Prospectus Supplement No. 7 (to Prospectus dated April 19, 2023) | Filed Pursuant to Rule 424(b)(3)
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Bridger Aerospace Group Holdings, Inc.
120,277,192 Shares of Common Stock
Up to 26,650,000 Shares of Common Stock Issuable Upon
Exercise of the Warrants
Up to 9,400,000 Warrants
This prospectus supplement updates and supplements the prospectus dated April 19, 2023 (the “Prospectus”), which forms a part of our Registration Statement on Form S-1, as amended (Registration No. 333-269456). This prospectus supplement is being filed to update and supplement the information in the Prospectus with the information contained in our Quarterly Report on Form 10-Q for the period ended March 31, 2024, filed with the U.S. Securities and Exchange Commission on May 14, 2024 (the “Quarterly Report”), which is attached to this prospectus supplement.
The Prospectus and this prospectus supplement relate to the offer and sale from time to time by the selling securityholders named in the Prospectus, or their permitted transferees, of (a) up to 120,277,192 shares of our common stock, $0.0001 par value (“Common Stock”), consisting of (i) up to 102,322,388 shares of Common Stock issued or issuable to the direct and indirect equityholders of Legacy Bridger (as defined in the Prospectus) in connection with the Business Combination (as defined in the Prospectus) at an implied equity consideration value of $10.00 per share of Common Stock, inclusive of up to 63,240,644 shares of Common Stock that may be issuable upon the conversion of shares of Series A Preferred Stock (as defined in the Prospectus); (ii) up to 5,951,615 shares of Common Stock issuable to the holders of certain restricted stock units that were issued by Legacy Bridger and assumed by us in connection with the closing (the “Closing”) of the Business Combination, which were granted at no cost to the recipients thereof; (iii) up to 2,488,189 shares of Common Stock that were originally issued in a private placement to JCIC Sponsor (as defined in the Prospectus) prior to the JCIC IPO (as defined in the Prospectus) (75,000 of which were subsequently transferred by the JCIC Sponsor to independent directors of JCIC), which were acquired at a purchase price equivalent to approximately $0.003 per share; (iv) up to 115,000 shares of Common Stock originally issued at the Closing to JCIC Sponsor in full consideration of the outstanding $1,150,000 loan balance under the Promissory Note (as defined in the Prospectus) for an equivalent purchase price of $10.00 per share; and (v) up to 9,400,000 shares of Common Stock issuable upon the exercise, at an exercise price of $11.50 per share, of the private placement warrants originally issued in connection with the JCIC IPO (the “Private Placement Warrants”) and (b) up to 9,400,000 Private Placement Warrants originally acquired by JCIC Sponsor in connection with the JCIC IPO for $1.00 per Private Placement Warrant.
The Prospectus and this prospectus supplement also relate to the issuance by us of up to an aggregate of 26,650,000 shares of Common Stock that may be issued upon exercise of the Warrants (as defined in the Prospectus), including 9,400,000 Private Placement Warrants and 17,250,000 Public Warrants (as defined in the Prospectus).
This prospectus supplement should be read in conjunction with the Prospectus. This prospectus supplement updates and supplements the information in the Prospectus. If there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.
Our Common Stock and Public Warrants are listed on The Nasdaq Global Market under the symbols “BAER” and “BAERW,” respectively. On May 14, 2024, the closing price of our Common Stock was $4.08 and the closing price for our Public Warrants was $0.1499.
See the section entitled “Risk Factors” beginning on page 8 of the Prospectus and under similar headings in any further amendments or supplements to the Prospectus to read about factors you should consider before buying our securities.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful of complete. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is May 15, 2024.
