Report of Independent Registered Public Accounting Firm |
1 | |||
Consolidated Financial Statements |
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Consolidated Balance Sheets as of December 31, 2020 and 2019 |
2 | |||
Consolidated Statements of Operations and Comprehensive Loss for the Years Ended December 31, 2020 and 2019 |
3 | |||
Consolidated Statements of Mezzanine Equity and Stockholders’ Deficit for the Years Ended December 31, 2020 and 2019 |
4 | |||
Consolidated Statements of Cash Flows for the Years Ended December 31, 2020 and 2019 |
5 | |||
Notes to Consolidated Financial Statements |
6 |
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 |
$ | $ | ||||||
Short-term investments |
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Inventory |
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Prepaid expenses and other current assets |
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Deferred transaction costs |
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Total current assets |
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Restricted cash, noncurrent |
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Other long-term assets |
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Total assets |
$ | $ | ||||||
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Liabilities, mezzanine equity, and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued liabilities |
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Deferred revenue |
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Term loan, current |
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Warrant liabilities |
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Total current liabilities |
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Deferred rent, noncurrent |
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Total liabilities |
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Commitments and contingencies (Note 11) |
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Mezzanine equity: |
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Redeemable convertible preferred stock – par value $ |
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Redeemable Class A common stock – par value $ |
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Total mezzanine equity |
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Stockholders’ deficit: |
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Common stock – Class A shares, par value $ |
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Additional paid-in capital |
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Accumulated other comprehensive (loss) income |
( |
) | ||||||
Accumulated deficit |
( |
) | ( |
) | ||||
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Total stockholders’ deficit |
( |
) | ( |
) | ||||
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Total liabilities, mezzanine equity, and stockholders’ deficit |
$ | $ | ||||||
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Year Ended December 31, |
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2020 |
2019 |
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Revenue |
$ | $ | ||||||
Cost of revenue |
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Gross profit |
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Operating expenses: |
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Marketing |
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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): |
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Interest expense |
( |
) | ( |
) | ||||
Other (expense) income, net |
( |
) | ||||||
Loss before provision for income taxes |
( |
) | ( |
) | ||||
Provision for income taxes |
( |
) | ( |
) | ||||
Net loss |
( |
) | ( |
) | ||||
Other comprehensive (loss) income |
( |
) | ||||||
Total comprehensive loss |
$ | ( |
) | $ | ( |
) | ||
Net loss per share attributable to common stockholders: |
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Basic and diluted |
$ | ( |
) | $ | ( |
) | ||
Weighted average shares outstanding: |
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Basic and diluted |
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Redeemable Convertible Preferred Stock |
Redeemable Class A Common Stock |
Class A and Class F Common Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
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Balance as of December 31, 2018 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||||||||
Issuance of redeemable convertible preferred stock, net of issuance costs, including warrants, of $ |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||
Issuance of Class A common stock warrants |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||
Exercise of vested stock options |
— |
— |
— |
— |
— |
— |
— |
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Early exercise of unvested stock options |
— |
— |
— |
— |
— |
— |
— |
— |
— |
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Vesting of early exercised stock options |
— |
— |
— |
— |
— |
— |
— |
— |
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Forfeiture of unvested shares issued for early exercised stock options |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
— |
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Stock-based compensation |
— |
— |
— |
— |
— |
— |
— |
— |
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Reclassification associated with Class A common stock subject to redemption |
— |
— |
( |
) |
— |
( |
) |
— |
— |
( |
) | |||||||||||||||||||||||||||||
Other comprehensive income |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Balance as of December 31, 2019 |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||
Issuance of Series D redeemable convertible preferred stock, net of issuance costs of $ |
— |
— |
— |
— |
— |
— |
— |
— |
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Exercise of Series C redeemable convertible preferred stock warrants |
— |
— |
— |
— |
— |
— |
— |
— |
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Exercise of Class A common stock warrants |
— |
— |
— |
— |
— |
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Exercise of vested stock options |
— |
— |
— |
— |
— |
— |
— |
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Early exercise of unvested stock options |
— |
— |
— |
— |
— |
— |
— |
— |
— |
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Vesting of early exercised stock options |
— |
— |
— |
— |
— |
— |
— |
— |
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Forfeiture of unvested early exercised shares |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
— |
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Stock-based compensation |
— |
— |
— |
— |
— |
— |
— |
— |
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Expiration of the Class A common stock redemption right |
— |
— |
( |
) |
( |
) |
— |
— |
— |
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Other comprehensive loss |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Balance as of December 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||||||||
Year Ended December 31, |
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2020 |
