely than not that the Company would not realize the benefits of federal and state net deferred tax assets. As a result of the recent acquisitions of EnvisionTEC and Adaptive 3D, the Company recorded a U.S. deferred tax liability related to non-tax-deductible intangible assets recognized in the financial statements. The acquired deferred tax liability is a source of income to support recognition of the Company’s existing deferred tax assets. Accordingly, the Company recorded an income tax benefit of $4.3 million and $32.2 million for the release in the valuation allowance related to the acquired intangibles in the three and six months ended June 30, 2021, respectively. The Company provides reserves for potential payments of taxes to various tax authorities related to uncertain tax positions. Amounts recognized are based on a determination of whether a tax benefit taken by the Company in its tax filings or positions is “more likely than not” to be sustained on audit. The amount associated with uncertain tax positions are recorded as a component of income tax expense. As of June 30, 2021, the Company has accrued uncertain tax positions of approximately $1.2 million related to the EnvisionTEC acquisition. The amounts relate to U.S. state and foreign tax positions. Included in the balance of unrecognized tax benefits as of June 30, 2021 are amounts that, if recognized, would impact the effective tax rate. As of December 31, 2020, the Company has not identified any uncertain tax positions for which reserves would be required. | 16. INCOME TAXES During the years ended December 31, 2020 and 2019, the Company recorded ($940) and $0 of income tax (benefit)/provision which was primarily driven by a partial valuation allowance release. For financial reporting purposes, loss before provision for income taxes, includes the following components (in thousands): Years Ended December 31, 2020 2019 United States $ (34,285) $ (103,596) Foreign (670) — Loss before income taxes $ (34,955) $ (103,596) The provision (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2020 2019 Current $ — $ — Deferred (940) — Provision (benefit) for income taxes $ (940) $ — A reconciliation of the expected income tax (benefit)/provision computed using the federal statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2020 and 2019 is as follows: Years Ended December 31, 2020 2019 Effective income tax rate: Expected income tax benefit at the federal statutory rate 21 % 21 % State taxes 6 % 6 % Change in valuation allowance (68) % (30) % Research and development credit carryover 2 % 2 % Permanent differences 42 % 1 % Effective income tax rate 3 % — % As of December 31, 2020, and 2019, deferred tax assets consist of the following (in thousands): Years Ended December 31, 2020 2019 Deferred tax assets: Federal and state net operating carryforwards $ 77,463 $ 56,333 Research and development and other credits 13,555 11,072 Capitalized start‑up costs 15,717 17,032 Compensation‑related items 2,257 1,286 Deferred lease liability 872 1,111 Depreciation 1,503 — Other deferred tax assets 2,272 2,068 Total gross deferred tax asset 113,639 88,902 Valuation allowance (111,494) (87,370) Net deferred tax asset 2,145 1,532 Deferred tax liabilities: Right‑of‑use asset (522) (664) Acquired technology (1,623) (868) Total deferred tax liabilities (2,145) (1,532) Net deferred tax asset $ — $ — Realization of deferred tax assets is dependent upon the generation of future taxable income. As required by ASC 740 Income Taxes Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2020 and 2019 were as follows (in thousands): Years Ended December 31, 2020 2019 Valuation allowance at beginning of the year $ 87,370 $ 56,405 Increases recorded to income tax provision 25,058 30,965 Decreases recorded as a benefit to income tax provision (934) — Valuation allowance at end of year $ 111,494 $ 87,370 As of December 31, 2020, and 2019, the Company had federal net operating loss carryforwards of $273.8 million and $197.7 million, respectively, which may be available to reduce future taxable income. These carryforwards generated in 2017 and prior years expire at various dates through 2037. The $228.3 million in carryforwards generated from 2018 forward do not expire. As of December 31, 2020, and 2019, the Company had state net operating loss carryforwards of $243.2 million and $184.2 million, respectively, which may be available to reduce future taxable income. These carryforwards expire at various dates through 2040. In addition, the Company had federal and state research and development tax credit carryforwards of $13.5 million available to reduce future tax liabilities, which will expire at various dates through 2040. Utilization of the Company’s net operating loss (“NOL”) carryforwards and research and development (“R&D”) credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that have occurred previously or that could occur in the future in accordance with Section 382 of the Internal Revenue Code of 1986 (“Section 382”) as well as similar state provisions. These ownership changes may limit the amount of NOL and R&D credit carryforwards that can be utilized annually to offset future taxable income and taxes, respectively. In general, an ownership change as defined by Section 382 results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50% over a three-year period. The Company has not conducted a study to assess whether a change of control has occurred or whether there have been multiple changes of control since inception due to significant complexity with such a study. If the Company has experienced a change of control, as defined by Section 382, at any time since inception, utilization of the net operating loss carryforward or research and development tax credits carryforwards would be subject to an annual limitation under Section 382. Although the Company has not completed its analysis, it is reasonably possible that its federal NOLs available to offset future taxable income could materially decrease. This reduction would be offset by an equal and offsetting adjustment to the existing valuation allowance. Given the offsetting adjustments to the existing valuation allowance, any ownership change is not expected to have an adverse material effect on the Company’s consolidated financial statements. Any limitation may result in expiration of a portion of the net operating loss carryforward or research and development tax credit carryforwards before utilization. The Company files income tax returns in the U.S. federal tax jurisdiction, Massachusetts and Rhode Island. Since the Company is in a loss carryforward position, the Company is generally subject to examination by the U.S. federal, state and local income tax authorities for all tax years in which a loss carryforward is available. The Company is currently not under examination by the Internal Revenue Service of any other jurisdiction for any tax years. The Company has not recorded any interest or penalties on any unrecognized tax benefits since inception. The Company does not believe material uncertain tax positions have arisen to date. |
STOCKHOLDERS' EQUITY_2
STOCKHOLDERS' EQUITY | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
STOCKHOLDERS' EQUITY | ||
STOCKHOLDERS' EQUITY | 17. STOCKHOLDERS’ EQUITY As of June 30, 2021, the Company’s authorized shares consisted of 500,000,000 shares of Class A Common Stock, $0.0001 par value (the “Common Stock”) and 50,000,000 shares of Preferred Stock, $0.0001 par value (the “Preferred Stock”). Common Stock Restricted Stock Agreements In connection with prior acquisitions, the Company has issued shares of restricted stock that are considered post-combination expense and accounted for as stock-based compensation as the shares vest. The activity for stock subject to vesting as of June 30, 2021 is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Purchase Price Balance of unvested shares as of January 1, 2021 280 $0.0001 Issuance of additional shares — — Vested (112) $0.0001 Balance of unvested shares as of June 30, 2021 168 $0.0001 At June 30, 2021, the remaining weighted-average vesting period for the stock subject to vesting was 0.7 years. Common Stock Warrants In May 2017, the Company entered into a strategic collaboration agreement with an investor allowing the investor’s resellers to sell and distribute the Company’s products. In consideration for this agreement, the Company agreed to issue warrants to purchase up to 2,442,440 shares of Common Stock. The investor was eligible to receive a warrant to purchase one share of Common Stock for every $35.00 in revenue generated by the Company from the investor’s resellers. Each warrant was issued at an exercise price equal to $3.34 per share (subject to appropriate adjustment in the event of a stock dividend, stock split, combination, or other similar recapitalization) and was set to expire on December 31, 2027. The Company issued no warrants during the six months ended June 30, 2021. During the six months ended June 30, 2020, the Company issued 99,960 warrants and recorded immaterial expense related to the fair value of the warrants, calculated using the Black-Scholes warrant-pricing model with the following assumptions: Six Months Ended June 30, 2020 Risk‑free interest rate 2.0 % Expected volatility 52.5 % Expected life (in years) 7.8 Expected dividend yield — Fair value of Common Stock $ 3.34 756,498 warrants were converted to 447,938 shares of Common Stock through a cashless exercise in connection with the Business Combination. Trine Warrants In Trine’s initial public offering, it sold units at a price of $10.00 per unit, which consisted of one share of Common Stock, $0.0001 par value, and one Company’s Common Stock is at least $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which notice of redemption is given. If the Company redeems the Public Warrants as described above, it will have the option to require all Public Warrant holders that wish to exercise to do so on a “cashless basis”. On February 26, 2021, the Company delivered a notice to redeem all of its outstanding Public Warrants that remain unexercised at 5:00 p.m. New York City time on March 29, 2021. During 2021, Public Warrants for 14,840,589 shares of the Company’s Common Stock were exercised for cash, resulting in the Company receiving net proceeds of $170.7 million. On March 29, 2021, the 166,905 outstanding Public Warrants were redeemed by the Company for $0.01 per Public Warrant. Effective March 29, 2021, all of the Public Warrants were exercised or redeemed. The Warrant Agreement, dated as of March 14, 2019, by and between the Company and Continental Stock Transfer & Trust Company also obligated the Company to use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of the issuance of the shares of Common Stock issuable upon exercise of the Public Warrants, and to cause the same to become effective and remain effective while the Public Warrants remain outstanding. On February 4, 2021, the Company’s registration statement covering such shares became effective. Simultaneously with the consummation of Trine’s initial public offering, Trine Sponsor IH, LLC (the “Sponsor”) purchased an aggregate of 8,503,000 warrants to purchase one share of Common Stock at an exercise price of $11.50 (the “Private Placement Warrants”) at a price of $1.00 per warrant ($8,503,000) in the aggregate in a private placement. The Private Placement Warrants are identical to the Public Warrants except that the Private Placement Warrants are not redeemable by Desktop Metal, and may be exercised for cash or on a cashless basis so long as they are held by the Sponsor or any of its permitted transferees. Additionally, pursuant to the terms of the amended and restated registration rights agreement entered in connection with the Business Combination, the Sponsor had the right to have the resale of the shares of Common Stock acquired upon exercise of the Private Placement Warrants registered under the Securities Act. On February 4, 2021, the Company’s registration statement covering such shares became effective. On February 24, 2020, Trine issued an unsecured promissory note (the “2020 Note”) to the Sponsor. The 2020 Note bore no interest and was repayable in full upon consummation of the Business Combination. The Sponsor had the option to convert any unpaid balance of the 2020 Note into warrants equal to the principal amount of the 2020 Note so converted divided by $1.00. Upon closing of the Business Combination, the 2020 Note was converted into a Private Placement Warrant for 1,500,000 shares of Common Stock, with an exercise price of $11.50. The terms of these warrants are identical to the terms of the Private Placement Warrants. Pursuant to the terms of the amended and restated registration rights agreement entered in connection with the Business Combination, the Sponsor had the right to have the resale of the shares of Common Stock acquired upon exercise of such warrant registered under the Securities Act. On February 4, 2021, the Company’s registration statement covering such shares became effective. The Company’s Private Placement Warrants are classified as liabilities, and are measured at fair value through earnings. During the six months ended June 30, 2021, the Company recorded a $56.6 million loss related to the change in fair value of the Private Placement Warrants, which were remeasured through the date of each exercise, calculated using the Black-Scholes warrant pricing model with the following assumptions: Six Months Ended June 30, 2021 Risk‑free interest rate 0.4% – 0.6 % Expected volatility 55.0 % Expected life (in years) 4.8 Expected dividend yield — Fair value of Common Stock $ 19.82 – 30.49 Exercise price $ 11.50 All of the Private Placement Warrants were exercised on a cashless basis prior to March 2, 2021, and an aggregate of 5,850,346 shares of the Company’s Common Stock were issued in connection with these exercises. Effective March 2, 2021, all Private Placement Warrants were exercised. | 17. STOCKHOLDERS’ EQUITY As of December 31, 2020, the Company’s authorized shares consisted of 500,000,000 shares of Class A Common Stock, $0.0001 par value (the “Common Stock”) and 50,000,000 shares of Preferred Stock, $0.0001 par value (the “Preferred Stock”). Common Stock Restricted Stock Agreements During the year ended December 31, 2019, as part of the Company’s acquisitions, the Company issued 607,300 shares of restricted stock with a value of $2.0 million which are considered post-combination consideration and accounted for as stock-based compensation as the shares vest. The shares vest over a four-year service period. The activity for stock subject to vesting for years ended December 31, 2020 and 2019, are as follows (shares in thousands): Shares subject Weighted Average to Vesting Purchase Price Balance of unvested shares as of January 1, 2020 5,587 $0.0001 Issuance of additional shares — — Vested (5,307) $0.001 Balance of unvested shares as of December 31, 2020 280 $0.001 At December 31, 2020, the remaining weighted-average vesting period for the stock subject to vesting was 0.6 years. Promissory Note Shares In March 2018, the Company issued a promissory note totaling $0.2 million in exchange for 340,923 shares of Common Stock. The note accrued interest at the rate of 2.57% per annum and was fully collateralized by the assets of the holder. The Company has accounted for the note as recourse note and has recorded it as a deduction from stockholders’ equity. The note plus immaterial interest was settled with the Company through the repurchase of 76,461 shares of Common Stock by the Company, at the then current fair value in March 2019. Common Stock Warrants In May 2017, the Company entered into a strategic collaboration agreement with an investor allowing the investor’s resellers to sell and distribute the Company’s products. In consideration for this agreement, the Company agreed to issue warrants to purchase up to 2,442,440 shares of Common Stock. The investor was eligible to receive a warrant to purchase one share of Common Stock for every $35.00 in revenue generated by the Company from the investor’s resellers. Each warrant was issued at an exercise price equal to $3.34 per share (subject to appropriate adjustment in the event of a stock dividend, stock split, combination, or other similar recapitalization) and was set to expire on December 31, 2027. The Company issued 122,073 warrants in 2020 and 611,969 warrants in 2019. The Company recorded $0.2 million related to the fair value of the warrants in 2020 and $1.0 million in 2019, calculated using the Black-Scholes warrant-pricing model with the following assumptions: Years Ended December 31, 2020 2019 Risk‑free interest rate 2.0 % 2.0 % Expected volatility 52.5 % 52.5 % Expected life (in years) 8.0 8.0 – 8.8 Expected dividend yield — — Fair value of Common Stock $ 3.34 $ 3.34 756,498 warrants were converted to 447,938 shares of Common Stock through a cashless exercise in connection with the Business Combination. In August 2020, the Company issued a warrant to purchase up to 366,366 shares of common stock, par value $0.0001, in exchange for technical research and development advisor services. Each warrant was issued at an exercise price of $3.34 per share (subject to appropriate adjustment in the event of a stock dividend, stock split, combination, or other similar recapitalization) and was set to expire on August 22, 2027. The Company recorded $1.7 million related to the fair value of the warrants in 2020, calculated using the Black-Scholes warrant-pricing model with the following assumptions: Year Ended December 31, 2020 Risk‑free interest rate 0.5 % Expected volatility 52.5 % Expected life (in years) 0.3 Expected dividend yield — Fair value of Common Stock $ 7.98 366,366 warrants vested upon a change in control and were converted to 244,428 shares of Common Stock through a cashless exercise in connection with the Business Combination. Trine Warrants In Trine’s initial public offering, it sold units at a price of $10.00 per unit, which consisted of one share of Common Stock, $0.0001 par value, and one from the date of the Business Combination. Unless earlier redeemed, the Public Warrants will expire The Warrant Agreement, dated as of March 14, 2019, by and between the Company and Continental Stock Transfer & Trust Company also obligated the Company to use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of the issuance of the shares of Common Stock issuable upon exercise of the Public Warrants, and to cause the same to become effective and remain effective while the Public Warrants remain outstanding. On February 4, 2021, the Company’s registration statement covering such shares became effective. Simultaneously with the consummation of Trine’s initial public offering, Trine Sponsor IH, LLC purchased an aggregate of 8,503,000 warrants to purchase one share of Common Stock at an exercise price of $11.50 at a price of $1.00 per warrant ($8,503,000) in the aggregate in a private placement. The Private Placement Warrants are identical to the Public Warrants except that the Private Placement Warrants are not redeemable by Desktop Metal, and may be exercised for cash or on a cashless basis so long as they are held by the Sponsor or any of its permitted transferees. Additionally, pursuant to the terms of the amended and restated registration rights agreement entered in connection with the Business Combination, the Sponsor had the right to have the resale of the shares of Common Stock acquired upon exercise of the Private Placement Warrants registered under the Securities Act. On February 4, 2021, the Company’s registration statement covering such shares became effective. On February 24, 2020, Trine issued an unsecured promissory note (the “2020 Note”) to the Sponsor. The 2020 Note bore no interest and was repayable in full upon consummation of the Business Combination. The Sponsor had the option to convert any unpaid balance of the 2020 Note into warrants equal to the principal amount of the 2020 Note so converted divided by $1.00. Upon closing of the Business Combination, the 2020 Note was converted into additional Private Placement Warrants for 1,500,000 shares of Common Stock, with an exercise price of $11.50. The terms of these warrants are identical to the terms of the Private Placement Warrants. Pursuant to the terms of the amended and restated registration rights agreement entered in connection with the Business Combination, the Sponsor had the right to have the resale of the shares of Common Stock acquired upon exercise of such warrant registered under the Securities Act. On February 4, 2021, the Company’s registration statement covering such shares became effective. The Company has classified the Private Placement Warrants as liabilities, and will subsequently measure them at fair value through earnings. The Company recorded a $56.4 million gain related to the change in the fair value of the warrants in 2020, calculated using the Black-Scholes warrant-pricing model with the following assumptions: As of December 31, 2020 As of December 9, 2020 Risk‑free interest rate 0.4 % 0.4 % Expected volatility 50.0 % 40.0 % Expected life (in years) 4.9 5 Expected dividend yield — — Fair value of Common Stock $ 17.20 $ 24.77 Legacy Desktop Metal Convertible Preferred Stock In connection with the Business Combination, Legacy Desktop Metal’s Convertible Preferred Stock (“Legacy Convertible Preferred Stock”) previously classified as mezzanine was retroactively adjusted, converted into Common Stock, and reclassified to permanent equity as a result of the reverse recapitalization. As of December 31, 2020, there is no Legacy Convertible Preferred Stock authorized, issued or outstanding. The following table summarizes details of Legacy Convertible Preferred Stock authorized, issued and outstanding immediately prior to the Business Combination ($ in thousands): Prior to Business Combination Legacy Convertible Preferred Stock Classes Shares Authorized, Issued and Outstanding Preferred Stock Series A Legacy Convertible Preferred Stock, $0.0001 par value 26,189,545 $ 13,878 Series B Legacy Convertible Preferred Stock, $0.0001 par value 23,675,035 37,806 Series C Legacy Convertible Preferred Stock, $0.0001 par value 13,152,896 44,852 Series D Legacy Convertible Preferred Stock, $0.0001 par value 21,075,193 180,353 Series E Legacy Convertible Preferred Stock, $0.0001 par value 13,450,703 134,667 Series E‑1 Legacy Convertible Preferred Stock, $0.0001 par value 2,494,737 24,977 Total 100,038,109 $ 436,533 The following describes the rights and preferences of the Company’s Legacy Convertible Preferred Stock prior to conversion to common stock in the Business Combination: Voting Dividends Liquidation Conversion conversion price then in effect, which was equal to $0.53372 per share for the Series A Legacy Convertible Preferred Stock, $1.6013 per share for Series B Legacy Convertible Preferred Stock, $3.4213 per share for the Series C Legacy Convertible Preferred Stock, $8.5656 per share for the Series D Legacy Convertible Preferred Stock, and $10.0211 per share for the Series E and Series E-1 Legacy Convertible Preferred Stock. The conversion price was subject to adjustment if certain dilutive events occurred. Conversion was mandatory in the event of a firm-commitment underwritten initial public offering of the Company’s Legacy Desktop Metal common stock with a value of at least $5.13 per common share and $50 million in proceeds to the Company or upon the election of a majority of the holders of Legacy Convertible Preferred Stock, voting as a single class on an as-converted basis. Redemption |