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 88-3599336 | ||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||
90 Aviation Lane Belgrade, MT | 59714 | ||||
(Address of Principal Executive Offices) | (Zip code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.0001 par value per share | BAER | The Nasdaq Stock Market LLC | ||||||||||||
Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share | BAERW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | ||||||||
Emerging growth company | ☒ |
Page | ||||||||
Item 5. | ||||||||
As of March 31, 2024 | As of December 31, 2023 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 6,776 | $ | 22,956 | ||||||||||
Restricted cash | 9,289 | 13,981 | ||||||||||||
Investments in marketable securities | — | 1,009 | ||||||||||||
Accounts and note receivable1 | 4,926 | 4,113 | ||||||||||||
Aircraft support parts | 476 | 488 | ||||||||||||
Prepaid expenses and other current assets | 3,740 | 2,648 | ||||||||||||
Total current assets | 25,207 | 45,195 | ||||||||||||
Property, plant and equipment, net | 195,871 | 196,611 | ||||||||||||
Intangible assets, net | 2,016 | 1,730 | ||||||||||||
Goodwill | 13,163 | 13,163 | ||||||||||||
Other noncurrent assets2 | 16,174 | 16,771 | ||||||||||||
Total assets | $ | 252,431 | $ | 273,470 | ||||||||||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable3 | $ | 3,932 | $ | 3,978 | ||||||||||
Accrued expenses and other current liabilities4 | 11,955 | 17,168 | ||||||||||||
Operating right-of-use current liability5 | 2,153 | 2,153 | ||||||||||||
Current portion of long-term debt, net of debt issuance costs | 2,028 | 2,099 | ||||||||||||
Total current liabilities | 20,068 | 25,398 | ||||||||||||
Long-term accrued expenses and other noncurrent liabilities | 10,492 | 10,777 | ||||||||||||
Operating right-of-use noncurrent liability6 | 5,395 | 5,779 | ||||||||||||
Long-term debt, net of debt issuance costs7 | 204,115 | 204,585 | ||||||||||||
Total liabilities | $ | 240,070 | $ | 246,539 | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||
MEZZANINE EQUITY | ||||||||||||||
Series A Preferred Stock, $0.0001 par value; 315,789.473684 shares authorized, issued and outstanding at March 31, 2024 and December 31, 2023 | 361,029 | 354,840 | ||||||||||||
STOCKHOLDERS’ DEFICIT | ||||||||||||||
Common Stock, $0.0001 par value; 1,000,000,000 shares authorized; 44,842,587 shares issued and outstanding at March 31, 2024; 44,776,926 shares issued and outstanding at December 31, 2023 | 5 | 5 | ||||||||||||
Additional paid-in capital | 83,953 | 84,771 | ||||||||||||
Accumulated deficit | (433,759) | (413,672) | ||||||||||||
Accumulated other comprehensive income | 1,133 | 987 | ||||||||||||
Total stockholders’ deficit | (348,668) | (327,909) | ||||||||||||
Total liabilities, mezzanine equity, and stockholders’ deficit | $ | 252,431 | $ | 273,470 |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Revenues1 | $ | 5,507 | $ | 365 | ||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||
Flight operations | 5,009 | 3,733 | ||||||||||||||||||||||||
Maintenance | 4,197 | 3,515 | ||||||||||||||||||||||||
Total cost of revenues | 9,206 | 7,248 | ||||||||||||||||||||||||
Gross loss | (3,699) | (6,883) | ||||||||||||||||||||||||
Selling, general and administrative expense2 | 11,610 | 33,229 | ||||||||||||||||||||||||
Operating loss | (15,309) | (40,112) | ||||||||||||||||||||||||
Interest expense3 | (5,923) | (5,665) | ||||||||||||||||||||||||
Other income | 1,159 | 1,092 | ||||||||||||||||||||||||
Loss before income taxes | (20,073) | (44,685) | ||||||||||||||||||||||||
Income tax expense | (14) | — | ||||||||||||||||||||||||
Net loss | $ | (20,087) | $ | (44,685) | ||||||||||||||||||||||
Series A Preferred Stock – adjustment for deemed dividend upon Closing | — | (48,300) | ||||||||||||||||||||||||
Series A Preferred Stock – adjustment to eliminate 50% multiplier | — | 156,362 | ||||||||||||||||||||||||
Series A Preferred Stock – adjustment to maximum redemptions value | (6,189) | (4,274) | ||||||||||||||||||||||||
(Loss) earnings attributable to Common Stockholders - Basic and Diluted | $ | (26,276) | $ | 59,103 | ||||||||||||||||||||||
(Loss) earnings per share - Basic | $ | (0.55) | $ | 1.36 | ||||||||||||||||||||||
(Loss) earnings per share - Diluted | $ | (0.55) | $ | 0.79 | ||||||||||||||||||||||
Weighted average Common Stock outstanding – Basic | 47,602,241 | 43,488,468 | ||||||||||||||||||||||||
