Matterport, Inc. – Audited Financial Statements |
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F-2 |
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F-3 |
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F-4 |
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F-5 |
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F-6 |
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F-7 |
December 31, |
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2020 |
2019 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
Accounts receivable, net of allowance of $ |
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Inventories |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net |
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Other assets |
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Total assets |
$ | $ | ||||||
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LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Current portion of long-term debt |
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Deferred revenue |
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Accrued expenses and other current liabilities |
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Total current liabilities |
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Long-term debt |
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Deferred revenue, non-current |
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Other long-term liabilities |
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Total liabilities |
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Commitments and contingencies (Note 6) |
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Redeemable convertible preferred stock, $ |
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Stockholders’ deficit: |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated other comprehensive income |
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Accumulated deficit |
( |
) | ( |
) | ||||
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Total stockholders’ deficit |
( |
) | ( |
) | ||||
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Total liabilities, redeemable convertible preferred stock and stockholders’ deficit |
$ | $ | ||||||
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|
|
Year Ended December 31, |
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2020 |
2019 |
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Revenue: |
||||||||
Subscription |
$ | $ | ||||||
License |
||||||||
Services |
||||||||
Product |
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|
|||||
Total revenue |
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Costs of revenue: |
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Subscription |
||||||||
License |
||||||||
Services |
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Product |
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Total costs of revenue |
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Gross profit |
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Operating expenses: |
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Research and development |
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Selling, general, and administrative |
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|
|||||
Total operating expenses |
||||||||
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|
|||||
Loss from operations |
( |
) | ( |
) | ||||
Other income (expense): |
||||||||
Interest income |
||||||||
Interest expense |
( |
) | ( |
) | ||||
Other expense, net |
( |
) | ( |
) | ||||
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|
|||||
Total other expense |
( |
) | ( |
) | ||||
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|
|||||
Loss before provision for income taxes |
( |
) | ( |
) | ||||
Provision for income taxes |
||||||||
Net loss |
( |
) | ( |
) | ||||
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|
|||||
Net loss per share attributable to common stockholders, basic and diluted |
$ | ( |
) | $ | ( |
) | ||
|
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|
|||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
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|
|||||
Other comprehensive income, net of tax: |
||||||||
Foreign currency translation gain |
||||||||
|
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|
|
|||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
Redeemable Convertible Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Deficit |
Total Stockholders’ Deficit |
|||||||||||||||||||||||||||
Shares (1) |
Amount |
Shares (1) |
Amount |
|||||||||||||||||||||||||||||
Balance as of January 1, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||
Net loss |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Conversion of convertible note to Series C redeemable convertible preferred stock |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of Series D redeemable convertible preferred stock, net of issuance costs |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock warrants, net of issuance costs |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options |
