Desktop Metal, Inc.

CIK:0001754820|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues
Total revenues	$ 36,405,000	$ 42,750,000	$ 115,937,000	$ 137,352,000
Cost of sales
Total cost of sales	33,244,000	40,826,000	147,171,000	130,703,000
Gross profit (loss)	3,161,000	1,924,000	(31,234,000)	6,649,000
Operating expenses
Research and development	11,500,000	20,455,000	48,456,000	64,822,000
Sales and marketing	8,053,000	8,549,000	45,008,000	28,596,000
General and administrative	17,330,000	9,528,000	59,740,000	50,673,000
Impairment charges		6,062,000		6,062,000
Goodwill impairment		2,450,000	0	2,450,000
Total operating expenses	36,883,000	47,044,000	153,204,000	152,603,000
Loss from operations	(33,722,000)	(45,120,000)	(184,438,000)	(145,954,000)
Interest expense	(1,690,000)	(1,045,000)	(4,871,000)	(2,965,000)
Interest and other expense, net	228,000	(349,000)	(1,266,000)	(498,000)
Loss before income taxes	(35,184,000)	(46,514,000)	(190,575,000)	(149,417,000)
Income tax benefit (expense)	(264,000)	141,000	(411,000)	675,000
Net loss	$ (35,448,000)	$ (46,373,000)	$ (190,986,000)	$ (148,742,000)
Net loss per share-basic	$ (1.07)	$ (1.43)	$ (5.78)	$ (4.63)
Net loss per share-diluted	$ (1.07)	$ (1.43)	$ (5.78)	$ (4.63)
Weighted average shares outstanding, basic	33,268,899	32,318,761	33,023,091	32,132,801
Weighted average shares outstanding, diluted	33,268,899	32,318,761	33,023,091	32,132,801
Products
Revenues
Total revenues	$ 31,939,000	$ 37,502,000	$ 98,981,000	$ 121,597,000
Cost of sales
Total cost of sales	29,962,000	37,175,000	136,190,000	119,290,000
Services
Revenues
Total revenues	4,466,000	5,248,000	16,956,000	15,755,000
Cost of sales
Total cost of sales	$ 3,282,000	$ 3,651,000	$ 10,981,000	$ 11,413,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Cash flows from operating activities:
Net loss		$ (190,986,000)	$ (148,742,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		103,786,000	40,322,000
Stock-based compensation		18,058,000	26,699,000
Goodwill impairment	$ 2,450,000	0	2,450,000	$ 112,911,000
Amortization (accretion) of discount on investments			(490,000)
Amortization of deferred costs on convertible notes		548,000	548,000
Provision for bad debt		1,756,000	640,000
Provision for slow-moving, obsolete, and lower of cost or net realizable value inventories, net		(45,000)
Loss (gain) on disposal of property and equipment		(35,000)	501,000
Foreign exchange (gains) losses on intercompany transactions, net		(4,000)
Impairment charges	6,062,000		6,062,000
Net decrease in accrued interest related to marketable securities			238,000
Net unrealized loss on equity investment		625,000	286,000
Deferred tax benefit		305,000	(675,000)
Foreign currency transaction loss		486,000	392,000
Changes in operating assets and liabilities:
Accounts receivable		13,267,000	(2,446,000)
Inventory		(694,000)	(16,052,000)
Prepaid expenses and other current assets		2,264,000	(8,716,000)
Other assets		9,967,000	2,425,000
Accounts payable		(4,055,000)	7,397,000
Accrued expenses and other current liabilities		(415,000)	1,009,000
Customer deposits		(1,000,000)	(4,542,000)
Deferred revenue		(2,202,000)	3,590,000
Change in right of use assets and lease liabilities, net		(5,033,000)	(4,456,000)
Other liabilities		8,000	1,706,000
Net cash used in operating activities		(53,399,000)	(91,854,000)
Cash flows from investing activities:
Purchases of property and equipment		(810,000)	(2,709,000)
Proceeds from sale of property and equipment		1,694,000	9,942,000
Purchase of marketable securities			(4,973,000)
Proceeds from sales and maturities of marketable securities			112,719,000
Cash paid for acquisitions, net of cash acquired			(500,000)
Proceeds from disposal of subsidiaries			4,089,000