Weighted average Common Stock outstanding – Diluted | 47,602,241 | 74,986,752 |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Net loss | $ | (20,087) | $ | (44,685) | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Unrealized gain (loss) on derivative instruments | 116 | (272) | ||||||||||||||||||||||||
Unrealized gain on investments in marketable securities | — | 319 | ||||||||||||||||||||||||
Reclassification of realized loss (gain) on investments in marketable securities to earnings | 30 | (173) | ||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | 146 | (126) | ||||||||||||||||||||||||
Comprehensive loss | $ | (19,941) | $ | (44,811) |
Legacy Bridger Series C Preferred Shares / Series A Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders' Deficit | ||||||||||||||||||||||||||||||||||||||||||||||||
Share | Value | Share | Value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 351,789 | $ | 489,022 | 39,081,744 | $ | 4 | $ | — | $ | (415,304) | $ | 1,678 | $ | (413,622) | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (44,685) | — | (44,685) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivative instruments | — | — | — | — | — | — | (272) | (272) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on investments in marketable securities | — | — | — | — | — | — | 319 | 319 | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of realized gain on investments in marketable securities to earnings | — | — | — | — | — | — | (173) | (173) | |||||||||||||||||||||||||||||||||||||||||||||
Effect of the Closing | — | (156,363) | 4,687,546 | 1 | 52,084 | 78,956 | — | 131,041 | |||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock adjustment to maximum redemptions value | — | 4,274 | — | — | (4,274) | — | — | (4,274) | |||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | 2,400,354 | — | 25,597 | — | — | 25,597 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 351,789 | $ | 336,933 | 46,169,644 | $ | 5 | $ | 73,407 | $ | (381,033) | $ | 1,552 | $ | (306,069) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | 315,789 | $ | 354,840 | 47,200,504 | $ | 5 | $ | 84,771 | $ | (413,672) | $ | 987 | $ | (327,909) | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (20,087) | — | (20,087) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivative instruments | — | — | — | — | — | — | 116 | 116 | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of realized loss on investments in marketable securities to earnings | — | — | — | — | — | — | 30 | 30 | |||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock adjustment to maximum redemptions value | — | 6,189 | — | — | (6,189) | — | — | (6,189) | |||||||||||||||||||||||||||||||||||||||||||||
Sales of Common Stock through the at-the-market offering | — | — | 33,798 | — | 168 | — | — | 168 | |||||||||||||||||||||||||||||||||||||||||||||
Costs related to the at-the-market offering | — | — | — | — | (670) | — | — | (670) | |||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | 31,863 | — | 5,873 | — | — | 5,873 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | 315,789 | $ | 361,029 | 47,266,165 | $ | 5 | $ | 83,953 | $ | (433,759) | $ | 1,133 | $ | (348,668) |
For the Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net loss | $ | (20,087) | $ | (44,685) | ||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||
Loss (gain) on disposal of fixed assets | 255 | (1) | ||||||||||||
Depreciation and amortization | 1,290 | 1,751 | ||||||||||||
Stock-based compensation expense | 5,873 | 25,597 | ||||||||||||
Change in fair value of the Warrants | (266) | (1,599) | ||||||||||||
Change in fair value of freestanding derivative | — | 51 | ||||||||||||
Amortization of debt issuance costs | 192 | 239 | ||||||||||||
Change in fair value of embedded derivative | (885) | (346) | ||||||||||||
Change in fair value of earnout consideration | 15 | — | ||||||||||||
Realized gain on investments in marketable securities | (16) | (259) | ||||||||||||
Changes in operating assets and liabilities | ||||||||||||||
Accounts and note receivable1 | (813) | (338) | ||||||||||||
Aircraft support parts | 12 | 1,326 | ||||||||||||
Prepaid expense and other current and noncurrent assets | (379) | (3,897) | ||||||||||||
Accounts payable, accrued expenses and other liabilities2 | (4,953) | (14,492) | ||||||||||||