STOCK BASED COMPENSATION_2
STOCK BASED COMPENSATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
STOCK BASED COMPENSATION | ||
STOCK BASED COMPENSATION | 18. STOCK BASED COMPENSATION Stock Incentive Plan As part of the acquisition of Make Composites, Inc. (“Make”) in 2019, the Company assumed the 2018 equity incentive plan of Make (the “Make Plan”). The Make Plan allows for the award of incentive and nonqualified stock options and warrants for those employees and contractors that were hired as part of the acquisition. The Make Plan allowed for 232,304 options and warrants to be issued, which were issued in 2019, with no additional options to be issued in the future. Option awards expire 10 years from the grant date and generally vest over four years; however, vesting conditions can vary at the discretion of our Board of Directors. In December 2020, the Board of Directors and stockholders of the Company approved the adoption of the 2020 Incentive Award Plan (the “2020 Plan” and together with the 2015 Plan and the Make Plan, the “Plans”), which became effective on the date of the Business Combination. Upon effectiveness of the 2020 Plan, the Company ceased granting new awards under the 2015 Plan. The 2020 Plan allows for the award of incentive and nonqualified stock options, restricted stock, and other stock-based awards to employees, officers, directors, consultants, and advisers of the Company. The number of shares of common stock initially available for issuance under the 2020 Plan was 12,400,813 shares of common stock plus the number of shares subject to awards outstanding under the 2015 Plan that expire, lapse, terminate, or are exchanged for cash, surrendered, repurchased, or canceled without having been fully exercised or forfeited. In addition, the number of shares of common stock available for issuance under the 2020 Plan is subject to an annual increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030 equal to the lesser of (i) 5% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Board. On January 1, 2021, 11,337,837 shares were added to the plan. The Company grants stock options at exercise prices deemed by the Board of Directors to be equal to the fair value of the Common Stock at the time of grant. The fair value of Common Stock has been determined by the Board of Directors of the Company at each stock option measurement date based on a variety of different factors, including the results obtained from independent third-party appraisals, the Company’s consolidated financial position and historical financial performance, the status of technological development within the Company, the composition and ability of the current engineering and management team, an evaluation and benchmark of the Company’s competition, the current climate in the marketplace, the illiquid nature of the Common Stock, arm’s-length sales of the Company’s capital stock, and the prospects of a liquidity event, among others. During the three and six months ended June 30, 2021, the Company did not grant any options to purchase shares of Common Stock to employees. During the three and six months ended June 30, 2020, the Company granted options to purchase 4,182,389 and 4,656,013 shares of Common Stock to employees with fair values of $2.9 million and $3.6 million, respectively, calculated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Risk‑free interest rate 0.4 % – 0.9 % 0.4 % – 0.9 % Expected volatility 52.7 % – 54.2 % 52.7 % – 54.2 % Expected life (in years) 5.9 – 6.3 5.9 – 6.3 Expected dividend yield — — Fair value of Common Stock $ 3.34 $ 3.34 During the three and six months ended June 30, 2021, the Company did not grant any options to purchase shares of Common Stock to non-employees. During the three months ended June 30, 2020, the Company did not grant any options to purchase shares of Common stock to non-employees. During the six months ended June 30, 2020, the Company granted options to purchase 12,212 shares of Common Stock to consultants with a fair value of $0.1 million, calculated using the Black-Scholes option-pricing model with the following assumptions: Six Months Ended June 30, 2020 Risk‑free interest rate 0.8 % Expected volatility 54.3 % Expected life (in years) 10.0 Expected dividend yield — Fair value of Common Stock $ 3.34 The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of the related stock options. The expected life of stock options was calculated using the average of the contractual term of the option and the weighted-average vesting period of the option, as the Company does not have sufficient history to use an alternative method to the simplified method to calculate an expected life for employees. The Company has not paid a dividend and is not expected to pay a dividend in the foreseeable future. Expected volatility for the Common Stock was determined based on an average of the historical volatility of a peer group of similar public companies. At June 30, 2021, the total unrecognized stock-based compensation expense related to unvested stock options aggregated $11.2 million. The costs are expected to be recognized over a weighted-average period of 2.9 years. There were 21,810,237 shares available for award under the 2020 Plan at June 30, 2021. The option activity of the Plans for the six months ended June 30, 2021, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2021 19,553 $ 1.53 7.75 $ 306,408 Granted — $ — Exercised (2,846) $ 1.29 Forfeited/expired (313) $ 1.43 Outstanding at June 30, 2021 16,394 $ 1.57 7.40 $ 162,737 Options vested at June 30, 2021 9,451 $ 1.62 6.27 $ 93,385 Options vested or expected to vest at June 30, 2021 15,807 $ 1.58 7.34 $ 156,825 The weighted-average grant-date fair value for options granted during the six months ended June 30, 2021 was $0.98. The aggregate intrinsic value of options exercised during the six months ended June 30, 2021 and 2020, was $37.0 million and $5.0 million, respectively. Restricted Stock Units RSU activity under the 2020 Plan for the six months ended June 30, 2021 is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2021 683 $ 8.02 Granted 4,461 $ 15.38 Vested (44) $ 8.13 Cancelled/Forfeited (5) $ 7.98 Balance of unvested shares as of June 30, 2021 5,095 $ 14.52 Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the condensed consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 1,838 $ 569 $ 2,755 $ 1,283 General and administrative expense 1,355 217 2,194 454 Sales and marketing expense 577 213 921 421 Cost of sales 229 75 346 175 Total stock-based compensation expenses $ 3,999 $ 1,074 $ 6,216 $ 2,333 | 18. STOCK BASED COMPENSATION Stock Incentive Plan As part of the acquisition of Make in 2019, the Company assumed the 2018 equity incentive plan of Make Composites, Inc. (the “Make Plan”). The Make Plan allows for the award of incentive and nonqualified stock options and warrants for those employees and contractors that were hired as part of the acquisition. The Make Plan allowed for 232,304 options and warrants to be issued, which were issued in 2019, with no additional options to be issued in the future. Option awards expire 10 years from the grant date and generally vest over four years; however, vesting conditions can vary at the discretion of our Board of Directors. In December 2020, the Board of Directors and stockholders of the Company approved the adoption of the 2020 Incentive Award Plan (the “2020 Plan” and together with the 2015 Plan and the Make Plan, the “Plans”), which became effective on the date of the Business Combination. Upon effectiveness of the 2020 Plan, the company ceased granting new awards under the 2015 Plan. The 2020 Plan allows for the award of incentive and nonqualified stock options, restricted stock, and other stock-based awards to employees, officers, directors, consultants, and advisers of the Company. The number of shares of common stock initially available for issuance under the 2020 Plan was 12,400,813 shares of common stock plus the number of shares subject to awards outstanding under the 2015 Plan that expire, lapse, terminate, or are exchanged for cash, surrendered, repurchased, or canceled without having been fully exercised or forfeited. In addition, the number of shares of common stock available for issuance under the 2020 Plan is subject to an annual increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030 equal to the lesser of (i) 5% of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Board. The Company grants stock options at exercise prices deemed by the Board of Directors to be equal to the fair value of the Common Stock at the time of grant. The fair value of Common Stock has been determined by the Board of Directors of the Company at each stock option measurement date based on a variety of different factors, including the results obtained from independent third-party appraisals, the Company’s consolidated financial position and historical financial performance, the status of technological development within the Company, the composition and ability of the current engineering and management team, an evaluation and benchmark of the Company’s competition, the current climate in the marketplace, the illiquid nature of the Common Stock, arm’s-length sales of the Company’s capital stock, and the prospects of a liquidity event, among others. In July 2020 in order to incentivize and retain personnel, the Company repriced certain employee unvested stock options held by employees to have an exercise price equal to the most recent 409A private stock valuation. Vested awards were not eligible for repricing. Employees were allowed to opt out of the repricing of unvested stock option grants by providing notice to the Company within a month following the repricing. If an employee did not opt out of the repricing, all unvested options held by such employee were repriced and subject to a new vesting schedule. Repriced options vest over a period of four years from the date of the repricing, with one-year cliff vesting and monthly vesting thereafter. The repricing affected 116 employees, at an incremental compensation cost of $3.6 million to the Company, which will be recognized over the vesting period. During years ended December 31, 2020 and 2019, the Company granted options to purchase 8,450,799 shares and 5,730,586 shares of Common Stock to employees with a fair value of $29.8 million and $10.1 million, respectively, calculated using the Black-Scholes option-pricing model with the following assumptions: Years Ended December 31, 2020 2019 Risk‑free interest rate 0.3% – 1.7 % 1.7% – 2.6 % Expected volatility 52.7% – 54.2 % 52.7% – 53.6 % Expected life (in years) 5.9 – 6.3 5.6 – 6.1 Expected dividend yield — — Fair value of Common Stock $ 1.40 – 7.98 $ 3.34 During the years ended December 31, 2020, and 2019, the Company granted options to purchase 12,212 shares and 119,581 shares of Common Stock to consultants with a fair value of $0.1 million and $0.6 million, respectively, calculated using the Black-Scholes option-pricing model with the following assumptions: Years Ended December 31, 2020 2019 Risk‑free interest rate 0.6% – 0.8 % 1.4% – 3.1 % Expected volatility 54.3% – 54.8 % 52.4% – 61.5 % Expected life (in years) 9.4 – 10.0 6.2 – 10.0 Expected dividend yield — — Fair value of Common Stock $ 1.40 – 7.98 $ 3.34 The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of the related stock options. The expected life of stock options was calculated using the average of the contractual term of the option and the weighted-average vesting period of the option, as the Company does not have sufficient history to use an alternative method to the simplified method to calculate an expected life for employees. The Company has not paid a dividend and is not expected to pay a dividend in the foreseeable future. Expected volatility for the Common Stock was determined based on an average of the historical volatility of a peer group of similar public companies. At December 31, 2020 and 2019, the total unrecognized stock-based compensation expense related to unvested stock options aggregated $13.7 million and $13.0 million, respectively. The costs are expected to be recognized over a weighted-average period of 2.8 years. Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the consolidated statements of operations as follows (in thousands): Years Ended December 31, 2020 2019 Research and development $ 3,276 $ 2,713 General and administrative expense 3,464 941 Sales and marketing expense 894 1,373 Cost of sales 372 188 Total stock-based compensation expenses $ 8,006 $ 5,215 There were 14,379,052 shares available for award under the 2020 Plan at December 31, 2020. The option activity of the 2015 Plan and Make Plan for the year ended December 31, 2020, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2020 18,072 $ 2.01 7.84 $ 24,045 Granted 8,463 $ 1.51 Exercised (522) $ 0.62 Forfeited/expired (6,460) $ 2.92 Outstanding at December 31, 2020 19,553 $ 1.53 7.75 $ 306,408 Options vested at December 31, 2020 10,905 $ 1.53 6.52 $ 170,868 Options vested or expected to vest at December 31, 2020 18,818 $ 1.53 7.69 $ 294,824 The weighted-average grant-date fair value for options granted during 2020 and 2019 was approximately $3.52 and $1.78, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2020 and 2019, was $1.8 million and $3.4 million, respectively. On September 28, 2020 the Company modified the vesting conditions for certain awards granted to one of our officers such that in the event of a change in control, half of the outstanding unvested options would vest. Upon the Business Combination, the total incremental compensation expense resulting from the modification was approximately $1.8 million. Restricted Stock Units 1-year RSU activity under the 2020 Plan for the year ended December 31, 2020 is as follows (shares in thousands): Shares subject Weighted Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2020 — — Granted 683 $ 8.02 Vested — — Balance of unvested shares as of December 31, 2020 683 $ 8.02 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS As a result of the acquisition of EnvisionTEC, the Company entered into certain agreements with entities affiliated with Mr. El Siblani, a director and executive officer of the Company. The Company is the lessee in a lease agreement with ATMRE, LLC, a leasing company, in which Mr. El Siblani is the sole member, for the Dearborn, Michigan facility utilized by EnvisionTEC. This lease extends through December 31, 2023. As of June 30, 2021, the Company recorded $0.5 million of right of use asset and lease liability . During the three and six months ended June 30, 2021, the Company paid immaterial lease expense to AMTRE, LLC. The Company’s annual commitment to AMTRE, LLC is $0.2 million. The Company is the lessee in a lease agreement JES Besitzgesellschaft GmbH, a leasing company that is controlled by members of the immediate family of Mr. El Siblani, for facilities located in Gladbeck, Germany utilized by EnvisionTEC. As of June 30, 2021, the Company recorded $0.2 million of right of use asset and lease liability . During the three and six months ended June 30, 2021, the Company paid immaterial lease expense to JES Besitzgesellschaft GmbH. The Company’s annual commitment to JES Besitzgesellschaft GmbH is $0.1 million. The Company is the lessee in a lease agreement with Sitraco (UK) Limited, a leasing company that is controlled by Mr. El Siblani, for an additional facility located in Gladbeck, Germany utilized by EnvisionTEC. As of June 30, 2021, the Company recorded $0.2 million of right of use asset and lease liability . During the three and six months ended June 30, 2021, the Company paid immaterial lease expense to Sitraco (UK) Limited. The Company’s annual commitment to Sitraco (UK) Limited is $0.1 million. The Company has a distribution agreement with Sibco Europe Ltd., a distributor based out of the United Kingdom. Mr. El Siblani is Managing Director of and sole shareholder of Sibco Europe Ltd. The Company did not have any sales to Sibco Europe Ltd. for the period ended June 30, 2021. In addition, Sibco Europe Ltd. provides sales and marketing support for EnvisionTEC GmbH. At June 30, 2021, the Company did not have accounts receivable or accounts payable due to or from Sibco Europe Ltd. The Company also has an agreement with E3D Technology, a wholly-owned subsidiary of Sibco Europe Ltd., for services including research and development, maintenance, and marketing services. As part of the agreement, the Company also pays a fee for overhead at the facilities where these contracted services are being performed. During the three and six months ended June 30, 2021, the Company paid immaterial service expense to E3D Technology. |
SEGMENT INFORMATION_2
SEGMENT INFORMATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SEGMENT INFORMATION | ||
SEGMENT INFORMATION | 20. SEGMENT INFORMATION In its operation of the business, management, including the Company’s chief operating decision maker, who is also Chief Executive Officer, reviews the business as one segment. The Company currently ships its product to markets in the Americas, Europe Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”). Disaggregated revenue data for those markets is as follows (in thousands): Revenue for the three months ended June 30, 2021 Americas EMEA APAC Total Products $ 10,497 $ 3,769 $ 3,294 $ 17,560 Services 904 381 132 1,417 Total $ 11,401 $ 4,150 $ 3,426 $ 18,977 Revenue for the three months ended June 30, 2020 Americas EMEA APAC Total Products $ 613 $ 634 $ 284 $ 1,531 Services 282 333 43 658 Total $ 895 $ 967 $ 327 $ 2,189 Revenue for the six months ended June 30, 2021 Americas EMEA APAC Total Products $ 16,350 $ 6,296 $ 5,225 $ 27,871 Services 1,610 596 213 2,419 Total $ 17,960 $ 6,892 $ 5,438 $ 30,290 Revenue for the six months ended June 30, 2020 Americas EMEA APAC Total Products $ 1,515 $ 2,162 $ 548 $ 4,225 Services 609 656 84 1,349 Total $ 2,124 $ 2,818 $ 632 $ 5,574 During the three and six months ended June 30, 2021 and 2020, the Company recognized the following revenue from service contracts and cloud-based software licenses over time, and hardware and consumable product shipments and subscription software at a point in time (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue recognized at a point in time $ 17,560 $ 1,531 $ 27,871 $ 4,225 Revenue recognized over time 1,417 658 2,419 1,349 Total $ 18,977 $ 2,189 $ 30,290 $ 5,574 The Company’s operations are principally in the United States. The locations of long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, are summarized as follows (in thousands): June 30, December 31, 2021 2020 Americas $ 16,031 $ 12,160 EMEA 1,712 — Total long-lived assets $ 17,744 $ 12,160 | 19. SEGMENT INFORMATION In its operation of the business, management, including the Company’s chief operating decision maker, who is also Chief Executive Officer, reviews the business as one segment. The Company currently ships its product to markets in the Americas, Europe Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”). Disaggregated revenue data for those markets is as follows (in thousands): Revenue during the year ended December 31, 2020 Americas EMEA APAC Total Product $ 5,250 $ 6,629 $ 1,839 $ 13,718 Services 1,415 1,159 178 2,752 Total $ 6,665 $ 7,788 $ 2,017 $ 16,470 Revenue during the year ended December 31, 2019 Americas EMEA APAC Total Product $ 12,746 $ 8,430 $ 1,582 $ 22,758 Services 3,055 563 63 3,681 Total $ 15,801 $ 8,993 $ 1,645 $ 26,439 During the years ended December 31, 2020 and 2019, the Company recognized the following revenue from service contracts and cloud-based software licenses over time, and hardware and consumable product shipments and subscription software at a point in time (in thousands): Years Ended December 31, 2020 2019 Revenue recognized at a point in time $ 13,718 $ 22,758 Revenue recognized over time 2,752 3,681 Total $ 16,470 $ 26,439 The Company’s long-lived assets are substantially all located in the United States where the Company’s primary operations are located. |
NET LOSS PER SHARE_2
NET LOSS PER SHARE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET LOSS PER SHARE | ||