— | — | — | — | — | |||||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||
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|
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|
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|
|||||||||||||||||
Balance as of December 31, 2019 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Conversion of convertible note to Series D redeemable convertible preferred stock |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of Series D redeemable convertible preferred stock net of issuance costs |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock warrants net of issuance costs |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options |
— | — | — | — | ||||||||||||||||||||||||||||
Settlement of vested stock options |
— | — | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||
Repurchase and retirement of common stock |
— | — | ( |
) | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||
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|
|
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|
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|
|
|
|||||||||||||||||
Balance as of December 31, 2020 |
$ |
$ |
$ |
$ | $ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||
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(1) | The shares of the Company’s common and redeemable convertible preferred stock, prior to the Merger (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of approximately |
Year Ended December 31, |
||||||||
2020 |
2019 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net Loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation and amortization |
||||||||
Amortization of debt discount |
||||||||
Stock-based compensation, net of amounts capitalized |
||||||||
Loss on extinguishment of debt and convertible note |
||||||||
Allowance for doubtful accounts |
||||||||
Other |
( |
) | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ( |
) | ||||
Inventories |
( |
) | ||||||
Prepaid expenses and other assets |
( |
) | ( |
) | ||||
Accounts payable |
( |
) | ||||||
Deferred revenue |
||||||||
Other liabilities |
( |
) | ||||||
|
|
|
|
|||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Purchases of property and equipment |
( |
) | ( |
) | ||||
Capitalized software and development costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
CASH FLOW FROM FINANCING ACTIVITIES: |
||||||||
Proceeds from the issuance of redeemable convertible preferred stock, net of issuance costs |
||||||||
Proceeds from exercise of stock options |
||||||||
Settlement of vested stock options |
( |
) | ||||||
Repurchase of common stock |
( |
) | ||||||
Proceeds from debt |
||||||||
Proceeds from convertible notes, net of issuance costs |
||||||||
Repayment of debt |
( |
) | ( |
) | ||||
Other |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash provided by financing activities |
||||||||
|
|
|
|
|||||
Net change in cash, cash equivalents, and restricted cash |
||||||||
Effect of exchange rate changes on cash |
||||||||
Cash, cash equivalents, and restricted cash at beginning of year |
||||||||
|
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|
|
|||||
Cash, cash equivalents, and restricted cash at end of year |
$ | $ | ||||||
|
|
|
|
|||||
Supplemental disclosures of cash flow information |
||||||||
Cash paid for interest |
$ | $ | ||||||
Cash paid for income taxes |
$ | $ | ||||||
Supplemental disclosures of non-cash investing and financing information |
||||||||
Exchange of convertible notes for redeemable convertible preferred stock |
$ | $ |
December 31, |
||||||||
2020 |
2019 |
|||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
|
|
|
|
|||||
Total cash, cash equivalents, and restricted cash |
$ | $ | ||||||
|
|
|
|
December 31, 2020 |
||||||||||||||||
Description: |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Cash equivalents: |
||||||||||||||||
U.S. Treasury securities |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash equivalents |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
December 31, 2019 |
||||||||||||||||
Description: |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Cash equivalents: |
||||||||||||||||
U.S. Treasury securities |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash equivalents |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Machinery and equipment |
||
Furniture and fixtures |
||
Capitalized software and development costs |
||
Leasehold improvements |
Year Ended December 31, |
||||||||
2020 |
2019 |
|||||||
United States |
$ | $ | ||||||
International |
||||||||
|
|
|
|
|||||
Total revenue |
$ | $ | ||||||
|
|
|
|
Year Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Over time revenue |
$ | $ | ||||||
Point-in-time |
||||||||
|
|
|
|
|||||
Total |
$ | $ | ||||||
|
|
|
|
December 31, |
||||||||
2020 |
2019 |
|||||||
Accounts receivable, net |
$ | $ | ||||||
Unbilled accounts receivable |
||||||||
Deferred revenue |
December 31, |
||||||||
2020 |
2019 |
|||||||