Net cash used in operating activities | (19,762) | (36,653) | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Proceeds from sales and maturities of marketable securities | 1,055 | 25,062 | ||||||||||||
Purchases of property, plant and equipment | (957) | (11,171) | ||||||||||||
Expenditures for capitalized software | (312) | — | ||||||||||||
Investments in construction in progress – leasehold improvements | — | (1,046) | ||||||||||||
Sale of property, plant and equipment | — | 114 | ||||||||||||
Net cash (used in) provided by investing activities | (214) | 12,959 | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Repayments on debt | (733) | (469) | ||||||||||||
Payment of issuance costs for Common Stock in the at-the-market offering | (324) | — | ||||||||||||
Proceeds from issuance of Common Stock in the at-the-market offering | 168 | — | ||||||||||||
Payment of finance lease liability | (7) | (8) | ||||||||||||
Costs incurred related to the Closing | — | (6,794) | ||||||||||||
Proceeds from the Closing | — | 3,194 | ||||||||||||
Net cash used in financing activities | (896) | (4,077) | ||||||||||||
Net change in cash, cash equivalents and restricted cash | (20,872) | (27,771) | ||||||||||||
Cash, cash equivalents and restricted cash – beginning of the period | 36,937 | 42,460 | ||||||||||||
Cash, cash equivalents and restricted cash – end of the period | $ | 16,065 | $ | 14,689 | ||||||||||
Less: Restricted cash – end of the period | 9,289 | 12,399 | ||||||||||||
Cash and cash equivalents – end of the period | $ | 6,776 | $ | 2,290 | ||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
$s in thousands | 2024 | 2023 | ||||||||||||||||||||||||
Fire suppression | $ | 3,881 | $ | — | ||||||||||||||||||||||
Aerial surveillance | 583 | — | ||||||||||||||||||||||||
Other services | 1,043 | 365 | ||||||||||||||||||||||||
Total revenues | $ | 5,507 | $ | 365 |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
$s in thousands | 2024 | 2023 | ||||||||||||||||||||||||
Flight revenue | $ | 913 | $ | — | ||||||||||||||||||||||
Standby revenue | 3,468 | — | ||||||||||||||||||||||||
Other revenue | 1,126 | 365 | ||||||||||||||||||||||||
Total revenues | $ | 5,507 | $ | 365 |
For the Three Months Ended March 31, | ||||||||||||||
$s in thousands | 2024 | 2023 | ||||||||||||
Interest paid | $ | 10,415 | $ | 10,312 | ||||||||||
Fixed assets in accounts payable | 27 | 1,469 | ||||||||||||
Conversion of promissory note to Common Stock | — | 897 | ||||||||||||
Series A Preferred Stock - adjustment for deemed dividend upon Closing | — | 48,300 | ||||||||||||
Series A Preferred Stock - adjustment to eliminate 50% multiplier | — | 156,363 | ||||||||||||
Series A Preferred Stock - adjustment to maximum redemption value | 6,189 | 4,274 | ||||||||||||
Non-cash operating and financing activities: | ||||||||||||||
Issuance costs for ATM offering included in accounts payable, accrued expense and other liabilities | $ | 346 | $ | — | ||||||||||
Assumption of JCIC liabilities | — | 7,464 | ||||||||||||
Recognition of Warrant liabilities | — | 5,863 | ||||||||||||
Cancellation of deferred underwriting fee | — | 1,500 |
As of March 31, 2024 | As of December 31, 2023 | |||||||||||||
($s in thousands) | Carrying Value | |||||||||||||
Cash equivalents: | ||||||||||||||
Commercial paper | $ | — | $ | 1,974 | ||||||||||
Money market fund | 3,769 | 11,208 | ||||||||||||
Total cash equivalents | $ | 3,769 | $ | 13,182 | ||||||||||
Restricted cash: | ||||||||||||||
Money market fund | $ | 9,289 | $ | 13,981 |
As of December 31, 2023 | ||||||||||||||||||||||||||
$s in thousands | Purchase Price | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||
Investment in marketable securities: | ||||||||||||||||||||||||||
Government securities | $ | 999 | $ | 10 | $ | — | $ | 1,009 | ||||||||||||||||||
Total marketable securities | $ | 999 | $ | 10 | $ | — | $ | 1,009 |
$s in thousands | As of March 31, 2024 | As of December 31, 2023 | ||||||||||||
Trade accounts receivable | $ | 4,664 | $ | 681 | ||||||||||
Note receivable | — | 3,000 | ||||||||||||
Other | 262 | 432 | ||||||||||||
Total accounts and note receivable | $ | 4,926 | $ | 4,113 |
$s in thousands | As of March 31, 2024 | As of December 31, 2023 | ||||||||||||
Repairables and expendables | $ | 476 | $ | 488 | ||||||||||
Total aircraft support parts | $ | 476 | $ | 488 |