NET LOSS PER SHARE | 21. NET LOSS PER SHARE The Company computes basic loss per share using net loss attributable to Common Stockholders and the weighted-average number of Common Stock shares outstanding during each period. Diluted earnings per share include shares issuable upon exercise of outstanding stock options and stock-based awards where the conversion of such instruments would be dilutive. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator for basic and diluted net loss per share: Net loss attributable to Common Stockholders $ (43,180) $ (23,766) $ (102,288) $ (45,570) Denominator for basic and diluted net loss per share: Weighted-average shares 255,098 158,124 246,717 157,187 Net loss per share—Basic and Diluted $ (0.17) $ (0.15) $ (0.41) $ (0.29) The Company’s potential dilutive securities, which include outstanding Common Stock options, unvested restricted stock units, unvested restricted stock awards and outstanding Common Stock warrants, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding as of June 30, 2021 and 2020, from the computation of diluted net loss per share attributable to common stockholders because including them would have an anti-dilutive effect (in thousands): Six Months Ended June 30, 2021 2020 Common Stock options outstanding 16,394 12,964 Unvested restricted stock units outstanding 5,095 — Unvested restricted stock awards outstanding 168 1,317 Common Stock warrants outstanding — 619 Total shares 21,657 14,900 | 20. NET LOSS PER SHARE The Company computes basic loss per share using net loss attributable to Common Stockholders and the weighted-average number of Common Stock shares outstanding during each period. Diluted earnings per share include shares issuable upon exercise of outstanding stock options and stock-based awards where the conversion of such instruments would be dilutive. Years Ended December 31, 2020 (in thousands, except per share amounts) (as restated) 2019 Numerator for basic and diluted net loss per share: Net loss attributable to Common Stockholders $ (34,015) $ (103,596) Denominator for basic and diluted net loss per share: Weighted average shares 157,906 150,002 Net loss per share—Basic and Diluted $ (0.22) $ (0.69) The Company’s potential dilutive securities, which include outstanding Common Stock options, unvested restricted stock units, unvested restricted stock awards, outstanding Common Stock warrants, and Trine Founder Shares held in escrow, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding as of December 31, 2020 and 2019, from the computation of diluted net loss per share attributable to common stockholders because including them would have an anti-dilutive effect (in thousands): Years Ended December 31, 2020 2019 Common Stock options outstanding 19,553 18,072 Unvested restricted stock units outstanding 683 — Unvested restricted stock awards outstanding 279 5,587 Common Stock warrants outstanding 25,010 634 Unvested Trine Founder Shares, held in escrow 1,851 — Total shares 47,376 24,293 |
SUBSEQUENT EVENTS_2
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUBSEQUENT EVENTS | ||
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS On July 2, 2021, The Company entered into a Stock Purchase Agreement with A.I.D.R.O Srl and its shareholders (“Aidro”), to purchase the issued and outstanding capital stock of Aidro; subject to customary regulatory approvals and other customary closing conditions, the acquisition is expected to close in September. The Company expects this acquisition to expand the Company’s part production capabilities and application expertise in the hydraulics industry. The aggregate purchase price for the Aidro acquisition is (i) $6.0 million in cash, with such cash amount being subject to customary adjustments based on, among other things, the amount of cash, debt and working capital at Aidro at the closing date and (ii) restricted stock units equal to a number of shares of Common Stock determined by dividing $3.2 million by the closing price of the Company’s Common Stock on the date immediately preceding the closing date, which are subject to a four year vesting period and continuing employment. On July 30, 2021, the Company acquired Dental Arts Laboratories, Inc., pursuant to a Stock Purchase Agreement of the same date, expanding its portfolio in additive manufacturing within the healthcare industry. The aggregate purchase price was $26.3 million in cash. In connection with the acquisition, the Company also promised to grant restricted stock units equal to a number of shares of Common Stock determined by dividing On August 11, 2021, the Company entered into an Agreement and Plan of Merger to acquire all of the outstanding shares of capital stock of The ExOne Company (“ExOne”) for a mix of cash and stock consideration initially representing $25.50 per share of ExOne common stock (the Merger). The Company expects this acquisition to accelerate the adoption of additive manufacturing for mass production applications. The merger consideration to be paid for each share of ExOne common stock is comprised of (i) $8.50 in cash and (ii) a number of shares of Class A Common Stock, par value $0.0001 per share, of the Company based on the average Company stock price at the time of the closing of the Merger. If the average Company stock price is between (or equal to) $9.70 and $7.94 per share, the initial exchange ratio of 1.9274 will be modified by multiplying such exchange ratio by the quotient of $8.82 divided by the average Company stock price. If the average Company stock price is greater than $9.70, the exchange ratio will be 1.7522. If the average Company stock price is less than $7.94, the exchange ratio will be 2.1416. If the average Company stock price is between (or equal to) $9.70 and $7.94 per share, at closing, ExOne stockholders will receive total consideration of $575 million, consisting of $192 million in cash and $383 million in shares of Company Common Stock, subject to the collar mechanism on the stock consideration component described above. Following the closing of the merger, ExOne shareholders will own between 12% and 15% of the Company’s Common Stock on a fully-diluted basis based on the number of Company shares outstanding. The cash portion of the purchase price will be financed with cash on hand at the Company and ExOne. The closing of the Merger is subject to customary conditions, including regulatory approval and approval by the stockholders of ExOne. The transaction is currently expected to close in the fourth quarter of 2021. | 21. SUBSEQUENT EVENTS On February 16, 2021, the Company acquired EnvisionTEC US, LLC and certain of its affiliates (“EnvisionTEC”) pursuant to a Purchase Agreement and Plan of Merger dated as of January 15, 2021. The Company expects this acquisition to create a comprehensive portfolio across metals, polymers and composites and grow distribution channels both in quantity and through the addition of a vertically-focused channel. The Company paid consideration of $143.8 million in cash and issued 5,036,142 shares of the Company’s Common Stock with a fair value of $159.8 million as of the close of business on the transaction date. In connection with the transaction, the Company also agreed to grant restricted stock units totaling 475,848 shares of the Company’s Common Stock to key EnvisionTEC employees. The acquisition will be accounted for as a business combination using the acquisition method of accounting. The Company is currently finalizing the allocation of the purchase price and expects the purchase price to be allocated primarily to goodwill and intangible assets. On February 26, 2021, the Company delivered a notice to redeem all of its outstanding Public Warrants that remain unexercised at 5:00 p.m. New York City time on March 29, 2021. From January 1, 2021 through March 10, 2021, Public Warrants for 11,898,122 shares of Common Stock were exercised for cash, resulting in the Company receiving net proceeds of $136.8 million. An aggregate of 11,898,122 shares of the Company’s Common Stock were issued in connection with these exercises. From January 1, 2021 through March 10, 2021, 10,003,000 Private Placement Warrants were exercised on a cashless basis. An aggregate of 5,850,346 shares of the Company’s Common Stock were issued in connection with these exercises. As of March 31, 2021, there were no Public or Private Placement Warrants outstanding. Management has evaluated subsequent events occurring through March 15, 2021, the date that these consolidated financial statements were issued and determined that no additional subsequent events occurred that would require recognition or disclosure in these consolidated financial statements other than those in this note. |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The condensed consolidated financial statements include the Company’s accounts and those of its subsidiaries. In the opinion of the Company’s management, the financial information for the interim periods presented reflects all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. The results reported in these condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. | Basis of Presentation The consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the regulations of the U.S Securities and Exchange Commission (“SEC”). |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The functional currency of all wholly owned subsidiaries is U.S. Dollars. All intercompany transactions and balances have been eliminated in consolidation. |
COVID-19 Pandemic | COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (“COVID-19”) to be a pandemic. As of June 30, 2021, the impact of the COVID-19 pandemic continues to unfold and there has been uncertainty and disruption in the global economy and financial markets. The Company has considered the COVID-19 pandemic related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. The COVID-19 pandemic, as well as the response to mitigate the spread and effects of COVID-19, has impacted the Company and its customers, as well as the demand for its products and services. The impact of COVID-19 on the Company’s operational results in subsequent periods will largely depend on future developments, and cannot be accurately predicted. These developments may include, but are not limited to, new information concerning the severity of COVID-19, the degree of success of actions taken to contain or treat COVID-19 and the reactions by consumers, companies, governmental entities, and capital markets to such actions. | COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (“COVID-19”) to be a pandemic. As of December 31, 2020, the impact of the COVID-19 pandemic continues to unfold and there has been uncertainty and disruption in the global economy and financial markets. The Company has considered the COVID-19 pandemic related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. The COVID-19 pandemic, as well as the response to mitigate the spread and effects of COVID-19, may impact the Company and its customers, as well as the demand for its products and services. The impact of COVID-19 on the Company’s operational results in subsequent periods will largely depend on future developments, and cannot be accurately predicted. These developments may include, but are not limited to, new information concerning the severity of COVID-19, the degree of success of actions take to contain or treat COVID-19 and the reactions by consumers, companies, governmental entities, and capital markets to such actions. |
Significant Accounting Policies | Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to the financial statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2020. See the below discussion of changes to the Company’s policies for foreign currency translation, products revenue and services revenue, warranty reserve, intangible assets, asset acquisitions, and contingent consideration, due to 2021 business combinations and asset acquisitions. There have been no other changes to the Company’s significant accounting policies during the first six months of fiscal year 2021. | |
Foreign Currency Translation | Foreign Currency Translation The Company translates assets and liabilities of its foreign subsidiaries from their respective functional currencies to U.S. Dollars at the appropriate spot rates as of the balance sheet date. The functional currency of all wholly owned subsidiaries is U.S. Dollars, except for EnvisionTEC GmbH and Aerosint, for which it is Euros. The functional currency of the Company's operations outside the United States is generally the local currency of the country where the operations are located or U.S. Dollars. The results of operations are translated into U.S. Dollars at a monthly average rate, calculated using daily exchange rates. Differences arising from the translation of opening balance sheets of these entities to the rate at the end of the fiscal period are recognized in accumulated other comprehensive (loss) income. The differences arising from the translation of foreign results at the average rate are also recognized in accumulated other comprehensive (loss) income. Such translation differences are recognized as income or expense in the period in which the Company disposes of the operations. Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. All such differences are recorded in Interest and other income, net in the condensed consolidated statements of operations. | |
Product Revenue and Service Revenue | Products Revenue and Services Revenue Products revenue include sales of the Company’s additive manufacturing systems as well as sale of related accessories and consumables. These consumables are primarily comprised of materials, which are used by the 3D printers during the printing process to produce parts, as well as replacement parts for items consumed during system operations. Certain on-device software is embedded with the hardware and sold with the product bundle and is included within product revenue. Revenue from products is recognized upon transfer of control, which is generally at the point of shipment. Services revenue consists of installation, training, and post-installation hardware and software support, as well as various software solutions the Company offers to facilitate the operation of the Company’s products. The Company offers multiple software products, which are licensed through either a cloud-based solution and/or on-device software, depending on the product. For the cloud-based solution, the Company typically provides an annual subscription that the customer does not have the right to take possession of and is renewable at expiration. The revenue from the cloud-based solution is recognized ratably over the annual term as the Company considers the services provided under the cloud-based solution to be a series of distinct performance obligations, as the Company provides continuous daily access to the cloud solution. For on-device software subscriptions, the Company typically recognizes revenue once the customer has been given access to the software. When the Company enters into development contracts, control of the development service is transferred over time, and the related revenue is recognized as services are performed. For certain products, the Company offers customers an optional extended warranty beyond the initial warranty period. The optional extended warranty is accounted for as a service-type warranty. Extended warranty revenue is deferred and recognized on a straight-line basis over the service-type warranty period of the contract and the associated costs are recognized as incurred. Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The amount of consideration is typically a fixed price at the contract inception. Consideration from shipping and handling is recorded on a gross basis within product revenue. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Nature of Products and Services The Company sells its products primarily through authorized resellers, independent sales agents, and its own sales force. Revenue from hardware and consumables is recognized upon transfer of control, which is generally at the point of shipment. The Company’s post-installation support is primarily sold through one-year annual contracts and such revenue is recognized ratably over the term of the agreement. Service revenue from installation and training is recognized as performed. The Company’s terms of sale generally provide payment terms that are customary in the countries where the Company transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. Due to the short-term nature of the Company’s contracts, substantially all of the outstanding performance obligations are recognized within one year. Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Significant Judgements The Company enters into contracts with customers that can include various combinations of hardware products, software licenses, and services, which are distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources and (ii) the Company’s promise to transfer the products, software, or services to the customer is separately identifiable from other promises in the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgement is required to determine the standalone selling price (“SSP”). The transaction price is allocated to each distinct performance obligation on a relative standalone selling price basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on historical transaction data of the observable prices of hardware products and consumables sold separately in comparable circumstances to similar customers, observable renewal rates for software and post-installation support, and the Company’s best estimate of the selling price at which the Company would have sold the product regularly on a stand-alone basis for training and installation. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. | Revenue Product Revenue and Service Revenue Product revenue include sales of the Company’s additive manufacturing systems as well as sale of related accessories and consumables. These consumables are primarily comprised of materials, which are used by the printers during the printing process to produce parts. Certain on-device software is embedded with the hardware and sold with the product bundle and is included within product revenue. Revenue from products is recognized upon transfer of control, which is generally at the point of shipment. Services revenue consists of installation, training, and post-installation hardware and software support, as well as various software solutions the Company offers to facilitate the design of parts and operation of the Company’s products. The Company offers multiple software products, which are licensed through either a cloud-based solution and/or an on-device software subscription, depending on the product. For the cloud-based solution, the Company typically provides an annual subscription that the customer does not have the right to take possession of and is renewable at expiration. The revenue from the cloud-based solution is recognized ratably over the annual term as the Company considers the services provided under the cloud-based solution to be a series of distinct performance obligations, as the Company provides continuous daily access to the cloud solution. For on-device software subscriptions, the Company typically recognizes revenue once the customer has been given access to the software. When the Company enters into development contracts, control of the development service is transferred over time, and the related revenue is recognized as services are performed. Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The amount of consideration is typically a fixed price at the contract inception. Consideration from shipping and handling is recorded on a gross basis within product revenue. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Nature of Products and Services The Company sells its products primarily through authorized resellers, independent sales agents, and its own sales force. Revenue from hardware and consumables is recognized upon transfer of control, which is generally at the point of shipment. The Company’s post-installation support is primarily sold through one-year annual contracts and such revenue is recognized ratably over the term of the agreement. Service revenue from installation and training is recognized as performed. The Company’s terms of sale generally provide payment terms that are customary in the countries where the Company transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. Due to the short-term nature of the Company’s contracts substantially all of the outstanding performance obligations are recognized within one year Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Significant Judgements The Company enters into contracts with customers that can include various combinations of hardware products, software licenses, and services, which are distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources and (ii) the Company’s promise to transfer the products, software, or services to the customer is separately identifiable from other promises in the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgement is required to determine the standalone selling price (“SSP”). The transaction price is allocated to each distinct performance obligation on a relative standalone selling price basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based historical transaction data of the observable prices of hardware products sold separately in comparable circumstances to similar customers, observable renewal rates for software and post- installation support, and the Company’s best estimate of the selling price at which the Company would have sold the product regularly on a stand-alone basis for training and installation. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, customer deposits and deferred revenues (contract liabilities) on the consolidated balance sheets. Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable at the time of invoicing. For most contracts, customers are invoiced when products are shipped or when services are performed. The Company will typically bill in advance for post-installation support and cloud-based software licenses, resulting in deferred revenue. The Company’s deferred revenue balance was $3.0 million and $2.2 million as of December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, the Company recognized $2.2 million of deferred revenue from 2019. The deferred revenue consists primarily of billed post-installation support and cloud-based software licenses that are recognized ratably over the term of the agreement, as well as contracts that have outstanding performance obligations or contracts that have acceptance terms that have not yet been fulfilled. When products have been delivered, but the product revenue associated with the arrangement has been deferred the Company includes the costs for the delivered items in deferred costs of sales on the consolidated balance sheets until recognition of the related revenue occurs, at which time it is recognized in cost of sales. The Company’s deferred cost of sales balance was $0.5 and $0.3 million as of December 31, 2020 and 2019, respectively. The Company’s contracts are primarily one year or less, so substantially all deferred revenue outstanding at the end of the fiscal year is recognized during the following year. The Company primarily sells products through a reseller network. Under this arrangement, the reseller is determined to be the Company’s customer, and revenue is recognized based on the amounts the Company is entitled to, reduced by any payments owed to the resellers. On certain contracts, the Company utilizes external partners and an internal sales team to sell direct to the end user. The Company acts as a principal in the contracts with users when utilizing external partners because the Company controls the product, establishing the price, and bearing the risk of nonperformance, until it is transferred to the end user. The Company records the revenue on a gross basis and commissions are recorded as a sales and marketing expense in the statement of operations. The Company recognizes its commission expense as a point-in-time expense as contract obligations are primarily completed within a one-year contract period. During the years ended December 31, 2020 and 2019, the Company paid $0.6 million and $0.4 million of commission expense, respectively. |