2019 |
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Operating activities |
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Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
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Stock-based compensation |
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Change in fair value of warrant liability |
( |
) | ||||||
Loss on lease termination |
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Amortization of debt issuance costs |
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Noncash other |
( |
) | ||||||
Changes in operating assets and liabilities: |
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Inventory |
( |
) | ||||||
Prepaid expenses and other current assets |
( |
) | ( |
) | ||||
Other long-term assets |
( |
) | ||||||
Accounts payable |
( |
) | ||||||
Accrued liabilities |
( |
) | ||||||
Deferred revenue |
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Deferred rent |
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Net cash used in operating activities |
( |
) | ( |
) | ||||
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Investing activities |
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Purchases of investments |
( |
) | ( |
) | ||||
Maturities of investments |
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Proceeds from sale of investments |
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Investment in website development, internal-use software, and intangible assets |
( |
) | ( |
) | ||||
Purchases of property, equipment, and intangible assets |
( |
) | ( |
) | ||||
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Net cash used in investing activities |
( |
) | ( |
) | ||||
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Financing activities |
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Proceeds from issuance of redeemable convertible preferred stock |
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Payments for issuance costs of redeemable convertible preferred stock |
( |
) | ( |
) | ||||
Proceeds from exercise of Series C preferred stock warrants |
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Proceeds from exercise of Class A common stock warrants |
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Proceeds from exercise of vested and unvested stock options, net of repurchases of unvested shares |
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Borrowings of principal on term loan |
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Repayments of principal on term loan |
( |
) | ( |
) | ||||
Payments for debt issuance costs |
( |
) | ||||||
Payments for transaction costs |
( |
) | ||||||
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Net cash provided by financing activities |
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Foreign currency effect on cash and cash equivalents |
( |
) | ( |
) | ||||
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Increase (decrease) in cash, cash equivalents, and restricted 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 |
$ | $ | ||||||
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Supplemental disclosures of cash flow information |
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Cash paid for taxes |
$ | $ | ||||||
Cash paid for interest |
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Noncash investing and financing activities |
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Exercise of preferred stock warrants |
$ | $ | ||||||
Expiration of Class A common stock redemption right |
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Redeemable Class A common stock reclassification |
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Deferred transaction costs payable |
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Warrants issued for debt issuance costs |
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Vesting of early exercised stock options |
December 31, |
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2020 |
2019 |
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Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
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Total cash, cash equivalents, and restricted cash |
$ | $ | ||||||
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• | Level 1: Inputs that are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. |
• | Level 2: Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. |
• | Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. |
2021 |
$ | |||
2022 |
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2023 |
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2024 |
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2025 and thereafter |
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Total |
$ | |||
|
|
Year Ended December 31, |
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2020 |
2019 |
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Online |
$ | $ | ||||||
Wholesale |
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|
|
|
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Total revenue |
$ | $ | ||||||
|
|
|
|
Adjusted Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
Corporate bonds |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Government bonds |
||||||||||||||||
Asset-backed bonds |
||||||||||||||||
Total short-term investments |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Adjusted Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
Corporate bonds |
$ |
$ |
$ |
|||||||||||||
Government bonds |
||||||||||||||||
Asset-backed bonds |
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Total short-term investments |
$ |
$ |
$ |
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December 31, |
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2020 |
2019 |
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Finished goods |
$ | $ | ||||||
Raw materials |
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Work-in-process |
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Total inventory |
$ | $ | ||||||
December 31, |
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2020 |
2019 |
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Trade and other receivables, net |
$ | $ | ||||||
Prepaid expenses |
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Vendor deposits |
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Other current assets |
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Total prepaid expenses and other current assets |
$ | $ | ||||||
December 31, |
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2020 |
2019 |
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Marketing expenses |
$ | $ | ||||||
Legal fees |
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Payroll costs |
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Tax payables |
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Warrant exercise deposit liability |
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Other accrued liabilities |
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Total accrued liabilities |
$ | $ | ||||||
Level 1 |
Level 2 |
Level 3 |
Total |
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Assets |