$s in thousands | As of March 31, 2024 | As of December 31, 2023 | ||||||||||||
Prepaid insurance | $ | 2,414 | $ | 1,324 | ||||||||||
Prepaid subscriptions | 1,122 | 1,115 | ||||||||||||
Deposits | 183 | 120 | ||||||||||||
Other | 21 | 89 | ||||||||||||
Total prepaid expenses and other current assets | $ | 3,740 | $ | 2,648 |
$s in thousands | As of March 31, 2024 | As of December 31, 2023 | ||||||||||||
Aircraft | $ | 186,494 | $ | 186,167 | ||||||||||
Less: Accumulated depreciation | (26,419) | (25,656) | ||||||||||||
Aircraft, net | 160,075 | 160,511 | ||||||||||||
Leasehold improvements | 35,916 | 35,941 | ||||||||||||
Vehicles and equipment | 3,209 | 2,993 | ||||||||||||
Construction-in-progress - Leasehold improvements | 5 | 5 | ||||||||||||
Finance lease right-of-use asset | 121 | 121 | ||||||||||||
Licenses | 235 | 235 | ||||||||||||
Less: Accumulated depreciation | (3,690) | (3,195) | ||||||||||||
Leasehold improvements and equipment, net | 35,796 | 36,100 | ||||||||||||
Total property, plant and equipment, net | $ | 195,871 | $ | 196,611 |
$s in thousands | Purchase Price Allocation | |||||||
Cash and cash equivalents | $ | 3 | ||||||
Intangible assets | 1,300 | |||||||
Accounts payable | (37) | |||||||
Long-term accrued expenses and other noncurrent liabilities | (67) | |||||||
Deferred tax liability | (314) | |||||||
Total identifiable net assets | 885 | |||||||
Goodwill | 10,676 | |||||||
Total purchase price | $ | 11,561 |
As of March 31, 2024 | ||||||||||||||||||||||||||
$s in thousands | Estimated Life (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||
Licenses | 10 | $ | 67 | $ | (56) | $ | 11 | |||||||||||||||||||
Internal-use software | 3 | 297 | (233) | 64 | ||||||||||||||||||||||
IPR&D | 5 | 1,941 | — | 1,941 | ||||||||||||||||||||||
Total intangible assets | $ | 2,305 | $ | (289) | $ | 2,016 |
As of December 31, 2023 | ||||||||||||||||||||||||||
$s in thousands | Estimated Life (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||
Licenses | 10 | $ | 67 | $ | (54) | $ | 13 | |||||||||||||||||||
Internal-use software | 3 | 297 | (208) | 89 | ||||||||||||||||||||||
IPR&D | 5 | 1,628 | — | 1,628 | ||||||||||||||||||||||
Total intangible assets | $ | 1,992 | $ | (262) | $ | 1,730 |
$s in thousands | As of March 31, 2024 | As of December 31, 2023 | ||||||||||||
Operating lease right-of-use asset | $ | 7,395 | $ | 7,777 | ||||||||||
Investment in MAB | 4,000 | 4,000 | ||||||||||||
Prepaid subscriptions | 2,546 | 2,877 | ||||||||||||
Interest rate swap | 1,233 | 1,117 | ||||||||||||
Investment in Overwatch Imaging, Inc. | 1,000 | 1,000 | ||||||||||||
Total other noncurrent assets | $ | 16,174 | $ | 16,771 |
$s in thousands | As of March 31, 2024 | As of December 31, 2023 | ||||||||||||
Contingent consideration | $ | 8,501 | $ | 8,486 | ||||||||||
Warrant liabilities | 5,330 | 5,596 | ||||||||||||
Accrued interest expense | 1,872 | 6,448 | ||||||||||||
Accrued salaries, wages and bonuses | 1,542 | 1,099 | ||||||||||||
Deferred underwriting fee payable | 1,500 | 1,500 | ||||||||||||
Deferred revenue | 1,278 | — | ||||||||||||
Accrued professional fees | 1,253 | 851 | ||||||||||||
Accrued foreign tax | 925 | 2,707 | ||||||||||||
Finance right-of-use liability | 40 | 46 | ||||||||||||
Embedded derivative of Series A Preferred Stock | — | 885 | ||||||||||||
Other | 206 | 327 | ||||||||||||
Total accrued expenses and other liabilities | 22,447 | 27,945 | ||||||||||||
Less: Current accrued expenses and other current liabilities | (11,955) | (17,168) | ||||||||||||
Total long-term accrued expenses and other noncurrent liabilities | $ | 10,492 | $ | 10,777 |
$s in thousands | Contingent Consideration | |||||||
As of December 31, 2023 | $ | 8,486 | ||||||
Change in fair value of contingent consideration | 15 | |||||||
As of March 31, 2024 | $ | 8,501 |
As of March 31, 2024 | ||||||||||||||||||||||||||||||||
Effective Date | Maturity Date | Notional Amount | Fair Value | Pay Fixed | Receive Rate | |||||||||||||||||||||||||||
4/15/2020 | 3/15/2030 | $10,305 | $1,233 | 3.887% | 1 Month SOFR + 2.61448% | |||||||||||||||||||||||||||
As of December 31, 2023 | ||||||||||||||||||||||||||||||||
Effective Date | Maturity Date | Notional Amount | Fair Value | Pay Fixed | Receive Rate | |||||||||||||||||||||||||||
4/15/2020 | 3/15/2030 | $10,466 | $1,117 | 3.887% | 1 Month SOFR + 2.61448% |
As of March 31, 2024 | ||||||||||||||||||||
