Butterfly Network (BFLY) 10-Q 15 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 01, 2021
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity File Number	001-39292
Entity Registrant Name	Butterfly Network, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-4618156
Entity Address, Address Line One	530 Old Whitfield Street
Entity Address, City or Town	Guilford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06437
City Area Code	203
Local Phone Number	689-5650
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
Current Fiscal Year End Date	--12-31
Entity Shell Company	false
Entity Central Index Key	0001804176
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Class A Common Stock
Entity Listings [Line Items]
Title of 12(b) Security	Class A common stock, $0.0001 Par Value Per Share
Trading Symbol	BFLY
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		170,830,161
Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share
Entity Listings [Line Items]
Title of 12(b) Security	Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share
Trading Symbol	BFLY WS
Security Exchange Name	NYSE
Class B Common Stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		26,426,937

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 153,326	$ 60,206
Marketable securities	315,099
Accounts receivable, net	9,538	5,752
Inventories	23,820	25,805
Current portion of vendor advances	24,975	2,571
Prepaid expenses and other current assets	16,753	2,998
Total current assets	543,511	97,332
Property and equipment, net	9,368	6,870
Non-current portion of vendor advances	20,601	37,390
Other non-current assets	6,838	5,599
Total assets	580,318	147,191
Current liabilities:
Accounts payable	5,017	16,400
Deferred revenue, current	12,015	8,443
Accrued purchase commitments, current	5,329	22,890
Accrued expenses and other current liabilities	22,809	21,962
Total current liabilities	45,170	69,695
Deferred revenue, non-current	4,878	2,790
Convertible debt		49,528
Loan payable		4,366
Warrant liabilities	56,796
Accrued purchase commitments, non-current	14,200	19,660
Other non-current liabilities	8,013	2,146
Total liabilities	129,057	148,185
Commitments and contingencies (Note 16)
Convertible preferred stock:
Convertible preferred stock (Series A, B, C and D) $.0001 par value with an aggregate liquidation preference of $0 and $383,829 at September 30, 2021 and December 31, 2020, respectively; 0 and 107,197,118 shares authorized, issued and outstanding at September 30, 2021 and December 31, 2020, respectively		360,937
Stockholders' equity (deficit):
Additional paid-in capital	863,240	32,874
Accumulated deficit	(411,999)	(394,806)
Total stockholders' equity (deficit)	451,261	(361,931)
Total liabilities, convertible preferred stock and stockholders' equity (deficit)	580,318	147,191
Class A Common Stock
Stockholders' equity (deficit):
Common stock	17	$ 1
Class B Common Stock
Stockholders' equity (deficit):
Common stock	$ 3

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Convertible preferred stock, shares authorized		107,197,118
Convertible preferred stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, liquidation preference	$ 0	$ 383,829
Convertible preferred stock, shares authorized	0	107,197,118
Convertible preferred stock, shares issued	0	107,197,118
Convertible preferred stock, shares outstanding	0	107,197,118
Class A Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	600,000,000	116,289,600
Common stock shares issued	170,573,310	6,593,291
Common stock, shares outstanding	170,573,310	6,593,291
Class B Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	27,000,000	26,946,089
Common stock shares issued	26,426,937	0
Common stock, shares outstanding	26,426,937	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Total revenue	$ 14,621	$ 10,135	$ 43,578	$ 30,597
Cost of revenue:
Total cost of revenue	19,743	79,386	34,064	100,519
Gross profit	(5,122)	(69,251)	9,514	(69,922)
Operating expenses:
Research and development	21,654	11,971	54,459	36,427
Sales and marketing	14,203	5,538	34,550	17,408
General and administrative	16,008	5,068	67,928	15,651
Total operating expenses	51,865	22,577	156,937	69,486
Loss from operations	(56,987)	(91,828)	(147,423)	(139,408)
Interest income	893	16	1,739	238
Interest expense		(300)	(645)	(418)
Change in fair value of warrant liabilities	42,958		130,528	0
Other income (expense), net	(428)	(84)	(1,320)	(183)
Loss before provision for income taxes	(13,564)	(92,196)	(17,121)	(139,771)
Provision for income taxes	(3)	12	72	32
Net loss and comprehensive loss	$ (13,561)	$ (92,208)	$ (17,193)	$ (139,803)
Basic loss per share	$ (0.07)	$ (15.20)	$ (0.10)	$ (23.20)
Diluted loss per share	$ (0.07)	$ (15.20)	$ (0.10)	$ (23.20)
Weighted-average common shares outstanding - basic	196,095,192	6,066,117	165,656,408	6,026,658
Weighted-average common shares outstanding - diluted	196,095,192	6,066,117	165,656,408	6,026,658
Product
Revenue:
Total revenue	$ 10,848	$ 8,621	$ 33,455	$ 25,820
Cost of revenue:
Total cost of revenue	7,584	14,619	21,090	35,266
Subscription
Revenue:
Total revenue	3,773	1,514	10,123	4,777
Cost of revenue:
Total cost of revenue	536	774	1,351	1,260
Loss on product purchase commitment
Cost of revenue:
Total cost of revenue	$ 11,623	$ 63,993	$ 11,623	$ 63,993

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Convertible preferred stock	Common StockClass A Common Stock	Common StockClass B Common Stock	Additional Paid-In Capital	Accumulated Deficit	Class A Common Stock	Class B Common Stock	Total
Convertible Preferred Stock, Balance at beginning of the period at Dec. 31, 2019	$ 360,937
Convertible Preferred Stock, Balance at beginning of the period (in shares) at Dec. 31, 2019	107,197,118
Convertible Preferred Stock, Balance at end of the period at Sep. 30, 2020	$ 360,937
Convertible Preferred Stock, Balance at end of the period (in shares) at Sep. 30, 2020	107,197,118
Balance at beginning of the period at Dec. 31, 2019		$ 1		$ 19,782	$ (232,061)			$ (212,278)
Balance at beginning of the period (in shares) at Dec. 31, 2019		5,939,950
Increase (Decrease) in Stockholders' Equity
Net loss					(139,803)			(139,803)
Common stock issued upon exercise of stock options				391				391
Common stock issued upon exercise of stock options (in shares)		150,510
Stock-based compensation expense				7,796				7,796
Balance at end of the period at Sep. 30, 2020		$ 1		27,969	(371,864)			(343,894)
Balance at end of the period (in shares) at Sep. 30, 2020		6,090,460
Convertible Preferred Stock, Balance at beginning of the period at Dec. 31, 2019	$ 360,937
Convertible Preferred Stock, Balance at beginning of the period (in shares) at Dec. 31, 2019	107,197,118
Convertible Preferred Stock, Balance at end of the period at Dec. 31, 2020	$ 360,937							360,937
Convertible Preferred Stock, Balance at end of the period (in shares) at Dec. 31, 2020	107,197,118
Balance at beginning of the period at Dec. 31, 2019		$ 1		19,782	(232,061)			(212,278)
Balance at beginning of the period (in shares) at Dec. 31, 2019		5,939,950
Increase (Decrease) in Stockholders' Equity
Conversion of convertible debt								49,900
Balance at end of the period at Dec. 31, 2020		$ 1		32,874	(394,806)			(361,931)
Balance at end of the period (in shares) at Dec. 31, 2020		6,593,291				6,593,291	0
Convertible Preferred Stock, Balance at beginning of the period at Jun. 30, 2020	$ 360,937
Convertible Preferred Stock, Balance at beginning of the period (in shares) at Jun. 30, 2020	107,197,118
Convertible Preferred Stock, Balance at end of the period at Sep. 30, 2020	$ 360,937
Convertible Preferred Stock, Balance at end of the period (in shares) at Sep. 30, 2020	107,197,118
Balance at beginning of the period at Jun. 30, 2020		$ 1		25,393	(279,656)			(254,262)
Balance at beginning of the period (in shares) at Jun. 30, 2020		6,045,858
Increase (Decrease) in Stockholders' Equity
Net loss					(92,208)			(92,208)
Common stock issued upon exercise of stock options				167				167
Common stock issued upon exercise of stock options (in shares)		44,602
Stock-based compensation expense				2,409				2,409
Balance at end of the period at Sep. 30, 2020		$ 1		27,969	(371,864)			(343,894)
Balance at end of the period (in shares) at Sep. 30, 2020		6,090,460
Convertible Preferred Stock, Balance at beginning of the period at Dec. 31, 2020	$ 360,937							360,937
Convertible Preferred Stock, Balance at beginning of the period (in shares) at Dec. 31, 2020	107,197,118
Increase (Decrease) in Stockholders' Equity
Conversion of convertible preferred stock	$ (360,937)
Conversion of convertible preferred stock (in shares)	(107,197,118)
Balance at beginning of the period at Dec. 31, 2020		$ 1		32,874	(394,806)			(361,931)
Balance at beginning of the period (in shares) at Dec. 31, 2020		6,593,291				6,593,291	0
Increase (Decrease) in Stockholders' Equity
Net loss					(17,193)			(17,193)
Common stock issued upon exercise of stock options								19,323
Common stock issued upon exercise of stock options and warrants		$ 1		19,322
Common stock issued upon exercise of stock options and warrants (in shares)		8,268,869
Common stock issued upon vesting of restricted stock units (in shares)		597,021
Conversion of convertible preferred stock		$ 8	$ 3	360,926				360,937
Conversion of convertible preferred stock (in shares)		80,770,178	26,426,937
Conversion of convertible debt		$ 1		49,916				49,917
Conversion of convertible debt (in shares)		5,115,140
Net equity infusion from the Business Combination		$ 6		361,281				361,287
Net equity infusion from the Business Combination (in shares)		69,228,811
Stock-based compensation expense				38,921				38,921
Balance at end of the period at Sep. 30, 2021		$ 17	$ 3	863,240	(411,999)			451,261
Balance at end of the period (in shares) at Sep. 30, 2021		170,573,310	26,426,937			170,573,310	26,426,937
Balance at beginning of the period at Jun. 30, 2021		$ 17	$ 3	844,770	(398,438)			446,352
Balance at beginning of the period (in shares) at Jun. 30, 2021		167,477,126	26,426,937
Increase (Decrease) in Stockholders' Equity
Net loss					(13,561)			(13,561)
Common stock issued upon exercise of stock options and warrants				7,634				7,634
Common stock issued upon exercise of stock options and warrants (in shares)		2,966,397
Common stock issued upon vesting of restricted stock units (in shares)		129,787
Stock-based compensation expense				10,836				10,836
Balance at end of the period at Sep. 30, 2021		$ 17	$ 3	$ 863,240	$ (411,999)			$ 451,261
Balance at end of the period (in shares) at Sep. 30, 2021		170,573,310	26,426,937			170,573,310	26,426,937