Balance—beginning of year |
$ | ( |
) | $ | ( |
) | ||
Increase in reserves |
( |
) | ( |
) | ||||
Write-offs |
||||||||
|
|
|
|
|||||
Balance—end of year |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
December 31, |
||||||||
2020 |
2019 |
|||||||
Finished goods |
$ | $ | ||||||
Work in process |
||||||||
Purchased parts and raw materials |
||||||||
|
|
|
|
|||||
Total inventories |
$ | $ | ||||||
|
|
|
|
December 31, |
||||||||
2020 |
2019 |
|||||||
Prepaid subscription |
$ | $ | ||||||
Prepaid materials |
||||||||
Prepaid rent and security deposit |
||||||||
Other prepaid expenses and current assets |
||||||||
|
|
|
|
|||||
Total prepaid expenses and other current assets |
$ | $ | ||||||
|
|
|
|
December 31, |
||||||||
2020 |
2019 |
|||||||
Machinery and equipment |
$ | $ | ||||||
Furniture and fixtures |
||||||||
Leasehold improvements |
||||||||
Capitalized software and development costs |
||||||||
|
|
|
|
|||||
Total property and equipment |
||||||||
Accumulated depreciation and amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total property and equipment, net |
$ | $ | ||||||
|
|
|
|
December 31, |
||||||||
2020 |
2019 |
|||||||
Accrued compensation |
$ | $ | ||||||
Tax payable |
||||||||
Other current liabilities |
||||||||
|
|
|
|
|||||
Total accrued expenses and other current liabilities |
$ | $ | ||||||
|
|
|
|
December 31, |
||||||||
2020 |
2019 |
|||||||
Line of credit |
$ | $ | ||||||
2019 Term Loan |
||||||||
2018 Term Loan |
||||||||
2020 Term Loan |
||||||||
|
|
|
|
|||||
Total debt |
||||||||
Less: unamortized debt discount |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total debt, net of debt discount |
||||||||
Less: current portion of long-term debt |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Long-term debt |
$ | $ | ||||||
|
|
|
|
December 31, 2020 |
||||
2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
|
|
|||
Total |
$ | |||
|
|
Operating Leases |
Purchase Obligations |
Total Lease and Purchase Obligations |
||||||||||
2021 |
$ | $ | $ | |||||||||
2022 |
||||||||||||
2023 |
||||||||||||
2024 |
||||||||||||
2025 |
||||||||||||
Thereafter |
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|
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|
|
|
|||||||
Total |
$ | $ | $ | |||||||||
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|
|
December 31, 2020 |
||||||||||||||||||||||||||||
Convertible preferred stock: |
Original Issuance Price |
Shares Authorized |
Shares Issued and Outstanding |
Shares of Common Stock if converted |
Carrying Value |
Aggregate Liquidation Preference |
Dividend Rate |
|||||||||||||||||||||
Series Seed redeemable |
$ | $ | $ | % | ||||||||||||||||||||||||
Series A-1 redeemable |
$ | % | ||||||||||||||||||||||||||
Series B redeemable |
$ | % | ||||||||||||||||||||||||||
Series C redeemable |
$ | % | ||||||||||||||||||||||||||
Series D redeemable |
$ | $ | % | |||||||||||||||||||||||||
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|||||||||||||||||||
$ | $ | |||||||||||||||||||||||||||
|
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|
|
December 31, 2019 |
||||||||||||||||||||||||||||
Convertible preferred stock: |
Original Issuance Price |
Shares Authorized |
Shares Issued and Outstanding |
Shares of Common Stock if converted |
Carrying Value |
Aggregate Liquidation Preference |
Dividend Rate |
|||||||||||||||||||||
Series Seed redeemable |
$ | $ | $ | % | ||||||||||||||||||||||||
Series A-1 redeemable |
$ | % | ||||||||||||||||||||||||||
Series B redeemable |
$ | % | ||||||||||||||||||||||||||
Series C redeemable |
$ | % | ||||||||||||||||||||||||||
Series D redeemable |
$ | $ | % | |||||||||||||||||||||||||
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|
|||||||||||||||||||
$ | $ | |||||||||||||||||||||||||||
|
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|
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|
|
December 31, |
||||||||
2020 |
2019 |
|||||||
Redeemable convertible preferred stock, all series |
||||||||
Warrants to purchase common stock |
||||||||
Common stock options outstanding |
||||||||
Shares available for future grant of equity awards |
||||||||
|
|
|
|
|||||
Total shares of common stock reserved |
||||||||
|
|
|
|
Options Outstanding |
Weighted- Average Remaining Contractual Term (Years) |
|||||||||||||||
Number of Shares |
Weighted- Average Exercise Price |
Aggregate Intrinsic Value |
||||||||||||||
Balance—January 1, 2019 |
$ | $ | ||||||||||||||
Granted |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Expired or canceled |
( |
) | ||||||||||||||
|
|
|||||||||||||||
Balance—December 31, 2019 |
$ | $ | ||||||||||||||
Granted |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Expired or canceled |
( |
) | ||||||||||||||
|
|
|||||||||||||||
Balance—December 31, 2020 |
$ | $ | (1) | |||||||||||||
|
|
|||||||||||||||
Option vested and exercisable—December 31, 2020 |
$ | $ | (1) | |||||||||||||
|
|
|
|
(1) | As corrected to reflect the common stock fair market value per share as of December 31, 2020. |
Year Ended December 31, | ||||
2020 |
2019 | |||
Expected volatility |
||||
