Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 09, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39092 | |
Entity Registrant Name | SHAPEWAYS HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-2876494 | |
Entity Address, Address Line One | 30-02 48th Avenue | |
Entity Address, City or Town | Long Island City | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11101 | |
City Area Code | 646 | |
Local Phone Number | 979-9885 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,217,351 | |
Entity Central Index Key | 0001784851 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common stock warrants | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants, each whole warrant exercisable for one share of Common Stock for $11.50 per share | |
Trading Symbol | SHPW WS | |
Security Exchange Name | NYSE | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | SHPW | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 50,402 | $ 79,677 |
Restricted cash | 138 | 142 |
Accounts receivable | 2,954 | 1,372 |
Inventory | 1,155 | 927 |
Prepaid expenses and other current assets | 6,572 | 4,360 |
Total current assets | 61,221 | 86,478 |
Property and equipment, net | 14,492 | 4,388 |
Right-of-use assets, net | 2,603 | 842 |
Goodwill | 6,233 | 1,835 |
Intangible assets, net | 5,658 | 0 |
Security deposits | 267 | 175 |
Total assets | 90,474 | 93,718 |
Current liabilities | ||
Accounts payable | 1,575 | 1,909 |
Accrued expenses and other liabilities | 7,238 | 2,645 |
Operating lease liabilities, current | 850 | 639 |
Deferred revenue | 1,102 | 921 |
Total current liabilities | 10,765 | 6,114 |
Operating lease liabilities, net of current portion | 1,838 | 326 |
Warrant liabilities | 77 | 2,274 |
Total liabilities | 12,680 | 8,714 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock ($0.0001 par value; 10,000,000 shares authorized; none issued or outstanding as of June 30, 2022 and December 31, 2021, respectively) | 0 | 0 |
Common stock ($0.0001 par value; 120,000,000 shares authorized; 49,213,438 and 48,627,739 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively) | 5 | 5 |
Additional paid-in capital | 199,906 | 198,179 |
Accumulated deficit | (121,522) | (112,811) |
Accumulated other comprehensive loss | (595) | (369) |
Total stockholders’ equity | 77,794 | 85,004 |
Total liabilities and stockholders’ equity | $ 90,474 | $ 93,718 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 49,213,438 | 48,627,739 |
Common stock, shares outstanding (in shares) | 49,213,438 | 48,627,739 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | |||||
Revenue, net | $ 8,433,000 | $ 8,849,000 | $ 16,003,000 | $ 17,638,000 | |
Cost of revenue | 4,791,000 | 4,556,000 | 8,952,000 | 9,216,000 | |
Gross profit | 3,642,000 | 4,293,000 | 7,051,000 | 8,422,000 | |
Operating expenses | |||||
Selling, general and administrative | 6,766,000 | 3,181,000 | 12,911,000 | 6,214,000 | |
Research and development | 2,355,000 | 1,116,000 | 4,420,000 | 2,426,000 | |
Total operating expenses | 9,121,000 | 4,297,000 | 17,331,000 | 8,640,000 | |
Loss from operations | (5,479,000) | (4,000) | (10,280,000) | (218,000) | |
Other income (expense) | |||||
Long-term debt forgiveness | 0 | 0 | 0 | 2,000,000 | |
Change in fair value of warrant liabilities | 765,000 | 0 | 1,527,000 | 0 | |
Interest expense | 0 | (130,000) | 0 | (281,000) | |
Interest income | 1,000 | 0 | 2,000 | 0 | |
Other income | 38,000 | 1,000 | 39,000 | 1,000 | |
Total other income (expense), net | 804,000 | (129,000) | 1,568,000 | 1,720,000 | |
(Loss) income before income tax benefit | (4,675,000) | (133,000) | (8,712,000) | 1,502,000 | |
Income tax benefit (expense) | 1,000 | (2,000) | 1,000 | 71,000 | |
Net (loss) income | $ (4,674,000) | $ (135,000) | $ (8,711,000) | $ 1,573,000 | |
Net (loss) income per share: | |||||
Basic (in USD per shares) | $ (0.09) | $ 0 | $ (0.16) | $ 0.04 | |
Diluted (in USD per shares) | $ (0.09) | $ 0 | $ (0.16) | $ 0.04 | |
Weighted average common shares outstanding: | |||||
Basic (in shares) | [1] | 53,069,269 | 36,079,478 | 52,925,199 | 36,043,718 |
Diluted (in shares) | [1] | 53,069,269 | 36,079,478 | 52,925,199 | 36,043,718 |
Other comprehensive (loss) income | |||||
Foreign currency translation adjustment | $ (174,000) | $ (8,000) | $ (226,000) | $ (17,000) | |
Comprehensive (loss) income | $ (4,848,000) | $ (143,000) | $ (8,937,000) | $ 1,556,000 | |
[1]Retroactively restated the common shares for 2021 due to the reverse recapitalization as described in Notes 1 and 11. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Series B1 Preferred Stock | Previously Reported | Preferred Stock | Preferred Stock Previously Reported | Common Stock | Common Stock Series B1 Preferred Stock | Common Stock Previously Reported | Additional Paid-In Capital | Additional Paid-In Capital Series B1 Preferred Stock | Additional Paid-In Capital Previously Reported | Accumulated Deficit | Accumulated Deficit Previously Reported | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Previously Reported | ||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 0 | [1] | 22,579,695 | 32,184,263 | [1] | 16,211,567 | |||||||||||||||
Beginning Balance at Dec. 31, 2020 | $ (1,847) | [1] | $ (1,847) | $ 2 | $ 3 | [1] | $ 2 | $ 112,994 | [1] | $ 112,993 | $ (114,567) | [1] | $ (114,567) | $ (277) | [1] | $ (277) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Issuance of Legacy Shapeways common stock upon exercise of stock options (Shares) | 35,895 | ||||||||||||||||||||
Issuance of Legacy Shapeways common stock upon exercise of stock options | 16 | 16 | |||||||||||||||||||
Stock-based compensation expense | 174 | 174 | |||||||||||||||||||
Net (loss) income | 1,708 | 1,708 | |||||||||||||||||||
Foreign currency translation adjustment | (9) | (9) | |||||||||||||||||||
Ending Balance (in shares) at Mar. 31, 2021 | 0 | 32,220,158 | |||||||||||||||||||
Ending Balance at Mar. 31, 2021 | 42 | $ 0 | $ 3 | 113,184 | (112,859) | (286) | |||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 0 | [1] | 22,579,695 | 32,184,263 | [1] | 16,211,567 | |||||||||||||||
Beginning Balance at Dec. 31, 2020 | (1,847) | [1] | $ (1,847) | $ 2 | $ 3 | [1] | $ 2 | 112,994 | [1] | $ 112,993 | (114,567) | [1] | $ (114,567) | (277) | [1] | $ (277) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net (loss) income | 1,573 | ||||||||||||||||||||
Foreign currency translation adjustment | (17) | ||||||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 0 | 32,302,841 | |||||||||||||||||||
Ending Balance at Jun. 30, 2021 | 185 | $ 0 | $ 3 | 113,470 | (112,994) | (294) | |||||||||||||||
Beginning Balance (in shares) at Mar. 31, 2021 | 0 | 32,220,158 | |||||||||||||||||||
Beginning Balance at Mar. 31, 2021 | 42 | $ 0 | $ 3 | 113,184 | (112,859) | (286) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Issuance of Legacy Shapeways common stock upon exercise of stock options (Shares) | 63,506 | ||||||||||||||||||||
Issuance of Legacy Shapeways common stock upon exercise of stock options | 55 | 55 | |||||||||||||||||||
Issuance of Legacy Shapeways convertible Series preferred stock resulting from exercise of warrants (shares) | 19,177 | ||||||||||||||||||||
Issuance of Legacy Shapeways convertible Series B-1 preferred stock resulting from exercise of warrants | $ 60 | $ 60 | |||||||||||||||||||
Stock-based compensation expense | 171 | 171 | |||||||||||||||||||
Net (loss) income | (135) | (135) | |||||||||||||||||||
Foreign currency translation adjustment | (8) | (8) | |||||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 0 | 32,302,841 | |||||||||||||||||||
Ending Balance at Jun. 30, 2021 | 185 | $ 0 | $ 3 | 113,470 | (112,994) | (294) | |||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 0 | 48,627,739 | |||||||||||||||||||
Beginning Balance at Dec. 31, 2021 | $ 85,004 | $ 0 | $ 5 | 198,179 | (112,811) | (369) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Issuance of Legacy Shapeways common stock upon exercise of stock options (Shares) | 217,967 | 217,967 | |||||||||||||||||||
Issuance of Legacy Shapeways common stock upon exercise of stock options | $ 99 | 99 | |||||||||||||||||||
Stock-based compensation expense | 312 | 312 | |||||||||||||||||||
Net (loss) income | (4,037) | (4,037) | |||||||||||||||||||
Transfer of Private Warrants to Public Warrants | 382 | 382 | |||||||||||||||||||
Foreign currency translation adjustment | (52) | (52) | |||||||||||||||||||
Ending Balance (in shares) at Mar. 31, 2022 | 0 | 48,845,706 | |||||||||||||||||||
Ending Balance at Mar. 31, 2022 | 81,708 | $ 0 | $ 5 | 198,972 | (116,848) | (421) | |||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 0 | 48,627,739 | |||||||||||||||||||
Beginning Balance at Dec. 31, 2021 | 85,004 | $ 0 | $ 5 | 198,179 | (112,811) | (369) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net (loss) income | (8,711) | ||||||||||||||||||||
Foreign currency translation adjustment | (226) | ||||||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 0 | 49,213,438 | |||||||||||||||||||
Ending Balance at Jun. 30, 2022 | 77,794 | $ 0 | $ 5 | 199,906 | (121,522) | (595) | |||||||||||||||
Beginning Balance (in shares) at Mar. 31, 2022 | 0 | 48,845,706 | |||||||||||||||||||
Beginning Balance at Mar. 31, 2022 | $ 81,708 | $ 0 | $ 5 | 198,972 | (116,848) | (421) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Issuance of Legacy Shapeways common stock upon exercise of stock options (Shares) | 367,732 | 367,732 | |||||||||||||||||||
Issuance of Legacy Shapeways common stock upon exercise of stock options | $ 189 | 189 | |||||||||||||||||||
Stock-based compensation expense | 457 | 457 | |||||||||||||||||||
Net (loss) income | (4,674) | (4,674) | |||||||||||||||||||
Transfer of Private Warrants to Public Warrants | 288 | 288 | |||||||||||||||||||
Foreign currency translation adjustment | (174) | (174) | |||||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 0 | 49,213,438 | |||||||||||||||||||
Ending Balance at Jun. 30, 2022 | $ 77,794 | $ 0 | $ 5 | $ 199,906 | $ (121,522) | $ (595) | |||||||||||||||
[1]Retroactively restated for the reverse recapitalization as described in Notes 1 and 2. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (8,711,000) | $ 1,573,000 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 559,000 | 278,000 |
Stock-based compensation expense | 769,000 | 345,000 |
Non-cash lease expense | 354,000 | 551,000 |
Non-cash debt forgiveness | 0 | (2,000,000) |
Change in fair value of warrant liabilities | (1,527,000) | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | (298,000) | (828,000) |
Inventory | (47,000) | 223,000 |
Prepaid expenses and other assets | (2,239,000) | (419,000) |
Accounts payable | (600,000) | (356,000) |
Accrued expenses and other liabilities | 358,000 | (103,000) |
Lease liabilities | (411,000) | (597,000) |
Deferred revenue | (373,000) | (131,000) |
Net cash used in operating activities | (12,166,000) | (1,464,000) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (8,454,000) | (143,000) |
Cash paid for acquisitions, net of cash acquired | (8,861,000) | 0 |
Net cash used in investing activities | (17,315,000) | (143,000) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 288,000 | 71,000 |
Proceeds received from exercise of preferred stock warrants | 0 | 60,000 |
Repayments of loans payable | 0 | (958,000) |
Net cash provided by (used in) financing activities | 288,000 | (827,000) |
Net change in cash and cash equivalents and restricted cash | (29,193,000) | (2,434,000) |
Effect of change in foreign currency exchange rates on cash and cash equivalents and restricted cash | (86,000) | 120,000 |
Cash and cash equivalents and restricted cash at beginning of period | 79,819,000 | 8,709,000 |
Cash and cash equivalents and restricted cash at end of period | 50,540,000 | 6,395,000 |
Supplemental disclosure of cash and non-cash transactions: | ||
Cash paid for interest | 0 | 63,000 |
Deferred offering costs | $ 0 | $ 1,820,000 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization On September 29, 2021 (the “Closing” or the “Closing Date”), Galileo Acquisition Corp., a Cayman Islands exempted company (“Galileo” and after the Domestication (as defined below) “Shapeways”), a publicly-traded special purpose acquisition company, consummated the transactions described in the Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) dated April 28, 2021, by and among Galileo Founders Holdings, L.P. (the “Sponsor”), Galileo Acquisition Corp., Galileo Acquisition Holdings, Inc., a Delaware corporation and wholly-owned subsidiary of Galileo (“Merger Sub”), and Shapeways, Inc., a Delaware corporation (“Legacy Shapeways”), whereby Merger Sub merged with and into Legacy Shapeways, the separate corporate existence of Merger Sub ceasing and Legacy Shapeways being the surviving corporation and a wholly owned subsidiary of Shapeways (the “Merger”). Further, on the Closing Date, Galileo was domesticated and continued as a Delaware corporation (the “Domestication” and, together with the Merger, the “Business Combination”), changing its name to “Shapeways Holdings, Inc.” (the “Company” and/or “Shapeways”). Simultaneously with the execution of the Business Combination, Galileo entered into subscription agreements pursuant to which certain investors agreed to purchase an aggregate of 7,500,000 shares of Common Stock for a purchase price of $10.00 per share and $75,000,000 in the aggregate (the “PIPE Investment”). At the Closing, the Company consummated the PIPE Investment. Shapeways also operates through its wholly-owned subsidiaries, Shapeways BV, which was incorporated in the Netherlands on December 10, 2008 and Linear Mold & Engineering, LLC, also referred to as Linear AMS ("Linear"), which was acquired in May 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information as defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and in accordance with the instruction to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. The condensed consolidated financial statements include the accounts of its wholly owned subsidiaries, Legacy Shapeways, Shapeways BV and Linear. All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying condensed consolidated interim financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. These unaudited condensed consolidated interim financial statements should be read along with the audited financial statements included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2021, as filed with the SEC on April 1, 2022 (the “Annual Report”). Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. Functional Currency The local currency is the functional currency for Shapeways BV’s operations outside the United States. Assets and liabilities of these operations are translated into U.S. Dollars at the exchange rate in effect at the end of each period. Income statement accounts are translated at the average exchange rate prevailing during the period. Translation adjustments arising from the use of differing exchange rates from period to period are included as a component of other comprehensive loss within stockholders’ equity (deficit). Gains and losses from foreign currency transactions are included in net loss for the period. Cash, Cash Equivalents and Restricted Cash Cash includes cash on hand and demand deposits. The Company maintains its deposits at high quality financial institutions and monitors the credit ratings of those institutions. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. While cash held by financial institutions may at times exceed federally insured limits, the Company believes that no material credit or market risk exposure exists due to the high quality of the institutions. The Company has not experienced any losses on such accounts. Restricted cash represents cash required to be held as collateral for the Company’s credit cards and security deposit for its facility in the Netherlands. Accordingly, these balances contain restrictions as to their availability and usage and are classified as restricted cash in the condensed consolidated balance sheets. The reconciliation of cash, cash equivalents and restricted cash reported within the applicable condensed consolidated balance sheet that sum to the total of the same such amount shown in the condensed consolidated statements of cash flows is as follows: June 30, June 30, Cash and cash equivalents $ 50,402 $ 6,250 Restricted cash 138 145 $ 50,540 $ 6,395 Accounts Receivable Accounts receivable are recorded at the invoiced amount and are generally unsecured as they are uncollateralized. The Company provides an allowance for doubtful accounts to reduce receivables to their estimated net realizable value. Judgement is exercised in establishing allowances and estimates are based on the customers’ payment history and liquidity. Any amounts that were previously recognized as revenue and subsequently determined to be uncollectible are charged to bad debt expense included in selling, general and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive loss. Given the nature and historical collectability of the Company’s accounts receivable, an allowance for doubtful accounts was not deemed necessary at June 30, 2022 and December 31, 2021. Inventory Inventory consists of raw materials, work in progress and finished goods at the Company’s distribution center. Raw materials are stated at the lower of cost or net realizable value, determined by the first-in-first-out method. Finished goods and work in progress are valued using a methodology to determine the cost of each 3D printed object using allocations for material, labor, machine time and overhead. The Company periodically reviews its inventory for slow-moving, damaged and discontinued items and provides allowances to reduce such items identified to their recoverable amounts. As of June 30, 2022 and December 31, 2021, the Company determined an allowance was not deemed necessary. Property and Equipment, net Property and equipment are stated at cost, less accumulated depreciation. Maintenance and repairs are charged to expense when incurred. Additions and improvements that extend the economic useful life of the asset are capitalized and depreciated over the remaining useful lives of the assets. The cost and accumulated depreciation of assets sold or retired are removed from the respective accounts, and any resulting gain or loss is reflected in current earnings. No impairment charges were recorded for the three and six months ended June 30, 2022 and 2021. Costs for capital assets not yet placed into service are capitalized and depreciated once placed into service. Depreciation is recognized using the straight-line method in amounts considered to be sufficient to allocate the cost of the assets to operations over the estimated useful lives or lease terms, as follows: Asset Category Depreciable Life Machinery and equipment 5 to 10 years Computers and IT equipment 3 to 10 years Furniture and fixtures 7 to 10 years Vehicles 10 years Leasehold improvements ** ** Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Long-Lived Assets, Including Definite-Lived Intangible Assets Intangible assets, which consist of technology, customer relationships, trademarks, favorable and unfavorable operating leases, and non-compete agreements are stated at cost less accumulated amortization. Amortization is generally recorded on a straight-line basis over estimated useful lives ranging from two Long-lived assets, other than goodwill and other indefinite-lived intangibles, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows derived from such assets. Factors that the Company considers in deciding when to perform an impairment review include significant changes in the Company’s forecasted projections for the asset or asset group for reasons including, but not limited to, significant underperformance of a product in relation to expectations, significant changes, or planned changes in the Company’s use of the assets, significant negative industry or economic trends, and new or competing products that enter the marketplace. The impairment test is based on a comparison of the undiscounted cash flows expected to be generated from the use of the asset group. If impairment is indicated, the asset is written down by the amount by which the carrying value of the asset exceeds the related fair value of the asset with the related impairment charge recognized within the statements of operations and comprehensive loss. No impairment charges were recorded for the three and six months ended June 30, 2022 and 2021. Goodwill Goodwill, which represents the excess of purchase prices over the fair value of net assets acquired, is carried at cost. Goodwill is not amortized; rather, it is subject to a periodic assessment for impairment by applying a fair value-based test. Goodwill is evaluated for impairment on an annual basis at a level of reporting referred to as the reporting unit, and more frequently if adverse events or changes in circumstances indicate that the asset may be impaired. Under ASC 350, Intangibles - Goodwill and Other , the Company has the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the goodwill impairment test is performed. Impairment tests are performed on a quarterly basis. Management uses the future discounted cash flows valuation approach to determine the fair value of reporting units and determines whether the fair value of reporting units exceeded its carrying amounts. If the fair value exceeds the carrying amount, then no impairment is recognized. If the carrying amount recorded exceeds the fair value calculated, then an impairment charge is recognized for the difference. The impairment review requires management to make judgments in determining various assumptions with respect to revenues, operating margins, growth rates and discount rates. The judgments made in determining the projected cash flows used to estimate the fair value can materially impact the Company’s financial condition and results of operations. Fair Value Measurements The Company applies ASC 820, Fair Value Measurement (“ASC 820”), which establishes framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances. The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 - Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 - Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. Business Acquisitions The purchase price of an acquisition is allocated to the assets acquired, including intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. Acquisition-related costs are expensed as incurred. The excess of the cost of an acquired entity, net of the amounts assigned to the assets acquired and liabilities assumed, is recognized as goodwill. The net assets and results of operations of an acquired entity are included on the Company’s condensed consolidated financial statements from the acquisition date. Revenue Recognition Revenue is derived from two primary sources: (a) products and services and (b) software. The Company recognizes revenue following the five-step model prescribed under ASC 606, Revenue from Contracts with Customers ("ASC 606") : (i) identify contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the products or services it transfers to the customer. These contracts have different terms based on the scope, performance obligations, and complexity of the project, which often requires the Company to make judgments and estimates in recognizing revenues. Performance obligations are satisfied both at a point of time and over time. All revenue is recognized based on the satisfaction of the performance obligation to date (see Note 4). Leases The Company’s lease arrangements relate primarily to office and manufacturing space and equipment. The Company’s leases generally have initial terms ranging from 4 to 10 years and may include renewal options and rent escalation clauses. The Company is typically required to make fixed minimum rent payments relating to its right to use an underlying leased asset. Additionally, the Company’s leases do not contain significantly restrictive covenants or residual value guarantees. The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are presented as right-of-use (“ROU”) assets and the corresponding lease liabilities are included in operating lease liabilities, current and operating lease liabilities on the Company’s condensed consolidated balance sheets. The Company does not currently maintain any finance lease arrangements. ROU assets represent the Company’s right to use an underlying asset and lease liabilities represent the Company’s obligation for lease payments in exchange for the ability to use the asset for the duration of the lease term. The Company does not recognize short term leases that have a term of twelve months or less as ROU assets or lease liabilities. The Company’s short-term leases are not material and do not have a material impact on its ROU assets or lease liabilities. ROU assets and lease liabilities are recognized at commencement date and determined using the present value of the future minimum lease payments over the lease term. The Company uses an incremental borrowing rate based on estimated rate of interest for collateralized borrowing since the Company’s leases do not include an implicit interest rate. The estimated incremental borrowing rate considers market data, actual lease economic environment, and actual lease term at commencement date. The lease term may include options to extend when it is reasonably certain that the Company will exercise that option. ROU assets include lease payments made in advance, and excludes any incentives received or initial direct costs incurred. The Company recognizes lease expense on a straight-line basis over the lease term. The Company has lease agreements which contain both lease and non-lease components, which it has elected to account for as a single lease component. As such, minimum lease payments include fixed payments for non-lease components within a lease agreement, but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. Stock-based Compensation The Company recognizes stock-based compensation expense for all stock options, restricted stock units and other arrangements within the scope of ASC 718, Stock Compensation ("ASC 718") . Stock-based compensation expense is measured at the date of grant, based on the fair value of the award, and is recognized using the straight-line method over the employee’s requisite service period. Compensation for stock-based awards with vesting conditions other than service are recognized at the time that those conditions will be achieved. Forfeitures are recognized as they are incurred. Public and Private Common Stock Warrant Liabilities As part of Galileo’s initial public offering, Galileo issued to third party investors 13,800,000 units, consisting of one ordinary share of Galileo and one warrant, at a price of $10.00 per unit. Each whole warrant entitles the holder to purchase one share of Common Stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of Galileo’s initial public offering, Galileo completed the private sale of 4,110,000 warrants to Galileo’s sponsor and EarlyBirdCapital, Inc. at a purchase price of $1.00 per warrant (the “Private Warrants”). In connection with the Business Combination, Galileo’s sponsor exercised its right to convert the aggregate outstanding principal amount of the convertible promissory note issued by Galileo into an aggregate of 500,000 Sponsor Warrants, with terms equivalent to the Private Warrants. The Private Warrants are identical to the Public Warrants, except that the Private Warrants (i) will not be redeemable by the Company and (ii) may be exercised for cash or on a cashless basis, so long as they are held by the initial purchaser or any of its permitted transferees. If the Private Warrants are held by holders other than the initial purchasers or any of their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by the holders on the same basis as the Public Warrants. The Company evaluated the Public and Private Warrants under ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity (“ASC 815-40”), and concluded that the Private Warrants do not meet the criteria to be classified in stockholders’ equity. Since the Private Warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities on the condensed consolidated balance sheets at fair value, with subsequent changes in their respective fair values recognized in the condensed consolidated statement of operations at each reporting date. Research and Development Costs Research and development expenses consist primarily of allocated personnel costs, fees paid to consultants and outside service providers, and allocations for rent and overhead. Research and development costs are expensed as incurred. Advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received. For the three months ended June 30, 2022 and 2021, research and development costs were $2,355 and $1,116, respectively. For the six months ended June 30, 2022 and 2021, research and development costs were $4,420 and $2,426, respectively. Advertising Costs Advertising costs are expensed as incurred. For the three months ended June 30, 2022 and 2021, advertising costs were $304 and $296, respectively. For the six months ended June 30, 2022 and 2021, advertising costs were $854 and $440, respectively. Advertising costs are included in selling, general and administrative expense on the condensed consolidated statements of operations and comprehensive (loss) income. Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Where applicable, the Company records a valuation allowance to reduce any deferred tax assets that it determines will not be realizable in the future. The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on income tax returns it files if such tax position is more likely than not to be sustained on examination by the taxing authorities, based on the technical merits of the position. These tax benefits are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Although the Company believes that it has adequately reserved for uncertain tax positions (including interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made, and could have a material impact on the Company’s financial condition and operating results. Carryforward attributes that were generated in tax years prior to those that remain open for examination may still be adjusted by relevant tax authorities upon examination if they either have been, or will be, used in a future period. In applying the estimated annual effective tax rate approach prescribed under ASC 740, Income Taxes, and based on present evidence and conclusions around the realizability of deferred tax assets, we determined that any deferred tax benefits related to the forecasted tax rate and pretax activity during the three and six months ended June 30, 2022 and 2021 are neither more likely than not to be realized in the current year, nor realizable as a deferred tax asset at the end of the year. Therefore, the appropriate amount of income tax benefit to recognize related to deferred tax assets during the three and six months ended June 30, 2022 and 2021 is zero. The Company’s effective tax rate of zero for the three and six months ended June 30, 2022 and 2021 differs from the applicable statutory tax rate primarily due to the fact that the Company maintains a full valuation allowance against its U.S. deferred tax assets as a result of its historical and current period losses. (Loss) Income per Share In accordance with the provisions of ASC 260, Earnings Per Share , net (loss) income per common share is computed by dividing net (loss) income by the weighted-average shares of Common Stock outstanding during the period. Basic (loss) income per share is computed by dividing net (loss) income attributable to common stockholders by the weighted average number of shares outstanding during the period. Diluted net (loss) income per share gives effect to all dilutive potential common shares outstanding during the period including stock options and warrants, using the treasury stock method, and convertible debt and convertible securities, using the if-converted method. During a loss period, the effect of the potential exercise of stock options and convertible debt are not considered in the diluted net (loss) income per share calculation since the effect would be anti-dilutive. A reconciliation of net (loss) income and number of shares used in computed basic and diluted net (loss) income per share was as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic and Diluted net (loss) income per share computation: Numerator for basic and diluted net loss per share: Net (loss) income $ (4,674) $ (135) $ (8,711) $ 1,573 Denominator for basic and diluted net loss per share: Weighted average common shares - basic and diluted 53,069,269 36,079,478 52,925,199 36,043,718 Basic and diluted net (loss) income per share $ (0.09) $ — $ (0.16) $ 0.04 The following table presents the outstanding shares of Common Stock equivalents that were excluded from the computation of the diluted net (loss) income per share attributable to Common Stock for the periods in which a net (loss) income is presented because their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Common stock warrants 18,410,000 — 18,410,000 — Earnout Shares 3,510,405 — 3,510,405 — Unvested RSUs 4,137,195 — 4,137,195 — Included in net (loss) income per share are 3,993,277 and 3,819,748 shares subject to options due to their nominal exercise prices as of June 30, 2022 and 2021, respectively. Segment Information The Company operates and reports in one segment, which focuses on providing additive manufacturing services to customers. The Company’s operating segment is reported in a manner consistent with the internal reporting provided to the chief operating decision maker (“CODM”). The Company’s CODM has been identified as its Chief Executive Officer. The Company is continually evaluating its operating and reporting segments as it integrates the acquisitions discussed in Note 3. Business Acquisitions. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. The Company has evaluated recently issued accounting pronouncements and does not believe any will have a material impact on the Company’s condensed consolidated financial statements or related financial statement disclosures. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers . This standard is effective for fiscal years and interim periods with those fiscal years beginning after December 15, 2022, and should be applied prospectively to business combinations occurring on or after the effective date of the standard. Early adoption is permitted, including adoption in an interim period. The Company early adopted this guidance on April 22, 2022, and has applied the guidance to business combinations entered into during fiscal 2022. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Accounting for Credit Losses (Topic 326), which requires the use of an “expected loss” model on certain types of financial instruments. The standard also amends the impairment model for available-for-sale debt securities and requires estimated credit losses to be recorded as allowances instead of reductions to amortized cost of the securities. Update No. 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact the standard will have on its condensed consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326)—Troubled Debt Restructurings ("TDRs") and Vintage Disclosures. The amendments in this Update eliminate the accounting guidance for TDRs by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Update No. 2022-02 is effective for annual periods beginning after December 15, 2022, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact the Update will have on its condensed consolidated financial statements. |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Business Acquisitions During April and May 2022, the Company completed three immaterial strategic acquisitions of MP2020, Inc., also referred to as MFG.com ("MFG"), Linear, and MakerOS, Inc. ("MakerOS"), collectively the "2022 acquisitions." The following table summarizes the total consideration for the 2022 acquisitions: Consideration Cash consideration $ 8,890 Holdback consideration 1,100 Earnout consideration 2,900 Total consideration $ 12,890 The holdback consideration represents the portion of the purchase price to be paid within 12 months from the respective closing dates, subject to reduction for certain indemnifications and other potential obligations of the acquired businesses. The fair value of the earnout consideration liability for the Linear acquisition was determined using a Monte Carlo simulation based on revenue performance for the 12 months ending December 31, 2022. The estimated fair value of $2,900 is included in accrued expenses and other liabilities within the unaudited condensed consolidated balance sheet as of June 30, 2022. If achieved, the earnout will be payable in cash and equity in April 2023. There is no earnout consideration for the MFG or MakerOS acquisitions. The Company has accounted for the MFG and Linear acquisitions as a business combination in accordance with ASC Topic 805, Business Combinations ("ASC 805") and the acquisition of Maker OS as an asset purchase. The net assets acquired in the acquisitions was $12,890 which includes $5,781 of net intangible assets and $4,398 of goodwill. The Company has allocated the purchase price based on preliminary estimates of fair value for the assets acquired and liabilities assumed using information currently available. Adjustments, if any, to the preliminary allocation are not expected to be material. The Company has determined that the impact of these acquisitions was not material to its condensed consolidated financial statements; therefore, separate presentation of revenue and earnings since the acquisition date and pro forma information are not required nor included herein. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Under ASC 606, revenue is recognized throughout the life of the executed agreement. The Company measures revenue based on consideration specified in a contract with a customer. Furthermore, the Company recognizes revenue when a performance obligation is satisfied by transferring control of the product or service to the customer which could occur over time or at a point in time. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. Customers typically receive the benefit of the Company’s services as (or when) they are performed. Substantially all customer contracts provide that compensation is received for services performed to date. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Nature of Products and Services The following is a description of the Company’s products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: Direct sales The Company provides customers with an additive manufacturing service, allowing for the customer to select the specifications of the model which they wish to have printed. Shapeways prints the 3D model and ships the product directly to the customer. The Company recognizes the sale of shop owner products through their e-commerce website over time using the output method. Contracts involving the sale of shop owner products through their e-commerce website do not include other performance obligations. As such, allocation of the transaction price was not necessary as the entire contract price is attributed to the sole performance obligation identified. Marketplace sales The Company provides a platform for shop owners to sell their products to customers through Shapeways’ marketplace website. Shapeways receives a 3.5% markup fee from the shop owner upon the sale of any products through the marketplace. The Company handles the financial transaction, manufacturing, distribution and customer service on behalf of the shop owners. The Company is responsible for billing the customer in this arrangement and transmitting the applicable fees to the shop owner. The Company assessed whether it is responsible for providing the actual product or service as a principal, or for arranging for the product or service to be provided by the third party as an agent. Judgment is applied to determine whether the Company is the principal or the agent by evaluating whether it has control of the product or service prior to it being transferred to the customer. The principal versus agent assessment is performed at the performance obligation level. Indicators that the Company has considered include whether it has the primary responsibility for fulfilling the promise to provide the specified product or service to the customer and whether it has inventory risk prior to transferring the product or service to the customer. The Company has the responsibility to fulfill the promise to provide the specific good or service on behalf of the shop owners to the customer. In addition, the Company has inventory risk before the specific good or service is transferred to a customer. As such, the Company is deemed the principal and shall recognize revenue on a gross basis for the price it charges to the shop owner for each product or service. The Company recognizes the sale of 3D products to customers at a point in time, specifically upon shipping the goods to the customer (FOB Origin) given the transfer of significant risks and rewards of ownership at that point in time. Contracts involving the manufacturing and delivery of 3D printed products to customers do not include other performance obligations. As such, allocation of the transaction price is not necessary as the entire contract price is attributed to the sole performance obligation identified. Software revenue In 2020, Shapeways launched its software under the brand of “Powered by Shapeways” to a limited set of design customers to gain feedback on product market fit. The software enables other manufacturers to leverage Shapeways’ existing end-to-end manufacturing software to scale their businesses and shift to digital manufacturing. Shapeways’ software offers improved customer accessibility, increased productivity, and expanded manufacturing capabilities for its customers. Shapeways launched the first phase of this offering more broadly under the brand OTTO in the fourth quarter of 2021. This phase of the software offering provides a limited ordering service for additive manufacturing capabilities fulfilled by Shapeways. Additionally software revenue for the three and six months ended June 30, 2022 reflects the recent acquisition of MFG. For each of the performance obligations classified as software revenue, the performance obligations are satisfied evenly over the term of the contract. For contracts including performance obligations classified as software revenue, the Company identified that each performance obligation has an explicitly stated standalone selling price. As such, allocation is not necessary as the prices included in the contract are attributed to each separate performance obligation. The following table presents the Company's revenues disaggregated by revenue discipline: Three Months Ended Six Months Ended 2022 2021 2022 2021 Major products/service lines: Direct sales $ 6,770 $ 6,663 $ 12,444 $ 13,083 Marketplace sales 1,155 2,063 2,980 4,399 Software 508 123 579 156 Total revenue $ 8,433 $ 8,849 $ 16,003 $ 17,638 Timing of revenue recognition: Products transferred at a point in time $ 1,155 $ 2,063 $ 2,980 $ 4,399 Products and services transferred over time 7,278 6,786 13,023 13,239 Total revenue $ 8,433 $ 8,849 $ 16,003 $ 17,638 Deferred Revenue The Company records deferred revenue when cash payments are received in advance of performance. Deferred revenue activity consisted of the following: June 30, December 31, Balance at beginning of the period $ 921 $ 753 Deferred revenue recognized during period (16,003) (33,623) Additions to deferred revenue during period 16,184 33,791 Total Deferred Revenue $ 1,102 $ 921 The Company expects to satisfy its remaining performance obligations within the next twelve months. The $921 of deferred revenue as of January 1, 2022 was recognized during the six months ended June 30, 2022. The opening balance of accounts receivable as of January 1, 2021 was $185. Practical Expedients and Exemptions The Company applies the practical expedient related to incremental costs of obtaining a contract. Although certain of its commission costs qualify for capitalization under ASC 340-40, Contracts with customers , their amortization period is less than one year. Therefore, utilizing the practical expedient, the Company expenses these costs as incurred. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Components of inventory consisted of the following: June 30, December 31, Raw materials $ 912 $ 735 Work-in-process 83 28 Finished goods 160 164 Total $ 1,155 $ 927 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: June 30, December 31, Prepaid operating expenses $ 3,291 $ 396 Prepaid insurance 936 2,338 Prepaid expenses 1,409 680 VAT receivable 932 945 Other current assets 4 1 Total $ 6,572 $ 4,360 |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consisted of the following: June 30, December 31, Machinery and equipment $ 10,650 $ 6,996 Computers and IT equipment 1,010 957 Leasehold improvements 2,406 2,482 Furniture and fixtures 95 49 Vehicles 42 — Assets to be placed in service 10,377 2,442 Property and equipment 24,580 12,926 Less: Accumulated depreciation (10,088) (8,538) Property and equipment, net $ 14,492 $ 4,388 |
Goodwill & Intangible Assets
Goodwill & Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill & Intangible Assets | Goodwill & Intangible Assets Changes in the carrying amount of goodwill as of June 30, 2022 and December 31, 2021 are as follows: Goodwill Balance at December 31, 2021 $ 1,835 Acquired goodwill 4,398 Balance at June 30, 2022 $ 6,233 The Company has no accumulated impairment losses on goodwill during the three and six months ended June 30, 2022 and 2021. Intangible assets consisted of the following as of June 30, 2022: Gross carrying amount Accumulated amortization Intangible assets, net Weighted average amortization period (in years) Customer relationships $ 2,964 $ (48) $ 2,916 10 Trade name 887 (15) 872 10 Acquired software platform 910 (15) 895 10 Customer lists 190 (11) 179 3 Trademark 100 (2) 98 10 Noncompete agreement 52 (4) 48 2 Favorable operating lease 699 (29) 670 4 Unfavorable operating lease (21) 1 (20) 4 Total intangible assets, net $ 5,781 $ (123) $ 5,658 The Company recognized $123 of amortization expense during the three and six months ended June 30, 2022. There was no amortization expense recorded during the three and six months ended June 30, 2021. The Company estimates the future aggregate amortization expense related to its intangible assets as of June 30, 2022 will be as follows: Amortization expense Remainder of 2022 $ 372 2023 745 2024 727 2025 677 2026 543 Thereafter 2,594 Total $ 5,658 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses consisted of the following: June 30, December 31, Earnout consideration $ 2,900 $ — Accrued compensation 1,157 814 Holdback consideration 1,100 — Accrued selling expenses 584 522 Taxes payable 314 328 Shapeways credits 77 287 Other 1,106 694 Total $ 7,238 $ 2,645 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases In connection with its acquisition of Linear, the Company assumed two leases of manufacturing facilities during the three months ended June 30, 2022. During the three and six months ended June 30, 2022, the Company maintained five leases of facilities located in the United States and the Netherlands, as well as one lease of office equipment, under operating leases. For the three months ended June 30, 2022 and 2021, operating lease expense was $243 and $232, respectively. For the six months ended June 30, 2022 and 2021, operating lease expense was $385 and $552, respectively. Right of use assets and lease liabilities for operating leases were recorded in the condensed consolidated balance sheets as follows: June 30, December 31, Assets: Right-of-use assets, net $ 2,603 $ 842 Total lease assets $ 2,603 $ 842 Liabilities: Current liabilities: Operating lease liabilities, current $ 850 $ 639 Non-current liabilities: Operating lease liabilities, net of current portion 1,838 326 Total lease liability $ 2,688 $ 965 The Company’s lease agreements do not state an implicit borrowing rate; therefore, an internal incremental borrowing rate was determined based on information available at the lease commencement date for the purposes of determining the present value of lease payments. The incremental borrowing rate reflects the cost to borrow on a securitized basis in each market. The weighted-average remaining lease term for operating leases was 3.28 years and the weighted-average incremental borrowing rate was 6.88% as of June 30, 2022. Supplemental cash flow information related to the Company’s leases was as follows: Six Months Ended 2022 2021 Operating cash flows from operating leases $ 423 $ 597 As of June 30, 2022, future minimum lease payments required under operating leases are as follows: Rest of 2022 $ 606 2023 777 2024 750 2025 683 2026 226 Total minimum lease payments 3,042 Less effects of discounting (354) Present value of future minimum lease payments $ 2,688 Desktop Metal On March 26, 2021, the Company entered into a non-binding Memorandum of Understanding (“MOU”) with Desktop Metal, pursuant to which Desktop Metal agreed to invest $20.0 million in the PIPE Investment. Upon consummation of this investment, the Company became obligated to purchase $20.0 million of equipment, materials and services from Desktop Metal. In conjunction with these obligations, the Company and Desktop Metal agreed to develop a strategic partnership. As of June 30, 2022, the Company paid $15.9 million to Desktop Metal for equipment, materials and services received and placed purchase orders for another $4.1 million of equipment, materials and services to be purchased under the MOU by or before December 31, 2022. The Company has no further obligations under the MOU. Legal Proceedings The Company is involved in various legal proceedings which arise from time to time in the normal course of business. While the results of such matters generally cannot be predicted with certainty, management does not expect any such matters to have a material adverse effect on the Company’s condensed consolidated financial position or results of operations as of June 30, 2022 and December 31, 2021 and for the three and six months ended June 30, 2022 and 2021. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Stockholders’ Equity (Deficit) The consolidated statements of changes in stockholders’ equity (deficit) reflects the Business Combination as defined in Note 1 as of September 29, 2021. As Legacy Shapeways was deemed the accounting acquirer in the Business Combination with Galileo, all periods prior to the Closing date reflect the balances and activity of Legacy Shapeways. The balances as of January 1, 2021 from the consolidated financial statements of Legacy Shapeways as of that date, share activity (convertible preferred stock, common stock, additional paid in capital, accumulated deficit, and accumulated other comprehensive loss) and per share amounts were retroactively adjusted, where applicable, using the recapitalization conversion ratio of 0.8293 (the “Conversion Ratio”) established in the Merger. Common Stock Upon closing of the Business Combination, pursuant to the terms of the Certificate of Incorporation, the Company authorized 120,000,000 shares of Common Stock with a par value $0.0001. The holders of Common Stock are entitled to one vote per share on all matters submitted to the stockholders for their vote or approval and are entitled to receive dividends, as and if declared by the Board of Directors out of legally available funds. The Company has issued and outstanding 49,213,438 and 48,627,739 shares of Common Stock as of June 30, 2022 and December 31, 2021, respectively. Legacy Shapeways Common Stock Warrants On December 18, 2013, in connection with executing a loan agreement, the Company issued warrants to purchase 40,000 shares of Legacy Shapeways common stock. The warrants had an exercise price of $1.25 per share and had an expiration date of December 18, 2023. On February 3, 2014, in connection with executing a lease agreement, the Company issued warrants to purchase 248,000 shares of Legacy Shapeways common stock. The warrants had an exercise price of $1.25 per share and expired upon the latest to occur (i) seven years from the original issuance date or (ii) five years from the effective date of an initial public offering. On April 22, 2015, in connection to an amended loan agreement, the Company issued warrants to purchase 13,750 shares of Legacy Shapeways common stock. The warrants had an exercise price of $1.70 per share and had an expiration date of April 22, 2025. Immediately prior to the completion of the Business Combination, all outstanding Legacy Shapeways common stock warrants were exercised into an aggregate of 255,917 shares of Legacy Shapeways common stock (212,234 shares of Common Stock post Business Combination). Legacy Shapeways Convertible Preferred Stock Immediately prior to the completion of the Business Combination, all outstanding shares of the Legacy Shapeways Series A-1, Series A-2, Series B, Series B-1, Series C, Series D, and Series E preferred stock converted into an aggregate of 22,579,695 shares of common stock. Each share of Legacy Shapeways convertible preferred stock was converted into one share of Legacy Shapeways common stock. Legacy Shapeways Preferred Stock Warrants On March 8, 2013, the Company issued warrants to purchase a total of 23,125 shares of Series B-1 preferred stock of Legacy Shapeways. The warrants had an exercise price of $2.5946 per share and were exercisable for ten years from the date of grant. On May 10, 2021, the 23,125 warrants were exercised for 23,125 shares of Series B-1 preferred stock of Legacy Shapeways at an exercise price of $2.5946 per share. On June 30, 2017, in connection with executing a loan agreement, the Company issued warrants to purchase a total of 57,051 shares of Series D preferred stock of Legacy Shapeways. The warrants had an exercise price of $5.2584 per share and were exercisable for ten years from the date of grant. Immediately prior to the completion of the Business Combination, the 57,051 warrants were exercised for 107,580 shares of Legacy Shapeways common stock. Public Warrants Prior to the Merger, the Company had outstanding 13,800,000 Public Warrants. Each Public Warrant entitles the holder to purchase one share of Common Stock of the Company at an exercise price of $11.50 per share. The Public Warrants become exercisable 30 days after the Closing Date, and expire five years after the Closing Date or earlier upon redemption or liquidation. The Company may redeem the Public Warrants as follows: in whole and not in part; at a price of $0.01 per warrant; at any time while the Public Warrants are exercisable, upon not less than 30 days’ prior written notice of redemption to each Public Warrant holder; if, and only if, the reported last sale price of the Company’s ordinary shares equals or exceeds $18.00 per share, for any 20 trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and if, and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. Certain of these conditions have not been met to redeem the Public Warrants. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. As of June 30, 2022 and December 31, 2021 there were 17,637,592 and 15,295,612 Public Warrants outstanding, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2010 Stock Plan Prior to the Business Combination, Legacy Shapeways maintained its 2010 Stock Plan (the “2010 Plan”), under which Legacy Shapeways granted statutory and non-statutory stock to employees, outside directors and consultants. The maximum number of shares of common stock that was issuable under the 2010 Plan was 16,942,546 shares. In connection with the Business Combination, each Legacy Shapeways stock option that was outstanding immediately prior to Closing, whether vested or unvested, was converted into an option to acquire a number of shares of common stock (each such option, an “Exchanged Option”) equal to the product of (i) the number of shares of Legacy Shapeways common stock subject to such Legacy Shapeways option immediately prior to the Business Combination and (ii) 90% of the Conversion Ratio, at an exercise price per share (rounded up to the nearest whole cent) equal to (A) the exercise price per share of such Legacy Shapeways option immediately prior to the consummation of the Business Combination, divided by (B) 90% of the Conversion Ratio. Except as specifically provided in the Business Combination Agreement, following the Business Combination, each Exchanged Option will continue to be governed by the same terms and conditions (including vesting and exercisability terms) as were applicable to the corresponding former Legacy Shapeways option immediately prior to the consummation of the Business Combination. All stock option activity was retroactively restated to reflect the Exchanged Options. In addition, each holder of an in-the-money Legacy Shapeways option held by individuals remaining in continuous service to the Company through the Closing, was granted a right to receive an award of restricted stock units denominated in shares of common stock granted under the 2021 Plan (each, an “Earnout RSU”) equal to the product of (A) the number of shares of Legacy Shapeways common stock that were subject to the option immediately prior to Closing, multiplied by (B) ten percent (10%) of the Conversion Ratio. The Earnout RSUs are subject to substantially the same service-based vesting conditions and acceleration provisions as applied to the Legacy Shapeways option provided that, in addition to such service-based vesting conditions, Earnout RSUs will be subject to vesting and forfeiture conditions based upon the dollar volume-weighted price of the Company’s Common Stock reaching certain targets (the “RSU Performance Milestones”). The Company records stock compensation expense for Earn-Out RSUs based upon an assessment of the grant date fair value using the Monte Carlo valuation model in accordance with FASB ASC Topic 718. The Company did not grant any additional Earn-Out RSUs during the three and six months ended June 30, 2022. Upon the Closing of the Business Combination, the outstanding and unexercised Legacy Shapeways options became options to purchase an aggregate of 4,901,207 shares of the Company’s Common Stock under the 2010 Plan at an average exercise price of $0.62 per share. 2021 Equity Incentive Plan Upon the closing of the Business Combination, the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan permits the granting of incentive stock options, restricted stock awards, other share-based awards or other cash-based awards to employees, consultants, and non-employee directors. As of June 30, 2022, 10,052,787 shares of Common Stock are authorized for issuance pursuant to awards under the 2021 Plan. As of June 30, 2022, 4,618,708 shares have been awarded and 5,434,079 shares remain available for issuance under the 2021 Plan. Option Awards The Company accounts for share-based payments pursuant to ASC 718 and, accordingly, the Company records stock compensation expense for share-based awards based upon an assessment of the grant date fair value for stock options using the Black-Scholes option pricing model. The Company is a public company and lacks company-specific historical and implied volatility information. Therefore, it estimates its expected stock volatility based on the historical volatility of a publicly traded set of peer companies. Due to the lack of historical exercise history, the expected term of the Company’s stock options for employees has been determined utilizing the “simplified” method for awards. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve. Expected dividend yield is zero based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. The fair value of stock options under the Black-Scholes model requires management to make assumptions regarding projected employee stock option exercise behaviors, risk-free interest rates, volatility of the Company’s stock price and expected dividends. The Company generally recognizes stock compensation expense on the grant date and over the period of vesting or period that services will be provided. There were no stock options granted during the three and six months ended June 30, 2022. The assumptions used to estimate the fair value of stock options granted during the periods presented were as follows: Three and Six Months Ended June 30, 2021 Strike price $ 0.17 Expected term (in years) 5.55 - 6.05 Expected volatility 57.09% - 57.81% Risk-free interest rate 0.50% - 0.57% Dividend yield — % The following table summarizes the Company’s stock option activity during the period presented: Shares Weighted Weighted Outstanding as of January 1, 2022 4,806,387 $ 0.63 6.57 Granted — — — Forfeited (20,814) 0.49 — Exercised (217,967) 0.49 — Outstanding at March 31, 2022 4,567,606 0.63 6.35 Granted — — — Forfeited (11,431) 0.49 — Exercised (367,732) 0.50 — Outstanding at June 30, 2022 4,188,443 $ 0.64 6.00 Exercisable at June 30, 2022 3,993,277 $ 0.65 5.93 The aggregate intrinsic value in the above table is calculated as the difference between fair value of the Company’s Common Stock price and the exercise price of the stock options. There were no stock options granted during the six months ended June 30, 2022. The weighted-average grant-date fair value per stock option granted during the six months ended June 30, 2021 was $0.17. As of June 30, 2022, approximately $41 of unrecognized compensation expense related to non-vested awards is expected to be recognized over the weighted average period of 1.47 years. Restricted Stock Units The following table summarizes the Company’s restricted stock unit activity during the period presented: Restricted Stock Units Weighted Average Grant Fair Value per Share Outstanding as of January 1, 2022 660,448 $ 3.80 Granted 2,608,455 2.86 Forfeited (798) 1.06 Settled — — Outstanding at March 31, 2022 3,268,105 2.96 Granted 939,441 1.85 Forfeited (70,351) 2.70 Settled — — Outstanding at June 30, 2022 4,137,195 2.43 Able to be settled at June 30, 2022 12,030 $ 2.86 The total fair value of restricted stock unit awards vested during the period ended June 30, 2022 was $2,344 . Total unrecognized compensation expense related to outstanding restricted stock unit awards was approximately $6,329 as of June 30, 2022 and is expected to be recognized over the weighted average period of 3.39 years. 2021 Employee Stock Purchase Plan Upon the closing of the Business Combination, the Company adopted the 2021 Employee Stock Purchase Plan (the “ESPP”). The purpose of the ESPP is to provide eligible employees with an opportunity to increase their proprietary interest in the success of the Company by purchasing Common Stock from the Company on favorable terms and to pay for such purchases through payroll deductions or other approved contributions. As of June 30, 2022 , 1,381,998 shares of Common Stock are available for purchase under the ESPP. As of June 30, 2022 , no shares have been purchased under the ESPP. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2022 and December 31, 2021. The carrying amounts of accounts receivable, inventory, prepaid expenses and other current assets, accounts payable, accrued expenses and other liabilities, and deferred revenue approximated fair value as they are short term in nature. The fair value of warrants issued for settlement and services are estimated based on the Black-Scholes model. The carrying value of the Company’s debt and operating lease liabilities approximated its fair value, as the obligation bears interest at rates currently available for debt with similar maturities and collateral requirements. Fair Value on a Recurring Basis The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The estimated fair value of the warrant liabilities represents Level 3 measurements. The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Description Level June 30, December 31, Liabilities: Warrant liabilities 3 $ 77 $ 2,274 Earnout consideration 3 $ 2,900 $ — Warrant Liabilities The Company had outstanding 4,110,000 warrants (the “Private Warrants”) that were issued upon the consummation of the initial public offering of Galileo. Additionally, at the Closing, a lender holding a convertible note issued by the Company with an aggregate principal amount of $500 converted the note into 500,000 warrants (the “Sponsor Warrants”) exercisable for Common Stock at a purchase price of $1.00 per warrant. The Private Warrants and Sponsor Warrants are identical to the Public Warrants except that the Private Warrants and Sponsor Warrants (i) are not redeemable by the Company and (ii) may be exercised for cash or on a cashless basis, so long as they are held by the initial purchaser or any of its permitted transferees. If the Private Warrants or Sponsor Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants or Sponsor Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. Upon the transfer of a Private Warrant or Sponsor Warrant to a party other than an initial purchaser or any of its permitted transferees, the Private Warrants or Sponsor Warrants become Public Warrants and the fair market value of the Private Warrants at the date of the transfer is reclassified to equity. The Private Warrants and Sponsor Warrants are not indexed to the Company’s common shares in the manner contemplated by ASC 815-40-15 because the holder of the instrument is not an input into the pricing of a fixed-for-fixed option on equity shares. The Company classifies the Private Warrants and Sponsor Warrants as derivative liabilities in its unaudited condensed consolidated balance sheet as of June 30, 2022. The Company utilizes a Binomial Lattice model approach to value the Private Warrants and Sponsor Warrants at each reporting period with changes in fair value recognized in the statement of operations. The estimated fair value of the warrant liabilities is determined using Level 3 inputs. Inherent in a binomial options pricing model are assumptions related to expected share-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its Common Stock based on historical volatility that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates to remain at zero. The significant unobservable inputs used in the Binomial Lattice Model to measure the warrant liabilities that are categorized within Level 3 of the fair value hierarchy are as follows: June 30, December 31, Stock price on valuation date $ 1.17 $ 3.71 Exercise price per share $ 11.50 $ 11.50 Expected life 4.25 years 4.75 years Volatility 67.0% 56.4% Risk-free rate 3.0% 1.2% Dividend yield — % — % Fair value per warrant $ 0.10 $ 0.73 The following table provides a summary of changes in fair value of the Company’s Level 3 financial instruments that are measured at fair value on a recurring basis: Warrant Liabilities Balance at December 31, 2021 $ 2,274 Transfer of Private Warrants to Public Warrants (670) Change in fair value (1,527) Balance at June 30, 2022 $ 77 For the three and six months ended June 30, 2022, the Company recognized income resulting from a change in the fair value of warrant liabilities of $765 and $1,527, respectively. There was no change in fair value for the three and six months ended June 30, 2021 as there were no warrant liabilities outstanding as of June 30, 2021. As of June 30, 2022 and December 31, 2021, there were 772,408 and 3,114,388 Private Warrants outstanding, respectively. Earnout Consideration Any change in the fair value of the earnout consideration is included in selling, general and administrative expenses on the Company's unaudited condensed consolidated statements of operations and comprehensive (loss) income. There were no changes to the fair value for the three and six months ended June 30, 2022. Fair Value on a Non-Recurring Basis At the Closing, there were 3,510,405 shares of Common Stock issued as part of the Merger consideration (the “Earnout Shares”) subject to vesting and forfeiture conditions (the “Earnout Terms”) based upon the volume-weighted average trading price of Common Stock reaching targets of $14.00 and $16.00, respectively (with 50% released at each target) for a period of 30 consecutive trading days during the three-year period after the Closing, with the portion of such shares that would otherwise be deliverable to Legacy Shapeways shareholders at the Closing being withheld and deposited into escrow. The fair value of the Earnout Shares was estimated using the trading price of the Common Stock at Closing ($7.70), discounted based on the probability of the Earnout Terms being met as determined at Closing, and thus represents |
Significant Concentrations
Significant Concentrations | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Significant Concentrations | Significant Concentrations One customer accounted for approximately 20% and 25% of revenue for the three months ended June 30, 2022 and 2021, respectively. No other customers represented more than 10% of revenue for the three months ended June 30, 2022 and 2021. One customer accounted for approximately 21% and 23% of revenue for the six months ended June 30, 2022 and 2021, respectively. No other customers represented more than 10% of revenue for the six months ended June 30, 2022 and 2021. No vendor accounted for more than 10% of purchases for the three months ended June 30, 2022. One vendor accounted for approximately 19% of purchases for the three months ended June 30, 2021. One vendor accounted for approximately 44% and 10% of purchases for the six months ended June 30, 2022 and 2021. No other vendors represented more than 10% of purchases for the six months ended June 30, 2022 and 2021. As of June 30, 2022, three customers accounted for approximately 33%, 15% and 10% of accounts receivable. As of December 31, 2021, two customers accounted for approximately 32% and 25% of accounts receivable. No other customers represented more than 10% of outstanding accounts receivable as of June 30, 2022 and December 31, 2021. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated all known subsequent events through August 12, 2022, which is the date these condensed consolidated financial statements were issued, and has determined that no subsequent events have occurred requiring recognition or disclosure in these unaudited condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information as defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and in accordance with the instruction to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. The condensed consolidated financial statements include the accounts of its wholly owned subsidiaries, Legacy Shapeways, Shapeways BV and Linear. All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying condensed consolidated interim financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. These unaudited condensed consolidated interim financial statements should be read along with the audited financial statements included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2021, as filed with the SEC on April 1, 2022 (the “Annual Report”). |
Use of Estimates | Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. |
Functional Currency | Functional Currency The local currency is the functional currency for Shapeways BV’s operations outside the United States. Assets and liabilities of these operations are translated into U.S. Dollars at the exchange rate in effect at the end of each period. Income statement accounts are translated at the average exchange rate prevailing during the period. Translation adjustments arising from the use of differing exchange rates from period to period are included as a component of other comprehensive loss within stockholders’ equity (deficit). Gains and losses from foreign currency transactions are included in net loss for the period. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash includes cash on hand and demand deposits. The Company maintains its deposits at high quality financial institutions and monitors the credit ratings of those institutions. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. While cash held by financial institutions may at times exceed federally insured limits, the Company believes that no material credit or market risk exposure exists due to the high quality of the institutions. The Company has not experienced any losses on such accounts. Restricted cash represents cash required to be held as collateral for the Company’s credit cards and security deposit for its facility in the Netherlands. Accordingly, these balances contain restrictions as to their availability and usage and are classified as restricted cash in the condensed consolidated balance sheets. |
Accounts Receivable | Accounts ReceivableAccounts receivable are recorded at the invoiced amount and are generally unsecured as they are uncollateralized. The Company provides an allowance for doubtful accounts to reduce receivables to their estimated net realizable value. Judgement is exercised in establishing allowances and estimates are based on the customers’ payment history and liquidity. Any amounts that were previously recognized as revenue and subsequently determined to be uncollectible are charged to bad debt expense included in selling, general and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive loss. |
Inventory | InventoryInventory consists of raw materials, work in progress and finished goods at the Company’s distribution center. Raw materials are stated at the lower of cost or net realizable value, determined by the first-in-first-out method. Finished goods and work in progress are valued using a methodology to determine the cost of each 3D printed object using allocations for material, labor, machine time and overhead. The Company periodically reviews its inventory for slow-moving, damaged and discontinued items and provides allowances to reduce such items identified to their recoverable amounts. |
Property and Equipment, net | Property and Equipment, net Property and equipment are stated at cost, less accumulated depreciation. Maintenance and repairs are charged to expense when incurred. Additions and improvements that extend the economic useful life of the asset are capitalized and depreciated over the remaining useful lives of the assets. The cost and accumulated depreciation of assets sold or retired are removed from the respective accounts, and any resulting gain or loss is reflected in current earnings. No impairment charges were recorded for the three and six months ended June 30, 2022 and 2021. Costs for capital assets not yet placed into service are capitalized and depreciated once placed into service. Depreciation is recognized using the straight-line method in amounts considered to be sufficient to allocate the cost of the assets to operations over the estimated useful lives or lease terms, as follows: Asset Category Depreciable Life Machinery and equipment 5 to 10 years Computers and IT equipment 3 to 10 years Furniture and fixtures 7 to 10 years Vehicles 10 years Leasehold improvements ** ** Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. |
Long-Lived Assets, Including Definite-Lived Intangible Assets | Long-Lived Assets, Including Definite-Lived Intangible Assets Intangible assets, which consist of technology, customer relationships, trademarks, favorable and unfavorable operating leases, and non-compete agreements are stated at cost less accumulated amortization. Amortization is generally recorded on a straight-line basis over estimated useful lives ranging from two Long-lived assets, other than goodwill and other indefinite-lived intangibles, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows derived from such assets. |
Goodwill | Goodwill Goodwill, which represents the excess of purchase prices over the fair value of net assets acquired, is carried at cost. Goodwill is not amortized; rather, it is subject to a periodic assessment for impairment by applying a fair value-based test. Goodwill is evaluated for impairment on an annual basis at a level of reporting referred to as the reporting unit, and more frequently if adverse events or changes in circumstances indicate that the asset may be impaired. Under ASC 350, Intangibles - Goodwill and Other , the Company has the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the goodwill impairment test is performed. Impairment tests are performed on a quarterly basis. Management uses the future discounted cash flows valuation approach to determine the fair value of reporting units and determines whether the fair value of reporting units exceeded its carrying amounts. If the fair value exceeds the carrying amount, then no impairment is |
Fair Value Measurements | Fair Value Measurements The Company applies ASC 820, Fair Value Measurement (“ASC 820”), which establishes framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances. The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 - Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 - Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. |
Business Acquisitions | Business Acquisitions The purchase price of an acquisition is allocated to the assets acquired, including intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. Acquisition-related costs are expensed as incurred. The excess of the cost of an acquired entity, net of the amounts assigned to the assets acquired and liabilities assumed, is recognized as goodwill. The net assets and results of operations of an acquired entity are included on the Company’s condensed consolidated financial statements from the acquisition date. |
Revenue Recognition | Revenue Recognition Revenue is derived from two primary sources: (a) products and services and (b) software. The Company recognizes revenue following the five-step model prescribed under ASC 606, Revenue from Contracts with Customers ("ASC 606") : (i) identify contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the products or services it transfers to the customer. These contracts have different terms based on the scope, performance obligations, and complexity of the project, which often requires the Company to make judgments and estimates in recognizing revenues. Under ASC 606, revenue is recognized throughout the life of the executed agreement. The Company measures revenue based on consideration specified in a contract with a customer. Furthermore, the Company recognizes revenue when a performance obligation is satisfied by transferring control of the product or service to the customer which could occur over time or at a point in time. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. Customers typically receive the benefit of the Company’s services as (or when) they are performed. Substantially all customer contracts provide that compensation is received for services performed to date. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Nature of Products and Services The following is a description of the Company’s products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: Direct sales The Company provides customers with an additive manufacturing service, allowing for the customer to select the specifications of the model which they wish to have printed. Shapeways prints the 3D model and ships the product directly to the customer. The Company recognizes the sale of shop owner products through their e-commerce website over time using the output method. Contracts involving the sale of shop owner products through their e-commerce website do not include other performance obligations. As such, allocation of the transaction price was not necessary as the entire contract price is attributed to the sole performance obligation identified. Marketplace sales The Company provides a platform for shop owners to sell their products to customers through Shapeways’ marketplace website. Shapeways receives a 3.5% markup fee from the shop owner upon the sale of any products through the marketplace. The Company handles the financial transaction, manufacturing, distribution and customer service on behalf of the shop owners. The Company is responsible for billing the customer in this arrangement and transmitting the applicable fees to the shop owner. The Company assessed whether it is responsible for providing the actual product or service as a principal, or for arranging for the product or service to be provided by the third party as an agent. Judgment is applied to determine whether the Company is the principal or the agent by evaluating whether it has control of the product or service prior to it being transferred to the customer. The principal versus agent assessment is performed at the performance obligation level. Indicators that the Company has considered include whether it has the primary responsibility for fulfilling the promise to provide the specified product or service to the customer and whether it has inventory risk prior to transferring the product or service to the customer. The Company has the responsibility to fulfill the promise to provide the specific good or service on behalf of the shop owners to the customer. In addition, the Company has inventory risk before the specific good or service is transferred to a customer. As such, the Company is deemed the principal and shall recognize revenue on a gross basis for the price it charges to the shop owner for each product or service. The Company recognizes the sale of 3D products to customers at a point in time, specifically upon shipping the goods to the customer (FOB Origin) given the transfer of significant risks and rewards of ownership at that point in time. Contracts involving the manufacturing and delivery of 3D printed products to customers do not include other performance obligations. As such, allocation of the transaction price is not necessary as the entire contract price is attributed to the sole performance obligation identified. Software revenue In 2020, Shapeways launched its software under the brand of “Powered by Shapeways” to a limited set of design customers to gain feedback on product market fit. The software enables other manufacturers to leverage Shapeways’ existing end-to-end manufacturing software to scale their businesses and shift to digital manufacturing. Shapeways’ software offers improved customer accessibility, increased productivity, and expanded manufacturing capabilities for its customers. Shapeways launched the first phase of this offering more broadly under the brand OTTO in the fourth quarter of 2021. This phase of the software offering provides a limited ordering service for additive manufacturing capabilities fulfilled by Shapeways. Additionally software revenue for the three and six months ended June 30, 2022 reflects the recent acquisition of MFG. For each of the performance obligations classified as software revenue, the performance obligations are satisfied evenly over the term of the contract. For contracts including performance obligations classified as software revenue, the Company identified that each performance obligation has an explicitly stated standalone selling price. As such, allocation is not necessary as the prices included in the contract are attributed to each separate performance obligation. |