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (17,193)	$ (139,803)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,420	904
Non-cash interest expense on convertible debt	389	418
Write-down of inventories	582	6,923
Stock-based compensation expense	38,769	7,727
Change in fair value of warrant liabilities	(130,528)	0
Other	665	731
Changes in operating assets and liabilities:
Accounts receivable	(3,674)	(1,475)
Inventories	1,432	(12,426)
Prepaid expenses and other assets	(8,896)	(340)
Vendor advances	(5,615)	5,003
Accounts payable	(11,276)	3,236
Deferred revenue	5,660	2,662
Accrued purchase commitments	(23,021)	63,376
Accrued expenses and other liabilities	4,876	1,987
Net cash used in operating activities	(146,410)	(61,077)
Cash flows from investing activities:
Purchases of marketable securities	(1,018,095)	0
Sales of marketable securities	702,152	0
Purchases of property and equipment	(3,826)	(2,597)
Net cash used in investing activities	(319,769)	(2,597)
Cash flows from financing activities:
Proceeds from exercise of stock options and warrants	19,314	391
Net proceeds from equity infusion from the Business Combination	548,403	0
Proceeds from loan payable	0	4,317
Proceeds from issuance of convertible debt	0	20,650
Payment of loan payable	(4,366)	0
Payments of debt issuance costs	(52)	0
Net cash provided by financing activities	563,299	25,358
Net (decrease) increase in cash, cash equivalents and restricted cash	97,120	(38,316)
Cash, cash equivalents and restricted cash, beginning of period	60,206	90,002
Cash, cash equivalents and restricted cash, end of period	$ 157,326	$ 51,686

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets
Cash and cash equivalents	$ 153,326	$ 51,686
Restricted cash	4,000	0
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 157,326	$ 51,686

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2021
Organization and Description of Business
Organization and Description of Business	Note 1. Organization and Description of Business Butterfly Network, Inc., formerly known as Longview Acquisition Corp. (the “Company” or “Butterfly”), was incorporated in Delaware on February 4, 2020. The Company’s legal name became Butterfly Network, Inc. following the closing of the business combination discussed in Note 3 “Business Combination”. The prior period financial information represents the financial results and condition of BFLY Operations, Inc. The Company is an innovative digital health business whose mission is to democratize healthcare by making medical imaging accessible to everyone around the world. Butterfly’s solution uses a unique combination of software and hardware technology to enable medical imaging to drive more clinical insight at patient point-of-care. The hardware platform works alongside cloud-based software that is intended to make the product easy to use, integrate with the clinical workflow and be accessible on a user’s smartphone, tablet and/or healthcare enterprise systems. The Company operates wholly-owned subsidiaries in Australia, Germany, the Netherlands, the United Kingdom and Taiwan.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Butterfly Network, Inc. and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the accounting disclosure rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s audited consolidated financial statements as of and for the years ended December 31, 2020 and 2019. All intercompany balances and transactions are eliminated upon consolidation. The condensed consolidated balance sheet as of December 31, 2020, included herein, was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including certain notes required by U.S. GAAP, required on an annual reporting basis. Certain prior period amounts have been reclassified to conform to the current period presentation. The Company reclassified the loss on product purchase commitments that was recorded within cost of product revenue on the condensed consolidated statement of operations and comprehensive loss to be presented separately. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for any subsequent quarter, the year ending December 31, 2021, or any other period. Except as described elsewhere in this Note 2, including under the heading “Recent Accounting Pronouncements Adopted”, and Note 3 “Business Combination”, there have been no material changes to the Company’s significant accounting policies as described in the audited consolidated financial statements as of December 31, 2020 and 2019. COVID-19 Outbreak The COVID-19 pandemic that began in 2020 has created significant global economic uncertainty and has impacted the Company’s operating results, financial condition and cash flows. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, including those that result from new information that may emerge concerning COVID-19, the actions taken to contain or treat COVID-19 and the economic impacts of COVID-19. The estimates of the impact on the Company’s business may change based on new information that may emerge concerning COVID-19, the actions to contain it or address its impact and the economic impact on local, regional, national and international markets. The Company has not incurred any significant impairment losses in the carrying values of its assets as a result of the COVID-19 pandemic and is not aware of any specific related event or circumstance that would require the Company to revise the estimates reflected in its condensed consolidated financial statements. Although the Company has incurred recurring losses in each year since inception, the Company expects its cash and cash equivalents and marketable securities will be sufficient to fund operations for at least the next twelve months Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. At September 30, 2021, substantially all of the Company’s marketable securities were invested in mutual funds with one financial institution. At September 30, 2021 and December 31, 2020, substantially all of the Company’s cash and cash equivalents were invested in money market accounts at one financial institution. The Company also maintains balances in various operating accounts above federally insured limits. The Company has not experienced significant losses on such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents and marketable securities. As of September 30, 2021 and December 31, 2020, no customer accounts for more than 10% of the Company’s accounts receivable. For the three and nine months ended September 30, 2021 and 2020, no customer accounts for more than 10% of the total revenues. Segment Information The Company’s Chief Operating Decision Maker, its Chief Executive Officer (“CEO”), reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating its financial performance. Accordingly, the Company has determined that it operates in a single reportable segment. Substantially all of the Company’s long-lived assets are located in the United States. Since the Company operates in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements. Use of Estimates The Company makes estimates and assumptions about future events that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Future events and their effects cannot be determined with certainty. On an ongoing basis, management evaluates these estimates, judgments and assumptions. The Company bases its estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s condensed consolidated financial statements. Except with respect to estimates related to the warrant liabilities, there have been no material changes to the Company’s use of estimates as described in the audited consolidated financial statements as of December 31, 2020. Investments in Marketable Securities The Company’s investments in marketable securities are ownership interests in fixed income mutual funds. The equity securities are stated at fair value, as determined by quoted market prices. As the securities have readily determinable fair value, unrealized gains and losses are reported as other income (expense), net on the condensed consolidated statements of operations and comprehensive loss. Subsequent gains or losses realized upon redemption or sale of these securities are also recorded as other income (expense), net on the condensed consolidated statements of operations and comprehensive loss. The Company considers all of its investments in marketable securities as available for use in current operations and therefore classifies these securities within current assets on the condensed consolidated balance sheets. For the three and nine months ended September 30, 2021, the Company recognized $0.2 million and $0.2 million, respectively, of unrealized losses that relate to equity securities still held as of September Restricted Cash Restricted cash includes deposits in financial institutions used to secure a lease agreement. The Company classified the amounts within other non-current assets as the deposits are used to secure a long-term lease. The amount shown as restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the condensed consolidated statement of cash flows. Warrant Liability The Company’s outstanding warrants include publicly-traded warrants (the “Public Warrants”) which were issued as one Derivatives and Hedging—Contracts in Entity’s Own Equity Recent Accounting Pronouncements Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract (Topic 350-40) Recent Accounting Pronouncements Issued but Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans, and available-for-sale debt securities. For public entities, this guidance was effective for annual reporting periods beginning January 1, 2020, including interim periods within that annual reporting period. For other entities, this guidance is effective for the annual reporting period beginning January 1, 2023, including interim periods within that annual reporting period. The standard will apply as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is in the process of evaluating the impact the adoption of this pronouncement will have on the Company’s condensed consolidated financial statements and disclosures.