Warranty Reserve | Warranty Reserve Substantially all of the Company’s hardware and software products are covered by a standard assurance warranty of one year within the United States and 13 months internationally, and estimated warranty obligations are recorded as an expense at the time or revenue recognition. In the event of a failure of hardware product or software covered by this warranty, the Company will repair or replace the software or hardware product. For certain products, the Company offers customers an optional extended warranty after the initial warranty period. The optional extended warranty is accounted for as a service-type warranty; therefore, costs are recognized as incurred and revenue is recognized over the service-type warranty period. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues in its installed base for which the Company expects to incur an obligation. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the adequacy of the warranty reserve is not indicative of future requirements, additional or reduced warranty reserves may be required. | Warranty Reserve Substantially all of the Company’s hardware and software products are covered by a standard assurance warranty of one year, and estimated warranty obligations are recorded as an expense at the time or revenue recognition. In the event of a failure of hardware product or software covered by this warranty, the Company will repair or replace the software or hardware product. The Company’s warranty reserve reflects estimated material and labor costs for potential or actual product issues in its installed base for which the Company expects to incur an obligation. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the data used to calculate the adequacy of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be required. As of December 31, 2020, and 2019 the Company has recorded $1.6 million and $1.5 million, respectively, of warranty reserve within accrued expenses and other current liabilities on the consolidated balance sheets. Warranty reserve consisted of the following (in thousands): 2020 2019 Warranty reserve, at the beginning of the year $ 1,491 $ 116 Additions to warranty reserve 346 2,352 Claims fulfilled (284) (977) Warranty reserve, at the end of the year $ 1,553 $ 1,491 Warranty reserve is recorded through cost of sales in the consolidated statements of operations. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Expenditures for repairs and maintenance are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the determination of net income or loss. Depreciation is expensed using the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Useful Life Equipment 2-12 years Furniture and fixtures 3-5 years Computer equipment 3 years Tooling 3 years Software 2-3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease | Property and Equipment Property and equipment is stated at cost. Expenditures for repairs and maintenance are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the determination of net income or loss. Depreciation is expensed using the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Useful Life Equipment 3‑5 years Furniture and fixtures 3 years Computer equipment 3 years Tooling 3 years Software 3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease |
Intangible Assets | Intangible Assets Intangible assets consist of identifiable intangible assets, including developed technology, trade names, and customer relationships, resulting from the Company’s acquisitions. The Company evaluates definite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If indicators of impairment are present, the Company then compares the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value. If such assets are impaired, the impairment recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. To date, there have been no impairments of intangible assets. Intangible assets are amortized over their useful life. | Acquired Technology Intangible assets consist of identifiable intangible assets, including developed technology, resulting from the Company’s acquisitions. The Company evaluates definite-lived intangible assets for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If indicators of impairment are present, the Company then compares the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value. If such assets are impaired, the impairment recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. To date, there have been no impairments of intangible assets. Intangible assets are amortized over their useful life. |
Asset Acquisitions | Asset Acquisitions Acquisitions of assets or a group of assets that do not meet the definition of a business are accounted for as asset acquisitions using the cost accumulation method, whereby the cost of the acquisition, including certain transaction costs, is allocated to the assets acquired on the basis of relative fair values. No goodwill is recognized in an asset acquisition. Intangible assets that are acquired in an asset acquisition for use in research and development activities which have an alternative future use are capitalized as in-process research and development (“IPR&D”). Acquired IPR&D which has no alternative future use is recorded as research and development expense at acquisition. | |
Contingent Consideration | Contingent Consideration Contingent consideration represents potential future payments that the Company may be required to pay in the event negotiated milestones are met in connection with a business acquisition. Contingent consideration is recorded as a liability at the date of acquisition at fair value. The fair value of contingent consideration related to revenue metrics is estimated using a Monte Carlo simulation in a risk-neutral framework. Under this approach, the value of contingent consideration related to revenue metrics is calculated as the average present value of contingent consideration payments over all simulated paths. The fair value of contingent consideration related to technical developments is estimated using a scenario-based approach, which is a special case of the income approach that uses several possible future scenarios. Under this approach, the value of the technical milestone payment is calculated as the probability-weighted payment across all scenarios. Significant increases or decreases in any of the probabilities of success or changes in expected timelines for achievement of any of the revenue or technical milestones could result in a significantly higher or lower fair value of the contingent consideration liability. The fair value of the contingent consideration at each reporting date is updated by reflecting the changes in fair value reflected within research and development expenses in the Company’s condensed consolidated statements of operations. | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Adopted Accounting Guidance In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes, Income Taxes Recent Accounting Guidance Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses. | Recently Issued Accounting Standards Recently Adopted Accounting Guidance In June 2018, the FASB issued ASU No. 2018-07 which substantially aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. The ASU also clarifies that any share-based payment issued to a customer should be evaluated by the new revenue recognition standard. The new ASU requires a modified retrospective transition approach. The Company has adopted the ASU as of January 1, 2020, which did not have a material effect on the Company’s consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes, Income Taxes In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company’s management to make judgements, estimates and assumptions regarding uncertainties that affect the reported amounts of assets, liabilities and related disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, revenue recognition, collectability of receivables, realizability of inventory, goodwill, intangibles, stock-based compensation, and fair values of common stock. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of standard checking accounts, money market accounts and certain investments. The Company classifies any marketable security with an original maturity date of 90 days or less at the time of purchase as a cash equivalent. | |
Short-Term Investments | Short - Term Investments The Company invests its excess cash in fixed income instruments denominated and payable in U.S. dollars including U.S. treasury securities, commercial paper, corporate bonds and asset-backed securities in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. Short-term investments represent holdings of available-for-sale marketable securities in accordance with the Company’s investment policy and cash management strategy. Investments in marketable securities are recorded at fair value, with any unrealized gains and losses reported within accumulated other comprehensive income as a separate component of stockholders’ equity until realized or until a determination is made that an other-than-temporary decline in market value has occurred. When such reductions occur, the cost of the investment is adjusted to fair value through recording a loss on investments in the consolidated statements of operations. All investments mature within one year. | |
Restricted Cash | Restricted Cash The Company maintains a letter of credit for the benefit of the landlord for their office facility. The issuer of the letter of credit requires the Company to maintain a deposit in the amount of $0.6 million to secure the letter, which is reported as restricted cash in the consolidated balance sheets. This letter of credit automatically renews every year until it matures on February 7, 2024; therefore, it is classified as long term in nature at December 31, 2020 and 2019. | |
Financial Instruments | Financial Instruments The Company’s financial instruments are comprised of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and accounts payable. The Company’s other current financial assets and current financial liabilities have fair values that approximate their carrying values due to the short maturity of these balances. | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts In evaluating the collectability of accounts receivable, the Company assesses a number of factors, including specific customers’ abilities to meet their financial obligations, the length of time receivables are past due, and historical collection experience. If circumstances related to specific customers change, or economic conditions deteriorate such that past collection experience is no longer relevant, the Company’s estimate of the recoverability of accounts receivable could be further reduced from the levels provided for in the consolidated financial statements. The Company evaluates specific accounts for which it is believed a customer may have an inability to meet their financial obligations. In these cases, judgment is applied, based on available facts and circumstances, and a specific reserve is recorded for that customer to reduce the receivable to an amount expected to be collected. These specific reserves are reevaluated and adjusted as additional information is received that impacts the amount reserved. As of December 31, 2020, and 2019, the Company has recorded $0.5 million and $0.2 million respectively, in allowance of doubtful accounts. In the years ended December 31, 2020 and 2019 the Company recorded bad debt expense of $0.4 million and $0.2 million, respectively. | |
Net Loss Per share | Net Loss Per share The Company presents basic and diluted loss per share amounts. Basic loss per share is calculated by dividing net loss available to holders of Common Stock by the weighted average number of shares of Common Stock outstanding during the applicable period. The denominator for diluted earnings per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive shares outstanding include the dilutive effect of in-the-money options and unvested Restricted Stock Agreements (“RSAs”), and unvested Restricted Stock Units (“RSUs”) using the treasury stock method. In periods in which the Company reports a net loss, diluted net loss per share is the same as basic net loss per share because dilutive shares are not assumed to have been issued if their effect is anti-dilutive. See Note 20 for further information. | |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value, determined on a first-in, first-out basis, and consists of the following (in thousands): December 31, 2020 2019 Work in process $ 2,896 $ 1,081 Finished goods 6,812 7,324 Total inventory $ 9,708 $ 8,405 The Company provides for inventory losses based on obsolescence and levels in excess of forecasted demand. Inventory is reduced to the estimated net realizable value based on historical usage and expected demand. Inventory provisions based on obsolescence and inventory in excess of forecasted demand are recorded through cost of sales in the consolidated statements of operations. | |
Concentrations of Credit Risk and Off-Balance-Sheet Risk | Concentrations of Credit Risk and Off-Balance-Sheet Risk The Company has no significant off-balance-sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist mainly of cash and cash equivalents. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high-credit standing. As of December 31, 2020, and 2019, no single customer accounted for more than 10% of revenue. As of December 31, 2020 and 2019, no single customer accounted for more than 10% of total accounts receivables. | |
Customer Deposits | Customer Deposits Payments received from customers who have placed reservations or purchase orders in advance of shipment are refundable upon cancellation or non-delivery by the Company and are included within customer deposits on the consolidated balance sheets. | |
Other Investments | Other Investments The Company periodically makes investments in companies within the additive manufacturing industry. The Company monitors events or changes in circumstances that may have a significant effect on the fair value of investments, either due to impairment or based on observable price changes, and records necessary adjustments. | |
Leases | Leases The Company determines if an arrangement is a lease at inception. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. The Company assesses it plans to renew its material leases on an annual basis. Operating leases are included in other assets, current portion of lease liability, and lease liability, net of current portion on the Company’s consolidated balance sheets. Right of use (“ROU”) assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the expected remaining lease term. As the interest rate implicit in the Company’s leases is typically not readily determinable, the Company uses its incremental borrowing rate for a similar term of lease payments based on the information available at commencement date in determining the present value of future payments. The Company elected the short-term lease recognition and therefore, the Company does not recognize right of use assets or lease liabilities for leases with less than a twelve-month duration. The Company also elected the practical expedient to account for lease agreements which contain both lease and non-lease components as a single lease component. | |
Business Combinations | Business Combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The Company generally values the identifiable intangible assets acquired using a discounted cash flow model. The significant estimates used in valuing certain of the intangible assets, include, but are not limited to future expected cash flows of the asset, discount rates to determine the present value of the future cash flows and expected technology life cycles. Intangible assets are amortized over their estimated useful life; the period over which the Company anticipates generating economic benefit from the asset. Fair value adjustments subsequent to the acquisition date, that are not measurement period adjustments, are recognized in earnings. | |
Goodwill | Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that is not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Goodwill is not amortized but is tested for impairment at least annually (as of the first day of the fourth quarter) or as circumstances indicate the value may no longer be recoverable. To assess if goodwill is impaired, the Company performs a qualitative assessment to determine whether further impairment testing is necessary. The Company then compares the carrying amount of the single reporting unit to the fair value of the reporting unit. An excess carrying value over fair value would indicate that goodwill may be impaired. The Company performed a qualitative assessment during its annual impairment review for 2020 as of October 1, 2020 and concluded that it is more likely than not that the fair value of the Company’s single reporting unit is not less than its carrying amount. Therefore, the two-step goodwill impairment test for the reporting unit was not necessary in 2020. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant revision or that the carrying value of these assets may be impaired. The Company does not believe that any events have occurred through December 31, 2020, that would indicate its long-lived assets are impaired. | |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development expense includes costs, primarily related to salaries and benefits for employees, prototypes and design expenses, incurred to develop intellectual property and is charged to expense as incurred. | |
Capitalized Software | Capitalized Software Costs incurred internally in researching and developing a software product to be sold to customers are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, costs incurred during the application development phase are capitalized only when the Company believes it is probable the development will result in new or additional functionality, and such software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. The Company has determined that technological feasibility for software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are released, such that there are no material costs to capitalize. The Company capitalizes certain costs related to the development and implementation of cloud computing software. The types of costs capitalized during the application development phase include employee compensation, as well as consulting fees for third-party developers working on these projects. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the asset, which is typically 3 years. | |
Advertising Expense | Advertising Expense Advertising expense is included within sales and marketing expense in the consolidated statements of operations and was $0.04 million and $0.1 million for the years ended years ended December 31, 2020 and 2019, respectively. It primarily includes promotional expenditures and is expensed as incurred; as such, efforts have not met the direct-response criteria required for capitalization. | |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for all stock options granted to employees and nonemployees using a fair value method. The fair value of options on the date of grant is calculated using the Black-Scholes option pricing model based on key assumptions such as stock price, expected volatility and expected term. The Company’s estimates of these assumptions are primarily based on the fair value of the Company’s stock, historical data, peer company data and judgment regarding future trends and factors. In determining the exercise prices for options granted, the Company’s Board of Directors has considered the fair value of the common stock as of the measurement date. Prior to the Business Combination, the fair value of the common stock has been determined by the Board of Directors at each award grant date based upon a variety of factors, including the results obtained from an independent third-party valuation, the Company’s financial position and historical financial performance, the status of technological developments within the Company’s proposed products, an evaluation or benchmark of the Company’s competition, the current business climate in the marketplace, the illiquid nature of the common stock, arm’s length sales of the Company’s capital stock, including convertible preferred stock, the effect of the rights and preferences of the preferred shareholders, and the prospects of a liquidity event, among others. Stock-based compensation is measured at the grant-date fair value of the award and is then recognized as the related services are rendered, typically over the vesting period. The Company estimates forfeitures that will occur in their determination of the expense recorded. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over the employees' requisite service period, which is the vesting period, on a straight-line basis. Prior to the adoption of Accounting Standards Update (“ASU”) No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting | |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements and tax returns. Deferred tax assets and liabilities are determined based upon the differences between the consolidated financial statements carrying amounts and the tax bases of existing assets and liabilities and for loss and credit carryforwards, using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that these assets may not be realized. The Company provides reserves for potential payments of taxes to various tax authorities related to uncertain tax positions. Amounts recognized are based on a determination of whether a tax benefit taken by the Company in its tax filings or positions is “more likely than not” to be sustained on audit. The amount recognized is equal to the largest amount that is more than 50% likely to be sustained. Interest and penalties associated with uncertain tax positions are recorded as a component of income tax expense. As of December 31, 2020, and 2019, the Company has not identified any uncertain tax positions for which reserves would be required. | |