Net cash provided by investing activities		884,000	118,568,000
Cash flows from financing activities:
Proceeds from the exercise of stock options			1,203,000
Payment of taxes related to net share settlement upon vesting of restricted stock units		(403,000)	(147,000)
Repayment of loans		(237,000)	(337,000)
Net cash (used in) provided by financing activities		(640,000)	719,000
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(698,000)	(461,000)
Cash and cash equivalents at beginning of period		83,845,000
Cash and cash equivalents at period end	107,432,000	30,617,000	107,432,000	83,845,000
Net increase (decrease) in cash, cash equivalents, and restricted cash		(53,853,000)	26,972,000
Cash, cash equivalents, and restricted cash at beginning of period		84,690,000	81,913,000	81,913,000
Cash, cash equivalents, and restricted cash at end of period	108,885,000	30,837,000	108,885,000	84,690,000
Supplemental disclosures of cash flow information
Cash and cash equivalents	107,432,000	30,617,000	107,432,000	83,845,000
Restricted cash included in other current assets	841,000	220,000	841,000
Restricted cash included in other noncurrent assets	612,000		612,000
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$ 108,885,000	30,837,000	108,885,000	$ 84,690,000
Supplemental cash flow information:
Interest paid		3,488,000
Non-cash investing and financing activities:
Net unrealized gain on investments			(339,000)
Common Stock issued for settlement of contingent consideration			797,000
Additions to right of use assets and lease liabilities		1,600,000	11,443,000
Purchase of property and equipment included in accounts payable		160,000	326,000
Purchase of property and equipment included in accrued expense			90,000
Transfers from inventory to property and equipment		$ 2,725,000	1,370,000
Transfers from property and equipment to inventory			$ 1,647,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 30,617	$ 83,845
Current portion of restricted cash	220	233
Short-term investments		625
Accounts receivable	22,803	37,690
Inventory	80,853	82,639
Prepaid expenses and other current assets	8,946	11,105
Total current assets	143,439	216,137
Restricted cash, net of current portion		612
Property and equipment, net	27,184	35,840
Intangible assets, net	75,297	168,259
Other noncurrent assets	27,773	37,153
Total Assets	273,693	458,001
Current liabilities:
Accounts payable	14,317	18,190
Customer deposits	4,403	5,356
Current portion of lease liability	7,936	7,404
Accrued expenses and other current liabilities	23,149	27,085
Current portion of deferred revenue	11,206	11,739
Current portion of long-term debt, net of deferred financing costs	181	330
Total current liabilities	61,192	70,104
Long-term debt, net of current portion		89
Convertible notes	113,113	112,565
Lease liability, net of current portion	18,673	23,566
Deferred revenue, net of current portion	2,052	3,696
Deferred tax liability	3,609	3,523
Other noncurrent liabilities	2,706	2,806
Total liabilities	201,345	216,349
Commitments and Contingencies (Note 17)
Stockholders' Equity
Preferred Stock, $0.0001 par value-authorized, 50,000,000 shares; no shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively
Common Stock, $0.0001 par value-500,000,000 shares authorized; 33,310,041 and 32,527,742 shares issued at September 30, 2024 and December 31, 2023, respectively, 33,310,040 and 32,527,167 shares outstanding at September 30, 2024 and December 31, 2023, respectively	4	4
Additional paid-in capital	1,929,669	1,908,533
Accumulated deficit	(1,823,211)	(1,632,225)
Accumulated other comprehensive loss	(34,114)	(34,660)
Total Stockholders' Equity	72,348	241,652
Total Liabilities and Stockholders' Equity	$ 273,693	$ 458,001