Business Combination

Business Combination	9 Months Ended
	Sep. 30, 2021
Business Combination
Business Combination	Note 3. Business Combination ​ On February 12, 2021 (the “Closing Date”), the Company consummated the previously announced business combination (the “Business Combination”) pursuant to the terms of the Business Combination Agreement, dated as of November 19, 2020 (the “Business Combination Agreement”), by and among Longview, Clay Merger Sub, Inc., a Delaware corporation incorporated on November 12, 2020 (“Merger Sub”), and Butterfly Network, Inc., a Delaware corporation (“Legacy Butterfly”). Immediately upon the consummation of the Business Combination and the other transactions contemplated by the Business Combination Agreement (collectively, the “Transactions”, and such completion, the “Closing”), Merger Sub merged with and into Legacy Butterfly, with Legacy Butterfly surviving the Business Combination as a wholly-owned subsidiary of Longview (the “Merger”). In connection with the Transactions, Longview changed its name to “Butterfly Network, Inc.” and Legacy Butterfly changed its name to “BFLY Operations, Inc.” The Merger is accounted for as a reverse recapitalization in accordance with U.S. GAAP primarily due to the fact that Legacy Butterfly stockholders continue to control the Company following the closing of the Business Combination. Reported shares and earnings per share available to holders of the Company’s capital stock and equity awards prior to the Business Combination have been retroactively restated reflecting the exchange ratio established pursuant to the Business Combination ​ Pursuant to the Merger, at the Effective Time of the Merger (the “Effective Time”): • each share of Legacy Butterfly capital stock (other than the Legacy Butterfly Series A preferred stock) that was issued and outstanding immediately prior to the Effective Time was automatically canceled and converted into the right to receive 1.0383 shares of the Company’s Class A common stock, rounded down to the nearest whole number of shares; ​ • each share of Legacy Butterfly Series A preferred stock that was issued and outstanding immediately prior to the Effective Time was automatically canceled and converted into the right to receive 1.0383 shares of the Company’s Class B common stock, rounded down to the nearest whole number of shares; ​ ​ ​ • each option to purchase shares of Legacy Butterfly common stock, whether vested or unvested, that was outstanding and unexercised as of immediately prior to the Effective Time was assumed by the Company and became an option (vested or unvested, as applicable) to purchase a number of shares of the Company’s Class A common stock equal to the number of shares of Legacy Butterfly common stock subject to such option immediately prior to the Effective Time multiplied by 1.0383, rounded down to the nearest whole number of shares, at an exercise price per share equal to the exercise price per share of such option immediately prior to the Effective Time divided by 1.0383 and rounded up to the nearest whole cent; • each Legacy Butterfly restricted stock unit outstanding immediately prior to the Effective Time was assumed by the Company and became a restricted stock unit with respect to a number of shares of the Company’s Class A common stock, rounded to the nearest whole share, equal to the number of shares of Legacy Butterfly common stock subject to such Legacy Butterfly restricted stock unit immediately prior to the Effective Time multiplied by 1.0383; and ​ • the principal amount plus accrued but unpaid interest, if any, on the Legacy Butterfly convertible notes outstanding as of immediately prior to the Effective Time was automatically canceled and converted into the right to receive shares of the Company’s Class A common stock, with such shares of the Company’s Class A common stock calculated by dividing the outstanding principal plus accrued interest, if any, of each Legacy Butterfly convertible note by $10.00, rounded down to the nearest whole number of shares. ​ In addition, on February 12, 2021, Longview filed the Second Amended and Restated Certificate of Incorporation (the “Restated Certificate”) with the Secretary of State of the State of Delaware, which became effective simultaneously with the Effective Time. As a consequence of filing the Restated Certificate, the Company adopted a dual class structure, comprised of the Company’s Class A common stock, which is entitled to one vote per share, and the Company’s Class B common stock, which is entitled to 20 votes per share. The Company’s Class B common stock is subject to a “sunset” provision if Jonathan M. Rothberg, Ph.D., the founder of Legacy Butterfly and Chairman of the Company (“Dr. Rothberg”), and other permitted holders of the Company’s Class B common stock collectively cease to beneficially own at least twenty percent (20%) of the number of shares of the Company’s Class B common stock (as such number of shares is equitably adjusted in respect of any reclassification, stock dividend, subdivision, combination or recapitalization of the Company’s Class B common stock) collectively held by Dr. Rothberg and permitted transferees of the Company’s Class B common stock as of the Effective Time. In addition, concurrently with the execution of the Business Combination Agreement, on November 19, 2020, Longview entered into subscription agreements (the “Subscription Agreements”) with certain institutional investors (the “PIPE Investors”), pursuant to which the PIPE Investors purchased, immediately prior to the Closing, an aggregate of 17,500,000 shares of Longview Class A common stock at a purchase price of $10.00 per share (the “PIPE Financing”). The total number of shares of the Company’s Class A common stock outstanding immediately following the Closing was approximately 164,862,470, comprising: 59 • 95,633,659 shares of the Company’s Class A common stock issued to Legacy Butterfly stockholders (other than certain holders of Legacy Butterfly Series A preferred stock) and holders of Legacy Butterfly convertible notes in the Merger; ​ • 17,500,000 shares of the Company’s Class A common stock issued in connection with the Closing to the PIPE Investors pursuant to the PIPE Financing; ​ ​ • 10,350,000 shares of the Company’s Class A common stock issued to holders of shares of Longview Class B common stock outstanding at the Effective Time; and • 41,378,811 shares of the Company’s Class A common stock held by holders of Longview Class A common stock outstanding at the Effective Time. ​ The total number of shares of the Company’s Class B common stock issued at the Closing was approximately 26,426,937. Immediately following the Closing, Dr. Rothberg held approximately 76.2% of the combined voting power of the Company. Accordingly, Dr. Rothberg and his permitted transferees control the Company and the Company is a controlled company within the meaning of the corporate governance standards of the New York Stock Exchange (the “NYSE”). ​ The most significant change in the post-combination Company’s reported financial position and results was an increase in cash of $ million, representing all significant liabilities of the acquiree excluding the warrant liability. As of the date of the Closing, the Company recorded net liabilities of $186.5 million with a corresponding offset to additional paid-in capital. The net liabilities include warrant liabilities of $187.3 million and other insignificant assets and liabilities. The Company received proceeds of $0.6 million related to other transactions that occurred at the same time as the Business Combination.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2021
Revenue Recognition
Revenue Recognition	Note 4. Revenue Recognition Disaggregation of Revenue The Company disaggregates revenue from contracts with customers by product type and by geographical market. The Company believes that these categories aggregate the payor types by nature, amount, timing and uncertainty of their revenue streams. The following table summarizes the Company’s disaggregated revenues (in thousands) for the three and nine months ended September 30, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pattern of ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ ​ Recognition ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ By Product Type: ​ ​ ​ ​ ​ Devices and accessories ​ Point-in-time ​ $ 10,848 ​ $ 8,621 ​ $ 33,455 ​ $ 25,820 ​ Subscription services and other services ​ Over time ​ ​ 3,773 ​ ​ 1,514 ​ ​ 10,123 ​ ​ 4,777 ​ Total revenue ​ ​ ​ $ 14,621 ​ $ 10,135 ​ $ 43,578 ​ $ 30,597 ​ By Geographical Market: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ ​ ​ $ 10,220 ​ $ 7,453 ​ $ 30,320 ​ $ 22,021 ​ International ​ ​ ​ ​ 4,401 ​ ​ 2,682 ​ ​ 13,258 ​ ​ 8,576 ​ Total revenue ​ ​ ​ $ 14,621 ​ $ 10,135 ​ $ 43,578 ​ $ 30,597 ​ ​ Contract Balances Contract balances represent amounts presented in the condensed consolidated balance sheets when either the Company has transferred goods or services to the customer, or the customer has paid consideration to the Company under the contract. These contract balances include trade accounts receivable and deferred revenue. Deferred revenue represents cash consideration received from customers for services that are transferred to the customer over the respective subscription period. The accounts receivable balances represent amounts billed to customers for goods and services where the Company has an unconditional right to payment of the amount billed. The following table provides information about receivables and deferred revenue from contracts with customers (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2021 ​ 2020 Accounts receivable, net ​ $ 9,538 ​ $ 5,752 Deferred revenue, current ​ 12,015 ​ 8,443 Deferred revenue, non-current ​ 4,878 ​ 2,790 ​ The Company recognizes a receivable when it has an unconditional right to payment, and payment terms are typically 30 days for all product and service sales. The allowance for doubtful accounts was $0.4 million and $0.6 million as of September 30, 2021 and December 31, 2020, respectively. The amount of revenue recognized during the three months ended September 30, 2021 and 2020 that was included in the deferred revenue balance at the beginning of the period was $4.3 million and $0.9 million, respectively. The amount of revenue recognized during the nine months ended September 30, 2021 and 2020 that was included in the deferred revenue balance at the beginning of the period was $7.2 million and $2.8 million, respectively. The Company incurs incremental costs of obtaining contracts and costs of fulfilling contracts with customers. The amount of costs capitalized during the three and nine months ended September 30, 2021 and 2020 was not significant. Transaction Price Allocated to Remaining Performance Obligations On September 30, 2021, the Company had $21.8 million of remaining performance obligations. The Company expects to recognize 60% of its remaining performance obligations as revenue in the next

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2021
Fair Value of Financial Instruments
Fair Value of Financial Instruments	Note 5. Fair Value of Financial Instruments Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The Company utilizes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: ● Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. ● Level 2 — Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. ● Level 3 — Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company has no assets or liabilities valued with Level 3 inputs. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates their fair values due to the short-term or on-demand nature of these instruments. There were no transfers between fair value measurement levels during the periods ended September 30, 2021 and December 31, 2020. The Company determined the fair value of its Public Warrants as Level 1 financial instruments, as they are traded in active markets. Because any transfer of Private Warrants from the initial holder of the Private Warrants would result in the Private Warrants having substantially the same terms as the Public Warrants, management determined that the fair value of each Private Warrant is the same as that of a Public Warrant. Accordingly, the Private Warrants are classified as Level 2 financial instruments. ​ The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement Level ​ ​ Total ​ Level 1 ​ Level 2 ​ Level 3 September 30, 2021: ​ ​ ​ ​ Marketable securities: ​ ​ ​ ​ ​ Mutual funds ​ $ 315,099 ​ $ 315,099 ​ $ — ​ $ — Total assets at fair value on a recurring basis ​ $ 315,099 ​ $ 315,099 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Public Warrants ​ $ 37,949 ​ $ 37,949 ​ $ — ​ $ — Private Warrants ​ ​ 18,847 ​ ​ — ​ ​ 18,847 ​ ​ — Total liabilities at fair value on a recurring basis ​ $ 56,796 ​ $ 37,949 ​ $ 18,847 ​ $ — ​ The Company did not have any assets or liabilities similar to those above requiring fair value measurement at December 31, 2020.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2021
Inventories
Inventories	Note 6. Inventories A summary of inventories is as follows at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2021 2020 Raw materials ​ $ 8,269 ​ 7,688 Work-in-progress ​ 1,146 ​ 865 Finished goods ​ 14,405 ​ 17,252 Total inventories ​ $ 23,820 ​ $ 25,805 ​ Work-in-progress represents inventory items in intermediate stages of production by third-party manufacturers. For the three and nine months ended September 30, 2021, net realizable value inventory adjustments and excess and obsolete inventory charges were $0.6 million and $0.6 million, respectively, and were recognized in product cost of revenues. During fiscal 2021, the Company utilized $35.0 million of the accrued purchase commitment liability to reduce the value of inventory purchased under its minimum commitment in the supply arrangement. This is disclosed in Note 16 “Commitments and Contingencies”. For the three and nine months ended September 30, 2020, net realizable value inventory adjustments and excess and obsolete inventory charges were $6.3 million and $6.9 million, respectively, and were recognized in product cost of revenues.

Non-Current Assets

Non-Current Assets	9 Months Ended
	Sep. 30, 2021
Non-Current Assets
Non-Current Assets	Note 7. Non-Current Assets The Company’s property and equipment, net consists of the following at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2021 2020 Property and equipment, gross ​ $ 14,160 ​ $ 10,268 Less: accumulated depreciation and amortization ​ (4,792) ​ (3,398) Property and equipment, net ​ $ 9,368 ​ $ 6,870 ​ Other non-current assets consist of the following at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2021 2020 Security deposits ​ $ 1,883 ​ $ 1,888 Restricted cash ​ ​ 4,000 ​ ​ — Deferred offering costs ​ — ​ 3,711 Other long-term assets ​ ​ 955 ​ ​ — Total other non-current assets ​ $ 6,838 ​ $ 5,599 ​

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2021
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	Note 8. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2021 2020 Employee compensation ​ $ 12,942 ​ $ 5,968 Customer deposits ​ 1,174 ​ 1,177 Accrued warranty liability ​ 303 ​ 646 Non-income tax ​ 2,341 ​ 3,695 Professional fees ​ 2,920 ​ 5,432 Vendor settlements ​ ​ — ​ ​ 2,975 Other ​ 3,129 ​ 2,069 Total accrued expenses and other current liabilities ​ $ 22,809 ​ $ 21,962 ​ Warranty expense activity for the three and nine months ended September 30, 2021 and 2020 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ 2021 2020 2021 2020 Balance, beginning of period ​ $ 1,161 ​ $ 1,524 ​ $ 1,826 ​ $ 876 ​ Warranty provision charged to operations ​ 123 ​ 526 ​ (103) ​ 2,037 ​ Warranty claims ​ (168) ​ (342) ​ (607) ​ (1,205) ​ Balance, end of period ​ $ 1,116 ​ $ 1,708 ​ $ 1,116 ​ $ 1,708 ​ ​ The Company classifies its accrued warranty liability based on the timing of expected warranty activity. The future costs of expected activity greater than one year is recorded within other non-current liabilities on the condensed consolidated balance sheet.