$s in thousands | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | ||||||||||||||||||||
Cash | $ | 6,776 | $ | — | $ | — | ||||||||||||||
Restricted cash: | ||||||||||||||||||||
Money market fund | 9,289 | — | — | |||||||||||||||||
Total restricted cash | 9,289 | — | — | |||||||||||||||||
Interest rate swap | — | 1,233 | — | |||||||||||||||||
Total assets | $ | 16,065 | $ | 1,233 | $ | — | ||||||||||||||
Liabilities | ||||||||||||||||||||
Warrant liabilities – Public Warrants | $ | 3,450 | $ | — | $ | — | ||||||||||||||
Warrant liabilities – Private Placement Warrants | — | 1,880 | — | |||||||||||||||||
Contingent consideration | — | — | 8,501 | |||||||||||||||||
Total liabilities | $ | 3,450 | $ | 1,880 | $ | 8,501 |
As of December 31, 2023 | ||||||||||||||||||||
$s in thousands | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | ||||||||||||||||||||
Cash | $ | 22,956 | $ | — | $ | — | ||||||||||||||
Restricted cash: | ||||||||||||||||||||
Money market fund | 13,981 | — | — | |||||||||||||||||
Total restricted cash | 13,981 | — | — | |||||||||||||||||
Investments in marketable securities | — | 1,009 | — | |||||||||||||||||
Interest rate swap | — | 1,117 | — | |||||||||||||||||
Total assets | $ | 36,937 | $ | 2,126 | $ | — | ||||||||||||||
Liabilities | ||||||||||||||||||||
Warrant liabilities – Public Warrants | $ | 3,622 | $ | — | $ | — | ||||||||||||||
Warrant liabilities – Private Placement Warrants | — | 1,974 | — | |||||||||||||||||
Contingent consideration | — | — | 8,486 | |||||||||||||||||
Embedded derivative of Series A Preferred Stock | — | — | 885 | |||||||||||||||||
Total liabilities | $ | 3,622 | $ | 1,974 | $ | 9,371 |
$s in thousands | As of March 31, 2024 | As of December 31, 2023 | ||||||||||||
Taxable industrial revenue bonds, dated July 21, 2022, 11.5% interest rate, maturing September 1, 20271 | $ | 160,000 | $ | 160,000 | ||||||||||
Permanent loan agreement, dated August 21, 2020, greater of Prime + 1.5% or 4.75% interest rate, maturing August 21, 20352 | 18,183 | 18,391 | ||||||||||||
Permanent loan agreement, dated October 1, 2020, greater of Prime + 1.5% or 4.75% interest rate, maturing October 1, 20352 | 18,250 | 18,457 | ||||||||||||
Term loan agreement dated September 30, 2019, SOFR + 2.61448% interest rate, maturing March 15, 20303 | 10,305 | 10,466 | ||||||||||||
Term loan agreement dated February 3, 2020, SOFR + 2.61448% interest rate, maturing February 3, 20274 | 3,673 | 3,813 | ||||||||||||
Various term loan agreements, earliest start at September 9, 2021, 3.89-5.5% interest rates, latest maturation on November 17, 20275 | 229 | 247 | ||||||||||||
Loans payable | 210,640 | 211,374 | ||||||||||||
Less: noncurrent debt issuance costs | (3,495) | (3,695) | ||||||||||||
Less: current debt issuance costs | (1,002) | (995) | ||||||||||||
Less: current portion of long-term debt, net of debt issuance costs | (2,028) | (2,099) | ||||||||||||
Total long-term debt, net of debt issuance costs | $ | 204,115 | $ | 204,585 |
Redeemable Series A Preferred Stock | ||||||||||||||
$s in thousands | Shares | Amounts | ||||||||||||
Balance as of December 31, 2023 | 315,789.473684 | $ | 354,840 | |||||||||||
Adjustment to maximum redemptions value | — | 6,189 | ||||||||||||
Balance as of March 31, 2024 | 315,789.473684 | $ | 361,029 |
Number of Awards | Weighted average grant date fair value | |||||||||||||
Outstanding as of December 31, 2023 | 6,624,459 | $ | 8.30 | |||||||||||
Granted | 1,028,917 | 5.27 | ||||||||||||
Vested | (1,703,592) | 8.30 | ||||||||||||
Forfeited/Cancelled | (227,501) | 6.82 | ||||||||||||
Outstanding as of March 31, 2024 | 5,722,283 | $ | 7.81 |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
$s in thousands, except per share amounts | 2024 | 2023 | ||||||||||||||||||||||||
Net loss | $ | (20,087) | $ | (44,685) | ||||||||||||||||||||||
Adjustments to Net loss: | ||||||||||||||||||||||||||
Series A Preferred Stock—adjustment for deemed dividend upon Closing | — | (48,300) | ||||||||||||||||||||||||
Series A Preferred Stock—adjustment to eliminate 50% multiplier | — | 156,362 | ||||||||||||||||||||||||
Series A Preferred Stock—adjustment to maximum redemptions value | (6,189) | (4,274) | ||||||||||||||||||||||||
(Loss) earnings attributable to Common Stockholders – Basic and Diluted | $ | (26,276) | $ | 59,103 | ||||||||||||||||||||||
Weighted average Common Stock outstanding—Basic | 47,602,241 | 43,488,468 | ||||||||||||||||||||||||