Comprehensive Loss | Comprehensive Loss The Company’s comprehensive loss consists of its net loss and unrealized gain and loss from investments in debt securities. |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of Accrued warranty | 2020 2019 Warranty reserve, at the beginning of the year $ 1,491 $ 116 Additions to warranty reserve 346 2,352 Claims fulfilled (284) (977) Warranty reserve, at the end of the year $ 1,553 $ 1,491 | |
Schedule of estimated useful lives of the assets | Asset Classification Useful Life Equipment 2-12 years Furniture and fixtures 3-5 years Computer equipment 3 years Tooling 3 years Software 2-3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease | Asset Classification Useful Life Equipment 3‑5 years Furniture and fixtures 3 years Computer equipment 3 years Tooling 3 years Software 3 years Leasehold improvements Shorter of asset’s useful life or remaining life of the lease |
ACQUISITIONS (Tables)_2
ACQUISITIONS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Schedule of estimated useful life of identifiable intangible assets acquired | Capitalized software consists of the following (in thousands): Years Ended December 31, 2020 2019 Capitalized software development costs $ 1,127 $ 1,127 Accumulated amortization (815) (237) Impairment — (444) Total capitalized software, net $ 312 $ 446 | |
Schedule of proforma financial information is based on the historical financial statements | The following pro forma financial information is based on the historical financial statements of the Company and presents the Company’s results as if the acquisitions of EnvisionTEC, Adaptive 3D and Aerosint had occurred on January 1, 2020 (in thousands): Six Months Ended June 30, 2021 2020 Net revenues $ 34,883 $ 28,974 Net income (loss) $ (108,357) $ (53,497) | |
Schedule of reconciliation of business combination to Statement of Cash Flows and Statement of Changes in Equity | Recapitalization Cash – Trine's trust and cash (net of redemptions) $ 305,084,695 Cash – PIPE financing 274,975,000 Less: transaction costs and advisory fees paid (45,463,074) Net proceeds from reverse recapitalization 534,596,621 Plus: non-cash net liabilities assumed( 1) (152,394,714) Less: accrued transaction costs and advisory fees (1,900,793) Net contributions from reverse recapitalization $ 380,301,114 (1) Includes $149.7 million of non-cash warrant liability assumed. | Recapitalization Cash – Trine's trust and cash (net of redemptions) $ 305,084,695 Cash – PIPE financing 274,975,000 Less: transaction costs and advisory fees paid (45,463,074) Net proceeds from reverse recapitalization 534,596,621 Plus: non-cash net liabilities assumed (1) (152,394,714) Less: accrued transaction costs and advisory fees (1,900,793) Net contributions from reverse recapitalization $ 380,301,114 (1) Includes $149.7 million of non-cash warrant liability assumed. |
Schedule of number of shares issued on consummation of business combination | Number of Shares Common stock, outstanding prior to Business Combination 30,015,000 Less: redemption of Trine shares (26,049) Common stock of Trine 29,988,951 Trine Founder Shares 5,552,812 Trine Director Shares 100,000 Shares issued in PIPE financing 27,497,500 Business Combination and PIPE financing shares 63,139,263 Legacy Desktop Metal shares (1) 161,487,334 Total shares of common stock immediately after Business Combination 224,626,597 (1) The number of Legacy Desktop Metal shares was determined from the shares of Legacy Desktop Metal shares outstanding immediately prior to the closing of the Business Combination converted at the Exchange Ratio of 1.22122 . All fractional shares were rounded down. | Number of Shares Common stock, outstanding prior to Business Combination 30,015,000 Less: redemption of Trine shares (26,049) Common stock of Trine 29,988,951 Trine Founder Shares 5,552,812 Trine Director Shares 100,000 Shares issued in PIPE financing 27,497,500 Business Combination and PIPE financing shares 63,139,263 Legacy Desktop Metal shares (1) 161,487,334 Total shares of common stock immediately after Business Combination 224,626,597 (1) The number of Legacy Desktop Metal shares was determined from the shares of Legacy Desktop Metal shares outstanding immediately prior to the closing of the Business Combination converted at the Exchange Ratio of 1.22122 . All fractional shares were rounded down. |
Acquisition of EnvisionTEC | ||
Business Acquisition [Line Items] | ||
Schedule of estimated fair values of assets acquired and liabilities assumed | The total purchase price was allocated to the identifiable assets acquired and liabilities assumed based on the Company’s preliminary estimates of their fair values on the acquisition date. The fair values assigned to EnvisionTEC’s tangible and intangible assets and liabilities assumed, and the related deferred tax assets and liabilities, are considered preliminary and are based on the information available at the date of the acquisition. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands): At February 16, 2021 Assets acquired: Cash and cash equivalents $ 859 Restricted cash 5,004 Accounts receivable 2,982 Inventory 8,852 Prepaid expenses and other current assets 1,081 Restricted cash - noncurrent 285 Property and equipment 1,440 Intangible assets 137,300 Other noncurrent assets 1,801 Total assets acquired $ 159,604 Liabilities assumed: Accounts payable $ 1,443 Customer deposits 2,461 Current portion of lease liability 605 Accrued expenses and other current liabilities 13,711 Liability for income taxes 480 Deferred revenue 300 Current portion of long-term debt 898 Long-term debt 285 Deferred tax liability 32,966 Lease liability, net of current portion 1,189 Total liabilities assumed $ 54,338 Net assets acquired $ 105,266 Goodwill $ 198,369 | |
Schedule of estimated useful life of identifiable intangible assets acquired | Gross Value Estimated Life Acquired technology $ 77,800 7 – 12 years Trade name 8,600 13 years Customer relationships 50,900 10 years Total intangible assets $ 137,300 | |
Adaptive 3D Technologies Inc | ||
Business Acquisition [Line Items] | ||
Schedule of estimated fair values of assets acquired and liabilities assumed | The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands): At May 7, 2021 Assets acquired: Cash and cash equivalents $ 2,852 Restricted cash 4,046 Accounts receivable 504 Inventory 305 Prepaid expenses and other current assets 462 Property and equipment 558 Intangible assets 27,300 Other noncurrent assets 654 Total assets acquired $ 36,681 Liabilities assumed: Accounts payable $ 280 Customer deposits Current portion of lease liability 151 Accrued expenses and other current liabilities 4,146 PPP loan payable 311 Deferred revenue 12 Lease liability, net of current portion 502 Deferred tax liability 4,768 Total liabilities assumed 10,170 Net assets acquired $ 26,511 Goodwill $ 35,265 | |
Schedule of estimated useful life of identifiable intangible assets acquired | Gross Value Estimated Life Acquired technology $ 27,000 14 years Trade name 300 5 years Total intangible assets $ 27,300 | |
Aerosint | ||
Business Acquisition [Line Items] | ||
Schedule of estimated fair values of assets acquired and liabilities assumed | The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands): At June 24, 2021 Assets acquired: Cash and cash equivalents $ 419 Accounts receivable 34 Inventory 166 Prepaid expenses and other current assets 697 Property and equipment 369 Intangible assets 11,726 Other noncurrent assets 336 Total assets acquired $ 13,747 Liabilities assumed: Accounts payable $ 58 Customer deposits 283 Current portion of lease liability 100 Accrued expenses and other current liabilities 169 Deferred revenue 810 Current portion of contingent consideration 1,429 Lease liability, net of current portion 226 Contingent consideration, net of current portion 4,655 Deferred tax liability 3,524 Total liabilities assumed $ 11,254 Net assets acquired $ 2,493 Goodwill $ 15,174 | |
Schedule of estimated useful life of identifiable intangible assets acquired | The estimated useful lives of the identifiable intangible assets acquired is as follows: Gross Value Estimated Life Acquired technology $ 11,547 11.5 years Trade name 179 4.5 years Total intangible assets $ 11,726 |
CASH EQUIVALENTS AND SHORT-TE_4
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | ||
Schedule of cash equivalents and short-term investments | The Company’s cash equivalents and short-term investments are invested in the following (in thousands): June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 180,998 $ — $ — $ 180,998 Total cash equivalents 180,998 — — 180,998 Commercial paper 159,591 — — 159,591 Corporate bonds 104,758 9 (12) 104,755 Government bonds 36,736 1 (9) 36,728 Asset-backed securities 25,246 1 (3) 25,244 Total short-term investments 326,331 11 (24) 326,318 Total cash equivalents and short-term investments $ 507,329 $ 11 $ (24) $ 507,316 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 75,374 $ — $ — $ 75,374 Money market funds 407,512 — — 407,512 Total cash equivalents 482,886 — — 482,886 U.S. Treasury securities 19,995 2 — 19,997 Commercial paper 43,911 — — 43,911 Corporate bonds 47,970 — (11) 47,959 Total short-term investments 111,876 2 (11) 111,867 Total cash equivalents and short-term investments $ 594,762 $ 2 $ (11) $ 594,753 | The Company’s cash equivalents and short-term investments are invested in the following (in thousands): December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 75,374 $ — $ — $ 75,374 Money market funds 407,512 — — 407,512 Total cash equivalents 482,886 — — 482,886 U.S Treasury securities 19,995 2 — 19,997 Commercial paper 43,911 — — 43,911 Corporate bonds 47,970 — (11) 47,959 Total short-term investments 111,876 2 (11) 111,867 Total cash equivalents and short-term investments $ 594,762 $ 2 $ (11) $ 594,753 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Repurchase agreements $ 25,001 $ — $ — $ 25,001 Money market funds 40,454 — — 40,454 Total cash equivalents 65,455 — — 65,455 Asset‑backed securities 16,786 20 — 16,806 Commercial paper 19,938 — — 19,938 Corporate bonds 47,955 55 — 48,010 Total short-term investments 84,679 75 — 84,754 Total cash equivalents and short-term investments $ 150,134 $ 75 $ — $ 150,209 |
FAIR VALUE MEASUREMENTS (Tabl_2
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | ||
Schedule of financial assets measured at fair value on a recurring basis | The following fair value hierarchy table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): June 30, 2021 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 180,998 $ — $ — $ 180,998 Commercial paper — 159,591 — 159,591 Corporate bonds — 104,755 — 104,755 Government bonds — 36,727 — 36,727 Asset-backed securities — 25,245 — 25,245 Other investments — — 7,137 7,137 Total assets $ 180,998 $ 326,318 $ 7,137 $ 514,453 Liabilities: Contingent consideration $ — $ — $ 6,084 $ 6,084 Subscription agreement — — 474 474 Total liabilities $ — $ — $ 6,558 $ 6,558 December 31, 2020 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 407,512 $ — $ — $ 407,512 Commercial paper — 119,285 — 119,285 Corporate bonds — 47,959 — 47,959 U.S. Treasury securities 19,997 — — 19,997 Other investments — — 3,000 3,000 Total assets $ 427,509 $ 167,244 $ 3,000 $ 597,753 Liabilities: Private placement warrants $ — $ — $ 93,328 $ 93,328 Total liabilities $ — $ — $ 93,328 $ 93,328 | The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value (in thousands): December 31, 2020 (as restated) Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 407,512 $ — $ — $ 407,512 Commercial paper — 119,285 — 119,285 Corporate bonds — 47,959 — 47,959 U.S. Treasury securities 19,997 — — 19,997 Other investments — — 3,000 3,000 Total assets $ 427,509 $ 167,244 $ 3,000 $ 597,753 Liabilities: Private placement warrants $ — $ — $ 93,328 $ 93,328 Total liabilities $ — $ — $ 93,328 $ 93,328 December 31, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Items Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 40,454 $ — $ — $ 40,454 Commercial paper — 19,938 — 19,938 Corporate bonds — 48,010 — 48,010 Asset‑backed securities — 16,806 — 16,806 Repurchase agreements — 25,001 — 25,001 Total assets $ 40,454 $ 109,755 $ — $ 150,209 |
Schedule of Level 3 assets measured at fair value | Six Months Ended June 30, 2021 2020 Balance at beginning of period $ 3,000 $ — Additions 3,620 — Changes in fair value 517 — Balance at end of period $ 7,137 $ — | 2020 2019 Balance at beginning of year $ — $ — Additions 3,000 — Balance at end of year $ 3,000 $ — |
Schedule of Level 3 liabilities measured at fair value | The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): Six Months Ended June 30, 2021 2020 Balance at beginning of period $ 93,328 $ — Additions 6,558 — Changes in fair value 56,576 — Exercise of private placement warrants (149,904) — Balance at end of period $ 6,558 $ — | The following table presents information about the Company’s movement in Level 3 liabilities measured at fair value (in thousands): 2020 2019 Balance at beginning of year $ — $ — Warrant liability assumed 149,745 Change in fair value of warrant liability (56,417) Balance at end of year $ 93,328 $ — |
ACCOUNTS RECEIVABLE (Tables)_2
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE | ||
Schedule of accounts receivable | The components of accounts receivable are as follows (in thousands): June 30, December 31, 2021 2020 Trade receivables $ 13,750 $ 7,016 Allowance for doubtful accounts (309) (500) Total accounts receivable $ 13,441 $ 6,516 | The components of accounts receivable are as follows (in thousands): December 31, 2020 2019 Trade receivables $ 7,016 $ 4,722 Allowance for doubtful accounts (500) (199) Total accounts receivable $ 6,516 $ 4,523 |
Schedule of allowance for doubtful accounts | The following table summarizes activity in the allowance for doubtful accounts (in thousands): June 30, December 31, 2021 2020 Balance at beginning of period $ 500 $ 199 Provision for uncollectible accounts (164) 377 Uncollectible accounts written off (27) (76) Balance at end of period $ 309 $ 500 | The following table summarizes activity in the allowance for doubtful accounts (in thousands): Years Ended December 31, 2020 2019 Balance at beginning of year $ 199 $ — Provision for uncollectible accounts 377 199 Uncollectible accounts written off (76) — Balance at end of year $ 500 $ 199 |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INVENTORY | ||
Schedule of Inventory | Inventory consists of the following (in thousands): June 30, December 31, 2021 2020 Raw materials $ 5,678 $ — Work in process 4,346 2,896 Finished goods 15,383 6,812 Total inventory $ 25,407 $ 9,708 | Inventory is stated at the lower of cost or net realizable value, determined on a first-in, first-out basis, and consists of the following (in thousands): December 31, 2020 2019 Work in process $ 2,896 $ 1,081 Finished goods 6,812 7,324 Total inventory $ 9,708 $ 8,405 |
PREPAID EXPENSES AND OTHER CU_5
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Schedule of Prepaid expenses and other current assets | Prepaid expenses and other current assets consists of the following (in thousands): June 30, December 31, 2021 2020 Prepaid insurance 1,850 121 Prepaid operating expenses 1,873 68 Prepaid dues and subscriptions 823 189 Prepaid taxes 598 — Government grants 653 — Escrow deposits 311 — Prepaid rent 158 118 Deferred cost of goods sold — 454 Other 812 26 Total prepaid expenses and other current assets $ 7,078 $ 976 | Prepaid expenses and other current assets consists of the following (in thousands): December 31, 2020 2019 Deferred cost of goods sold $ 454 $ 262 Prepaid operating expenses 68 585 Prepaid dues and subscriptions 189 503 Prepaid insurance 121 45 Prepaid rent 118 11 Other 26 482 Total prepaid expenses and other current assets $ 976 $ 1,888 |
PROPERTY AND EQUIPMENT (Table_2
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT | ||
Schedule of property and equipment-net | Property and equipment, net consists of the following (in thousands): June 30, December 31, 2021 2020 Equipment $ 15,672 $ 13,708 Furniture and fixtures 1,033 895 Computer equipment 1,139 1,089 Tooling 1,805 1,805 Software 1,439 1,249 Leasehold improvements 14,564 13,870 Construction in process 1,617 879 Property and equipment, gross 37,269 33,495 Less: accumulated depreciation (24,041) (21,335) Total property and equipment, net $ 13,228 $ 12,160 | Property and equipment, net consists of the following (in thousands): December 31, 2020 2019 Equipment $ 13,708 $ 13,358 Furniture and fixtures 895 895 Computer equipment 1,089 1,089 Tooling 1,805 1,823 Software 1,249 954 Leasehold improvements 13,870 13,880 Construction in process 879 170 Property and equipment, gross 33,495 32,169 Less: accumulated depreciation (21,335) (13,782) Total property and equipment, net $ 12,160 $ 18,387 |
GOODWILL & INTANGIBLE ASSETS (T
GOODWILL & INTANGIBLE ASSETS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACQUIRED TECHNOLOGY | ||
Schedule of goodwill activity | Goodwill Balance at December 31, 2019 $ 2,252 Balance at December 31, 2020 $ 2,252 Acquisition of EnvisionTEC 198,369 Acquisition of Adaptive3D 35,265 Acquisition of Aerosint 15,174 Balance at June 30, 2021 $ 251,060 | |
Schedule of intangible assets | Intangible assets consisted of the following (in thousands): Accumulated Balance Gross Value Estimated Life Amortization June 30, 2021 Acquired technology $ 126,540 5 – 12 years $ 5,514 $ 121,026 Trade name 9,079 13 years 251 8,828 Customer relationships 50,900 10 years 1,894 49,006 Total intangible assets $ 186,519 $ 7,659 $ 178,860 | Acquired technology consisted of the following (in thousands): Accumulated Balance Gross Value Estimated Life Amortization December 31, 2020 Acquired technology $ 10,193 5 years $ 1,091 $ 9,102 |
OTHER NONCURRENT ASSETS (Tabl_2
OTHER NONCURRENT ASSETS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
OTHER NONCURRENT ASSETS | ||
Schedule of components of other noncurrent assets | The following table summarizes the Company’s components of other noncurrent assets (in thousands): June 30, December 31, 2021 2020 Other investments $ 7,137 $ 3,000 Right of use asset 4,816 1,810 Long-term deposits 135 69 Other 122 — Total other noncurrent assets $ 12,210 $ 4,879 | The following table summarizes the Company’s components of other noncurrent assets (in thousands): December 31, 2020 2019 Other investments $ 3,000 $ — Right of use asset 1,810 2,289 Long-term deposits 69 — Total other noncurrent assets $ 4,879 $ 2,289 |
ACCRUED EXPENSES AND OTHER CU_5
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Schedule of Accrued Expenses and Other Current Liabilities | The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): June 30, December 31, 2021 2020 Professional services $ 3,897 $ 2,508 Compensation and benefits related 7,359 2,068 Warranty reserve 2,030 1,553 Inventory purchases 1,506 86 Income tax payable 1,331 — Sales and use and franchise taxes 224 586 Franchise and royalty fees 227 159 Goods received payable 1,201 — Other 3,193 605 Total accrued expenses and other current liabilities $ 20,968 $ 7,565 | The following table summarizes the Company’s components of accrued expenses and other current liabilities (in thousands): December 31, 2020 2019 Professional services $ 2,508 $ 780 Compensation and benefits related 2,068 897 Warranty reserve 1,553 1,491 Sales and use and franchise taxes 586 578 Franchise and royalty fees 159 — Inventory purchases 86 620 Other 605 687 Total accrued expenses and other current liabilities $ 7,565 $ 5,053 |
Warranty Reserve Rollforward | Warranty reserve consisted of the following (in thousands): 2021 2020 Warranty reserve, at the beginning of the period $ 1,553 $ 1,491 Warranty reserve assumed in acquisition 316 — Additions to warranty reserve 797 346 Claims fulfilled (636) (284) Warranty reserve, at the end of the period $ 2,030 $ 1,553 |
LEASES (Tables)_2
LEASES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
Schedule of other lease related balances | Information about other lease-related balances is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease cost Operating lease cost $ 422 $ 186 $ 745 $ 374 Short‑term lease cost 34 3 45 3 Variable lease cost 46 2 85 12 Total lease cost $ 502 $ 191 $ 875 $ 389 Other Information Operating cash flows used in operating leases $ 655 $ 269 $ 899 $ 536 Weighted‑average remaining lease term—operating leases (years) 2.6 3.7 2.6 3.7 Weighted‑average discount rate—operating leases 5.1 % 7.6 % 5.1 % 7.6 % | Information about other lease-related balances is as follows (in thousands): Years Ended December 31, 2020 2019 Lease cost Operating lease cost $ 746 $ 655 Short‑term lease cost — 32 Variable lease cost 40 40 Total lease cost $ 786 $ 727 Other Information Operating cash flows from operating leases $ 1,073 $ 951 Weighted‑average remaining lease term—operating leases (years) 3.2 4.2 Weighted‑average discount rate—operating leases 7.6 % 7.6 % |
Schedule of future minimum lease payments | Future minimum lease payments under noncancelable operating leases, including immaterial future minimum lease payments under finance leases, at June 30, 2021, are as follows (in thousands): Operating Leases 2021 (remaining 6 months) $ 1,114 2022 2,258 2023 2,072 2024 700 2025 192 2026 53 Total lease payments 6,389 Less amount representing interest (447) Total lease liability 5,942 Less current portion of lease liability (1,983) Lease liability, net of current portion $ 3,959 | Future minimum lease payments under noncancelable operating leases at December 31, 2020, are as follows (in thousands): 2021 $ 1,071 2022 1,069 2023 1,028 2024 258 2025 — Total lease payments 3,426 Less amount representing interest (401) Total lease liability 3,025 Less current portion of lease liability (868) Lease liability, net of current portion $ 2,157 |