Convertible Preferred Stock

Convertible Preferred Stock	9 Months Ended
	Sep. 30, 2021
Convertible Preferred Stock.
Convertible Preferred Stock	Note 9. Convertible Preferred Stock The Company has issued four series of Convertible Preferred Stock, Series A through Series D. The following table summarizes the authorized, issued and outstanding Convertible Preferred Stock of the Company as of immediately prior to the Business Combination and December 31, 2020 (in thousands, except share and per share information): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuance Shares Total ​ ​ ​ ​ Initial ​ ​ ​ ​ Price ​ Authorized, ​ Proceeds or ​ ​ ​ ​ Net ​ Liquidation ​ ​ Year of ​ per ​ Issued and ​ Exchange ​ Issuance ​ Carrying ​ Price per Class ​ Issuance ​ share ​ Outstanding ​ Value ​ Costs ​ Value ​ share Series A 2012 ​ $ 0.04 26,946,090 ​ $ 1,038 ​ $ 11 ​ $ 1,027 ​ $ 0.77 Series B 2014 ​ 0.77 25,957,500 ​ 20,000 ​ 99 ​ 19,901 ​ 0.77 Series C 2014 – 2015 ​ 3.21 29,018,455 ​ 93,067 ​ 246 ​ 92,821 ​ 3.21 Series D 2018 ​ 9.89 25,275,073 ​ 250,000 ​ 2,812 ​ 247,188 ​ 9.89 ​ ​ ​ ​ ​ ​ 107,197,118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prior to the completion of the Business Combination there were no significant changes to the terms of the Convertible Preferred Stock. Upon the Closing of the Business Combination, the Convertible Preferred stock converted into the right to receive Class A and Class B common stock based on the Business Combination’s conversion ratio of 1.0383 of the Company

Equity Incentive Plans

Equity Incentive Plans	9 Months Ended
	Sep. 30, 2021
Equity Incentive Plans
Equity Incentive Plans	Note 10. Equity Incentive Plans The Company’s 2012 Employee, Director and Consultant Equity Incentive Plan (the “2012 Plan”) was adopted by its Board of Directors and stockholders in March 2012. The Butterfly Network, Inc. Amended and Restated 2020 Equity Incentive Plan (the “2020 Plan”) was approved by the Board of Directors in the fourth quarter of 2020 and by the stockholders in the first quarter of 2021. Grants under the 2012 Plan and 2020 Plan are included in the tables below. In connection with the Closing of the Business Combination, the Company adjusted the equity awards as described in Note 3 “Business Combination”. The adjustments to the awards did not result in incremental expense as the equitable adjustments were made pursuant to a preexisting, nondiscretionary anti-dilution provision in the 2012 Plan, and the fair-value, vesting conditions and classification of the awards are the same immediately before and after the modification. Stock option activity The following table summarizes the changes in the Company’s outstanding stock options for the nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ Number of ​ ​ Options Outstanding at December 31, 2020 26,708,329 Granted 7,436,366 Exercised (8,283,862) Forfeited (8,690,193) Outstanding at September 30, 2021 17,170,640 ​ Each award will vest based on continued service which is generally over 3 ​ On January 23, 2021, the former Chief Executive Officer and member of the Board of Directors of Legacy Butterfly resigned from his position as Chief Executive Officer. Pursuant to the separation agreement between the former Chief Executive Officer and Legacy Butterfly, the former officer received equity-based compensation. The equity compensation includes the acceleration of vesting of the officer’s service-based options. The acceleration of 1.6 million options was pursuant to the original option award agreement. The Company recognized $2.6 million of expense related to the acceleration of this option award during the nine months ended September 30, 2021. No expense related to the acceleration of this option award was recognized during the three months ended September 30, 2021. ​ Restricted stock unit (“RSU”) activity The following table summarizes the changes in the Company’s outstanding restricted stock units for the nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ Number of ​ ​ RSUs Outstanding at December 31, 2020 1,894,897 Granted 3,274,079 Vested (597,021) Forfeited (128,650) Outstanding at September 30, 2021 4,443,305 ​ Included in the table above are service-based restricted stock units. During the nine months ended September 30, 2021, the Company granted 2.2 million service-based awards. Each award will vest based on continued service which is generally over 3 Included in the table above are performance-based restricted stock units that include certain service conditions in the award. In January 2021, the Company granted 1.0 million restricted stock units to certain executives. In 2020, the Company granted 1.9 million restricted stock units to certain employees and consultants, including a grant of 1.0 million restricted stock units to the Chairman of the Board and significant shareholder of Butterfly. The service condition for these awards is satisfied by providing service to the Company based on the defined service period per the award agreement. The performance-based condition is satisfied upon the occurrence of a business combination event as defined in the award agreement. The achievement of the performance condition was deemed satisfied in the first quarter of 2021, when the completion of the Business Combination occurred. The fair value of performance-based restricted stock units was estimated on the date of grant based on the fair value of the Company’s Class A common stock. For each award, the Company recognizes the expense over the requisite service period as defined in the award agreement. During the nine months ended September 30, 2021, the Company recognized the full grant date fair value of the awards granted to the Chairman of the Board and one other consultant as service to the Company was no longer required since the Business Combination closed in the first quarter of 2021. No expense for these awards was recognized during the three months ended September 30, 2021. For the remaining awards, continued service is still required for the awards to continue to vest per the award agreements. In the third quarter of 2021 and excluded from the table above, the Company approved 0.1 million performance-based restricted stock units for certain executives. The service condition for these awards is satisfied by providing service to the Company based on the defined service period per the award agreement. The performance-based conditions are objective and subjective performance metrics defined in the award agreement. Each award agreement provides that the Compensation Committee of the Board of Directors (the “Compensation Committee”) has discretion over the number of shares that will vest pursuant to the performance metrics. During the first quarter of the year ending December 31, 2023, the Compensation Committee will certify the number of shares vested under the performance-based restricted stock unit awards. The Company ​ The Company’s total stock-based compensation expense for all stock option and restricted stock unit awards for the periods presented was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ 2021 2020 2021 2020 Cost of revenue – subscription ​ $ 6 ​ $ 2 ​ $ 9 ​ $ 12 ​ Research and development ​ 3,552 ​ 955 ​ 6,502 ​ 3,391 ​ Sales and marketing ​ ​ 2,484 ​ ​ 456 ​ ​ 6,243 ​ ​ 1,482 ​ General and administrative ​ ​ 4,692 ​ ​ 966 ​ ​ 26,015 ​ ​ 2,842 ​ Total stock-based compensation expense ​ $ 10,734 ​ $ 2,379 ​ $ 38,769 ​ $ 7,727 ​ ​

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2021
Net Loss Per Share
Net Loss Per Share	Note 11. Net Loss Per Share We compute net loss per share of Class A and Class B common stock using the two-class method. Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of each class of the Company’s common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of the Company’s common stock, including those presented in the table below, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of the Company’s common stock outstanding would have been anti-dilutive. Since the Company was in a net loss position for all periods presented, the basic earnings per share (“EPS”) calculation excludes preferred stock as it does not participate in net losses of the Company. As the Company uses the two-class method required for companies with multiple classes of common stock, the following table presents the calculation of basic and diluted net loss per share for each class of the Company’s common stock outstanding (in thousands, except share and per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Class A Class B Common Stock ​ Numerator: ​ ​ ​ ​ ​ ​ Allocation of undistributed earnings ​ $ (11,733) ​ $ (1,828) ​ $ (13,561) ​ Numerator for basic and diluted EPS – loss available to common stockholders ​ $ (11,733) ​ $ (1,828) ​ $ (13,561) ​ Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding ​ 169,668,255 ​ 26,426,937 ​ 196,095,192 ​ Denominator for basic and diluted EPS – weighted-average common stock ​ 169,668,255 ​ 26,426,937 ​ 196,095,192 ​ Basic and diluted loss per share ​ $ (0.07) ​ $ (0.07) ​ $ (0.07) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Class A Class B Common Stock ​ Numerator: ​ ​ ​ ​ ​ ​ Allocation of undistributed earnings ​ $ (92,208) ​ $ — ​ $ (92,208) ​ Numerator for basic and diluted EPS – loss available to common stockholders ​ $ (92,208) ​ $ — ​ $ (92,208) ​ Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding ​ 6,066,117 ​ — ​ 6,066,117 ​ Denominator for basic and diluted EPS – weighted-average common stock ​ 6,066,117 ​ — ​ 6,066,117 ​ Basic and diluted loss per share ​ $ (15.20) ​ $ — ​ $ (15.20) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Class A Class B Common Stock ​ Numerator: ​ ​ ​ ​ ​ ​ Allocation of undistributed earnings ​ $ (14,872) ​ $ (2,321) ​ $ (17,193) ​ Numerator for basic and diluted EPS – loss available to common stockholders ​ $ (14,872) ​ $ (2,321) ​ $ (17,193) ​ Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding ​ 143,295,154 ​ 22,361,254 ​ 165,656,408 ​ Denominator for basic and diluted EPS – weighted-average common stock ​ 143,295,154 ​ 22,361,254 ​ 165,656,408 ​ Basic and diluted loss per share ​ $ (0.10) ​ $ (0.10) ​ $ (0.10) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Class A Class B Common Stock ​ Numerator: ​ ​ ​ ​ ​ ​ Allocation of undistributed earnings ​ $ (139,803) ​ $ — ​ $ (139,803) ​ Numerator for basic and diluted EPS – loss available to common stockholders ​ $ (139,803) ​ $ — ​ $ (139,803) ​ Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding ​ 6,026,658 ​ — ​ 6,026,658 ​ Denominator for basic and diluted EPS – weighted-average common stock ​ 6,026,658 ​ — ​ 6,026,658 ​ Basic and diluted loss per share ​ $ (23.20) ​ $ — ​ $ (23.20) ​ ​ For the periods presented above, the net loss per share amounts are the same for Class A and Class B common stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Certificate of Incorporation. The undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. For the periods presented, anti-dilutive common equivalent shares were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ 2021 2020 Outstanding options to purchase common stock ​ 17,170,640 ​ 25,280,487 ​ Outstanding restricted stock units ​ 3,932,587 ​ — ​ Outstanding warrants ​ 20,652,937 ​ — ​ Outstanding convertible preferred stock (Series A through D) ​ — ​ 107,197,118 ​ Total anti-dilutive common equivalent shares ​ 41,756,164 ​ 132,477,605 ​ ​

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2021
Related Party Transactions
Related Party Transactions	Note 12. Related Party Transactions Prior to the Closing of the Business Combination, there were no significant changes in the nature of the Company’s related party transactions since December 31, 2020. Pursuant to a First Addendum dated November 19, 2020 to the Amended and Restated Technology Services Agreement dated November 11, 2020 by and between the Company, 4Catalyzer Corporation (“4Catalyzer”), and other participant companies controlled by Dr. Rothberg (the “ARTSA”), Butterfly terminated its participation under the ARTSA immediately prior to the Effective Time of the Business Combination. ​ A summary of related-party transactions and balances with 4Catalyzer are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2021 2020 2021 2020 Total incurred for operating expenses ​ $ 18 ​ $ 1,198 ​ $ 559 ​ $ 4,265 ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2021 2020 Due from related parties ​ $ — ​ $ 38 Due to related parties ​ 29 ​ 154 ​

Loan Payable

Loan Payable	9 Months Ended
	Sep. 30, 2021
Loan Payable
Loan Payable	Note 13. Loan Payable In May 2020, the Company received loan proceeds of $4.4 million under the Paycheck Protection Program (“PPP”). The Company used the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities. The Company accounted for the loan as debt. Following the Closing of the Business Combination discussed in Note 3 “Business Combination”, the Company repaid the loan in full in February 2021. The Company recognized an insignificant amount of interest expense in the condensed consolidated statement of operations and comprehensive loss related to the loan.