Weighted average effect of dilutive securities: | ||||||||||||||||||||||||||
Series A Preferred Stock | — | 30,624,501 | ||||||||||||||||||||||||
Unvested Legacy Bridger Incentive Units | — | 237,283 | ||||||||||||||||||||||||
Sponsor Earnout Shares | — | 636,500 | ||||||||||||||||||||||||
Weighted average Common Stock outstanding—Diluted | 47,602,241 | 74,986,752 | ||||||||||||||||||||||||
(Loss) earnings per share—Basic | $ | (0.55) | $ | 1.36 | ||||||||||||||||||||||
(Loss) earnings per share—Diluted | $ | (0.55) | $ | 0.79 |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Series A Preferred Stock | 32,820,828 | — | ||||||||||||||||||||||||
Unvested Restricted Stock Units | 5,722,283 | 4,181,142 | ||||||||||||||||||||||||
Public Warrants | 17,249,874 | 17,250,000 | ||||||||||||||||||||||||
Private Placement Warrants | 9,400,000 | 9,400,000 | ||||||||||||||||||||||||
Unvested Legacy Bridger Incentive Units | 40,404 | — | ||||||||||||||||||||||||
Sponsor Earnout Shares | 855,000 | — |
$s in thousands | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Period Over Period Change ($) | Period Over Period Change (%) | ||||||||||||||||||||||
Revenues | $ | 5,507 | $ | 365 | $ | 5,142 | 1,409% | |||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||
Flight operations | 5,009 | 3,733 | 1,276 | 34% | ||||||||||||||||||||||
Maintenance | 4,197 | 3,515 | 682 | 19% | ||||||||||||||||||||||
Total cost of revenues | 9,206 | 7,248 | 1,958 | 27% | ||||||||||||||||||||||
Gross loss | (3,699) | (6,883) | 3,184 | (46%) | ||||||||||||||||||||||
Selling, general and administrative expense | 11,610 | 33,229 | (21,619) | (65%) | ||||||||||||||||||||||
Operating loss | (15,309) | (40,112) | 24,803 | (62%) | ||||||||||||||||||||||
Interest expense | (5,923) | (5,665) | (258) | 5% | ||||||||||||||||||||||
Other income | 1,159 | 1,092 | 67 | 6% | ||||||||||||||||||||||
Loss before income taxes | (20,073) | (44,685) | 24,612 | (55%) | ||||||||||||||||||||||
Income tax expense | (14) | — | (14) | n/a | ||||||||||||||||||||||
Net loss | $ | (20,087) | $ | (44,685) | $ | 24,598 | (55%) |
$s in thousands | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Period Over Period Change ($) | Period Over Period Change (%) | ||||||||||||||||||||||
Fire suppression | $ | 3,881 | $ | — | $ | 3,881 | n/a | |||||||||||||||||||
Aerial surveillance | 583 | — | 583 | n/a | ||||||||||||||||||||||
Other services | 1,043 | 365 | 678 | 186% | ||||||||||||||||||||||
Total revenues | $ | 5,507 | $ | 365 | $ | 5,142 | 1,409% |
$s in thousands | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Period Over Period Change ($) | Period Over Period Change (%) | ||||||||||||||||||||||
Flight revenue | $ | 913 | $ | — | $ | 913 | n/a | |||||||||||||||||||
Standby revenue | 3,468 | — | 3,468 | n/a | ||||||||||||||||||||||
Other revenue | 1,126 | 365 | 761 | 208% | ||||||||||||||||||||||
Total revenues | $ | 5,507 | $ | 365 | $ | 5,142 | 1,409% |
$s in thousands | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Period Over Period Change ($) | Period Over Period Change (%) | ||||||||||||||||||||||
Net loss | $ | (20,087) | $ | (44,685) | $ | 24,598 | (55%) | |||||||||||||||||||
Income tax expense | 14 | — | 14 | n/a | ||||||||||||||||||||||
Depreciation and amortization | 1,290 | 1,751 | (461) | (26%) | ||||||||||||||||||||||
Interest expense | 5,923 | 5,665 | 258 | 5% | ||||||||||||||||||||||
EBITDA | (12,860) | (37,269) | 24,409 | (65%) | ||||||||||||||||||||||
Stock-based compensation1 | 5,871 | 25,597 | (19,726) | (77)% | ||||||||||||||||||||||
Business development & integration expenses2 | 312 | 519 | (207) | (40)% | ||||||||||||||||||||||
Change in fair value of earnout consideration3 | 15 | — | 15 | n/a | ||||||||||||||||||||||
Change in fair value of Warrants4 | (266) | (1,599) | 1,333 | (83%) | ||||||||||||||||||||||
Offering costs5 | — | 2,083 | (2,083) | (100%) | ||||||||||||||||||||||
Gain on disposal6 | — | (2) | 2 | (100)% | ||||||||||||||||||||||
Adjusted EBITDA | $ | (6,928) | $ | (10,671) | $ | 3,743 | (35%) | |||||||||||||||||||
Net loss margin7 | (365 | %) | (12,242 | %) | ||||||||||||||||||||||
Adjusted EBITDA margin7 | (126 | %) | (2,924 | %) |
$s in thousands | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||
Net cash used in operating activities | $ | (19,762) | $ | (36,653) | ||||||||||