STOCKHOLDERS' EQUITY (Tables)_2
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSU activity under the Plan | The activity for stock subject to vesting as of June 30, 2021 is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Purchase Price Balance of unvested shares as of January 1, 2021 280 $0.0001 Issuance of additional shares — — Vested (112) $0.0001 Balance of unvested shares as of June 30, 2021 168 $0.0001 | The activity for stock subject to vesting for years ended December 31, 2020 and 2019, are as follows (shares in thousands): Shares subject Weighted Average to Vesting Purchase Price Balance of unvested shares as of January 1, 2020 5,587 $0.0001 Issuance of additional shares — — Vested (5,307) $0.001 Balance of unvested shares as of December 31, 2020 280 $0.001 |
Schedule of warrants-pricing model | Six Months Ended June 30, 2020 Risk‑free interest rate 2.0 % Expected volatility 52.5 % Expected life (in years) 7.8 Expected dividend yield — Fair value of Common Stock $ 3.34 | |
Schedule of Preferred Stock authorized, issued and outstanding | Prior to Business Combination Legacy Convertible Preferred Stock Classes Shares Authorized, Issued and Outstanding Preferred Stock Series A Legacy Convertible Preferred Stock, $0.0001 par value 26,189,545 $ 13,878 Series B Legacy Convertible Preferred Stock, $0.0001 par value 23,675,035 37,806 Series C Legacy Convertible Preferred Stock, $0.0001 par value 13,152,896 44,852 Series D Legacy Convertible Preferred Stock, $0.0001 par value 21,075,193 180,353 Series E Legacy Convertible Preferred Stock, $0.0001 par value 13,450,703 134,667 Series E‑1 Legacy Convertible Preferred Stock, $0.0001 par value 2,494,737 24,977 Total 100,038,109 $ 436,533 | |
Collaboration Agreement | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of warrants-pricing model | Years Ended December 31, 2020 2019 Risk‑free interest rate 2.0 % 2.0 % Expected volatility 52.5 % 52.5 % Expected life (in years) 8.0 8.0 – 8.8 Expected dividend yield — — Fair value of Common Stock $ 3.34 $ 3.34 | |
Private Placement Warrants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of warrants-pricing model | Six Months Ended June 30, 2021 Risk‑free interest rate 0.4% – 0.6 % Expected volatility 55.0 % Expected life (in years) 4.8 Expected dividend yield — Fair value of Common Stock $ 19.82 – 30.49 Exercise price $ 11.50 | As of December 31, 2020 As of December 9, 2020 Risk‑free interest rate 0.4 % 0.4 % Expected volatility 50.0 % 40.0 % Expected life (in years) 4.9 5 Expected dividend yield — — Fair value of Common Stock $ 17.20 $ 24.77 |
Technical Technical Research and Development Advisor Services | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of warrants-pricing model | Year Ended December 31, 2020 Risk‑free interest rate 0.5 % Expected volatility 52.5 % Expected life (in years) 0.3 Expected dividend yield — Fair value of Common Stock $ 7.98 |
STOCK BASED COMPENSATION (Tab_2
STOCK BASED COMPENSATION (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of stock-based compensation expense | Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the condensed consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 1,838 $ 569 $ 2,755 $ 1,283 General and administrative expense 1,355 217 2,194 454 Sales and marketing expense 577 213 921 421 Cost of sales 229 75 346 175 Total stock-based compensation expenses $ 3,999 $ 1,074 $ 6,216 $ 2,333 | Total stock-based compensation expense related to all of the Company’s stock-based awards granted is reported in the consolidated statements of operations as follows (in thousands): Years Ended December 31, 2020 2019 Research and development $ 3,276 $ 2,713 General and administrative expense 3,464 941 Sales and marketing expense 894 1,373 Cost of sales 372 188 Total stock-based compensation expenses $ 8,006 $ 5,215 |
Schedule of option activity | There were 21,810,237 shares available for award under the 2020 Plan at June 30, 2021. The option activity of the Plans for the six months ended June 30, 2021, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2021 19,553 $ 1.53 7.75 $ 306,408 Granted — $ — Exercised (2,846) $ 1.29 Forfeited/expired (313) $ 1.43 Outstanding at June 30, 2021 16,394 $ 1.57 7.40 $ 162,737 Options vested at June 30, 2021 9,451 $ 1.62 6.27 $ 93,385 Options vested or expected to vest at June 30, 2021 15,807 $ 1.58 7.34 $ 156,825 | There were 14,379,052 shares available for award under the 2020 Plan at December 31, 2020. The option activity of the 2015 Plan and Make Plan for the year ended December 31, 2020, is as follows (shares in thousands): Weighted-Average Weighted-Average Remaining Aggregate Number of Exercise Price Contractual Term Intrinsic Value Shares per Share (in years) (in thousands) Outstanding at January 1, 2020 18,072 $ 2.01 7.84 $ 24,045 Granted 8,463 $ 1.51 Exercised (522) $ 0.62 Forfeited/expired (6,460) $ 2.92 Outstanding at December 31, 2020 19,553 $ 1.53 7.75 $ 306,408 Options vested at December 31, 2020 10,905 $ 1.53 6.52 $ 170,868 Options vested or expected to vest at December 31, 2020 18,818 $ 1.53 7.69 $ 294,824 |
Schedule of RSU activity | RSU activity under the 2020 Plan for the six months ended June 30, 2021 is as follows (shares in thousands): Shares Subject Weighted-Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2021 683 $ 8.02 Granted 4,461 $ 15.38 Vested (44) $ 8.13 Cancelled/Forfeited (5) $ 7.98 Balance of unvested shares as of June 30, 2021 5,095 $ 14.52 | RSU activity under the 2020 Plan for the year ended December 31, 2020 is as follows (shares in thousands): Shares subject Weighted Average to Vesting Grant Date Fair Value Balance of unvested shares as of January 1, 2020 — — Granted 683 $ 8.02 Vested — — Balance of unvested shares as of December 31, 2020 683 $ 8.02 |
Consultant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of assumptions using Black-Scholes option-pricing model | Six Months Ended June 30, 2020 Risk‑free interest rate 0.8 % Expected volatility 54.3 % Expected life (in years) 10.0 Expected dividend yield — Fair value of Common Stock $ 3.34 | Years Ended December 31, 2020 2019 Risk‑free interest rate 0.6% – 0.8 % 1.4% – 3.1 % Expected volatility 54.3% – 54.8 % 52.4% – 61.5 % Expected life (in years) 9.4 – 10.0 6.2 – 10.0 Expected dividend yield — — Fair value of Common Stock $ 1.40 – 7.98 $ 3.34 |
Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Schedule of assumptions using Black-Scholes option-pricing model | Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Risk‑free interest rate 0.4 % – 0.9 % 0.4 % – 0.9 % Expected volatility 52.7 % – 54.2 % 52.7 % – 54.2 % Expected life (in years) 5.9 – 6.3 5.9 – 6.3 Expected dividend yield — — Fair value of Common Stock $ 3.34 $ 3.34 | Years Ended December 31, 2020 2019 Risk‑free interest rate 0.3% – 1.7 % 1.7% – 2.6 % Expected volatility 52.7% – 54.2 % 52.7% – 53.6 % Expected life (in years) 5.9 – 6.3 5.6 – 6.1 Expected dividend yield — — Fair value of Common Stock $ 1.40 – 7.98 $ 3.34 |
SEGMENT INFORMATION (Tables)_2
SEGMENT INFORMATION (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SEGMENT INFORMATION | ||
Schedule of disaggregation of revenue by geographic areas | Revenue for the three months ended June 30, 2021 Americas EMEA APAC Total Products $ 10,497 $ 3,769 $ 3,294 $ 17,560 Services 904 381 132 1,417 Total $ 11,401 $ 4,150 $ 3,426 $ 18,977 Revenue for the three months ended June 30, 2020 Americas EMEA APAC Total Products $ 613 $ 634 $ 284 $ 1,531 Services 282 333 43 658 Total $ 895 $ 967 $ 327 $ 2,189 Revenue for the six months ended June 30, 2021 Americas EMEA APAC Total Products $ 16,350 $ 6,296 $ 5,225 $ 27,871 Services 1,610 596 213 2,419 Total $ 17,960 $ 6,892 $ 5,438 $ 30,290 Revenue for the six months ended June 30, 2020 Americas EMEA APAC Total Products $ 1,515 $ 2,162 $ 548 $ 4,225 Services 609 656 84 1,349 Total $ 2,124 $ 2,818 $ 632 $ 5,574 | Revenue during the year ended December 31, 2020 Americas EMEA APAC Total Product $ 5,250 $ 6,629 $ 1,839 $ 13,718 Services 1,415 1,159 178 2,752 Total $ 6,665 $ 7,788 $ 2,017 $ 16,470 Revenue during the year ended December 31, 2019 Americas EMEA APAC Total Product $ 12,746 $ 8,430 $ 1,582 $ 22,758 Services 3,055 563 63 3,681 Total $ 15,801 $ 8,993 $ 1,645 $ 26,439 |
Schedule of disaggregation of revenue | During the three and six months ended June 30, 2021 and 2020, the Company recognized the following revenue from service contracts and cloud-based software licenses over time, and hardware and consumable product shipments and subscription software at a point in time (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue recognized at a point in time $ 17,560 $ 1,531 $ 27,871 $ 4,225 Revenue recognized over time 1,417 658 2,419 1,349 Total $ 18,977 $ 2,189 $ 30,290 $ 5,574 | Years Ended December 31, 2020 2019 Revenue recognized at a point in time $ 13,718 $ 22,758 Revenue recognized over time 2,752 3,681 Total $ 16,470 $ 26,439 |
Schedule of long lived assets | The Company’s operations are principally in the United States. The locations of long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, are summarized as follows (in thousands): June 30, December 31, 2021 2020 Americas $ 16,031 $ 12,160 EMEA 1,712 — Total long-lived assets $ 17,744 $ 12,160 |
NET LOSS PER SHARE (Tables)_2
NET LOSS PER SHARE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET LOSS PER SHARE | ||
Schedule of Net Loss Per Share, Basic and Diluted | Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator for basic and diluted net loss per share: Net loss attributable to Common Stockholders $ (43,180) $ (23,766) $ (102,288) $ (45,570) Denominator for basic and diluted net loss per share: Weighted-average shares 255,098 158,124 246,717 157,187 Net loss per share—Basic and Diluted $ (0.17) $ (0.15) $ (0.41) $ (0.29) | Years Ended December 31, 2020 (in thousands, except per share amounts) (as restated) 2019 Numerator for basic and diluted net loss per share: Net loss attributable to Common Stockholders $ (34,015) $ (103,596) Denominator for basic and diluted net loss per share: Weighted average shares 157,906 150,002 Net loss per share—Basic and Diluted $ (0.22) $ (0.69) |
Schedule of antidilutive securities excluded from computation of earnings per share | The Company excluded the following potential common shares, presented based on amounts outstanding as of June 30, 2021 and 2020, from the computation of diluted net loss per share attributable to common stockholders because including them would have an anti-dilutive effect (in thousands): Six Months Ended June 30, 2021 2020 Common Stock options outstanding 16,394 12,964 Unvested restricted stock units outstanding 5,095 — Unvested restricted stock awards outstanding 168 1,317 Common Stock warrants outstanding — 619 Total shares 21,657 14,900 | Years Ended December 31, 2020 2019 Common Stock options outstanding 19,553 18,072 Unvested restricted stock units outstanding 683 — Unvested restricted stock awards outstanding 279 5,587 Common Stock warrants outstanding 25,010 634 Unvested Trine Founder Shares, held in escrow 1,851 — Total shares 47,376 24,293 |
ORGANIZATION, NATURE OF BUSIN_4
ORGANIZATION, NATURE OF BUSINESS, AND RISK AND UNCERTAINTIES (Details) | Dec. 09, 2020$ / shares | Jun. 30, 2021$ / shares | Dec. 31, 2020$ / shares | Aug. 31, 2020$ / shares | Dec. 31, 2019$ / shares |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Number of months cash and Investments sufficient to fund operating and capital expenditure | 12 months | 12 months | |||
Trine | |||||
Exchange ratio | 1.22122 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Term of annual contract | 1 year | 1 year | ||
Time period within substantially all outstanding performance obligations are recognized | true | true | ||
Deferred revenue recognized | $ 3,000 | $ 2,200 | ||
Deferred cost of sales | 500 | 300 | ||
Commission expense | 600 | 400 | ||
Allowance for doubtful accounts | 500 | 200 | ||
Warranty reserve | 1,553 | 1,491 | $ 116 | |
Sales and marketing expense | ||||
Significant Accounting Policies [Line Items] | ||||
Advertising Expense | 40 | 100 | ||
Accrued expenses and other current liabilities | ||||
Significant Accounting Policies [Line Items] | ||||
Warranty reserve | 1,600 | $ 1,500 | ||
Restricted Cash | ||||
Significant Accounting Policies [Line Items] | ||||
Security deposit | $ 600 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Warranty Reserve (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Standard assurance warranty period | 1 year | 1 year |
Internationally warranty period | 13 months | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, at the beginning of the year | $ 1,553 | $ 1,491 |
Warranty reserve, at the end of the period | $ 1,553 |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | 3 years |
Tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | 3 years |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | 3 years |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum | Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Maximum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 12 years | 5 years |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum | Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Impairment of intangible assets | $ 0 | $ 0 |
ACQUISITIONS - Acquisition of E
ACQUISITIONS - Acquisition of EnvisionTEC (Details) - USD ($) $ in Thousands | Feb. 16, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Liabilities assumed: | |||||
Goodwill | $ 251,060 | $ 2,252 | $ 2,300 | $ 2,252 | |
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 186,519 | ||||
Acquired technology | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 126,540 | $ 10,193 | |||
Trade name | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 9,079 | ||||
Customer relationships | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 50,900 | ||||
Acquisition of EnvisionTEC | |||||
Assets acquired: | |||||
Cash and cash equivalents | $ 859 | ||||
Restricted cash | 5,004 | ||||
Accounts receivable | 2,982 | ||||
Inventory | 8,852 | ||||
Prepaid expenses and other current assets | 1,081 | ||||
Restricted cash - noncurrent | 285 | ||||
Property and equipment | 1,440 | ||||
Intangible assets | 137,300 | ||||
Other noncurrent assets | 1,801 | ||||
Total assets acquired | 159,604 | ||||
Liabilities assumed: | |||||
Accounts payable | 1,443 | ||||
Customer deposits | 2,461 | ||||
Current portion of lease liability | 605 | ||||
Accrued expenses and other current liabilities | 13,711 | ||||
Liability for income taxes | 480 | ||||
Deferred revenue | 300 | ||||
Current portion of long-term debt | 898 | ||||
Long-term debt | 285 | ||||
Deferred tax liability | 32,966 | ||||
Lease liability, net of current portion | 1,189 | ||||
Total liabilities assumed | 54,338 | ||||
Net assets acquired | 105,266 | ||||
Goodwill | 198,369 | 36,600 | |||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 137,300 | ||||
Payment to acquire business | $ 143,800 | ||||
Common stock issued for acquisition | 5,036,142 | ||||
Common stock fair value issued for acquisition | $ 159,800 | ||||
Transaction costs | 4,800 | ||||
Net revenues included in consolidated result | 15,700 | ||||
Net income (loss) included in consolidated result | $ (4,800) | ||||
Acquisition of EnvisionTEC | Acquired technology | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 77,800 | ||||
Acquisition of EnvisionTEC | Trade name | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | $ 8,600 | ||||
Estimated Life | 13 years | ||||
Acquisition of EnvisionTEC | Customer relationships | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | $ 50,900 | ||||
Estimated Life | 10 years | ||||
Minimum | Acquisition of EnvisionTEC | Acquired technology | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Estimated Life | 7 years | ||||
Maximum | Acquisition of EnvisionTEC | Acquired technology | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Estimated Life | 12 years |
ACQUISITIONS - Acquisition of A
ACQUISITIONS - Acquisition of Adaptive 3D (Details) - USD ($) $ in Thousands | May 07, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | $ 186,519 | ||||
Liabilities assumed: | |||||
Goodwill | 251,060 | $ 2,252 | $ 2,300 | $ 2,252 | |
Acquired technology | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 126,540 | $ 10,193 | |||
Trade name | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 9,079 | ||||
Adaptive 3D Technologies Inc | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Purchase consideration | $ 61,800 | ||||
Payment to acquire business | $ 24,100 | ||||
Common stock issued for acquisition | 3,133,276 | ||||
Common stock fair value issued for acquisition | $ 37,700 | ||||
Gross Value | 27,300 | ||||
Transaction costs | 300 | ||||
Net revenues included in consolidated result | 300 | ||||
Net income (loss) included in consolidated result | 700 | ||||
Assets acquired: | |||||
Cash and cash equivalents | 2,852 | ||||
Restricted cash | 4,046 | ||||
Accounts receivable | 504 | ||||
Inventory | 305 | ||||
Prepaid expenses and other current assets | 462 | ||||
Property and equipment | 558 | ||||
Intangible assets | 27,300 | ||||
Other noncurrent assets | 654 | ||||
Total assets acquired | 36,681 | ||||
Liabilities assumed: | |||||
Accounts payable | 280 | ||||
Current portion of lease liability | 151 | ||||
Accrued expenses and other current liabilities | 4,146 | ||||
Deferred revenue | 12 | ||||
Lease liability, net of current portion | 502 | ||||
Deferred tax liability | 4,768 | ||||
Total liabilities assumed | 10,170 | ||||
Net assets acquired | 26,511 | ||||
Goodwill | 35,265 | ||||
Adaptive 3D Technologies Inc | Paycheck Protection Program | |||||
Liabilities assumed: | |||||
Long-term debt | 311 | $ 300 | |||
Adaptive 3D Technologies Inc | Acquired technology | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | $ 27,000 | ||||
Estimated Life | 14 years | ||||
Adaptive 3D Technologies Inc | Trade name | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | $ 300 | ||||
Estimated Life | 5 years |
ACQUISITIONS - Acquisition of_2
ACQUISITIONS - Acquisition of Aerosint (Details) - USD ($) $ in Thousands | Jun. 24, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Combination, Consideration Transferred [Abstract] | |||||
Current portion of contingent consideration | $ 1,429 | ||||
Contingent consideration, net of current portion | 4,655 | ||||
Gross Value | 186,519 | ||||
Liabilities assumed: | |||||
Goodwill | 251,060 | $ 2,300 | $ 2,252 | $ 2,252 | |
Pro forma financial information | |||||
Net revenues | 34,883 | 28,974 | |||
Net income (loss) | (108,357) | $ (53,497) | |||
Acquired technology | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 126,540 | $ 10,193 | |||
Trade name | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | 9,079 | ||||
Aerosint | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Purchase consideration | $ 17,700 | ||||
Payment to acquire business | $ 6,200 | ||||
Common stock issued for acquisition | 879,922 | ||||
Common stock fair value issued for acquisition | $ 11,500 | ||||
Period to achieve revenue metrics and technical milestone | 3 years | ||||
Fair value of contingent consideration | $ 6,100 | ||||
Current portion of contingent consideration | 1,400 | 1,400 | |||
Contingent consideration based on revenue metric | 5,500 | ||||
Fair value of contingent consideration based on revenue metric | 4,600 | ||||
Contingent consideration based on production technical milestones | 2,000 | ||||
Fair value of contingent consideration based on production technical milestone | 1,500 | ||||
Contingent consideration, net of current portion | $ 4,700 | ||||
Gross Value | 11,726 | ||||
Transaction costs | 900 | ||||
Assets acquired: | |||||
Cash and cash equivalents | 419 | ||||
Accounts receivable | 34 | ||||
Inventory | 166 | ||||
Prepaid expenses and other current assets | 697 | ||||
Property and equipment | 369 | ||||
Intangible assets | 11,726 | ||||
Other noncurrent assets | 336 | ||||
Total assets acquired | 13,747 | ||||
Liabilities assumed: | |||||
Accounts payable | 58 | ||||
Customer deposits | 283 | ||||
Current portion of lease liability | 100 | ||||
Accrued expenses and other current liabilities | 169 | ||||
Deferred revenue | 810 | ||||
Current portion of contingent consideration | 1,429 | ||||
Lease liability, net of current portion | 226 | ||||
Contingent consideration, net of current portion | 4,655 | ||||
Deferred tax liability | 3,524 | ||||
Total liabilities assumed | 11,254 | ||||
Net assets acquired | 2,493 | ||||
Goodwill | 15,174 | ||||
Aerosint | Acquired technology | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | $ 11,547 | ||||
Estimated Life | 11 years 6 months | ||||
Aerosint | Trade name | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Gross Value | $ 179 | ||||
Estimated Life | 4 years 6 months |
ACQUISITIONS - Business Combi_3
ACQUISITIONS - Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |
Net proceeds from reverse recapitalization | $ 534,597,000 |
Trine | |
Business Acquisition [Line Items] | |
Cash - Trine's trust and cash (net of redemptions) | 305,084,695 |
Cash - PIPE financing | 274,975,000 |
Less: transaction costs and advisory fees paid | (45,463,074) |
Net proceeds from reverse recapitalization | 534,596,621 |
Plus: non-cash net liabilities assumed | (152,394,714) |
Less: accrued transaction costs and advisory fees | (1,900,793) |
Net contributions from reverse recapitalization | 380,301,114 |
Non cash warrant liabilities assumed | $ 149,700,000 |
ACQUISITIONS - Business Combi_4
ACQUISITIONS - Business Combination common shares issued (Details) | Dec. 09, 2020D$ / sharesshares | Dec. 31, 2020shares |
Business Acquisition [Line Items] | ||
Number of trading days | D | 20 | |
Number of days window by fifth anniversary of business combination | D | 30 | |
Tranche One | ||
Business Acquisition [Line Items] | ||
Trine Founder Shares | 5,552,812 | |
Vesting percentage | 75.00% | |
Tranche Two | ||
Business Acquisition [Line Items] | ||
Trine Founder Shares | 1,850,938 | |
Vesting percentage | 25.00% | |
Trine | ||
Business Acquisition [Line Items] | ||
BALANCE (in shares) | 30,015,000 | |
Less: redemption of Trine shares | (26,049) | |
Common stock of Trine | 29,988,951 | |
Trine Founder Shares | 5,552,812 | 7,403,750 |
Trine Director Shares | 100,000 | |
Shares issued in PIPE | 27,497,500 | |
Business Combination and PIPE financing shares | 63,139,263 | |
Legacy Desktop Metal shares (1) | 161,487,334 | |
BALANCE (in shares) | 224,626,597 | |