Convertible Debt

Convertible Debt	9 Months Ended
	Sep. 30, 2021
Convertible Debt.
Convertible Debt	Note 14. Convertible Debt In the year ended December 31, 2020, the Company issued convertible debt for total gross proceeds of $50.0 million. Pursuant to the terms of the debt, at the Effective Time of the Merger discussed in Note 3 “Business Combination”, the convertible debt was automatically cancelled and converted into the right to receive shares of the Company’s Class A common stock. The debt was converted with $49.9 million, the net carrying value of the debt as of the Closing of the Business Combination, in stockholders’ equity with a corresponding decrease to the convertible debt for the principal, accrued interest and unamortized debt issuance costs in the condensed consolidated balance sheet. The Company recorded interest expense and amortization expense for the issuance costs of $0.6 million and $0.4 million for the nine months ended September 30, 2021 and 2020, respectively. The Company recorded interest expense and amortization expense for the issuance costs of $0.0 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively. ​

Warrants

Warrants	9 Months Ended
	Sep. 30, 2021
Warrants
Warrants	Note 15. Warrants ​ Public Warrants ​ The Company issued Public Warrants and Private Warrants in connection with its IPO. As of September 30, 2021, there were an aggregate of 13,799,604 outstanding Public Warrants, which entitle the holder to acquire Class A common stock. During the three and nine months ended September 30, 2021, the amount of exercises of Public Warrants was not significant. The amount reclassified into equity upon the exercise of the Public Warrants was not significant. Each whole warrant entitles the registered holder to purchase one share of Class A common stock at an exercise price of $11.50 per share, subject to adjustment as discussed below, beginning on May 26, 2021. The warrants will expire on February 12, 2026 or earlier upon redemption or liquidation. ​ Redemptions ​ At any time while the warrants are exercisable, Butterfly may redeem not less than all of the outstanding Public Warrants: ● ​at a price of $0.01 per warrant; ● ​upon a minimum of 30 days ’ prior written notice of redemption (the “ 30-day redemption period”) to each warrant holder; ● ​provided that the last reported sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like and for certain issuances of Class A common stock and equity-linked securities) for any 20 trading days within a 30 -trading day period ending on the third trading day prior to the date Butterfly sends the notice of redemption to the warrant holders; and ● provided that there is an effective registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants, and a current prospectus relating thereto, available through the 30 -day redemption period or Butterfly has elected to require the exercise of the warrants on a “cashless basis” (as described below). ​ If the foregoing conditions are satisfied and the Company issues a notice of redemption of the Public Warrants at $0.01 per warrant, each holder of Public Warrants will be entitled to exercise his, her or its Public Warrants prior to the scheduled redemption date. ​ If the Company calls the Public Warrants for redemption for $0.01 as described above, the Company’s Board of Directors may elect to require any holder that wishes to exercise his, her or its Public Warrant to do so on a “cashless basis.” If the Company’s Board of Directors makes such election, all holders of Public Warrants would pay the exercise price by surrendering their warrants for that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A common stock underlying the warrants, multiplied by the excess of the “fair market value” ​over the exercise price of the warrants by (y) the “fair market value.” For purposes of the redemption provisions of the warrants, the “fair market value” means the average last reported sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants. ​ Commencing 90 days after the warrants become exercisable, Butterfly may redeem not less than all of the outstanding Public Warrants and Private Warrants: ● at $0.10 per warrant; ● upon a minimum of 30 days ’ prior written notice of redemption; ● provided that the last reported sale price of the Class A common stock equals or exceeds $10.00 per share (as adjusted per stock splits, stock dividends, reorganizations, reclassifications, recapitalizations and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; ● provided that the Private Warrants are also concurrently exchanged at the same price (equal to a number of shares of Class A common stock) as the outstanding Public Warrants; and ● provided that there is an effective registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating thereto available throughout the 30-day redemption period. If the foregoing conditions are satisfied and the Company issues a notice of redemption of the warrants at $0.10 per warrant, each warrant holder will be entitled to exercise his, her or its warrant prior to the scheduled redemption date on a cashless basis and receive that number of shares based on the redemption date and the “fair market value” of the Class A common stock, in accordance with a table set forth in the warrant agreement. ​ The Company evaluated the Public Warrants under ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) ​ Private Warrants ​ As of September 30, 2021, there were 6,853,333 Private Warrants outstanding. There have been no exercises of the Private Warrants. The Private Warrants are identical to the Public Warrants, except that so long as they are held by Longview Investors LLC (the “Sponsor”) or any of its permitted transferees, (i) the Private Warrants and the shares of Class A common stock issuable upon the exercise of the Private Warrants are not transferable, assignable or saleable until 30 days after the completion of the Business Combination, (ii) the Private Warrants will be exercisable for cash or on a cashless basis, at the holder’s option, and (iii) the Private Warrants are not subject to Butterfly’s redemption option at the price of $0.01 per warrant. The Private Warrants are subject to Butterfly’s redemption option at the price of $0.10 per warrant, provided that the other conditions of such redemption are met, as described above. If the Private Warrants are ​ The Company evaluated the Private Warrants under ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) ​ The Company recognized a gain of million as a change in fair value of warrant liabilities in the condensed consolidated statement of operations and comprehensive loss for the three and nine months ended September 30, 2021, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies.
Commitments and Contingencies	Note 16. Commitments and Contingencies Commitments Operating leases: The Company leases office space under operating leases. Minimum rental payments under operating leases are recognized on a straight-line basis over the term of the lease. Rent expense under operating leases was $0.9 million and $0.5 million in the three months ended September 30, 2021 and 2020, respectively. Rent expense under operating leases was $2.0 million and $1.3 million in the nine months ended September 30, 2021 and 2020, respectively. The Company had $7.2 million and $1.0 million of long-term deferred rent related to its operating leases as of September 30, 2021 and December 31, 2020, respectively. Long-term deferred rent is recorded in other non-current liabilities on the condensed consolidated balance sheet. In May 2021, the Company entered into a lease arrangement for office space in Burlington, MA which expires in September 2032 and includes approximately $27.3 million of legally binding minimum lease payments. As stated in the agreement, the Company and the landlord agreed to a payment schedule that includes escalating rent payments beginning on the lease commencement date. The lease contains a tenant improvement allowance of $5.2 million, which is recognized as a reduction of minimum lease payments and recognized on a straight-line basis over the term of the lease. The lease also includes termination and renewal options to be exercised at the discretion of the Company. These options are not reflected in the lease term as it is not reasonably assured that they will be exercised. The Company gained access to the office space and began recognizing rent expense for the lease in the third quarter of 2021. Rent expense for the lease was $0.3 million in the three and nine months ended September 30, 2021. ​ In the second quarter of 2021, the Company delivered a $4.0 million letter of credit for the Burlington, MA lease, secured by a deposit of the same amount with a financial institution that issued the letter of credit. The deposit is classified as restricted cash and included in other non-current assets on the condensed consolidated balance sheets. ​ The following is a schedule of future minimum rental payments under non-cancelable operating leases with initial terms in excess of one year (in thousands): ​ ​ ​ ​ Years ending December 31: ​ Remainder of 2021 ​ $ 298 2022 ​ 2,453 2023 ​ 3,832 2024 ​ 4,528 2025 ​ 4,672 Thereafter ​ 27,081 Total future minimum rental payments ​ $ 42,864 ​ Purchase commitments: The Company enters into inventory purchase commitments with third-party manufacturers in the ordinary course of business. These commitments are generally non-cancellable and are based on sales forecasts. These agreements range from one During 2019, the Company entered into an inventory supply agreement with a certain third-party manufacturing vendor. In November 2020, the Company and the vendor amended the 2019 inventory supply arrangement. The amended agreement included provisions to increase the aggregate purchase commitments to $169.3 million and extend the time frame of the agreement to December 2022. The provisions of the agreement also allow the Company, once the defined cumulative purchase threshold per the agreement is reached, to pay for a portion of the subsequent inventory purchases using the vendor advance. During the three and nine months ended September 30, 2021, the Company recognized a net loss and additional accrued liability for the vendor purchase commitment of $11.6 million. During the three and nine months ended September 30, 2021, the Company utilized $35.0 million of the accrued purchase commitment liability to reduce the value of inventory purchased under its minimum commitment in the supply arrangement. During the September 30, 2020, the Company recognized a net loss on the vendor purchase commitment of $56.4 million, as an estimate of future excess inventory from its supply arrangement. The Company applied the guidance in Topic 330, Inventory As of September 30, 2021, the Company has a prepaid advance of $36.4 million, net of write-downs and an accrual of $19.5 million related to the agreement. The portion of the balances that is expected to be utilized in the next 12 months is included in current assets and current liabilities in the accompanying condensed consolidated balance sheets. Other commitments: The Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. The Company did not make any matching contributions to the 401(k) plan for the periods ended September 30, 2021 and December 31, 2020. Contingencies The Company is involved in litigation and legal matters from time to time, which have arisen in the normal course of business. Although the ultimate results of these matters are not currently determinable, management does not expect that they will have a material effect on the Company’s condensed consolidated balance sheets, statements of operations and comprehensive loss, or statements of cash flows. On December 14, 2020, Nidhish Nair, a purported stockholder of Longview, filed a lawsuit in the Supreme Court of the State of New York, County of New York, captioned Nair v. Longview Acquisition Corp., against Longview and the members of its Board of Directors (the “Nair Complaint”). On December 16, 2020, Eric Lau, a purported stockholder of Longview, filed a lawsuit in the Supreme Court of the State of New York, County of New York, captioned Lau v. Longview Acquisition Corp., against Longview, the members of its Board of Directors, and Legacy Butterfly (the “Lau Complaint”). The Nair Complaint and the Lau Complaint, which are referred to collectively as the Complaints, asserted a breach of fiduciary duty claim against the individual defendants and an aiding and abetting claim against Longview in connection with the Business Combination between Longview and Legacy Butterfly. The Lau Complaint also asserted an aiding and abetting claim against Legacy Butterfly. The Complaints alleged, among other things, that (i) defendants engaged in an unfair sales process and agreed to inadequate consideration in connection with the Business Combination, and (ii) that the Registration Statement on Form S-4 filed with the SEC on November 27, 2020 in connection with the Business Combination was materially misleading. The Complaints sought, among other things, to enjoin the Business Combination, rescind the transaction or award rescissory damages to the extent it is consummated, and an award of attorneys’ fees and expenses. The Nair Complaint was voluntarily dismissed on February 21, 2021, and the Lau Complaint was voluntarily dismissed on March 2, 2021. During the second quarter of 2021, the Company paid an insignificant amount to resolve plaintiffs’ requests for an attorney fee award. The Company enters into agreements that contain indemnification provisions with other parties in the ordinary course of business, including business partners, investors, contractors, customers and the Company’s officers, directors and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims because of the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in any particular case. To date, losses recorded in the Company’s condensed consolidated statements of operations and comprehensive loss in connection with the indemnification provisions have not been material.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Butterfly Network, Inc. and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the accounting disclosure rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s audited consolidated financial statements as of and for the years ended December 31, 2020 and 2019. All intercompany balances and transactions are eliminated upon consolidation. The condensed consolidated balance sheet as of December 31, 2020, included herein, was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including certain notes required by U.S. GAAP, required on an annual reporting basis. Certain prior period amounts have been reclassified to conform to the current period presentation. The Company reclassified the loss on product purchase commitments that was recorded within cost of product revenue on the condensed consolidated statement of operations and comprehensive loss to be presented separately. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for any subsequent quarter, the year ending December 31, 2021, or any other period. Except as described elsewhere in this Note 2, including under the heading “Recent Accounting Pronouncements Adopted”, and Note 3 “Business Combination”, there have been no material changes to the Company’s significant accounting policies as described in the audited consolidated financial statements as of December 31, 2020 and 2019.
COVID-19 Outbreak	COVID-19 Outbreak The COVID-19 pandemic that began in 2020 has created significant global economic uncertainty and has impacted the Company’s operating results, financial condition and cash flows. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, including those that result from new information that may emerge concerning COVID-19, the actions taken to contain or treat COVID-19 and the economic impacts of COVID-19. The estimates of the impact on the Company’s business may change based on new information that may emerge concerning COVID-19, the actions to contain it or address its impact and the economic impact on local, regional, national and international markets. The Company has not incurred any significant impairment losses in the carrying values of its assets as a result of the COVID-19 pandemic and is not aware of any specific related event or circumstance that would require the Company to revise the estimates reflected in its condensed consolidated financial statements. Although the Company has incurred recurring losses in each year since inception, the Company expects its cash and cash equivalents and marketable securities will be sufficient to fund operations for at least the next twelve months
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. At September 30, 2021, substantially all of the Company’s marketable securities were invested in mutual funds with one financial institution. At September 30, 2021 and December 31, 2020, substantially all of the Company’s cash and cash equivalents were invested in money market accounts at one financial institution. The Company also maintains balances in various operating accounts above federally insured limits. The Company has not experienced significant losses on such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents and marketable securities. As of September 30, 2021 and December 31, 2020, no customer accounts for more than 10% of the Company’s accounts receivable. For the three and nine months ended September 30, 2021 and 2020, no customer accounts for more than 10% of the total revenues.
Segment Information	Segment Information The Company’s Chief Operating Decision Maker, its Chief Executive Officer (“CEO”), reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating its financial performance. Accordingly, the Company has determined that it operates in a single reportable segment. Substantially all of the Company’s long-lived assets are located in the United States. Since the Company operates in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements.
Use of Estimates	Use of Estimates The Company makes estimates and assumptions about future events that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Future events and their effects cannot be determined with certainty. On an ongoing basis, management evaluates these estimates, judgments and assumptions. The Company bases its estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s condensed consolidated financial statements. Except with respect to estimates related to the warrant liabilities, there have been no material changes to the Company’s use of estimates as described in the audited consolidated financial statements as of December 31, 2020.
Investments in Marketable Securities	Investments in Marketable Securities The Company’s investments in marketable securities are ownership interests in fixed income mutual funds. The equity securities are stated at fair value, as determined by quoted market prices. As the securities have readily determinable fair value, unrealized gains and losses are reported as other income (expense), net on the condensed consolidated statements of operations and comprehensive loss. Subsequent gains or losses realized upon redemption or sale of these securities are also recorded as other income (expense), net on the condensed consolidated statements of operations and comprehensive loss. The Company considers all of its investments in marketable securities as available for use in current operations and therefore classifies these securities within current assets on the condensed consolidated balance sheets. For the three and nine months ended September 30, 2021, the Company recognized $0.2 million and $0.2 million, respectively, of unrealized losses that relate to equity securities still held as of September
Restricted Cash	Restricted Cash Restricted cash includes deposits in financial institutions used to secure a lease agreement. The Company classified the amounts within other non-current assets as the deposits are used to secure a long-term lease. The amount shown as restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the condensed consolidated statement of cash flows.
Warrant Liability	Warrant Liability The Company’s outstanding warrants include publicly-traded warrants (the “Public Warrants”) which were issued as one Derivatives and Hedging—Contracts in Entity’s Own Equity
Recent Accounting Pronouncements Adopted and Issued but Not Yet Adopted	Recent Accounting Pronouncements Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract (Topic 350-40) Recent Accounting Pronouncements Issued but Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans, and available-for-sale debt securities. For public entities, this guidance was effective for annual reporting periods beginning January 1, 2020, including interim periods within that annual reporting period. For other entities, this guidance is effective for the annual reporting period beginning January 1, 2023, including interim periods within that annual reporting period. The standard will apply as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is in the process of evaluating the impact the adoption of this pronouncement will have on the Company’s condensed consolidated financial statements and disclosures.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2021
Revenue Recognition
Schedule of disaggregated revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pattern of ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ ​ Recognition ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ By Product Type: ​ ​ ​ ​ ​ Devices and accessories ​ Point-in-time ​ $ 10,848 ​ $ 8,621 ​ $ 33,455 ​ $ 25,820 ​ Subscription services and other services ​ Over time ​ ​ 3,773 ​ ​ 1,514 ​ ​ 10,123 ​ ​ 4,777 ​ Total revenue ​ ​ ​ $ 14,621 ​ $ 10,135 ​ $ 43,578 ​ $ 30,597 ​ By Geographical Market: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ ​ ​ $ 10,220 ​ $ 7,453 ​ $ 30,320 ​ $ 22,021 ​ International ​ ​ ​ ​ 4,401 ​ ​ 2,682 ​ ​ 13,258 ​ ​ 8,576 ​ Total revenue ​ ​ ​ $ 14,621 ​ $ 10,135 ​ $ 43,578 ​ $ 30,597 ​ ​
Schedule of receivables and deferred revenue from contracts with customers	The following table provides information about receivables and deferred revenue from contracts with customers (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2021 ​ 2020 Accounts receivable, net ​ $ 9,538 ​ $ 5,752 Deferred revenue, current ​ 12,015 ​ 8,443 Deferred revenue, non-current ​ 4,878 ​ 2,790 ​

