See "Explanatory Note- Certain Defined Terms" for the definitions of certain terms used throughout this Quarterly Report.
Key Financial and Operational Metrics
Bookings ($ in millions): Bookings ($ in millions) are defined as a confirmed order for a 3D printer system in contracted dollars.
Backlog ($ in millions): Backlog ($ in millions) is defined as the unfulfilled 3D printer systems to be delivered to customers in contracted dollars as of period end.
Impact of COVID-19 and Other World Events
Components of Results of Operations
the three and six months ended June 30, 2021. For more information, see "-Critical Accounting Policies and Significant Estimates-Revenue - Variable Consideration" below.
Our cost of revenue includes the "Cost of 3D Printers," "Cost of Recurring Payment" and "Cost of Support Services."
Gross Profit and Gross Margin
Interest expense primarily consists of interest incurred under our outstanding debt and finance leases.
Gain (Loss) on Fair Value of Warrants
Gain (Loss) on Fair value of Contingent Earnout Liabilities
Other income (expense), net includes interest earned on our bank sweep account, gains and losses on disposals of fixed assets and other miscellaneous income/expenses.
Comparison of the Three Months Ended June 30, 2022 and 2021:
The following table presents the revenue disaggregated by products and service type, as well as the percentage of total revenue.
Total revenue for the three months ended June 30, 2022 and 2021 was $19.6 million and $7.1 million, respectively, an increase of $12.5 million, or 174.9%.
The following table presents the Cost of Revenue disaggregated by product and service type, as well as the percentage of total revenue.
Total cost of revenue for the three months ended June 30, 2022 and 2021 was $18.4 million and $5.0 million, respectively, an increase of $13.5 million, or 271%.
Gross Profit and Gross Margin
Our gross profit and gross margin are influenced by a number of factors, including:
•New product introduction pricing strategies and market conditions that may impact our pricing;
• Production volumes that may impact factory overhead absorption; and
• Cost of our Support Services and product support may be influenced by product mix changes, including new product introductions, and other factors.
Interest expense was $0.1 million and $0.5 million for the three months ended June 30, 2022 and 2021, respectively.
Gain (loss) on Fair Value of Warrants
Gain (loss) on Fair value of Contingent Earnout Liabilities
Comparison of the Six Months Ended June 30, 2022 and 2021:
The following table presents the revenue disaggregated by products and service type, as well as the percentage of total revenue.
Total revenue for the six months ended June 30, 2022 and 2021 was $31.9 million and $8.3 million, respectively, an increase of $23.6 million, or 283.0%.
The following table presents the Cost of Revenue disaggregated by product and service type, as well as the percentage of total revenue.
Total cost of revenue for the six months ended June 30, 2022 and 2021 was $30.6 million and $6.5 million, respectively, an increase of $24.1 million, or 369%.
Interest expense was $0.2 million and $0.6 million for the six months ended June 30, 2022 and 2021, respectively.
Gain (loss) on Fair Value of Warrants
Gain (loss) on Fair value of Contingent Earnout Liabilities
on the revolver as of June 30, 2022 was $3.0 million. We do not hedge our exposure to changes in interest rates. A 10% change in interest rates would not have a material impact on annualized interest expense.
Equipment Loans Secured by Leased Equipment
As discussed in more detail above, on July 25, 2022, we established an up to $15.0 million secured equipment loan facility.
As of June 30, 2022, we have invested $12 million into lab equipment and leasehold improvements for our Sapphire® XC manufacturing facility. We expect to invest an additional $2.0 million to $3.0 million in factory equipment and leasehold improvements to complete the Sapphire® XC system manufacturing facility in the second half of 2022 depending on our operating performance, competitive and industry developments, and financial market conditions.
Net cash provided by (used in) operating activities $ 68,793 $ (13,022) $ 81,815 Net cash used in investing activities
$ (5,645) $ (89,151) Net cash (used in) provided by financing activities $ (497) $ 16,298 $ (16,795)
Net cash used in operating activities for the six months ended June 30, 2021 was $13.0 million, consisting primarily of a net loss of $26.1 million and an increase in net operating assets of $9.6 million, primarily due to
We expect our cash used in operating activities to increase in the remainder of 2022 driven by working capital requirements and operating expenses as we significantly increase the scale of our operations.
As of June 30, 2022 and December 31, 2021, we did not have any off-balance sheet arrangements.
Implications of Being an Emerging Growth Company
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or
Implications of Being a Smaller Reporting Company
Critical Accounting Policies and Significant Estimates
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