Net cash (used in) provided by investing activities | (214) | 12,959 | ||||||||||||
Net cash used in financing activities | (896) | (4,077) | ||||||||||||
Net change in cash and cash equivalents | $ | (20,872) | $ | (27,771) |
Payments Due by Period | ||||||||||||||||||||
$s in thousands | Total | Current | Noncurrent | |||||||||||||||||
Lease obligations | $ | 10,613 | $ | 2,194 | $ | 8,419 | ||||||||||||||
Debt obligations | 210,640 | 3,030 | 207,610 | |||||||||||||||||
Total | $ | 221,253 | $ | 5,224 | $ | 216,029 |
Estimated useful life | ||||||||
Aircraft, engines and rotable parts | 1,500 –6,000 flight hours | |||||||
Vehicles and equipment | 3 – 5 years | |||||||
Buildings | 50 years | |||||||
Leasehold improvements | 27 – 29 years |
Exhibit Number | Description | |||||||
3.1 | Amended and Restated Certificate of Incorporation of Bridger Aerospace Group Holdings, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 27, 2023). | |||||||
3.2 | Amended and Restated Bylaws of Bridger Aerospace Group Holdings, Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed with the SEC on January 27, 2023). | |||||||
10.1 | First Amendment to Services Agreement, dated January 18, 2024, by and between Bridger Aerospace Group Holdings, Inc. and Bridger Aerospace Europe, S.L.U.. (incorporated by reference to Exhibit 10.42 to the Company’s Annual Report on Form 10-K filed with the SEC on March 20, 2024). | |||||||
10.2 | Sales Agreement, dated as of January 26, 2024, by and among Bridger Aerospace Group Holdings, Inc., Stifel, Nicolaus & Company, Incorporated and Virtu Americas LLC (incorporated by reference to Exhibit 1.2 to the Company’s Registration Statement on Form S-3 (File No. 333-276721) filed with the SEC on January 26, 2024). | |||||||
10.3*++ | Second Amendment to Services Agreement, dated May 8, 2024, by and between Bridger Aerospace Group Holdings, Inc. and Bridger Aerospace Europe, S.L.U.. | |||||||
31.1* | Certification of the Company’s Chief Executive Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (18 U.S.C. Section 7241). | |||||||
31.2* | Certification of the Company’s Chief Financial Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (18 U.S.C. Section 7241). | |||||||
32.1** | Certification of the Company’s Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (18 U.S.C. Section 1350). | |||||||
101.INS* | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104* | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
Date: May 14, 2024 | ||||||||
BRIDGER AEROSPACE GROUP HOLDINGS, INC. | ||||||||
By: | /s/ Timothy Sheehy | |||||||
Name: | Timothy Sheehy | |||||||
Title: | Chief Executive Officer and Director | |||||||
(Principal Executive Officer) | ||||||||
By: | /s/ Eric Gerratt | |||||||
Name: | Eric Gerratt | |||||||
Title: | Chief Financial Officer | |||||||
(Principal Accounting and Financial Officer) |
58 |
Lease
59 |
Operation, Retrofitting and Management of Aircraft
60 |
61 |
62 |
63 |
64 |
65 |
66 |
Purchase Right
67 |
68 |
69 |
70 |
71 |
Board Observer Rights
72 |
Other Covenants
73 |
74 |
75 |
Representations and Warranties
76 |
77 |
78 |
79 |
80 |
Termination of Agreement
81 |
82 |
Miscellaneous Provisions
83 |
One Bryant Park, 38th Floor
New York, NY 10036
Attention: Craig Thaler and Michael Alexander
Email: cthaler@marathonfund.com; malexander@marathonfund.com; legalteam@marathonfund.com
787 Seventh Avenue
New York, NY 10019
Attention: David Form, Bart Biggers
Email: dform@sidley.com; bart.biggers@sidley.com
84 |
One Bryant Park, 38th Floor
New York, NY 10036
Attention: Craig Thaler and Michael Alexander
Email: cthaler@marathonfund.com; malexander@marathonfund.com; legalteam@marathonfund.com
787 Seventh Avenue
New York, NY 10019
Attention: David Form, Bart Biggers
Email: dform@sidley.com; bart.biggers@sidley.com
85 |
86 |
87 |
88 |
89 |
Dated: May 14, 2024 | |||||||||||
By: | /s/ Timothy Sheehy | ||||||||||
Name: | Timothy Sheehy | ||||||||||
Title: | Chief Executive Officer |
90 |
Dated: May 14, 2024 | ||||||||
By: | /s/ Eric Gerratt | |||||||
Name: | Eric Gerratt | |||||||
Title: | Chief Financial Officer |
91 |
Dated: May 14, 2024 | |||||||||||
By: | /s/ Timothy Sheehy | ||||||||||
Name: | Timothy Sheehy | ||||||||||
Title: | Chief Executive Officer | ||||||||||
Dated: May 14, 2024 | |||||||||||
By: | /s/ Eric Gerratt | ||||||||||
Name: | Eric Gerratt | ||||||||||
Title: | Chief Financial Officer |
92 |