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value of Financial Instruments
Schedule of assets and liabilities measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement Level ​ ​ Total ​ Level 1 ​ Level 2 ​ Level 3 September 30, 2021: ​ ​ ​ ​ Marketable securities: ​ ​ ​ ​ ​ Mutual funds ​ $ 315,099 ​ $ 315,099 ​ $ — ​ $ — Total assets at fair value on a recurring basis ​ $ 315,099 ​ $ 315,099 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Public Warrants ​ $ 37,949 ​ $ 37,949 ​ $ — ​ $ — Private Warrants ​ ​ 18,847 ​ ​ — ​ ​ 18,847 ​ ​ — Total liabilities at fair value on a recurring basis ​ $ 56,796 ​ $ 37,949 ​ $ 18,847 ​ $ —

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2021
Inventories
Summary of inventories	A summary of inventories is as follows at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2021 2020 Raw materials ​ $ 8,269 ​ 7,688 Work-in-progress ​ 1,146 ​ 865 Finished goods ​ 14,405 ​ 17,252 Total inventories ​ $ 23,820 ​ $ 25,805

Non-Current Assets (Tables)

Non-Current Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Non-Current Assets
Schedule of property and equipment, net	The Company’s property and equipment, net consists of the following at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2021 2020 Property and equipment, gross ​ $ 14,160 ​ $ 10,268 Less: accumulated depreciation and amortization ​ (4,792) ​ (3,398) Property and equipment, net ​ $ 9,368 ​ $ 6,870
Schedule of other non-current assets	Other non-current assets consist of the following at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2021 2020 Security deposits ​ $ 1,883 ​ $ 1,888 Restricted cash ​ ​ 4,000 ​ ​ — Deferred offering costs ​ — ​ 3,711 Other long-term assets ​ ​ 955 ​ ​ — Total other non-current assets ​ $ 6,838 ​ $ 5,599

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2021
Accrued Expenses and Other Current Liabilities
Schedule of accrued expenses and other current liabilities	Accrued expenses and other current liabilities consist of the following at September 30, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2021 2020 Employee compensation ​ $ 12,942 ​ $ 5,968 Customer deposits ​ 1,174 ​ 1,177 Accrued warranty liability ​ 303 ​ 646 Non-income tax ​ 2,341 ​ 3,695 Professional fees ​ 2,920 ​ 5,432 Vendor settlements ​ ​ — ​ ​ 2,975 Other ​ 3,129 ​ 2,069 Total accrued expenses and other current liabilities ​ $ 22,809 ​ $ 21,962
Schedule of warranty expense activity	Warranty expense activity for the three and nine months ended September 30, 2021 and 2020 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ 2021 2020 2021 2020 Balance, beginning of period ​ $ 1,161 ​ $ 1,524 ​ $ 1,826 ​ $ 876 ​ Warranty provision charged to operations ​ 123 ​ 526 ​ (103) ​ 2,037 ​ Warranty claims ​ (168) ​ (342) ​ (607) ​ (1,205) ​ Balance, end of period ​ $ 1,116 ​ $ 1,708 ​ $ 1,116 ​ $ 1,708 ​

Convertible Preferred Stock (Ta

Convertible Preferred Stock (Tables)	9 Months Ended
	Sep. 30, 2021
Convertible Preferred Stock.
Schedule of authorized, issued and outstanding Convertible Preferred Stock	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuance Shares Total ​ ​ ​ ​ Initial ​ ​ ​ ​ Price ​ Authorized, ​ Proceeds or ​ ​ ​ ​ Net ​ Liquidation ​ ​ Year of ​ per ​ Issued and ​ Exchange ​ Issuance ​ Carrying ​ Price per Class ​ Issuance ​ share ​ Outstanding ​ Value ​ Costs ​ Value ​ share Series A 2012 ​ $ 0.04 26,946,090 ​ $ 1,038 ​ $ 11 ​ $ 1,027 ​ $ 0.77 Series B 2014 ​ 0.77 25,957,500 ​ 20,000 ​ 99 ​ 19,901 ​ 0.77 Series C 2014 – 2015 ​ 3.21 29,018,455 ​ 93,067 ​ 246 ​ 92,821 ​ 3.21 Series D 2018 ​ 9.89 25,275,073 ​ 250,000 ​ 2,812 ​ 247,188 ​ 9.89 ​ ​ ​ ​ ​ ​ 107,197,118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2021
Equity Incentive Plans
Summary of the stock option activity	​ ​ ​ ​ ​ ​ Number of ​ ​ Options Outstanding at December 31, 2020 26,708,329 Granted 7,436,366 Exercised (8,283,862) Forfeited (8,690,193) Outstanding at September 30, 2021 17,170,640
Summary of the restricted stock unit activity	​ ​ ​ ​ ​ ​ Number of ​ ​ RSUs Outstanding at December 31, 2020 1,894,897 Granted 3,274,079 Vested (597,021) Forfeited (128,650) Outstanding at September 30, 2021 4,443,305
Schedule of stock-based compensation expense	The Company’s total stock-based compensation expense for all stock option and restricted stock unit awards for the periods presented was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ 2021 2020 2021 2020 Cost of revenue – subscription ​ $ 6 ​ $ 2 ​ $ 9 ​ $ 12 ​ Research and development ​ 3,552 ​ 955 ​ 6,502 ​ 3,391 ​ Sales and marketing ​ ​ 2,484 ​ ​ 456 ​ ​ 6,243 ​ ​ 1,482 ​ General and administrative ​ ​ 4,692 ​ ​ 966 ​ ​ 26,015 ​ ​ 2,842 ​ Total stock-based compensation expense ​ $ 10,734 ​ $ 2,379 ​ $ 38,769 ​ $ 7,727 ​

