Pear Therapeutics, Inc.

CIK:0001835567|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue
Total revenue	$ 12,694	$ 4,208
Cost and operating expenses
Cost of revenue	8,182	5,233
Research and development	48,311	37,041
Selling, general, and administrative	79,551	67,619
Total cost and operating expenses	136,044	109,893
Loss from operations	(123,350)	(105,685)
Other income (expense):
Interest and other (expense) income, net	(3,892)	(4,144)
Change in estimated fair value of earn-out liabilities	45,339	47,038
Change in estimated fair value of warrant liabilities	6,412	(298)
Loss on issuance of Legacy Pear convertible preferred stock	0	(2,053)
Total other income	47,859	40,543
Net loss	(75,491)	(65,142)
Unrealized loss on short-term investments	(46)	(1)
Comprehensive loss	$ (75,537)	$ (65,143)
Net loss per share:
Basic (in dollars per share)	$ (0.54)	$ (0.57)
Diluted (in dollars per share)	$ (0.54)	$ (0.57)
Weighted average common shares outstanding:
Weighted-average common shares outstanding, basic (in shares)	138,707,278	113,328,450
Weighted-average common shares outstanding, diluted (in shares)	138,707,278	113,328,450
Product revenue
Revenue
Total revenue	$ 10,417	$ 3,748
Collaboration and license revenue
Revenue
Total revenue	872	460
Subscription, support, and professional services revenue
Revenue
Total revenue	$ 1,405	$ 0

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Activities:
Net loss	$ (75,491)	$ (65,142)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	3,347	1,689
Impairment of intangible asset	2,879	0
Amortization of intangible asset	620	563
Amortization of debt discount	453	648
Amortization of right-of-use asset	1,735	0
Accretion and amortization of interest income	(26)	22
Stock-based compensation expense	13,533	3,810
Loss on issuance of Legacy Pear convertible preferred stock	0	2,053
Change in fair value of warrants	(6,412)	298
Change in fair value of earn-out liabilities	(45,339)	(47,038)
Change in fair value of embedded derivative	569	0
Changes in operating assets and liabilities:
Accounts receivable	(5,150)	(1,192)
Prepaid expenses and other assets	(930)	(8,979)
Lease liabilities	(1,700)	0
Accounts payable	4	(3,094)
Accrued expenses, other liabilities and non-current liabilities	(1,841)	7,144
Deferred revenues	(146)	175
Net cash used in operating activities	(113,895)	(109,043)
Investing Activities:
Proceeds from maturities of short-term investments	60,048	16,525
Purchases of short-term investments	(66,035)	(8,014)
Purchases of property and equipment	(3,470)	(3,278)
Purchases of intangible assets	0	(1,350)
Payment of milestone license in intangibles and accrued expenses	0	1,000
Net cash (used in) provided by investing activities	(9,457)	2,883
Financing Activities:
Proceeds from issuance of Legacy Pear convertible preferred stock, net	0	19,917
Proceeds from Business Combination, net of transactions costs paid	0	144,301
Repayment of note assumed in the Business Combination	0	(1,000)
Proceeds from exercise of stock options	1,795	859
Proceeds from employee stock purchase plan	360	0
Net cash provided by financing activities	2,155	164,077
Net (decrease) increase in cash, cash equivalents and restricted cash	(121,197)	57,917
Cash, cash equivalents and restricted cash—beginning of period	169,978	112,061
Cash, cash equivalents and restricted cash—end of period	48,781	169,978
Supplemental disclosure of cash flow information:
Cash paid for interest	3,560	3,709
Supplemental disclosure of non-cash investing and financing information:
Issuance of stock upon exercise of Legacy Pear warrants	0	10,907
Recognition of warrant liability	0	16,487
Recognition of earn-out liabilities	0	95,401
Note payable and net liabilities assumed in the Business Combination (excluding warrant liabilities)	0	1,147
Deferred offering and equity issuance costs included in accounts payable and accrued expenses	163	700
Purchase of intangible asset with seller financing	0	1,011
Purchases of property and equipment in accounts payable and accrued expenses	86	388
Purchases of other assets in accounts payable and accrued expenses	$ 1,755	$ 0

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 48,301	$ 169,567
Short-term investments	10,971	5,004
Restricted cash - short-term	69	0
Accounts receivable	6,943	1,794
Prepaid expenses and other current assets	6,675	8,876
Total current assets	72,959	185,241
Property and equipment, net	6,076	6,255
Lease right-of-use assets	8,879	0
Restricted cash - long-term	411	411
Other long-term assets	6,804	5,253
Total assets	95,129	197,160
Current liabilities:
Accounts payable	3,263	1,806
Accrued expenses and other current liabilities	16,464	17,946
Operating lease liabilities - current	1,984	0
Deferred revenues	284	421
Debt	27,447	26,993
Total current liabilities	49,442	47,166
Operating lease liabilities - non-current	8,176	0
Embedded debt derivative	1,245	675
Warrant liabilities	2,116	8,528
Earn-out liabilities	3,024	48,363
Other long-term liabilities	541	1,994
Total liabilities	64,544	106,726
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of December 31, 2022; and no shares issued and outstanding as of December 31, 2022 and December 31, 2021	0	0
Common stock, $0.0001 par value; 690,000,000 shares authorized as of December 31, 2022; and 140,454,086 and 137,836,028 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively	14	14
Additional paid-in capital	354,092	338,404
Accumulated deficit	(323,474)	(247,983)
Accumulated other comprehensive loss	(47)	(1)
Total stockholders’ equity	30,585	90,434
Total liabilities and stockholders’ equity	$ 95,129	$ 197,160