Share price | $ / shares | $ 12.50 |
ACQUISITIONS (Details)_2
ACQUISITIONS (Details) | Jun. 10, 2021USD ($)shares | Dec. 09, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Oct. 31, 2020USD ($)shares | Jul. 31, 2019USD ($)shares | Mar. 31, 2019USD ($)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019$ / sharesshares | Jun. 30, 2021$ / sharesshares | Aug. 31, 2020$ / shares | Aug. 20, 2020shares |
Business Acquisition [Line Items] | |||||||||||
Shares authorized | shares | 550,000,000 | ||||||||||
Common Stock, Shares Authorized | shares | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 366,366 | |||||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Preferred stock, shares authorized | shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||
Preferred stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Vesting period | 1 year | ||||||||||
Forust Corporation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments to Acquire Productive Assets | $ 2,000,000 | ||||||||||
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable | $ 500,000 | ||||||||||
Asset Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 61,061 | ||||||||||
Asset Acquisition, Payment made at Closing | $ 1,800,000 | ||||||||||
Additional payment | $ 200,000 | ||||||||||
Vesting period | 2 years | ||||||||||
Restricted Stock awards | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Vesting period | 4 years | ||||||||||
Figur Machine Tools LLC. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | $ 3,500,000 | ||||||||||
Forust Corporation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase consideration | $ 2,500,000 | ||||||||||
Make Composites, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Issuance of shares of the Common Stock on acquisition | shares | 873,203 | ||||||||||
Purchase consideration | $ 5,400,000 | ||||||||||
Make Composites, Inc. | General and administrative expenses | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Transaction costs | $ 100,000 | ||||||||||
addLEAP AB | Restricted Stock awards | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Issuance of shares of the Common Stock on acquisition | shares | 74,843 | ||||||||||
addLEAP AB | General and administrative expenses | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Transaction costs | $ 100,000 | ||||||||||
2021 Acquisitions | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable | $ 6,100,000 | ||||||||||
Asset Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 334,370 | ||||||||||
Asset Acquisition, Payment made at Closing | $ 200,000 | ||||||||||
Additional payment | $ 1,000,000 | ||||||||||
Vesting period | 3 years | ||||||||||
2021 Acquisitions | Common Stock | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable | $ 4,300,000 | ||||||||||
Trine | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Exchange ratio | 1.22122 | ||||||||||
Shares issued in PIPE | shares | 27,497,500 | ||||||||||
Business Acquisition, Share Price | $ / shares | $ 12.50 | ||||||||||
Cash - PIPE financing | $ 274,975,000 | ||||||||||
Trine | Business Combination Subscription Agreement | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Shares issued in PIPE | shares | 27,497,500 | ||||||||||
Business Acquisition, Share Price | $ / shares | $ 10 | ||||||||||
Cash - PIPE financing | $ 275,000,000 |
CASH EQUIVALENTS AND SHORT-TE_5
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | |||
Cash equivalents | $ 180,998 | $ 482,886 | $ 65,455 |
Amortized Cost | 326,331 | 111,876 | 84,679 |
Unrealized Gains | 11 | 2 | 75 |
Unrealized losses | (24) | (11) | 0 |
Fair Value | 326,318 | 111,867 | 84,754 |
Total cash equivalents and short-term investments, Amortized Cost | 507,329 | 594,762 | 150,134 |
Total cash equivalents and short-term investments, Fair Value | 507,316 | 594,753 | 150,209 |
U.S Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 19,995 | ||
Unrealized Gains | 2 | ||
Fair Value | 19,997 | ||
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 159,591 | 43,911 | 19,938 |
Unrealized losses | 0 | ||
Fair Value | 159,591 | 43,911 | 19,938 |
Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 104,758 | 47,970 | 47,955 |
Unrealized Gains | 9 | 55 | |
Unrealized losses | (12) | (11) | 0 |
Fair Value | 104,755 | 47,959 | 48,010 |
Government bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 36,736 | ||
Unrealized Gains | 1 | ||
Unrealized losses | (9) | ||
Fair Value | 36,728 | ||
Assetbacked securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 25,246 | 16,786 | |
Unrealized Gains | 1 | 20 | |
Unrealized losses | (3) | 0 | |
Fair Value | 25,244 | 16,806 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cash equivalents | 75,374 | ||
Repurchase agreements | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cash equivalents | 25,001 | ||
Money market funds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cash equivalents | $ 180,998 | $ 407,512 | $ 40,454 |
FAIR VALUE MEASUREMENTS - Ass_2
FAIR VALUE MEASUREMENTS - Assets measured on recurring basis (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||||
Total liabilities | $ 6,558,000 | |||
Level 1 to Level 2 transfer | 0 | $ 0 | $ 0 | $ 0 |
Level 2 to Level 1 transfer | 0 | 0 | 0 | 0 |
Transfer into Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 | 0 | 0 |
Movement in Level 3 liabilities measured at fair value | ||||
Balance at beginning of period | 93,328,000 | $ 0 | 0 | |
Balance at end of period | 93,328,000 | 0 | ||
Level 3 | ||||
Assets | ||||
Total liabilities | 6,558,000 | |||
Movement in Level 3 assets measured at fair value | ||||
Balance at beginning of year | 3,000,000 | |||
Additions | 3,620,000 | 3,000,000 | ||
Changes in fair value | 517,000 | |||
Balance at end of year | 7,137,000 | 3,000,000 | ||
Movement in Level 3 liabilities measured at fair value | ||||
Balance at beginning of period | 93,328,000 | |||
Additions | 6,558,000 | |||
Changes in fair value | 56,576,000 | |||
Exercise of private placement warrants | (149,904,000) | |||
Balance at end of period | 6,558,000 | 93,328,000 | ||
Recurring | ||||
Assets | ||||
Total assets | 514,453,000 | 597,753,000 | 150,209,000 | |
Total liabilities | 93,328,000 | |||
Recurring | Contingent Consideration | ||||
Assets | ||||
Total liabilities | 6,084,000 | |||
Recurring | Subscription Agreement | ||||
Assets | ||||
Total liabilities | 474,000 | |||
Recurring | Private Placement Warrants | ||||
Assets | ||||
Total liabilities | 93,328,000 | |||
Recurring | Money market funds | ||||
Assets | ||||
Total assets | 180,998,000 | 407,512,000 | 40,454,000 | |
Recurring | Commercial paper | ||||
Assets | ||||
Total assets | 159,591,000 | 119,285,000 | 19,938,000 | |
Recurring | Corporate bonds | ||||
Assets | ||||
Total assets | 104,755,000 | 47,959,000 | 48,010,000 | |
Recurring | Government bonds | ||||
Assets | ||||
Total assets | 36,727,000 | |||
Recurring | Assetbacked securities | ||||
Assets | ||||
Total assets | 25,245,000 | 16,806,000 | ||
Recurring | Other investments | ||||
Assets | ||||
Total assets | 7,137,000 | 3,000,000 | ||
Recurring | U.S Treasury securities | ||||
Assets | ||||
Total assets | 19,997,000 | |||
Recurring | Repurchase agreements | ||||
Assets | ||||
Total assets | 25,001,000 | |||
Recurring | Level 1 | ||||
Assets | ||||
Total assets | 180,998,000 | 427,509,000 | 40,454,000 | |
Recurring | Level 1 | Money market funds | ||||
Assets | ||||
Total assets | 180,998,000 | 407,512,000 | 40,454,000 | |
Recurring | Level 1 | U.S Treasury securities | ||||
Assets | ||||
Total assets | 19,997,000 | |||
Recurring | Level 2 | ||||
Assets | ||||
Total assets | 326,318,000 | 167,244,000 | 109,755,000 | |
Recurring | Level 2 | Commercial paper | ||||
Assets | ||||
Total assets | 159,591,000 | 119,285,000 | 19,938,000 | |
Recurring | Level 2 | Corporate bonds | ||||
Assets | ||||
Total assets | 104,755,000 | 47,959,000 | 48,010,000 | |
Recurring | Level 2 | Government bonds | ||||
Assets | ||||
Total assets | 36,727,000 | |||
Recurring | Level 2 | Assetbacked securities | ||||
Assets | ||||
Total assets | 25,245,000 | 16,806,000 | ||
Recurring | Level 2 | Repurchase agreements | ||||
Assets | ||||
Total assets | $ 25,001,000 | |||
Recurring | Level 3 | ||||
Assets | ||||
Total assets | 7,137,000 | 3,000,000 | ||
Total liabilities | 93,328,000 | |||
Recurring | Level 3 | Contingent Consideration | ||||
Assets | ||||
Total liabilities | 6,084,000 | |||
Recurring | Level 3 | Subscription Agreement | ||||
Assets | ||||
Total liabilities | 474,000 | |||
Recurring | Level 3 | Private Placement Warrants | ||||
Assets | ||||
Total liabilities | 93,328,000 | |||
Recurring | Level 3 | Other investments | ||||
Assets | ||||
Total assets | $ 7,137,000 | $ 3,000,000 |
ACCOUNTS RECEIVABLE (Details)_2
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ACCOUNTS RECEIVABLE | |||
Trade receivables | $ 13,750 | $ 7,016 | $ 4,722 |
Allowance for doubtful accounts | (309) | (500) | (199) |
Total accounts receivable | $ 13,441 | $ 6,516 | $ 4,523 |
ACCOUNTS RECEIVABLE - Allowan_2
ACCOUNTS RECEIVABLE - Allowance for doubtful accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
ACCOUNTS RECEIVABLE | ||||
Balance at beginning of period | $ 500 | $ 199 | $ 199 | |
Provision for uncollectible accounts | (164) | $ (285) | (377) | $ (199) |
Uncollectible accounts written off | (27) | (76) | ||
Balance at end of period | $ 309 | $ 500 | $ 199 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
INVENTORY | |||
Raw materials | $ 5,678 | ||
Work in process | 4,346 | $ 2,896 | |
Finished goods | 15,383 | 6,812 | |
Total inventory | $ 25,407 | $ 9,708 | $ 8,405 |
PREPAID EXPENSES AND OTHER CU_6
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||
Prepaid insurance | $ 1,850 | $ 121 | $ 45 |
Prepaid operating expenses | 1,873 | 68 | 585 |
Prepaid dues and subscriptions | 823 | 189 | 503 |
Prepaid taxes | 598 | ||
Government grants | 653 | ||
Escrow deposits | 311 | ||
Prepaid rent | 158 | 118 | 11 |
Deferred cost of goods sold | 454 | 262 | |
Other | 812 | 26 | 482 |
Total prepaid expenses and other current assets | $ 7,078 | $ 976 | $ 1,888 |
PROPERTY AND EQUIPMENT - Prop_2
PROPERTY AND EQUIPMENT - Property and Equipment - Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment, gross | $ 37,269 | $ 37,269 | $ 33,495 | $ 32,169 | ||
Less: accumulated depreciation | (24,041) | (24,041) | (21,335) | (13,782) | ||
Total property and equipment, net | 13,228 | 13,228 | 12,160 | 18,387 | ||
Depreciation and amortization expense | 9,524 | $ 4,475 | 8,589 | 8,087 | ||
Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment, gross | 15,672 | 15,672 | 13,708 | 13,358 | ||
Furniture and fixtures | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment, gross | 1,033 | 1,033 | 895 | 895 | ||
Computer equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment, gross | 1,139 | 1,139 | 1,089 | 1,089 | ||
Tooling | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment, gross | 1,805 | 1,805 | 1,805 | 1,823 | ||
Software | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment, gross | 1,439 | 1,439 | 1,249 | 954 | ||
Leasehold improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment, gross | 14,564 | 14,564 | 13,870 | 13,880 | ||
Construction in process | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment, gross | 1,617 | 1,617 | 879 | 170 | ||
PPE not including acquired technology or capitalized software | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciation and amortization expense | $ 1,300 | $ 2,100 | $ 2,800 | $ 4,200 | $ 7,600 | $ 7,600 |
GOODWILL & INTANGIBLE ASSETS -
GOODWILL & INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 2,252 | |
Goodwill, Ending Balance | 251,060 | |
Accumulated impairment losses | 0 | $ 0 |
Acquisition of EnvisionTEC | ||
Goodwill [Line Items] | ||
Acquisition | 198,369 | |
Goodwill, Ending Balance | 36,600 | |
Adaptive 3D Technologies Inc | ||
Goodwill [Line Items] | ||
Acquisition | 35,265 | |
Aerosint | ||
Goodwill [Line Items] | ||
Acquisition | $ 15,174 |
GOODWILL & INTANGIBLE ASSETS (D
GOODWILL & INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Value | $ 186,519 | $ 186,519 | ||||
Accumulated Amortization | 7,659 | 7,659 | ||||
Total intangible assets | 178,860 | 178,860 | $ 9,102 | $ 2,994 | ||
Amortization expense | 4,300 | $ 200 | $ 6,600 | $ 400 | ||
Expected amortization expense | ||||||
Weighted-average remaining amortization period | 10 years | |||||
Acquired technology | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Value | 126,540 | $ 126,540 | $ 10,193 | |||
Estimated Life | 5 years | |||||
Accumulated Amortization | 5,514 | 5,514 | $ 1,091 | |||
Total intangible assets | 121,026 | 121,026 | 9,102 | |||
Amortization expense | 800 | $ 300 | ||||
Expected amortization expense | ||||||
2022 | 2,000 | |||||
2023 | 2,000 | |||||
2024 | 2,000 | |||||
2025 | 1,800 | |||||
2026 | $ 1,300 | |||||
Weighted-average remaining amortization period | 4 years 7 months 6 days | |||||
Trade name | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Value | 9,079 | $ 9,079 | ||||
Estimated Life | 13 years | |||||
Accumulated Amortization | 251 | $ 251 | ||||
Total intangible assets | 8,828 | 8,828 | ||||
Customer relationships | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Value | 50,900 | $ 50,900 | ||||
Estimated Life | 10 years | |||||
Accumulated Amortization | 1,894 | $ 1,894 | ||||
Total intangible assets | $ 49,006 | $ 49,006 | ||||
Minimum | Acquired technology | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated Life | 5 years | |||||
Maximum | Acquired technology | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated Life | 12 years |
OTHER NONCURRENT ASSETS - Com_2
OTHER NONCURRENT ASSETS - Components of other noncurrent assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
OTHER NONCURRENT ASSETS | |||
Other investments | $ 7,137 | $ 3,000 | |
Right-of-use asset | 4,816 | 1,810 | $ 2,289 |
Long-term deposits | 135 | 69 | |
Other | 122 | ||
Total other noncurrent assets | $ 12,210 | $ 4,879 | $ 2,289 |
OTHER NONCURRENT ASSETS - Cha_2
OTHER NONCURRENT ASSETS - Change in the balance of other investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | ||||
Other investments | $ 7,137 | $ 3,000 | ||
Percentage of annual interest rate due in two years | 3.00% | |||
Period of annual interest due | 2 years | |||
Net unrealized (gain) loss on investments | (4) | $ 1,426 | ||
Change in fair value, net | $ 3,000 | $ 0 | ||
Convertible Debt | ||||
Net Investment Income [Line Items] | ||||
Other investments | $ 3,000 | |||
Percentage of annual interest rate | 3.00% | |||
Period of annual interest due | 2 years | |||
Net unrealized (gain) loss on investments | $ 300 | |||
Convertible Promissory Note one | ||||
Net Investment Income [Line Items] | ||||
Other investments | $ 1,600 | |||
Percentage of annual interest rate | 3.00% | |||
Period of annual interest due | 2 years | |||
Net unrealized (gain) loss on investments | $ 200 | |||
Convertible Promissory Note two | ||||
Net Investment Income [Line Items] | ||||
Other investments | $ 2,000 | |||
Percentage of annual interest rate | 3.00% | |||
Period of annual interest due | 5 years | |||
Change in fair value, net | $ 0 |
ACCRUED EXPENSES AND OTHER CU_6
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Professional services | $ 3,897 | $ 2,508 | $ 780 |
Compensation and benefits related | 7,359 | 2,068 | 897 |
Warranty reserve | 2,030 | 1,553 | 1,491 |
Inventory purchases | 1,506 | 86 | 620 |
Income tax payable | 1,331 | ||
Sales and use and franchise taxes | 224 | 586 | 578 |
Franchise and royalty fees | 227 | 159 | |
Goods received payable | 1,201 | ||
Other | 3,193 | 605 | 687 |
Total accrued expenses and other current liabilities | 20,968 | 7,565 | 5,053 |
Warranty reserve, at the beginning of the period | 1,553 | 1,491 | |
Warranty reserve assumed in acquisition | 316 | ||
Additions to warranty reserve | 797 | 346 | 2,352 |
Claims fulfilled | (636) | (284) | (977) |
Warranty reserve, at the end of the period | $ 2,030 | $ 1,553 | $ 1,491 |
DEBT (Details)_2
DEBT (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 30, 2020USD ($) | Jun. 30, 2018USD ($)item | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 07, 2021USD ($) | |
Debt Instrument [Line Items] | |||||||
Proceeds from PPP loan | $ 5,379 | $ 5,379 | |||||
Cash and Investments | 30,000 | ||||||
Outstanding amount | 10,000 | $ 10,000 | |||||
Debt, current | 10,000 | ||||||
Current portion of long term debt | $ 311 | 9,991 | |||||
Deferred financing costs | 100 | $ 100 | |||||
Deferred financing costs, net | 0 | ||||||
Term loan | |||||||
Debt Instrument [Line Items] | |||||||
Nominal amount | $ 20,000 | ||||||
Term of loan | 36 months | ||||||
Proceeds from PPP loan | $ 10,000 | ||||||
Remaining borrowing capacity | $ 10,000 | ||||||
Threshold Number of times additional amount drawn | item | 3 | ||||||
Minimum amount to be drawn | $ 2,000 | ||||||
Outstanding amount | $ 0 | ||||||
Term loan | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.25% | 3.25% | 4.75% | ||||
Spread percentage | 0.50% | 0.50% | 0.50% | ||||
Interest rate | 2.75% | 2.75% | 4.25% | ||||
Paycheck Protection Program | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.00% | ||||||
Outstanding amount | $ 0 | ||||||
Loan acquired | 1,200 | ||||||
Prepayment penalties | 0 | ||||||
Current portion of long term debt | 300 | ||||||
Loan Proceeds | $ 5,400 | ||||||
Paycheck Protection Program | Adaptive 3D Technologies Inc | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 300 | $ 311 |
LEASES (Details)_2
LEASES (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($)lease | Jun. 30, 2021USD ($)leaseagreement | Dec. 31, 2020USD ($)agreement | Dec. 31, 2019USD ($) | |
Leases | ||||
Right of use assets | $ 4,816,000 | $ 4,816,000 | $ 1,810,000 | $ 2,289,000 |
Total lease liability | 5,942,000 | 5,942,000 | 3,025,000 | 3,800,000 |
Impairments | $ 0 | $ 0 | $ 0 | $ 0 |
Number of service agreements contained embedded lease | agreement | 2 | 1 | ||
Acquisition of EnvisionTEC | ||||
Leases | ||||
Increase in company's right of use asset | $ 1,800,000 | |||
Number of real estate properties leased. | lease | 5 | 5 | ||
Number of leases for which lease term is extended. | lease | 6 | 6 | ||
Adaptive 3D Technologies Inc | ||||
Leases | ||||
Increase in company's right of use asset | $ 700,000 | |||
Number of real estate properties leased. | lease | 2 | 2 | ||
Aerosint | ||||
Leases | ||||
Increase in company's right of use asset | $ 400,000 | |||
Number of real estate properties leased. | lease | 1 | 1 | ||
Number of leases for which lease term is extended. | lease | 3 | 3 |
LEASES - Other lease related _2
LEASES - Other lease related balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease cost | ||||||
Operating lease cost | $ 422 | $ 186 | $ 745 | $ 374 | $ 746 | $ 655 |
Short-term lease cost | 34 | 3 | 45 | 3 | 32 | |
Variable lease cost | 46 | 2 | 85 | 12 | 40 | 40 |
Total lease cost | 502 | 191 | 875 | 389 | 786 | 727 |
Operating cash flows used in operating leases | $ 655 | $ 269 | $ 899 | $ 536 | $ 1,073 | $ 951 |
Weighted-average remaining lease term-operating leases (years) | 2 years 7 months 6 days | 3 years 8 months 12 days | 2 years 7 months 6 days | 3 years 8 months 12 days | 3 years 2 months 12 days | 4 years 2 months 12 days |
Weighted-average discount rate-operating leases | 5.10% | 7.60% | 5.10% | 7.60% | 7.60% | 7.60% |
LEASES - Future minimum lease_2
LEASES - Future minimum lease payments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | |||
2021 (remaining 6 months) | $ 1,114 | ||
2022 | 2,258 | $ 1,071 | |
2023 | 2,072 | 1,069 | |
2024 | 700 | 1,028 | |
2025 | 192 | 258 | |
2026 | 53 | 0 | |
Total lease payments | 6,389 | 3,426 | |
Less amount representing interest | (447) | (401) | |
Total lease liability | 5,942 | 3,025 | $ 3,800 |
Less current portion of lease liability | (1,983) | (868) | (806) |
Lease liability, net of current portion | $ 3,959 | $ 2,157 | $ 3,026 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Apr. 28, 2021 | Jan. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||||||||
Purchase orders with contract manufacturers | $ 21,800 | $ 21,800 | $ 9,500 | |||||
One time royalty payment | $ 300 | |||||||
Minimum annual commitment | 500 | 500 | ||||||
Revenue | 18,977 | $ 2,189 | $ 30,290 | $ 5,574 | $ 16,470 | $ 26,439 | ||
Minimum | ||||||||
Other Commitments [Line Items] | ||||||||
Obligation to pay (as percentage) | 2.75% | |||||||
Maximum | ||||||||
Other Commitments [Line Items] | ||||||||
Obligation to pay (as percentage) | 13.00% | |||||||
Galileo Acquisition Corp. | Stock subscription agreement | ||||||||
Other Commitments [Line Items] | ||||||||
Value of shares to be acquired from Galileo | $ 20,000 | |||||||
Shapeways, Inc | Stock subscription agreement | ||||||||
Other Commitments [Line Items] | ||||||||
Revenue | $ 400 | $ 400 |
INCOME TAXES (Details)_2
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||||||
Income tax benefit | $ (4,318) | $ 0 | $ (32,238) | $ 0 | $ (940) | $ 0 |
Decreases recorded as a benefit to income tax provision | 4,300 | 32,200 | (934) | |||
Unrecognized tax benefits | $ 1,200 | $ 1,200 | ||||
United States | (34,285) | $ (103,596) | ||||
Foreign | $ (670) |
STOCKHOLDERS' EQUITY (Details_2
STOCKHOLDERS' EQUITY (Details) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 09, 2020 | Aug. 31, 2020 | Aug. 20, 2020 | Dec. 31, 2019 |
Convertible Preferred Stock and Stockholders' Equity | ||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 366,366 | 500,000,000 | |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||
Preferred stock par value (in dollars per share) | $ 0.0001 | |||||
Common Class A | ||||||
Convertible Preferred Stock and Stockholders' Equity | ||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Preferred Stock | ||||||
Convertible Preferred Stock and Stockholders' Equity | ||||||
Preferred stock, shares authorized | 50,000,000 | |||||
Preferred stock par value (in dollars per share) | $ 0.0001 |
STOCKHOLDERS' EQUITY - Restri_2
STOCKHOLDERS' EQUITY - Restricted Stock Agreements (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average remaining contractual term (in years) | 7 years 4 months 24 days | 7 years 9 months | 7 years 10 months 2 days | ||
Amount of convertible notes issued | $ 0.2 | ||||
Shares issues upon conversion | 340,923 | ||||
Accrued interest rate | 2.57% | ||||
Repurchase of common stock | 76,461 | ||||
Restricted Stock awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued | 34,010,977 | ||||