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Net Loss Per Share
Schedule of calculation of basic and diluted net loss per share	As the Company uses the two-class method required for companies with multiple classes of common stock, the following table presents the calculation of basic and diluted net loss per share for each class of the Company’s common stock outstanding (in thousands, except share and per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Class A Class B Common Stock ​ Numerator: ​ ​ ​ ​ ​ ​ Allocation of undistributed earnings ​ $ (11,733) ​ $ (1,828) ​ $ (13,561) ​ Numerator for basic and diluted EPS – loss available to common stockholders ​ $ (11,733) ​ $ (1,828) ​ $ (13,561) ​ Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding ​ 169,668,255 ​ 26,426,937 ​ 196,095,192 ​ Denominator for basic and diluted EPS – weighted-average common stock ​ 169,668,255 ​ 26,426,937 ​ 196,095,192 ​ Basic and diluted loss per share ​ $ (0.07) ​ $ (0.07) ​ $ (0.07) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Class A Class B Common Stock ​ Numerator: ​ ​ ​ ​ ​ ​ Allocation of undistributed earnings ​ $ (92,208) ​ $ — ​ $ (92,208) ​ Numerator for basic and diluted EPS – loss available to common stockholders ​ $ (92,208) ​ $ — ​ $ (92,208) ​ Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding ​ 6,066,117 ​ — ​ 6,066,117 ​ Denominator for basic and diluted EPS – weighted-average common stock ​ 6,066,117 ​ — ​ 6,066,117 ​ Basic and diluted loss per share ​ $ (15.20) ​ $ — ​ $ (15.20) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Class A Class B Common Stock ​ Numerator: ​ ​ ​ ​ ​ ​ Allocation of undistributed earnings ​ $ (14,872) ​ $ (2,321) ​ $ (17,193) ​ Numerator for basic and diluted EPS – loss available to common stockholders ​ $ (14,872) ​ $ (2,321) ​ $ (17,193) ​ Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding ​ 143,295,154 ​ 22,361,254 ​ 165,656,408 ​ Denominator for basic and diluted EPS – weighted-average common stock ​ 143,295,154 ​ 22,361,254 ​ 165,656,408 ​ Basic and diluted loss per share ​ $ (0.10) ​ $ (0.10) ​ $ (0.10) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Class A Class B Common Stock ​ Numerator: ​ ​ ​ ​ ​ ​ Allocation of undistributed earnings ​ $ (139,803) ​ $ — ​ $ (139,803) ​ Numerator for basic and diluted EPS – loss available to common stockholders ​ $ (139,803) ​ $ — ​ $ (139,803) ​ Denominator: ​ ​ ​ ​ Weighted-average common shares outstanding ​ 6,026,658 ​ — ​ 6,026,658 ​ Denominator for basic and diluted EPS – weighted-average common stock ​ 6,026,658 ​ — ​ 6,026,658 ​ Basic and diluted loss per share ​ $ (23.20) ​ $ — ​ $ (23.20) ​
Schedule of anti-dilutive common equivalent shares	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ 2021 2020 Outstanding options to purchase common stock ​ 17,170,640 ​ 25,280,487 ​ Outstanding restricted stock units ​ 3,932,587 ​ — ​ Outstanding warrants ​ 20,652,937 ​ — ​ Outstanding convertible preferred stock (Series A through D) ​ — ​ 107,197,118 ​ Total anti-dilutive common equivalent shares ​ 41,756,164 ​ 132,477,605 ​

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2021
Related Party Transactions
Summary of related-party transactions and balances	A summary of related-party transactions and balances with 4Catalyzer are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2021 2020 2021 2020 Total incurred for operating expenses ​ $ 18 ​ $ 1,198 ​ $ 559 ​ $ 4,265 ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2021 2020 Due from related parties ​ $ — ​ $ 38 Due to related parties ​ 29 ​ 154

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies.
Schedule of future minimum rental payments under non-cancelable operating leases	The following is a schedule of future minimum rental payments under non-cancelable operating leases with initial terms in excess of one year (in thousands): ​ ​ ​ ​ Years ending December 31: ​ Remainder of 2021 ​ $ 298 2022 ​ 2,453 2023 ​ 3,832 2024 ​ 4,528 2025 ​ 4,672 Thereafter ​ 27,081 Total future minimum rental payments ​ $ 42,864

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - customer	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Accounts receivable
Number of customers			0		0
Revenues
Number of customers	0	0	0	0

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional information (Details) $ in Millions	May 26, 2020	Sep. 30, 2021USD ($)	Sep. 30, 2021USD ($)segment
Summary of Significant Accounting Policies
Number of operating segments | segment			1
Equity securities, unrealized losses | $		$ (0.2)	$ (0.2)
Value of public warrants per warrant issued during IPO (as a percent)	33.00%

Business Combination (Details)

Business Combination (Details) $ / shares in Units, $ in Millions	Feb. 12, 2021USD ($)Vote$ / sharesshares	Nov. 19, 2020$ / sharesshares
Business Combination
Conversion ratio to receive shares upon merger	1.0383
Increase in cash | $	$ 589.5
Transaction costs | $	11.4
Significant liabilities incurred and paid off, excluding warrant liabilities | $	30.9
Amount of liabilities assumed | $	186.5
Warrant liabilities | $	187.3
Additional proceeds | $	$ 0.6
Class A Common Stock
Business Combination
Conversion price | $ / shares	$ 10
Number of votes | Vote	1
Shares outstanding prior to business combination	164,862,470
Class B Common Stock
Business Combination
Number of votes | Vote	20
Percentage of shares cease to own upon recapitalization	20.00%
Shares issued upon closing of business combination	26,426,937
Dr. Rothberg | Class B Common Stock
Business Combination
Voting interests after the Closing (as a percent)	76.20%
Legacy Butterfly Stockholders | Class A Common Stock
Business Combination
Shares outstanding prior to business combination	95,633,659
Longview Class A Stockholders | Class A Common Stock
Business Combination
Shares outstanding prior to business combination	41,378,811
Legacy Longview Acquisition Corp | Longview Class B Stockholders | Class A Common Stock
Business Combination
Shares outstanding prior to business combination	10,350,000
Legacy Butterfly Network Inc | Class A Common Stock
Business Combination
Conversion ratio to receive shares upon merger	1.0383
Legacy Butterfly Network Inc | Class B Common Stock
Business Combination
Conversion ratio to receive shares upon merger	1.0383
Restricted stock units
Business Combination
Conversion ratio to receive shares upon merger	1.0383
Stock options
Business Combination
Conversion ratio to receive shares upon merger	1.0383
Conversion ratio to receive shares upon exercise of option	1.0383
PIPE Investment | Class A Common Stock
Business Combination
Share price (in dollars per share) | $ / shares		$ 10
Shares outstanding prior to business combination	17,500,000
Subscription agreement, shares issued to PIPE investors		17,500,000

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue Recognition
Total revenue	$ 14,621	$ 10,135	$ 43,578	$ 30,597
United States
Revenue Recognition
Total revenue	10,220	7,453	30,320	22,021
International
Revenue Recognition
Total revenue	4,401	2,682	13,258	8,576
Product
Revenue Recognition
Total revenue	10,848	8,621	33,455	25,820
Subscription
Revenue Recognition
Total revenue	$ 3,773	$ 1,514	$ 10,123	$ 4,777

Revenue Recognition - Contract

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Revenue Recognition
Accounts receivable, net	$ 9,538	$ 5,752
Deferred revenue, current	12,015	8,443
Deferred revenue, non-current	4,878	2,790
Allowance for doubtful accounts	$ 400	$ 600
Payment terms	30 days

Revenue Recognition - Performan

Revenue Recognition - Performance Obligations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue Recognition
Amount of revenue recognized	$ 4.3	$ 0.9	$ 7.2	$ 2.8
Remaining performance obligations	$ 21.8		$ 21.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue Recognition
Percentage of remaining performance obligations as revenue	60.00%		60.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months		12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue Recognition
Percentage of remaining performance obligations as revenue	40.00%		40.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year		1 year

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - Fair Value, Recurring $ in Thousands	Sep. 30, 2021USD ($)
Assets, Fair Value Disclosure [Abstract]
Total assets at fair value on a recurring basis	$ 315,099
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities at fair value on a recurring basis	56,796
Public Warrants
Liabilities, Fair Value Disclosure [Abstract]
Warrants	37,949
Private Warrants
Liabilities, Fair Value Disclosure [Abstract]
Warrants	18,847
Mutual funds
Assets, Fair Value Disclosure [Abstract]
Mutual funds	315,099
Level 1
Assets, Fair Value Disclosure [Abstract]
Total assets at fair value on a recurring basis	315,099
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities at fair value on a recurring basis	37,949
Level 1 | Public Warrants
Liabilities, Fair Value Disclosure [Abstract]
Warrants	37,949
Level 1 | Mutual funds
Assets, Fair Value Disclosure [Abstract]
Mutual funds	315,099
Level 2
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities at fair value on a recurring basis	18,847
Level 2 | Private Warrants
Liabilities, Fair Value Disclosure [Abstract]
Warrants	$ 18,847

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Inventories
Raw materials	$ 8,269		$ 8,269		$ 7,688
Work-in-progress	1,146		1,146		865
Finished goods	14,405		14,405		17,252
Total inventories	23,820		23,820		$ 25,805
Net realizable value inventory adjustments and excess and obsolete inventory charges	600	$ 6,300	582	$ 6,923
Utilization of loss on product purchase	$ 35,000		$ 35,000

Non-Current Assets - Property a

Non-Current Assets - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Non-Current Assets
Property and equipment, gross	$ 14,160	$ 10,268
Less: accumulated depreciation and amortization	(4,792)	(3,398)
Property and equipment, net	$ 9,368	$ 6,870

Non-Current Assets - Other Non-

Non-Current Assets - Other Non-Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Non-Current Assets
Security deposits	$ 1,883	$ 1,888
Restricted cash	4,000
Deferred offering costs		3,711
Other long term assets	955
Total other non-current assets	$ 6,838	$ 5,599

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accrued Expenses and Other Current Liabilities
Employee compensation	$ 12,942	$ 5,968
Customer deposits	1,174	1,177
Accrued warranty liability	303	646
Non-income tax	2,341	3,695
Professional fees	2,920	5,432
Vendor settlements		2,975
Other	3,129	2,069
Total accrued expenses and other current liabilities	$ 22,809	$ 21,962

Accrued Expenses and Other Cu_4

Accrued Expenses and Other Current Liabilities - Warranty expense activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accrued Expenses and Other Current Liabilities
Balance, beginning of period	$ 1,161	$ 1,524	$ 1,826	$ 876
Warranty provision charged to operations	123	526	(103)	2,037
Warranty claims	(168)	(342)	(607)	(1,205)
Balance, end of period	$ 1,116	$ 1,708	$ 1,116	$ 1,708