Leases | Leases The Company’s lease arrangements relate primarily to office and manufacturing space and equipment. The Company’s leases generally have initial terms ranging from 4 to 10 years and may include renewal options and rent escalation clauses. The Company is typically required to make fixed minimum rent payments relating to its right to use an underlying leased asset. Additionally, the Company’s leases do not contain significantly restrictive covenants or residual value guarantees. The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are presented as right-of-use (“ROU”) assets and the corresponding lease liabilities are included in operating lease liabilities, current and operating lease liabilities on the Company’s condensed consolidated balance sheets. The Company does not currently maintain any finance lease arrangements. ROU assets represent the Company’s right to use an underlying asset and lease liabilities represent the Company’s obligation for lease payments in exchange for the ability to use the asset for the duration of the lease term. The Company does not recognize short term leases that have a term of twelve months or less as ROU assets or lease liabilities. The Company’s short-term leases are not material and do not have a material impact on its ROU assets or lease liabilities. ROU assets and lease liabilities are recognized at commencement date and determined using the present value of the future minimum lease payments over the lease term. The Company uses an incremental borrowing rate based on estimated rate of interest for collateralized borrowing since the Company’s leases do not include an implicit interest rate. The estimated incremental borrowing rate considers market data, actual lease economic environment, and actual lease term at commencement date. The lease term may include options to extend when it is reasonably certain that the Company will exercise that option. ROU assets include lease payments made in advance, and excludes any incentives received or initial direct costs incurred. The Company recognizes lease expense on a straight-line basis over the lease term. The Company has lease agreements which contain both lease and non-lease components, which it has elected to account for as a single lease component. As such, minimum lease payments include fixed payments for non-lease components within a lease agreement, but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. |
Stock-based Compensation | Stock-based Compensation The Company recognizes stock-based compensation expense for all stock options, restricted stock units and other arrangements within the scope of ASC 718, Stock Compensation ("ASC 718") . Stock-based compensation expense is measured at the date of grant, based on the fair value of the award, and is recognized using the straight-line method over the employee’s requisite service period. Compensation for stock-based awards with vesting conditions other than service are recognized at the time that those conditions will be achieved. Forfeitures are recognized as they are incurred. |
Public and Private Common Stock Warrant Liabilities | Public and Private Common Stock Warrant Liabilities As part of Galileo’s initial public offering, Galileo issued to third party investors 13,800,000 units, consisting of one ordinary share of Galileo and one warrant, at a price of $10.00 per unit. Each whole warrant entitles the holder to purchase one share of Common Stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of Galileo’s initial public offering, Galileo completed the private sale of 4,110,000 warrants to Galileo’s sponsor and EarlyBirdCapital, Inc. at a purchase price of $1.00 per warrant (the “Private Warrants”). In connection with the Business Combination, Galileo’s sponsor exercised its right to convert the aggregate outstanding principal amount of the convertible promissory note issued by Galileo into an aggregate of 500,000 Sponsor Warrants, with terms equivalent to the Private Warrants. The Private Warrants are identical to the Public Warrants, except that the Private Warrants (i) will not be redeemable by the Company and (ii) may be exercised for cash or on a cashless basis, so long as they are held by the initial purchaser or any of its permitted transferees. If the Private Warrants are held by holders other than the initial purchasers or any of their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by the holders on the same basis as the Public Warrants. The Company evaluated the Public and Private Warrants under ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity (“ASC 815-40”), and concluded that the Private Warrants do not meet the criteria to be classified in stockholders’ equity. Since the Private Warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities on the condensed consolidated balance sheets at fair value, with subsequent changes in their respective fair values recognized in the condensed consolidated statement of operations at each reporting date. |
Research and Development Costs | Research and Development CostsResearch and development expenses consist primarily of allocated personnel costs, fees paid to consultants and outside service providers, and allocations for rent and overhead. Research and development costs are expensed as incurred. Advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. For the three months ended June 30, 2022 and 2021, advertising costs were $304 and $296, respectively. For the six months ended June 30, 2022 and 2021, advertising costs were $854 and $440, respectively. Advertising costs are included in selling, general and administrative expense on the condensed consolidated statements of operations and comprehensive (loss) income. |
Income Taxes | Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Where applicable, the Company records a valuation allowance to reduce any deferred tax assets that it determines will not be realizable in the future. The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on income tax returns it files if such tax position is more likely than not to be sustained on examination by the taxing authorities, based on the technical merits of the position. These tax benefits are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Although the Company believes that it has adequately reserved for uncertain tax positions (including interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made, and could have a material impact on the Company’s financial condition and operating results. Carryforward attributes that were generated in tax years prior to those that remain open for examination may still be adjusted by relevant tax authorities upon examination if they either have been, or will be, used in a future period. In applying the estimated annual effective tax rate approach prescribed under ASC 740, Income Taxes, and based on present evidence and conclusions around the realizability of deferred tax assets, we determined that any deferred tax benefits related to the forecasted tax rate and pretax activity during the three and six months ended June 30, 2022 and 2021 are neither more likely than not to be realized in the current year, nor realizable as a deferred tax asset at the end of the year. Therefore, the appropriate amount of income tax benefit to recognize related to deferred tax assets during the three and six months ended June 30, 2022 and 2021 is zero. The Company’s effective tax rate of zero for the three and six months ended June 30, 2022 and 2021 differs from the applicable statutory tax rate primarily due to the fact that the |
(Loss) income per Share | (Loss) Income per Share In accordance with the provisions of ASC 260, Earnings Per Share |
Segment Information | Segment Information The Company operates and reports in one segment, which focuses on providing additive manufacturing services to customers. The Company’s operating segment is reported in a manner consistent with the internal reporting provided to the chief operating decision maker (“CODM”). The Company’s CODM has been identified as its Chief Executive Officer. The Company is continually evaluating its operating and reporting segments as it integrates the acquisitions discussed in Note 3. Business Acquisitions. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. The Company has evaluated recently issued accounting pronouncements and does not believe any will have a material impact on the Company’s condensed consolidated financial statements or related financial statement disclosures. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers . This standard is effective for fiscal years and interim periods with those fiscal years beginning after December 15, 2022, and should be applied prospectively to business combinations occurring on or after the effective date of the standard. Early adoption is permitted, including adoption in an interim period. The Company early adopted this guidance on April 22, 2022, and has applied the guidance to business combinations entered into during fiscal 2022. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Accounting for Credit Losses (Topic 326), which requires the use of an “expected loss” model on certain types of financial instruments. The standard also amends the impairment model for available-for-sale debt securities and requires estimated credit losses to be recorded as allowances instead of reductions to amortized cost of the securities. Update No. 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact the standard will have on its condensed consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326)—Troubled Debt Restructurings ("TDRs") and Vintage Disclosures. The amendments in this Update eliminate the accounting guidance for TDRs by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Update No. 2022-02 is effective for annual periods beginning after December 15, 2022, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact the Update will have on its condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of reconciliation of cash and cash equivalents | The reconciliation of cash, cash equivalents and restricted cash reported within the applicable condensed consolidated balance sheet that sum to the total of the same such amount shown in the condensed consolidated statements of cash flows is as follows: June 30, June 30, Cash and cash equivalents $ 50,402 $ 6,250 Restricted cash 138 145 $ 50,540 $ 6,395 |
Summary of useful lives of property plant and equipment | Depreciation is recognized using the straight-line method in amounts considered to be sufficient to allocate the cost of the assets to operations over the estimated useful lives or lease terms, as follows: Asset Category Depreciable Life Machinery and equipment 5 to 10 years Computers and IT equipment 3 to 10 years Furniture and fixtures 7 to 10 years Vehicles 10 years Leasehold improvements ** ** Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. |
Schedule of earnings per share | A reconciliation of net (loss) income and number of shares used in computed basic and diluted net (loss) income per share was as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic and Diluted net (loss) income per share computation: Numerator for basic and diluted net loss per share: Net (loss) income $ (4,674) $ (135) $ (8,711) $ 1,573 Denominator for basic and diluted net loss per share: Weighted average common shares - basic and diluted 53,069,269 36,079,478 52,925,199 36,043,718 Basic and diluted net (loss) income per share $ (0.09) $ — $ (0.16) $ 0.04 |
Summary of common stock equivalents outstanding were excluded from computation of diluted net loss per share | The following table presents the outstanding shares of Common Stock equivalents that were excluded from the computation of the diluted net (loss) income per share attributable to Common Stock for the periods in which a net (loss) income is presented because their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Common stock warrants 18,410,000 — 18,410,000 — Earnout Shares 3,510,405 — 3,510,405 — Unvested RSUs 4,137,195 — 4,137,195 — |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of total consideration | The following table summarizes the total consideration for the 2022 acquisitions: Consideration Cash consideration $ 8,890 Holdback consideration 1,100 Earnout consideration 2,900 Total consideration $ 12,890 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of amount disaggregated by revenue | The following table presents the Company's revenues disaggregated by revenue discipline: Three Months Ended Six Months Ended 2022 2021 2022 2021 Major products/service lines: Direct sales $ 6,770 $ 6,663 $ 12,444 $ 13,083 Marketplace sales 1,155 2,063 2,980 4,399 Software 508 123 579 156 Total revenue $ 8,433 $ 8,849 $ 16,003 $ 17,638 Timing of revenue recognition: Products transferred at a point in time $ 1,155 $ 2,063 $ 2,980 $ 4,399 Products and services transferred over time 7,278 6,786 13,023 13,239 Total revenue $ 8,433 $ 8,849 $ 16,003 $ 17,638 |
Summary of deferred revenue activity | Deferred revenue activity consisted of the following: June 30, December 31, Balance at beginning of the period $ 921 $ 753 Deferred revenue recognized during period (16,003) (33,623) Additions to deferred revenue during period 16,184 33,791 Total Deferred Revenue $ 1,102 $ 921 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of components of inventory | Components of inventory consisted of the following: June 30, December 31, Raw materials $ 912 $ 735 Work-in-process 83 28 Finished goods 160 164 Total $ 1,155 $ 927 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Summary of prepaid expenses and other current assets | Prepaid expenses and other current assets consisted of the following: June 30, December 31, Prepaid operating expenses $ 3,291 $ 396 Prepaid insurance 936 2,338 Prepaid expenses 1,409 680 VAT receivable 932 945 Other current assets 4 1 Total $ 6,572 $ 4,360 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment | Property and equipment, net consisted of the following: June 30, December 31, Machinery and equipment $ 10,650 $ 6,996 Computers and IT equipment 1,010 957 Leasehold improvements 2,406 2,482 Furniture and fixtures 95 49 Vehicles 42 — Assets to be placed in service 10,377 2,442 Property and equipment 24,580 12,926 Less: Accumulated depreciation (10,088) (8,538) Property and equipment, net $ 14,492 $ 4,388 |
Goodwill & Intangible Assets (T
Goodwill & Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the carrying amount of goodwill as of June 30, 2022 and December 31, 2021 are as follows: Goodwill Balance at December 31, 2021 $ 1,835 Acquired goodwill 4,398 Balance at June 30, 2022 $ 6,233 |