Share price | $ 0.0001 | ||||
Weighted-average remaining contractual term (in years) | 8 months 12 days | 7 months 6 days |
STOCKHOLDERS' EQUITY - The ac_2
STOCKHOLDERS' EQUITY - The activity for stock subject to vesting (Details) - Restricted Stock awards - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Shared subject to vesting | ||
Balance at beginning of period, unvested shares (in shares) | 280 | 5,587 |
Vested (in shares) | (112) | (5,307) |
Balance at end of period, unvested shares (in shares) | 168 | 280 |
Weighted-Average Purchase Price | ||
Balance at beginning of Period, unvested shares (in dollars per share) | $ 0.0001 | |
Vested (in dollars per share) | 0.0001 | |
Balance at end of Period, unvested shares (in dollars per share) | $ 0.0001 | $ 0.0001 |
STOCKHOLDERS' EQUITY - Warran_2
STOCKHOLDERS' EQUITY - Warrants (Details) | Feb. 24, 2020$ / sharesshares | Mar. 28, 2021USD ($)shares | Jun. 30, 2021USD ($)D$ / sharesshares | Dec. 31, 2020USD ($)D$ / sharesshares | Mar. 29, 2021$ / sharesshares | Dec. 09, 2020$ / shares | Aug. 31, 2020USD ($)$ / shares | Jun. 30, 2020shares | Dec. 31, 2019USD ($)$ / shares | May 31, 2017$ / sharesshares |
Class of Warrant or Right [Line Items] | ||||||||||
Warrants to purchase shares | shares | 0 | 99,960 | 2,442,440 | |||||||
Number of common stock purchased by each warrant | shares | 1 | |||||||||
Revenue generated per share | $ 35 | |||||||||
Exercise price | $ 3.34 | $ 3.34 | ||||||||
Warrants and Rights Outstanding | $ | $ 93,328,000 | |||||||||
Fair value of the warrants | $ | $ 200,000 | $ 1,700,000 | $ 1,000,000 | |||||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Divisional Factor for Conversion of Debt to Warrants | $ 1 | |||||||||
Proceeds from Warrant Exercises | $ | $ 170,665,000 | |||||||||
Class of Warrant or Right, Outstanding | shares | 15,007,494 | |||||||||
Common Class A | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||||||
Trine Warrants | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Exercise price | $ 11.50 | 11.50 | 11.50 | |||||||
Warrant redemption price | 0.01 | 0.01 | ||||||||
Share Price | $ 10 | $ 10 | ||||||||
Warrant exercisable term | 30 days | 30 days | ||||||||
Warrants and Rights Outstanding, Term | 5 years | 5 years | ||||||||
Debt Instrument, Convertible, Threshold Trading Days | D | 20 | 20 | ||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | D | 30 | 30 | ||||||||
Debt Conversion, Converted Instrument, Warrants or Options Issued | shares | 1,500,000 | |||||||||
Proceeds from Warrant Exercises | $ | $ 170,700,000 | |||||||||
Number of warrants exercised | shares | 14,840,589 | |||||||||
Class of Warrant or Rights, Redeemed | shares | 166,905 | |||||||||
Redemption Price Per Warrant | $ 0.01 | |||||||||
Trine Warrants | Common Class A | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Number of common stock purchased by each warrant | shares | 1 | 1 | ||||||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||||||
Trine Warrants | Warrants | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Number of common stock purchased by each warrant | shares | 0.5 | 0.5 | ||||||||
Private Placement Warrants | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Warrants to purchase shares | shares | 8,503,000 | 8,503,000 | ||||||||
Number of common stock purchased by each warrant | shares | 1 | |||||||||
Exercise price | $ 11.50 | $ 11.50 | ||||||||
Warrants and Rights Outstanding | $ | $ 8,503,000 | $ 8,503,000 | ||||||||
Fair value of the warrants | $ | $ 56,600,000 | |||||||||
Warrant redemption price | $ 1 | $ 1 | ||||||||
Number of shares issued during the period up on exercise of warrants not settle-able in cash. | shares | 5,850,346 | |||||||||
Minimum | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Share Price | 5.13 | |||||||||
Minimum | Trine Warrants | Common Class A | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Share Price | $ 18 | $ 18 |
STOCKHOLDERS' EQUITY - Common_2
STOCKHOLDERS' EQUITY - Common Stock Warrants (Details) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($)Yshares | Dec. 31, 2020Yshares | Dec. 09, 2020 | Jun. 30, 2020Y | Dec. 31, 2019Y | |
Class of Warrant or Right [Line Items] | |||||
Common Stock Warrants Converted | 756,498 | ||||
Shares issued on exercise of warrants | 447,938 | ||||
Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.020 | ||||
Expected volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.525 | ||||
Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 0.078 | ||||
Fair value of Common Stock | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.0334 | ||||
Private Placement Warrants | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.4 | 0.4 | |||
Private Placement Warrants | Expected volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.550 | 50 | 40 | ||
Private Placement Warrants | Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.048 | 4.9 | 5 | ||
Private Placement Warrants | Exercise price | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.1150 | ||||
Private Placement Warrants | Minimum | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.004 | ||||
Private Placement Warrants | Minimum | Fair value of Common Stock | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | $ | 0.1982 | ||||
Private Placement Warrants | Maximum | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.006 | ||||
Private Placement Warrants | Maximum | Fair value of Common Stock | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | $ | 0.3049 | ||||
Collaboration Agreement | |||||
Class of Warrant or Right [Line Items] | |||||
Common Stock Warrants Converted | 756,498 | ||||
Shares issued on exercise of warrants | 447,938 | ||||
Collaboration Agreement | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 2 | 2 | |||
Collaboration Agreement | Expected volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 52.5 | 52.5 | |||
Collaboration Agreement | Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 8 | ||||
Collaboration Agreement | Minimum | Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 8 | ||||
Collaboration Agreement | Maximum | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 8.8 | ||||
Technical Technical Research and Development Advisor Services | |||||
Class of Warrant or Right [Line Items] | |||||
Common Stock Warrants Converted | 366,366 | ||||
Shares issued on exercise of warrants | 244,428 | ||||
Technical Technical Research and Development Advisor Services | Risk-free interest rate | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 0.5 | ||||
Technical Technical Research and Development Advisor Services | Expected volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | 52.5 | ||||
Technical Technical Research and Development Advisor Services | Expected life (in years) | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants and Rights Outstanding, Measurement Input | Y | 0.3 |
STOCK BASED COMPENSATION - St_3
STOCK BASED COMPENSATION - Stock Incentive Plan (Details) $ in Millions | Jan. 01, 2021shares | Dec. 31, 2020USD ($)shares | Jul. 31, 2020USD ($)employee | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | Dec. 31, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 1 year | ||||||||||
Number of employees affected by repricing | employee | 116 | ||||||||||
Expenses recognized | $ | $ 3.6 | ||||||||||
Granted (in shares) | 8,463,000 | ||||||||||
Unrecognized stock-based compensation expense, stock options | $ | $ 13.7 | $ 11.2 | $ 11.2 | $ 13.7 | $ 13 | ||||||
Weighted-average period | 2 years 10 months 24 days | 2 years 9 months 18 days | |||||||||
Shares available for grant | 14,379,052 | 21,810,237 | 21,810,237 | 14,379,052 | |||||||
Consultant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 12,212 | 12,212 | 119,581 | ||||||||
Fair value of shares | $ | $ 0.1 | $ 0.1 | $ 0.6 | ||||||||
Employee | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 0 | 4,182,389 | 0 | 4,656,013 | 8,450,799 | 5,730,586 | |||||
Fair value of shares | $ | $ 2.9 | $ 3.6 | $ 29.8 | $ 10.1 | |||||||
Non-employee | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 0 | 0 | 0 | ||||||||
2015 stock incentive plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Awards made under the plan | 26,283,789 | ||||||||||
Vesting period | 4 years | ||||||||||
Expiration period | 10 years | ||||||||||
Make Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 4 years | 4 years | |||||||||
Expiration period | 10 years | 10 years | |||||||||
Options and warrants to be issued | 232,304 | 232,304 | |||||||||
Granted (in shares) | 0 | 0 | |||||||||
2020 Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock available for future issuance | 12,400,813 | 12,400,813 | |||||||||
Percentage of stock outstanding | 5.00% | ||||||||||
Additional shares added to the plan | 11,337,837 |
STOCK BASED COMPENSATION - Co_4
STOCK BASED COMPENSATION - Common Stock to Employees (Details) - Employee - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate, Minimum | 0.40% | 0.40% | 0.30% | 1.70% |
Risk-free interest rate, Maximum | 0.90% | 0.90% | 1.70% | 2.60% |
Expected volatility, Minimum | 52.70% | 52.70% | 52.70% | 52.70% |
Expected volatility, Maximum | 54.20% | 54.20% | 54.20% | 53.60% |
Expected life, Minimum (in years) | 5 years 10 months 24 days | 5 years 10 months 24 days | 5 years 10 months 24 days | 5 years 7 months 6 days |
Expected life, Maximum (in years) | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 1 month 6 days |
Fair value of Common Stock, Minimum | $ 1.40 | |||
Fair value of Common Stock, Maximum | $ 7.98 | |||
Fair value of Common Stock | $ 3.34 | $ 3.34 | $ 3.34 |
STOCK BASED COMPENSATION - Co_5
STOCK BASED COMPENSATION - Common Stock to Consultants (Details) - Consultant - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 0.60% | 1.40% | |
Risk-free interest rate, Maximum | 0.80% | 3.10% | |
Risk-free interest rate | 0.80% | ||
Expected volatility, Minimum | 54.30% | 52.40% | |
Expected volatility, Maximum | 54.80% | 61.50% | |
Expected volatility | 54.30% | ||
Expected life, Minimum (in years) | 9 years 4 months 24 days | 6 years 2 months 12 days | |
Expected life, Maximum (in years) | 10 years | 10 years | |
Expected life (in years) | 10 years | ||
Fair value of Common Stock, Minimum | $ 1.40 | ||
Fair value of Common Stock, Maximum | $ 7.98 | ||
Fair value of Common Stock | $ 3.34 | $ 3.34 |
STOCK BASED COMPENSATION - Op_2
STOCK BASED COMPENSATION - Option Activity of the Plan (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of shares | ||||
Outstanding at beginning of period (in shares) | 19,553 | 18,072 | 18,072 | |
Granted (in shares) | 8,463 | |||
Exercised (in shares) | (2,846) | (522) | ||
Forfeited/expired (in shares) | (313) | (6,460) | ||
Outstanding at end of period (in shares) | 16,394 | 19,553 | 18,072 | |
Options vested at end of period (in shares) | 9,451 | 10,905 | ||
Options vested or expected to vest at end of period (in shares) | 15,807 | 18,818 | ||
Weighted-Average Exercise Price per share | ||||
Outstanding at beginning of period (in dollars per share) | $ 1.53 | $ 2.01 | $ 2.01 | |
Granted (in dollars per share) | 1.51 | |||
Exercised (in dollars per share) | 1.29 | 0.62 | ||
Forfeited/expired (in dollars per share) | 1.43 | 2.92 | ||
Outstanding at end of period (in dollars per share) | 1.57 | 1.53 | $ 2.01 | |
Options vested at end of period (in dollars per share) | 1.62 | 1.53 | ||
Options vested or expected to vest at end of period | $ 1.58 | $ 1.53 | ||
Weighted-average remaining contractual term (in years) | 7 years 4 months 24 days | 7 years 9 months | 7 years 10 months 2 days | |
Options vested at end of period | 6 years 3 months 7 days | 6 years 6 months 7 days | ||
Options vested or expected to vest at end of period | 7 years 4 months 2 days | 7 years 8 months 8 days | ||
Aggregate intrinsic value of options outstanding | $ 162,737 | $ 306,408 | $ 24,045 | |
Options vested (in dollars) | 93,385 | 170,868 | ||
Options vested or expected to vest (in dollars) | $ 156,825 | $ 294,824 | ||
Weighted average grant date fair value for options granted | $ 0.98 | $ 3.52 | $ 1.78 | |
Aggregate intrinsic value of options exercised | $ 37,000 | $ 5,000 |
STOCK BASED COMPENSATION - Re_2
STOCK BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Cliff Vesting Period | 4 years | |||
Weighted-average period | 2 years 10 months 24 days | 2 years 9 months 18 days | ||
Expenses recognized | $ 3.6 | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | 4 years | ||
Cliff Vesting Period | 1 year | 1 year | ||
Unrecognized compensation costs, non-vested RSUs | $ 67.8 | $ 67.8 | $ 4.8 | |
Weighted-average period | 3 years 7 months 6 days | 3 years 3 months 18 days | ||
Expenses recognized | $ 2.7 | $ 3.4 | $ 0.6 | |
Shares Subject to Vesting | ||||
Balance at beginning of period, unvested shares (in shares) | 683 | |||
Granted (in shares) | 4,461 | 683 | ||
Vested (in shares) | (44) | |||
Cancelled/Forfeited | (5) | |||
Balance at end of period, unvested shares (in shares) | 5,095 | 5,095 | 683 | |
Weighted Average Grant Date Fair Value | ||||
Balance at beginning of Period, unvested shares (in dollars per share) | $ 8.02 | |||
Granted (in dollars per share) | 15.38 | $ 8.02 | ||
Vested (in dollars per share) | 8.13 | |||
Cancelled/Forfeited | 7.98 | |||
Balance at end of Period, unvested shares (in dollars per share) | $ 14.52 | $ 14.52 | $ 8.02 |
STOCK BASED COMPENSATION - St_4
STOCK BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | Sep. 28, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | $ 1,800 | $ 3,999 | $ 1,074 | $ 6,216 | $ 2,333 | $ 8,006 | $ 5,215 |
Research and development | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | 1,838 | 569 | 2,755 | 1,283 | 3,276 | 2,713 | |
General and administrative expenses | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | 1,355 | 217 | 2,194 | 454 | 3,464 | 941 | |
Sales and marketing expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | 577 | 213 | 921 | 421 | 894 | 1,373 | |
Cost of sales | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock based compensation expenses | $ 229 | $ 75 | $ 346 | $ 175 | $ 372 | $ 188 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||
Right of use assets | $ 4,816 | $ 1,810 | $ 2,289 |
Lease liability | 5,942 | $ 3,025 | $ 3,800 |
Operating Lease Agreement With A T M R E LLC | |||
Related Party Transaction [Line Items] | |||
Right of use assets | 500 | ||
Lease liability | 500 | ||
Annual commitment | 200 | ||
Operating Lease Agreement With JES Besitzgesellschaft GmbH | |||
Related Party Transaction [Line Items] | |||
Right of use assets | 200 | ||
Lease liability | 200 | ||
Annual commitment | 100 | ||
Operating Lease Agreement With Sitraco (UK) Limited | |||
Related Party Transaction [Line Items] | |||
Right of use assets | 200 | ||
Lease liability | 200 | ||
Annual commitment | $ 100 |
SEGMENT INFORMATION - Revenue (
SEGMENT INFORMATION - Revenue (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Information | ||||||
Number of segments | 1 | 1 | ||||
Revenue | $ 18,977,000 | $ 2,189,000 | $ 30,290,000 | $ 5,574,000 | $ 16,470,000 | $ 26,439,000 |
Revenue recognized at a point in time | ||||||
Segment Information | ||||||
Revenue | 17,560,000 | 1,531,000 | 27,871,000 | 4,225,000 | 13,718,000 | 22,758,000 |
Revenue recognized over time | ||||||
Segment Information | ||||||
Revenue | 1,417,000 | 658,000 | 2,419,000 | 1,349,000 | 2,752,000 | 3,681,000 |
Products | ||||||
Segment Information | ||||||
Revenue | 17,560,000 | 1,531,000 | 27,871,000 | 4,225,000 | 13,718,000 | 22,758,000 |
Services | ||||||
Segment Information | ||||||
Revenue | 1,417,000 | 658,000 | 2,419,000 | 1,349,000 | 2,752,000 | 3,681,000 |
Americas | ||||||
Segment Information | ||||||
Revenue | 11,401,000 | 895,000 | 17,960,000 | 2,124,000 | 6,665,000 | 15,801,000 |
Americas | Products | ||||||
Segment Information | ||||||
Revenue | 10,497,000 | 613,000 | 16,350,000 | 1,515,000 | 5,250,000 | 12,746,000 |
Americas | Services | ||||||
Segment Information | ||||||
Revenue | 904,000 | 282,000 | 1,610,000 | 609,000 | 1,415,000 | 3,055,000 |
EMEA | ||||||
Segment Information | ||||||
Revenue | 4,150,000 | 967,000 | 6,892,000 | 2,818,000 | 7,788,000 | 8,993,000 |
EMEA | Products | ||||||
Segment Information | ||||||
Revenue | 3,769,000 | 634,000 | 6,296,000 | 2,162,000 | 6,629,000 | 8,430,000 |
EMEA | Services | ||||||
Segment Information | ||||||
Revenue | 381,000 | 333,000 | 596,000 | 656,000 | 1,159,000 | 563,000 |
APAC | ||||||
Segment Information | ||||||
Revenue | 3,426,000 | 327,000 | 5,438,000 | 632,000 | 2,017,000 | 1,645,000 |
APAC | Products | ||||||
Segment Information | ||||||
Revenue | 3,294,000 | 284,000 | 5,225,000 | 548,000 | 1,839,000 | 1,582,000 |
APAC | Services | ||||||
Segment Information | ||||||
Revenue | $ 132,000 | $ 43,000 | $ 213,000 | $ 84,000 | $ 178,000 | $ 63,000 |
SEGMENT INFORMATION - Long live
SEGMENT INFORMATION - Long lived assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Segment Information | ||
Long-lived assets | $ 17,744 | $ 12,160 |
Americas | ||
Segment Information | ||
Long-lived assets | 16,031 | $ 12,160 |
EMEA | ||
Segment Information | ||
Long-lived assets | $ 1,712 |
NET LOSS PER SHARE (Details)_2
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator for basic and diluted net loss per share: | ||||||
Net loss attributable to Common Stockholders | $ (43,180) | $ (23,766) | $ (102,288) | $ (45,570) | $ (34,015) | $ (103,596) |
Denominator for basic and diluted net loss per share: | ||||||
Weighted-average shares | 157,906,000 | 150,002,000 | ||||
Weighted-average shares basic | 255,097,905 | 158,124,160 | 246,717,400 | 157,186,939 | ||
Weighted-average shares diluted | 255,098,000 | 158,124,000 | 246,717,000 | 157,187,000 | ||
Net loss per share-Basic | $ (0.17) | $ (0.15) | $ (0.41) | $ (0.29) | ||
Net loss per share-Diluted | $ (0.17) | $ (0.15) | $ (0.41) | $ (0.29) |
NET LOSS PER SHARE - Antidilu_2
NET LOSS PER SHARE - Antidilutive securities excluded from computation of earnings per share (Details) - shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 21,657,000 | 14,900,000 | 47,376 | 24,293 |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 16,394,000 | 12,964,000 | 19,553 | 18,072 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 5,095,000 | 279 | 5,587 | |
Restricted Stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 168,000 | 1,317,000 | 683 | |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 619,000 | 25,010 | 634 | |
Unvested Trine Founder Shares, held in escrow | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded | 1,851 |
SUBSEQUENT EVENTS (Details)_2
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Millions | Aug. 11, 2021USD ($)$ / shares | Jul. 30, 2021USD ($) | Jul. 02, 2021USD ($) | Feb. 26, 2021shares | Feb. 16, 2021USD ($) | Mar. 10, 2021shares | Jun. 30, 2021$ / shares | Dec. 31, 2020$ / shares | Dec. 09, 2020$ / shares | Aug. 31, 2020$ / shares | Dec. 31, 2019$ / shares |
Subsequent Event [Line Items] | |||||||||||
Vesting period | 1 year | ||||||||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Restricted Stock Units | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Vesting period | 4 years | 4 years | |||||||||
Common Class A | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||||||||
ExOne Company | Stock Price is Between $9.70 and $7.94 per Share | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payment to acquire business | $ | $ 192 | ||||||||||
Purchase consideration | $ | 575 | ||||||||||
Common stock fair value issued for acquisition | $ | $ 383 | ||||||||||
Subsequent Event | Private Placement Warrants | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants exercised on a cashless basis | shares | 10,003,000 | ||||||||||
Subsequent Event | Warrants | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants exercised for cash | shares | 11,898,122 | ||||||||||
Subsequent Event | Dental Arts Laboratories Inc | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payment to acquire business | $ | $ 26.3 | ||||||||||
Value of stock issued for acquisition | $ | $ 11 | ||||||||||
Subsequent Event | Dental Arts Laboratories Inc | Restricted Stock Units | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Vesting period | 4 years | ||||||||||
Subsequent Event | AIDRO Srl | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payment to acquire business | $ | $ 6 | ||||||||||
Value of stock issued for acquisition | $ | $ 3.2 | ||||||||||
Subsequent Event | AIDRO Srl | Restricted Stock Units | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Vesting period | 4 years | ||||||||||
Subsequent Event | ExOne Company | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Consideration in cash and stock per share | $ 25.50 | ||||||||||
Cash consideration per share | 8.50 | ||||||||||
Subsequent Event | ExOne Company | Minimum | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Share price | $ 7.94 | ||||||||||
Ownership percentage after merger | 12.00% | ||||||||||
Subsequent Event | ExOne Company | Maximum | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Share price | $ 9.70 | ||||||||||
Ownership percentage after merger | 15.00% | ||||||||||
Subsequent Event | ExOne Company | Stock Price is Between $9.70 and $7.94 per Share | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Exchange ratio | 1.9274 | ||||||||||
Average share price | $ 8.82 | ||||||||||
Subsequent Event | ExOne Company | Stock Price is Between $9.70 and $7.94 per Share | Minimum | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Share price | 7.94 | ||||||||||
Subsequent Event | ExOne Company | Stock Price is Between $9.70 and $7.94 per Share | Maximum | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Share price | 9.70 | ||||||||||
Subsequent Event | ExOne Company | Stock Price Greater Than $9.70 | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Share price | $ 9.70 | ||||||||||
Exchange ratio | 1.7522 | ||||||||||
Subsequent Event | ExOne Company | Stock price is Less Than $7.94 | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Share price | $ 7.94 | ||||||||||
Exchange ratio | 2.1416 | ||||||||||
Subsequent Event | ExOne Company | Common Class A | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock par value (in dollars per share) | $ 0.0001 | ||||||||||
Subsequent Event | EnvisionTEC US, LLC And Affiliates | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payment to acquire business | $ | $ 143.8 |