Convertible Preferred Stock - A

Convertible Preferred Stock - Authorized, issued and outstanding Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)item$ / sharesshares	Sep. 30, 2021shares
Convertible Preferred Stock
Number of series | item	4
Shares Authorized, Issued and Outstanding | shares	107,197,118
Convertible preferred stock
Convertible Preferred Stock
Shares Authorized, Issued and Outstanding | shares	107,197,118	0
Series A convertible preferred stock
Convertible Preferred Stock
Issuance Price per share | $ / shares	$ 0.04
Shares Authorized, Issued and Outstanding | shares	26,946,090
Total Proceeds or Exchange Value	$ 1,038
Issuance Costs	11
Net Carrying Value	$ 1,027
Initial Liquidation Price per share | $ / shares	$ 0.77
Series B convertible preferred stock
Convertible Preferred Stock
Issuance Price per share | $ / shares	$ 0.77
Shares Authorized, Issued and Outstanding | shares	25,957,500
Total Proceeds or Exchange Value	$ 20,000
Issuance Costs	99
Net Carrying Value	$ 19,901
Initial Liquidation Price per share | $ / shares	$ 0.77
Series C convertible preferred stock
Convertible Preferred Stock
Issuance Price per share | $ / shares	$ 3.21
Shares Authorized, Issued and Outstanding | shares	29,018,455
Total Proceeds or Exchange Value	$ 93,067
Issuance Costs	246
Net Carrying Value	$ 92,821
Initial Liquidation Price per share | $ / shares	$ 3.21
Series D convertible preferred stock
Convertible Preferred Stock
Issuance Price per share | $ / shares	$ 9.89
Shares Authorized, Issued and Outstanding | shares	25,275,073
Total Proceeds or Exchange Value	$ 250,000
Issuance Costs	2,812
Net Carrying Value	$ 247,188
Initial Liquidation Price per share | $ / shares	$ 9.89

Convertible Preferred Stock -_2

Convertible Preferred Stock - Additional information (Details)	9 Months Ended
	Sep. 30, 2021shares	Dec. 31, 2020shares
Convertible preferred stock
Convertible Preferred Stock
Shares Outstanding	0	107,197,118
Class A Common Stock
Convertible Preferred Stock
Business combination conversion ratio	1.0383
Class B Common Stock
Convertible Preferred Stock
Business combination conversion ratio	1.0383

Equity Incentive Plans (Details

Equity Incentive Plans (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Jan. 31, 2021	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Stock options
Equity Incentive Plans
Acceleration			1.6
Expense related to acceleration		$ 0	$ 2.6
Stock options | Minimum
Equity Incentive Plans
Vesting period			3 years
Stock options | Maximum
Equity Incentive Plans
Vesting period			4 years
Service Based Restricted Stock Units
Equity Incentive Plans
Granted			2.2
Service Based Restricted Stock Units | Minimum
Equity Incentive Plans
Vesting period			3 years
Service Based Restricted Stock Units | Maximum
Equity Incentive Plans
Vesting period			4 years
Performance Based Restricted Stock Units
Equity Incentive Plans
Restricted stock expense		$ 0
Performance Based Restricted Stock Units | Employees
Equity Incentive Plans
Granted	1	0.1		1.9
Board of Directors Chairman | Performance Based Restricted Stock Units
Equity Incentive Plans
Granted				1

Equity Incentive Plans - Stock

Equity Incentive Plans - Stock option and Restricted stock unit activity (Details)	9 Months Ended
	Sep. 30, 2021shares
Restricted stock units
Number of RSUs
Outstanding at beginning of year	1,894,897
Granted	3,274,079
Vested	(597,021)
Forfeited	(128,650)
Outstanding at end of year	4,443,305
Stock options
Number of Options
Outstanding at beginning of year	26,708,329
Granted	7,436,366
Exercised	(8,283,862)
Forfeited	(8,690,193)
Outstanding at end of year	17,170,640

Equity Incentive Plans - Stock-

Equity Incentive Plans - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Equity Incentive Plans
Total stock-based compensation expense	$ 10,734	$ 2,379	$ 38,769	$ 7,727
Cost of revenue - Subscription
Equity Incentive Plans
Total stock-based compensation expense	6	2	9	12
Research and development
Equity Incentive Plans
Total stock-based compensation expense	3,552	955	6,502	3,391
Sales and marketing
Equity Incentive Plans
Total stock-based compensation expense	2,484	456	6,243	1,482
General and administrative
Equity Incentive Plans
Total stock-based compensation expense	$ 4,692	$ 966	$ 26,015	$ 2,842

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Allocation of undistributed earnings	$ (13,561)	$ (92,208)	$ (17,193)	$ (139,803)
Numerator for basic and diluted EPS - loss available to common stockholders	$ (13,561)	$ (92,208)	$ (17,193)	$ (139,803)
Denominator:
Weighted-average common shares outstanding - basic	196,095,192	6,066,117	165,656,408	6,026,658
Weighted-average common shares outstanding - diluted	196,095,192	6,066,117	165,656,408	6,026,658
Basic loss per share	$ (0.07)	$ (15.20)	$ (0.10)	$ (23.20)
Diluted loss per share	$ (0.07)	$ (15.20)	$ (0.10)	$ (23.20)
Class A Common Stock
Numerator:
Allocation of undistributed earnings	$ (11,733)	$ (92,208)	$ (14,872)	$ (139,803)
Numerator for basic and diluted EPS - loss available to common stockholders	$ (11,733)	$ (92,208)	$ (14,872)	$ (139,803)
Denominator:
Weighted-average common shares outstanding - basic	169,668,255	6,066,117	143,295,154	6,026,658
Weighted-average common shares outstanding - diluted	169,668,255	6,066,117	143,295,154	6,026,658
Basic loss per share	$ (0.07)	$ (15.20)	$ (0.10)	$ (23.20)
Diluted loss per share	$ (0.07)	$ (15.20)	$ (0.10)	$ (23.20)
Class B Common Stock
Numerator:
Allocation of undistributed earnings	$ (1,828)		$ (2,321)
Numerator for basic and diluted EPS - loss available to common stockholders	$ (1,828)		$ (2,321)
Denominator:
Weighted-average common shares outstanding - basic	26,426,937		22,361,254
Weighted-average common shares outstanding - diluted	26,426,937		22,361,254
Basic loss per share	$ (0.07)		$ (0.10)
Diluted loss per share	$ (0.07)		$ (0.10)

Net Loss Per Share - Anti-dilut

Net Loss Per Share - Anti-dilutive common equivalent shares (Details) - shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Net Loss Per Share
Total anti-dilutive common equivalent shares	41,756,164	132,477,605
Stock options
Net Loss Per Share
Total anti-dilutive common equivalent shares	17,170,640	25,280,487
Restricted stock units
Net Loss Per Share
Total anti-dilutive common equivalent shares	3,932,587
Outstanding warrants
Net Loss Per Share
Total anti-dilutive common equivalent shares	20,652,937
Convertible preferred stock
Net Loss Per Share
Total anti-dilutive common equivalent shares		107,197,118

Related Party Transactions (Det

Related Party Transactions (Details) - 4C - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Related Party Transactions
Total incurred for operating expenses	$ 18	$ 1,198	$ 559	$ 4,265
Due from related parties					$ 38
Due to related parties	$ 29		$ 29		$ 154

Loan Payable (Details)

Loan Payable (Details) $ in Millions	May 31, 2020USD ($)
PPP Loan
Loan Payable
Loan proceeds	$ 4.4

Convertible Debt (Details)

Convertible Debt (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Convertible Debt.
Gross proceeds			$ 0	$ 20,650	$ 50,000
Conversion amount			49,917		$ 49,900
Interest and amortization expense for the issuance costs	$ 0	$ 300	$ 600	$ 400

Warrants (Details)

Warrants (Details) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares	Sep. 30, 2021USD ($)D$ / sharesshares	Sep. 30, 2020USD ($)
Warrants
Change in fair value of warrant liabilities | $	$ (42,958)	$ (130,528)	$ 0
Public Warrants
Warrants
Shares called by warrants | shares	13,799,604	13,799,604
Warrants settleable in cash shares held for tender offer percentage	50.00%	50.00%
Private Warrants
Warrants
Shares called by warrants | shares	6,853,333	6,853,333
Fair market value trading days | D		30
Warrants exercised | shares		0
Class A Common Stock | Public Warrants
Warrants
Shares called by warrants | shares	1	1
Exercise price	$ 11.50	$ 11.50
Warrant Redemption $0.01 | Public Warrants
Warrants
Warrants redemption price per warrant	0.01	$ 0.01
Trading day period		30 days
Warrants redemption period		30 days
Warrant Redemption $0.01 | Private Warrants
Warrants
Warrants redemption price per warrant	0.01	$ 0.01
Warrant Redemption $0.01 | Class A Common Stock | Public Warrants
Warrants
Trading day period for cashless basis redemption		10 days
Stock price trigger		$ 18
Threshold trading days | D		20
Warrant Redemption $0.10 | Public Warrants
Warrants
Period of warrants become exercisable		90 days
Warrants redemption price per warrant	0.10	$ 0.10
Warrants redemption period		30 days
Stock price trigger		$ 10
Warrant Redemption $0.10 | Private Warrants
Warrants
Warrants redemption price per warrant	$ 0.10	$ 0.10

Commitments and Contingencies_2

Commitments and Contingencies (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	May 31, 2021	Dec. 31, 2020
Commitments and Contingencies
Rent expense		$ 900	$ 500	$ 2,000	$ 1,300
Long-term deferred rent		7,200		7,200				$ 1,000
Future minimum rental payments		42,864		42,864
Security deposits		1,883		1,883				$ 1,888
Utilization of loss on product purchase		35,000		35,000
Inventory purchase commitments
Commitments and Contingencies
Minimum inventory purchase commitments				129,500
Prepaid vendor advance, net of write-downs		36,400		36,400
Amount of increase to purchase commitment	$ 169,300
Net loss on vendor purchase commitment		(11,600)	$ (56,400)	(11,600)	$ (56,400)
Accrued purchase commitments		19,500		19,500
Utilization of loss on product purchase		35,000		35,000
Office space in Burlington, MA
Commitments and Contingencies
Rent expense		$ 300		$ 300
Future minimum rental payments							$ 27,300
Tenant improvement allowance							$ 5,200
Office space in Burlington, MA | Other Noncurrent Assets
Commitments and Contingencies
Security deposits						$ 4,000
Minimum | Inventory purchase commitments
Commitments and Contingencies
Fixed or minimum annual commitments period (in years)				1 year
Maximum | Inventory purchase commitments
Commitments and Contingencies
Fixed or minimum annual commitments period (in years)				5 years

Commitments and Contingencies -

Commitments and Contingencies - Future Minimum Payments (Details) $ in Thousands	Sep. 30, 2021USD ($)
Years ending December 31:
Remainder of 2021	$ 298
2022	2,453
2023	3,832
2024	4,528
2025	4,672
Thereafter	27,081
Total future minimum rental payments	$ 42,864