Schedule of finite-lived intangible assets | Intangible assets consisted of the following as of June 30, 2022: Gross carrying amount Accumulated amortization Intangible assets, net Weighted average amortization period (in years) Customer relationships $ 2,964 $ (48) $ 2,916 10 Trade name 887 (15) 872 10 Acquired software platform 910 (15) 895 10 Customer lists 190 (11) 179 3 Trademark 100 (2) 98 10 Noncompete agreement 52 (4) 48 2 Favorable operating lease 699 (29) 670 4 Unfavorable operating lease (21) 1 (20) 4 Total intangible assets, net $ 5,781 $ (123) $ 5,658 |
Schedule of finite-lived intangible assets, future amortization expense | The Company estimates the future aggregate amortization expense related to its intangible assets as of June 30, 2022 will be as follows: Amortization expense Remainder of 2022 $ 372 2023 745 2024 727 2025 677 2026 543 Thereafter 2,594 Total $ 5,658 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Summary of accrued expenses and other liabilities | Accrued expenses consisted of the following: June 30, December 31, Earnout consideration $ 2,900 $ — Accrued compensation 1,157 814 Holdback consideration 1,100 — Accrued selling expenses 584 522 Taxes payable 314 328 Shapeways credits 77 287 Other 1,106 694 Total $ 7,238 $ 2,645 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of right of use assets and lease liabilities for operating leases | Right of use assets and lease liabilities for operating leases were recorded in the condensed consolidated balance sheets as follows: June 30, December 31, Assets: Right-of-use assets, net $ 2,603 $ 842 Total lease assets $ 2,603 $ 842 Liabilities: Current liabilities: Operating lease liabilities, current $ 850 $ 639 Non-current liabilities: Operating lease liabilities, net of current portion 1,838 326 Total lease liability $ 2,688 $ 965 |
Summary of supplemental cash flow information related to the company's leases | Supplemental cash flow information related to the Company’s leases was as follows: Six Months Ended 2022 2021 Operating cash flows from operating leases $ 423 $ 597 |
Summary of future minimum lease payments required under operating leases | As of June 30, 2022, future minimum lease payments required under operating leases are as follows: Rest of 2022 $ 606 2023 777 2024 750 2025 683 2026 226 Total minimum lease payments 3,042 Less effects of discounting (354) Present value of future minimum lease payments $ 2,688 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of assumptions used to determine the fair value of the stock options | The assumptions used to estimate the fair value of stock options granted during the periods presented were as follows: Three and Six Months Ended June 30, 2021 Strike price $ 0.17 Expected term (in years) 5.55 - 6.05 Expected volatility 57.09% - 57.81% Risk-free interest rate 0.50% - 0.57% Dividend yield — % |
Summary of stock option plan and the activity | The following table summarizes the Company’s stock option activity during the period presented: Shares Weighted Weighted Outstanding as of January 1, 2022 4,806,387 $ 0.63 6.57 Granted — — — Forfeited (20,814) 0.49 — Exercised (217,967) 0.49 — Outstanding at March 31, 2022 4,567,606 0.63 6.35 Granted — — — Forfeited (11,431) 0.49 — Exercised (367,732) 0.50 — Outstanding at June 30, 2022 4,188,443 $ 0.64 6.00 Exercisable at June 30, 2022 3,993,277 $ 0.65 5.93 |
Summary of restricted stock unit activity | The following table summarizes the Company’s restricted stock unit activity during the period presented: Restricted Stock Units Weighted Average Grant Fair Value per Share Outstanding as of January 1, 2022 660,448 $ 3.80 Granted 2,608,455 2.86 Forfeited (798) 1.06 Settled — — Outstanding at March 31, 2022 3,268,105 2.96 Granted 939,441 1.85 Forfeited (70,351) 2.70 Settled — — Outstanding at June 30, 2022 4,137,195 2.43 Able to be settled at June 30, 2022 12,030 $ 2.86 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities that are measured at fair value on a recurring basis | The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Description Level June 30, December 31, Liabilities: Warrant liabilities 3 $ 77 $ 2,274 Earnout consideration 3 $ 2,900 $ — |
Schedule of key inputs | The significant unobservable inputs used in the Binomial Lattice Model to measure the warrant liabilities that are categorized within Level 3 of the fair value hierarchy are as follows: June 30, December 31, Stock price on valuation date $ 1.17 $ 3.71 Exercise price per share $ 11.50 $ 11.50 Expected life 4.25 years 4.75 years Volatility 67.0% 56.4% Risk-free rate 3.0% 1.2% Dividend yield — % — % Fair value per warrant $ 0.10 $ 0.73 |
Schedule of changes in the fair value of warrant liabilities | The following table provides a summary of changes in fair value of the Company’s Level 3 financial instruments that are measured at fair value on a recurring basis: Warrant Liabilities Balance at December 31, 2021 $ 2,274 Transfer of Private Warrants to Public Warrants (670) Change in fair value (1,527) Balance at June 30, 2022 $ 77 |
Organization (Details)
Organization (Details) $ / shares in Units, part in Millions, customer in Millions, $ in Millions | 6 Months Ended | |
Sep. 29, 2021 USD ($) $ / shares shares | Jun. 30, 2022 country materialsAndFinishes part customer technology | |
Subsidiary, Sale of Stock [Line Items] | ||
Number of utilization of additive technologies | technology | 11 | |
Number of manufacturing parts delivered | part | 23 | |
Number of customers | customer | 1 | |
Number of countries | country | 180 | |
Minimum | ||
Subsidiary, Sale of Stock [Line Items] | ||
Number of materials and finishes | materialsAndFinishes | 100 | |
Shapeways Inc | Reverse Recapitalization | Pipe Investors | Subscription Agreement | ||
Subsidiary, Sale of Stock [Line Items] | ||
Stock issued during period new shares issued (in shares) | shares | 7,500,000 | |
Purchase price per share (in USD per share) | $ / shares | $ 10 | |
Shared issued value | $ | $ 75 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||||
Oct. 22, 2019 $ / shares shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment shares | Jun. 30, 2021 USD ($) shares | Dec. 31, 2021 shares | |
Financing Receivable, Impaired [Line Items] | ||||||
Tangible asset impairment charges | $ | $ 0 | $ 0 | $ 0 | $ 0 | ||
Asset impairment charges | $ | 0 | 0 | 0 | 0 | ||
Goodwill impairment loss | $ | $ 0 | 0 | $ 0 | 0 | ||
Recapitalization conversion ratio | 0.8293 | |||||
Common stock, shares issued (in shares) | 1 | 49,213,438 | 49,213,438 | 48,627,739 | ||
Research and development expense | $ | $ 2,355,000 | 1,116,000 | $ 4,420,000 | 2,426,000 | ||
Advertising expense | $ | 304,000 | 296,000 | $ 854,000 | 440,000 | ||
Percentage of largest benefit greater than likelyhood of resolution for tax benefit measurement | 50% | |||||
Deferred tax assets | $ | $ 0 | $ 0 | $ 0 | $ 0 | ||
Effective income tax reconciliation rate | 0% | 0% | ||||
Weighted average shares included in computation of earning per share (in shares) | 3,993,277 | 3,819,748 | ||||
Number of operating segments | segment | 1 | |||||
Minimum | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Intangible asset useful life | 2 years | |||||
Lease terms | 4 years | 4 years | ||||
Maximum | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Intangible asset useful life | 10 years | |||||
Lease terms | 10 years | 10 years | ||||
IPO | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Stock issued during period new shares issued (in shares) | 13,800,000 | |||||
Shares issued (in shares) | 1 | |||||
Purchase price per share (in USD per share) | $ / shares | $ 10 | |||||
Exercise price of warrants or rights (dollars per share) | $ / shares | $ 11.50 | |||||
IPO | Private Warrants | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Warrants issued (in shares) | 1 | |||||
Private Placement | Private Warrants | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Stock issued during period new shares issued (in shares) | 4,110,000 | |||||
Exercise price of warrants or rights (dollars per share) | $ / shares | $ 1 | |||||
Conversion of promissory note, warrants issued (in shares) | 500,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of reconciliation of cash and cash equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 50,402 | $ 79,677 | $ 6,250 |
Restricted cash | 138 | $ 142 | 145 |
Total | $ 50,540 | $ 6,395 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of useful lives of property plant and equipment (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 10 years |
Computers and IT equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 3 years |
Computers and IT equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 10 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 7 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 10 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Accounting Policies [Abstract] | |||||||
Net (loss) income | $ (4,674) | $ (4,037) | $ (135) | $ 1,708 | $ (8,711) | $ 1,573 | |
Weighted average common shares - basic (in shares) | [1] | 53,069,269 | 36,079,478 | 52,925,199 | 36,043,718 | ||
Basic net (loss) income per share (in USD per shares) | $ (0.09) | $ 0 | $ (0.16) | $ 0.04 | |||
Diluted net (loss) income per share (in USD per shares) | $ (0.09) | $ 0 | $ (0.16) | $ 0.04 | |||
[1]Retroactively restated the common shares for 2021 due to the reverse recapitalization as described in Notes 1 and 11. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of common stock equivalents outstanding were excluded from computation of diluted net loss per share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities | 4,137,195 | |||
Common stock warrants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities | 18,410,000,000 | 0 | 18,410,000,000 | 0 |
Earnout Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities | 3,510,405,000 | 0 | 3,510,405,000 | 0 |
Unvested RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities | 4,137,195 | 0 | 0 |
Business Acquisitions - Conside
Business Acquisitions - Consideration (Details) - USD ($) $ in Thousands | 2 Months Ended | ||
May 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Holdback consideration | $ 1,100 | $ 0 | |
2022 Acquisitions | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 8,890 | ||
Holdback consideration | 1,100 | ||
Earnout consideration | 2,900 | $ 2,900 | |
Total consideration | $ 12,890 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) $ in Thousands | 2 Months Ended | ||
May 31, 2022 USD ($) acquisition | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Asset Acquisition [Line Items] | |||
Goodwill | $ 6,233 | $ 1,835 | |
2022 Acquisitions | |||
Asset Acquisition [Line Items] | |||
Number of acquisitions | acquisition | 3 | ||
Earnout consideration | $ 2,900 | $ 2,900 | |
Net assets acquired | 12,890 | ||
Intangible assets | 5,781 | ||
Goodwill | $ 4,398 |
Revenue Recognition - Marketpla
Revenue Recognition - Marketplace sales (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Percentage of markup fee upon the sale of products through the marketplace | 3.50% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | $ 8,433 | $ 8,849 | $ 16,003 | $ 17,638 |
Direct sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 6,770 | 6,663 | 12,444 | 13,083 |
Marketplace sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 1,155 | 2,063 | 2,980 | 4,399 |
Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 508 | 123 | 579 | 156 |
Products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | 1,155 | 2,063 | 2,980 | 4,399 |
Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregated revenue | $ 7,278 | $ 6,786 | $ 13,023 | $ 13,239 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred revenues (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Beginning balance | $ 921 | $ 753 | |
Deferred revenue recognized during period | (16,003) | (33,623) | |
Additions to deferred revenue during period | 16,184 | 33,791 | |
Ending balance | 1,102 | 921 | |
Deferred revenue recognized | 921 | ||
Accounts receivable | $ 2,954 | $ 1,372 | $ 185 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 912 | $ 735 |
Work-in-process | 83 | 28 |
Finished goods | 160 | 164 |
Total | $ 1,155 | $ 927 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid operating expenses | $ 3,291 | $ 396 |
Prepaid insurance | 936 | 2,338 |
Prepaid expenses | 1,409 | 680 |
VAT receivable | 932 | 945 |
Other current assets | 4 | 1 |
Total | $ 6,572 | $ 4,360 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 24,580 | $ 24,580 | $ 12,926 | ||
Less: Accumulated depreciation | (10,088) | (10,088) | (8,538) | ||
Property and equipment, net | 14,492 | 14,492 | 4,388 | ||
Depreciation expense | 253 | $ 137 | 436 | $ 278 | |
Depreciation charged to cost of revenue | 217 | $ 103 | 367 | $ 137 | |
Machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 10,650 | 10,650 | 6,996 | ||
Computers and IT equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,010 | 1,010 | 957 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,406 | 2,406 | 2,482 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 95 | 95 | 49 | ||
Vehicles | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 42 | 42 | 0 | ||
Assets to be placed in service | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 10,377 | $ 10,377 | $ 2,442 |
Goodwill & Intangible Assets -
Goodwill & Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization expense | $ 123,000 | $ 0 | $ 123,000 | $ 0 |
Goodwill & Intangible Assets _2
Goodwill & Intangible Assets - Carrying Value of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,835 |
Acquired goodwill | 4,398 |
Goodwill, ending balance | $ 6,233 |
Goodwill & Intangible Assets _3
Goodwill & Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 5,781 | |
Accumulated amortization | (123) | |
Intangible assets, net | 5,658 | $ 0 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,964 | |
Accumulated amortization | (48) | |
Intangible assets, net | $ 2,916 | |
Weighted average amortization period (in years) | 10 years | |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 887 | |
Accumulated amortization | (15) | |
Intangible assets, net | $ 872 | |
Weighted average amortization period (in years) | 10 years | |
Acquired software platform | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 910 | |
Accumulated amortization | (15) | |
Intangible assets, net | $ 895 | |
Weighted average amortization period (in years) | 10 years | |
Customer list | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 190 | |
Accumulated amortization | (11) | |
Intangible assets, net | $ 179 | |
Weighted average amortization period (in years) | 3 years | |
Trademark | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 100 | |
Accumulated amortization | (2) | |
Intangible assets, net | $ 98 | |
Weighted average amortization period (in years) | 10 years | |
Non-compete agreement | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 52 | |
Accumulated amortization | (4) | |
Intangible assets, net | $ 48 | |
Weighted average amortization period (in years) | 2 years | |
Favorable operating lease | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 699 | |
Accumulated amortization | (29) | |
Intangible assets, net | $ 670 | |
Weighted average amortization period (in years) | 4 years | |
Unfavorable operating lease | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ (21) | |
Accumulated amortization | 1 | |
Intangible assets, net | $ (20) | |
Weighted average amortization period (in years) | 4 years |
Goodwill & Intangible Assets- F
Goodwill & Intangible Assets- Future Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 372 | |
2023 | 745 | |
2024 | 727 | |
2025 | 677 | |
2026 | 543 | |
Thereafter | 2,594 | |
Intangible assets, net | $ 5,658 | $ 0 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Earnout consideration | $ 2,900 | $ 0 |
Accrued compensation | 1,157 | 814 |
Holdback consideration | 1,100 | 0 |
Accrued selling expenses | 584 | 522 |
Taxes payable | 314 | 328 |
Shapeways credits | 77 | 287 |
Other | 1,106 | 694 |
Total | $ 7,238 | $ 2,645 |
Commitments and Contingencies -
Commitments and Contingencies - Leases (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) lease | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) lease | Jun. 30, 2021 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of manufacturing facility leases | 2 | |||