Expected term |
||||
Risk-free interest rate |
||||
Expected dividend yield |
Year ended December 31, |
||||||||
2020 |
2019 |
|||||||
Costs of revenue |
$ | $ | ||||||
Research and development |
||||||||
Selling, general, and administrative |
||||||||
Stock-based compensation, net of amounts capitalized |
||||||||
Capitalized stock-based compensation |
||||||||
|
|
|
|
|||||
Total stock-based compensation |
$ | $ | ||||||
|
|
|
|
Year Ended December 31, |
||||||||
2020 |
2019 |
|||||||
United States |
$ | ( |
) | $ | ( |
) | ||
Foreign |
||||||||
|
|
|
|
|||||
Loss before income taxes |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
Year Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Current |
||||||||
State |
$ | $ | ||||||
International |
||||||||
|
|
|
|
|||||
Total current tax expense |
||||||||
Total deferred tax expense |
||||||||
|
|
|
|
|||||
Total tax expense |
$ | $ | ||||||
|
|
|
|
Year Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Deferred tax assets: |
||||||||
Net operating loss carryforwards |
$ | $ | ||||||
Research and development credits carryforward |
||||||||
Accruals |
||||||||
Other |
||||||||
Interest expense carryforward |
||||||||
Fixed assets |
||||||||
Stock-based compensation |
||||||||
|
|
|
|
|||||
Total deferred tax assets |
$ | $ | ||||||
|
|
|
|
|||||
Less: valuation allowance |
( |
) | ( |
) | ||||
Deferred tax liabilities: |
||||||||
Intangibles |
( |
) | ( |
) | ||||
Deferred commissions |
( |
) | ( |
) | ||||
Total deferred tax liabilities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net deferred tax assets |
$ | $ | ||||||
|
|
|
|
Description |
Balance at beginning of period |
Additions charges to costs and expenses |
Write-offs and deductions |
Balance at end of period |
||||||||||||
Valuation allowance for deferred tax assets |
||||||||||||||||
For the Year Ended December 31, 2020 |
— | |||||||||||||||
For the Year Ended December 31, 2019 |
— |
Amount |
Expiration Years |
|||||||
NOLs, federal (Post December 31, 2017) |
$ | Do Not Expire | ||||||
NOLs, federal (Pre January 1, 2018) |
||||||||
NOLs, state |
||||||||
Tax credits, federal |
||||||||
Tax credits, state |
$ | Do Not Expire |
December 31, |
||||||||
2020 |
2019 |
|||||||
Statutory federal income benefit rate |
% | % | ||||||
State income tax rate |
||||||||
Change in valuation allowance |
( |
) | ( |
) | ||||
Research and development credits |
||||||||
Other |
( |
) | ( |
) | ||||
Convertible notes—nondeductible |
( |
) | ||||||
Stock-based compensation |
( |
) | ( |
) | ||||
Foreign rate differential |
( |
) | ||||||
|
|
|
|
|||||
Effective tax rate |
( |
)% | ( |
)% | ||||
|
|
|
|
Year Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Unrecognized tax benefits—beginning |
$ | $ | ||||||
Gross Increases—prior-year unrecognized tax benefits |
||||||||
Gross Increases—current-year unrecognized tax benefits |
||||||||
|
|
|
|
|||||
Unrecognized tax benefits—ending |
$ | $ | ||||||
|
|
|
|
Year ended December 31, |
||||||||
2020 |
2019 |
|||||||
Numerator : |
||||||||
Net loss attributable to common stockholders |
$ | ( |
) | $ | ( |
) | ||
Denominator: |
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Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
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Net loss per share attributable to common stockholders, basic and diluted |
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Year ended December 31, |
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2020 |
2019 |
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Redeemable convertible preferred stock, all series |
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Warrants to purchase common stock |
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Common stock options outstanding |
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Total potentially dilutive common share equivalents |
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• | Immediately prior to the Closing, |
• | each issued and outstanding share of Legacy Matterport preferred stock was canceled and converted into the right to receive a total of |
• | each Legacy Matterport warrant was exercised in full in exchange for the issuance of |
• | each issued and outstanding share of Legacy Matterport common stock (including the items mentioned in above points) was canceled and converted into the right to receive an aggregate number of shares of Class A common stock equal to the Per Share Matterport Stock Consideration; |
• | each outstanding vested and unvested Legacy Matterport common stock option was converted into a rollover option, exercisable for shares of Matterport Class A common stock with the same terms except for the number of shares exercisable and the exercise price, each of which was adjusted using the Per Share Matterport Stock Consideration; and |
• | each outstanding and unvested Legacy Matterport RSU was converted into a rollover RSU for shares of Matterport Class A common stock with the same terms except for the number of shares, which were adjusted using the Per Share Matterport Stock Consideration |