Number of leases of facilities located in the United States and the Netherlands | 5 | 5 | ||
Number of leases of office equipment, under operating leases | 1 | 1 | ||
Operating lease cost | $ | $ 243 | $ 232 | $ 385 | $ 552 |
Commitments and Contingencies_2
Commitments and Contingencies - Right of use assets and lease liabilities for operating leases (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Right-of-use assets, net | $ 2,603 | $ 842 |
Total lease assets | 2,603 | 842 |
Current liabilities: | ||
Operating lease liabilities, current | 850 | 639 |
Non-current liabilities: | ||
Operating lease liabilities, net of current portion | 1,838 | 326 |
Total lease liability | $ 2,688 | $ 965 |
Commitments and Contingencies_3
Commitments and Contingencies - Weighted-average (Details) | Jun. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted-average remaining lease term for operating leases | 3 years 3 months 10 days |
Weighted-average incremental borrowing rate | 6.88% |
Commitments and Contingencies_4
Commitments and Contingencies - Supplemental cash flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating cash flows from operating leases | $ 423 | $ 597 |
Commitments and Contingencies_5
Commitments and Contingencies - Future minimum lease payments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Rest of 2022 | $ 606 | |
2023 | 777 | |
2024 | 750 | |
2025 | 683 | |
2026 | 226 | |
Total minimum lease payments | 3,042 | |
Less effects of discounting | (354) | |
Present value of future minimum lease payments | $ 2,688 | $ 965 |
Commitments and Contingencies_6
Commitments and Contingencies - Additional Information (Details) - Desktop Metal - USD ($) $ in Millions | 6 Months Ended | ||
Mar. 26, 2021 | Jun. 30, 2022 | Dec. 31, 2022 | |
Other Commitments [Line Items] | |||
Long-term purchase commitment amount | $ 20 | ||
Purchase obligation | $ 20 | ||
Payments to acquire desktop metal | $ 15.9 | ||
Forecast | |||
Other Commitments [Line Items] | |||
Property purchase payable | $ 4.1 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Details) | 6 Months Ended | ||||||||||
Sep. 29, 2021 shares | Sep. 28, 2021 $ / shares shares | May 10, 2021 $ / shares shares | Jun. 30, 2017 $ / shares shares | Apr. 22, 2015 $ / shares shares | Feb. 03, 2014 $ / shares shares | Dec. 18, 2013 $ / shares shares | Mar. 08, 2013 $ / shares shares | Jun. 30, 2022 Day vote $ / shares shares | Dec. 31, 2021 $ / shares shares | Oct. 22, 2019 shares | |
Class of Stock [Line Items] | |||||||||||
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 | |||||||||
Common stock, par value (dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||
Common stock, voting rights | vote | 1 | ||||||||||
Common stock, shares issued (in shares) | 49,213,438 | 48,627,739 | 1 | ||||||||
Common stock, shares outstanding (in shares) | 49,213,438 | 48,627,739 | |||||||||
Preferred stock converted in to aggregate number of shares of common stock (in shares) | 22,579,695 | ||||||||||
Conversion ratio | 1 | ||||||||||
Warrants expire term | 5 years | ||||||||||
Redemption price (per warrant) | $ / shares | $ 0.01 | ||||||||||
Redemption notice period | 30 days | ||||||||||
Redemption share price basis (in dollars per share) | $ / shares | $ 18 | ||||||||||
Redemption share price basis number of days | Day | 20 | ||||||||||
Redemption, registration statement to be maintained | Day | 30 | ||||||||||
Public Warrants | |||||||||||
Class of Stock [Line Items] | |||||||||||
Exercise price of warrants or rights (dollars per share) | $ / shares | $ 11.50 | ||||||||||
Warrant outstanding (in shares) | 17,637,592 | 15,295,612 | |||||||||
Number of shares purchased (in shares) | 1 | ||||||||||
Warrants exercisable period | 30 days | ||||||||||
Prior to Merger | Public Warrants | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrant outstanding (in shares) | 13,800,000 | ||||||||||
Legacy Shapeways Common Stock Warrants | Legacy Shapeways Series B-1 Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants exercised for number of shares of preferred stock (in shares) | 23,125 | ||||||||||
Legacy Shapeways Common Stock Warrants | Executing a Loan Agreement | |||||||||||
Class of Stock [Line Items] | |||||||||||
Purchase of stock and warrants (in shares) | 248,000 | 40,000 | |||||||||
Exercise price of warrants or rights (dollars per share) | $ / shares | $ 1.25 | $ 1.25 | |||||||||
Expiraiton period of warrants from the original issuance date | 7 years | ||||||||||
Expiration period of warrants from the effective date of an initial public offering | 5 years | ||||||||||
Legacy Shapeways Common Stock Warrants | Amended Loan Agreement | |||||||||||
Class of Stock [Line Items] | |||||||||||
Purchase of stock and warrants (in shares) | 13,750 | ||||||||||
Exercise price of warrants or rights (dollars per share) | $ / shares | $ 1.70 | ||||||||||
Legacy Shapeways Common Stock Warrants | Prior to the Business Combination | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, shares outstanding (in shares) | 212,234 | ||||||||||
Outstanding warrants exercised in aggregate of shares of common stock (in shares) | 255,917 | ||||||||||
Legacy Shapeways Preferred Stock Warrants | |||||||||||
Class of Stock [Line Items] | |||||||||||
Exercise price of warrants or rights (dollars per share) | $ / shares | $ 2.5946 | $ 5.2584 | $ 2.5946 | ||||||||
Warrants exercisable period from the date of grant | 10 years | 10 years | |||||||||
Number of warrants exercised (in shares) | 23,125 | 57,051 | |||||||||
Warrants exercised for number of shares of Common stock (in shares) | 107,580 | ||||||||||
Legacy Shapeways Preferred Stock Warrants | Legacy Shapeways Series B-1 Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Purchase of stock and warrants (in shares) | 23,125 | ||||||||||
Legacy Shapeways Preferred Stock Warrants | Legacy Shapeways Series D Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Purchase of stock and warrants (in shares) | 57,051 |
Stock-Based Compensation -Narra
Stock-Based Compensation -Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 29, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Average exercise price per share | $ 0.64 | $ 0.63 | $ 0.64 | ||
Number of shares awarded | 0 | 0 | 0 | ||
Unvested RSUs | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Unrecognized compensation expense expected to be recognized over the weighted average period | 3 years 4 months 20 days | ||||
Fair value of RSUs | $ 2,344 | ||||
Unrecognized compensation expense | $ 6,329 | $ 6,329 | |||
2010 Stock Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Maximum number of shares authorized for issuance (in shares) | 16,942,546 | ||||
Percentage of exchange ratio used to determine the number of restricted stock units granted as right to receive | 10% | ||||
Aggregate number of options to purchase | 4,901,207 | 4,901,207 | |||
Average exercise price per share | $ 0.62 | $ 0.62 | |||
2010 Stock Plan | Legacy Shapeways Stock Option | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Percentage of recapitalization conversion ratio for conversion in to common stock | 90% | ||||
Percentage of recapitalization conversion ratio as divider for determining exercise price | 90% | ||||
2021 Equity Incentive Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Maximum number of shares authorized for issuance (in shares) | 10,052,787 | 10,052,787 | |||
Number of shares awarded | 4,618,708 | ||||
Number of shares remain available for issuance | 5,434,079 | 5,434,079 | |||
Weighted-average grant-date fair value per stock option granted (in dollars per share) | $ 0.17 | ||||
Unrecognized compensation expense | $ 41 | $ 41 | |||
Unrecognized compensation expense expected to be recognized over the weighted average period | 1 year 5 months 19 days | ||||
Number of shares available for purchase | 1,381,998 | 1,381,998 | |||
Number of shares purchased | 0 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair value of stock-based compensation (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 $ / shares | Jun. 30, 2021 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Strike Price (in dollars per share) | $ 0.17 | $ 0.17 |
Expected volatility, minimum | 57.09% | 57.09% |
Expected volatility , maximum | 57.81% | 57.81% |
Risk-free interest rate, minimum | 0.50% | 0.50% |
Risk-free interest rate , maximum | 0.57% | 0.57% |
Dividend yield | 0% | 0% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 6 months 18 days | 5 years 6 months 18 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 18 days | 6 years 18 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock option plan (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Shares Underlying Options | ||||
Outstanding at beginning (in shares) | 4,567,606 | |||
Granted (in dollars per share) | 0 | 0 | 0 | |
Forfeited (in dollars per share) | (11,431) | (20,814) | ||
Exercised (in dollars per share) | (367,732) | (217,967) | ||
Outstanding at ending (in shares) | 4,188,443 | 4,567,606 | 4,188,443 | |
Exercisable at the end (in shares) | 3,993,277 | 3,993,277 | ||
Weighted Average Exercise Price | ||||
Outstanding at beginning (in dollars per share) | $ 0.63 | |||
Granted (in dollars per share) | 0 | $ 0 | ||
Forfeited (in dollars per share) | 0.49 | 0.49 | ||
Exercised (in dollars per share) | 0.50 | 0.49 | ||
Outstanding at ending (in dollars per share) | 0.64 | $ 0.63 | $ 0.64 | |
Exercisable (in dollars per share) | $ 0.65 | $ 0.65 | ||
Weighted Average Remaining Contractual Term (in years) | ||||
Outstanding (in years) | 6 years | 6 years 4 months 6 days | ||
Exercisable at the end | 5 years 11 months 4 days | |||
Cumulative Effect Adjusted | ||||
Shares Underlying Options | ||||
Outstanding at beginning (in shares) | 4,806,387 | 4,806,387 | ||
Outstanding at ending (in shares) | 4,806,387 | |||
Weighted Average Exercise Price | ||||
Outstanding at beginning (in dollars per share) | $ 0.63 | $ 0.63 | ||
Outstanding at ending (in dollars per share) | $ 0.63 | |||
Weighted Average Remaining Contractual Term (in years) | ||||
Outstanding (in years) | 6 years 6 months 25 days |
Stock-Based Compensation - RSUs
Stock-Based Compensation - RSUs (Details) - Unvested RSUs - $ / shares | 3 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units | |||
Beginning balance, Outstanding (in shares) | 3,268,105 | 660,448 | |
Granted (in shares) | 939,441 | 2,608,455 | |
Forfeited (in shares) | (70,351) | (798) | |
Settled (in shares) | 0 | 0 | |
Ending balance, Outstanding (in shares) | 4,137,195 | 3,268,105 | |
Ending balance, Exercisable (in shares) | 12,030 | ||
Weighted Average Grant Fair Value per Share | |||
Beginning balance, Outstanding (in dollars per share) | $ 2.43 | $ 2.96 | $ 3.80 |
Granted (in dollars per share) | 1.85 | 2.86 | |
Forfeited (in dollars per share) | 2.70 | 1.06 | |
Settled (in dollars per share) | 0 | 0 | |
Ending balance, Outstanding (in dollars per share) | 2.43 | $ 2.96 | |
Ending balance, Exercisable (in dollars per share) | $ 2.86 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and liabilities measured at fair value (Details) - Level 3 - Recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Earnout consideration | $ 2,900 | $ 0 |
Warrant Liability | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Warrant liabilities | $ 77 | $ 2,274 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Sep. 29, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Sep. 28, 2021 | |
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Share price (in dollars per share) | $ 0.17 | $ 0.17 | |||||
Change in fair value of warrant liabilities | $ 765,000 | $ 0 | $ 1,527,000 | $ 0 | |||
Common stock, shares outstanding (in shares) | 49,213,438 | 49,213,438 | 48,627,739 | ||||
Trading days period | 3 years | ||||||
Trading Price One | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Percentage released at targets | 50% | ||||||
Trading Price Two | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Percentage released at targets | 50% | ||||||
Earnout Shares | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 3,510,405 | 3,510,405 | |||||
Number of consecutive trading days to determine the trading price per share | 30 days | ||||||
Estimated fair value of the shares recognized as a deemed dividend | $ 18,132,000 | ||||||
Earnout Shares | Trading Price One | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Volume weighted average trading price of common stock (in USD per share) | $ 14 | ||||||
Earnout Shares | Trading Price Two | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Volume weighted average trading price of common stock (in USD per share) | 16 | ||||||
Convertible Note | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Debt conversion convertible instrument amount | $ 500,000 | ||||||
Nonrecurring | Earnout Shares | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Fair value of shares estimated based on trading price of common stock (in USD per share) | $ 7.70 | ||||||
Sponsor Warrants | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Share price (in dollars per share) | $ 1 | $ 1 | |||||
Sponsor Warrants | Convertible Note | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Debt conversion converted instrument warrants issued (in shares) | 500,000 | ||||||
Private Warrants | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Warrant outstanding (in shares) | 772,408 | 772,408 | 3,114,388 | 4,110,000 |
Fair Value Measurements - Initi
Fair Value Measurements - Initial measurement (Details) - Private Placement Warrants - Level 3 | Jun. 30, 2022 $ / shares yr | Dec. 31, 2021 $ / shares yr |
Stock price on valuation date | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 1.17 | 3.71 |
Exercise price per share | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 11.50 | 11.50 |
Expected life | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | yr | 4.25 | 4.75 |
Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 67 | 56.4 |
Risk-free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 3 | 1.2 |
Dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0 | 0 |
Fair value per warrant | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0.10 | 0.73 |
Fair Value Measurements - Subse
Fair Value Measurements - Subsequent measurement (Details) - Level 3 - Common stock warrants $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Balance at December 31, 2021 | $ 2,274 |
Transfer of Private Warrants to Public Warrants | (670) |
Change in fair value | (1,527) |
Balance at June 30, 2022 | $ 77 |
Significant Concentrations (Det
Significant Concentrations (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Supplier Concentration Risk | Cost of Goods and Service Benchmark | Vendor One | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 19% | 44% | 10% | ||
Supplier Concentration Risk | Accounts Payable | Vendor One | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 13% | 18% | |||
Supplier Concentration Risk | Accounts Payable | Vendor Two | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10% | 11% | |||
Customer One | Customer Concentration Risk | Revenue Benchmark | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 20% | 25% | 21% | 23% | |
Customer One | Customer Concentration Risk | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 33% | 32% | |||
Customer Two | Customer Concentration Risk | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 15% | 25% |
Uncategorized Items - shpw-2022
Label | Element | Value |
Additional Paid-in Capital [Member] | Revision of Prior Period, Adjustment [Member] | ||
Retroactive Application Of Reverse Recapitalization Shares Value | shpw_RetroactiveApplicationOfReverseRecapitalizationSharesValue | $ 1,000 |
Preferred Stock [Member] | Revision of Prior Period, Adjustment [Member] | ||
Retroactive Application Of Reverse Recapitalization Shares | shpw_RetroactiveApplicationOfReverseRecapitalizationShares | (22,579,695) |
Retroactive Application Of Reverse Recapitalization Shares Value | shpw_RetroactiveApplicationOfReverseRecapitalizationSharesValue | $ (2,000) |
Common Stock [Member] | Revision of Prior Period, Adjustment [Member] | ||
Retroactive Application Of Reverse Recapitalization Shares | shpw_RetroactiveApplicationOfReverseRecapitalizationShares | 15,972,696 |
Retroactive Application Of Reverse Recapitalization Shares Value | shpw_RetroactiveApplicationOfReverseRecapitalizationSharesValue | $ 1,000 |