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Cash and cash equivalents: |
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Money market funds |
$ | $ | $ | $ | ||||||||||||
Government bonds |
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Short-term investments: |
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Corporate bonds |
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Government bonds |
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Asset-backed bonds |
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Restricted cash: |
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Money market funds |
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Long-term investments: |
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Corporate bonds |
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|
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Total assets |
$ | $ | $ | $ | ||||||||||||
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Liabilities |
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Warrant liability |
$ | $ | $ | |
$ | |||||||||||
|
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|
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|
|
|
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Total liabilities |
$ | $ | $ | $ | ||||||||||||
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|
Level 1 |
Level 2 |
Level 3 |
Total |
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Assets |
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Cash and cash equivalents: |
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Money market funds |
$ | $ | $ | $ | ||||||||||||
Government bonds |
||||||||||||||||
Short-term investments: |
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Corporate bonds |
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Government bonds |
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Asset-backed bonds |
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Restricted cash: |
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Money market funds |
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Long-term investments: |
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Corporate bonds |
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|
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Total assets |
$ | $ | $ | $ | ||||||||||||
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Liabilities |
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Warrant liability |
$ | $ | $ | |
$ | |||||||||||
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|
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Total liabilities |
$ | $ | $ | $ | ||||||||||||
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Measurement Date |
December 31, 2019 |
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Expected term (in years) |
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Expected volatility |
% | |||
Risk-free interest rate |
% | |||
Expected dividend yield |
% |
Measurement Date |
December 31, 2020 |
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Expected term (in years) |
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Expected volatility |
% | |||
Risk-free interest rate |
% | |||
Expected dividend yield |
% | |||
Exercise price (Series D preferred stock issuance price) |
$ |
December 31, |
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2020 |
2019 |
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Beginning balance |
$ | $ | ||||||
Issuance of Series C preferred stock warrants |
||||||||
Exercised warrants |
( |
) | ||||||
Change in fair value |
( |
) | ||||||
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|
|
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Ending balance |
$ | $ | ||||||
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|
Year Ended December 31, |
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2020 |
2019 |
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Domestic |
$ | ( |
) | $ | ( |
) | ||
Foreign |
( |
) | ( |
) | ||||
Loss before provision for income taxes |
$ | ( |
) | $ | ( |
) | ||
Year Ended December 31, |
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2020 |
2019 |
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Current: |
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Federal |
$ | $ | ||||||
State |
||||||||
Foreign |
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Total current provision |
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Deferred: |
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Federal |
||||||||
State |
||||||||
Foreign |
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Total deferred provision |
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Total expense |
$ | $ | ||||||
Year Ended December 31, |
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2020 |
2019 |
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Tax at statutory rate |
$ | ( |
) | $ | ( |
) | ||
State taxes, net of federal benefits |
( |
) | ( |
) | ||||
Change in valuation allowance |
||||||||
Stock-based compensation |
||||||||
Warrant compensation |
( |
) | ||||||
Other, net |
( |
) | ||||||
Total |
$ | $ | ||||||
December 31, |
||||||||
2020 |
2019 |
|||||||
Deferred tax assets: |
||||||||
Net operating loss carryforwards |
$ | $ | ||||||
Reserves and accruals |
||||||||
Stock-based compensation |
||||||||
Inventory |
||||||||
Other intangibles |
||||||||
Deferred revenue |
||||||||
Other deferred tax assets |
||||||||
Total gross deferred tax assets |
||||||||
Less valuation allowance |
( |
) | ( |
) | ||||
Total deferred tax assets |
||||||||
Deferred tax liabilities: |
||||||||
Fixed assets |
( |
) | ( |
) | ||||
Other deferred tax liabilities |
( |
) | ( |
) | ||||
Total deferred tax liabilities |
( |
) | ( |
) | ||||
Net deferred tax assets |
$ | $ | ||||||
2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
|
|
|||
Total |
$ | |||
|
|
Year Ended December 31 |
||||||||
2020 |
2019 |
|||||||
Expected term (in years) |
||||||||
Expected volatility |
% | % | ||||||
Risk-free interest rate |
% | % | ||||||
Expected dividend yield |
% | % |
Weighted |
||||||||||||||||
Average |
||||||||||||||||
Weighted |
Contractual |
|||||||||||||||
Average |
Period |
Aggregate |
||||||||||||||
Shares |
Exercise Price |
(in Years) |
Intrinsic Value |
|||||||||||||
Outstanding at December 31, 2019 |
$ | |||||||||||||||
Granted |
||||||||||||||||
Exercised (including early exercised options vested during the period) |
( |
) | ||||||||||||||
Forfeited and expired |
( |
) | ||||||||||||||
Outstanding at December 31, 2020 |
$ | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Vested as of December 31, 2020 |
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|
|
|
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|
|
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|
|||||||||
Exercisable as of December 31, 2020 |
||||||||||||||||
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|
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|
|
|
Options Outstanding |
Options Exercisable |
|||||||||||||||||
Weighted |
Weighted |
|||||||||||||||||
Average |
Average |
|||||||||||||||||
Remaining |
Remaining |
|||||||||||||||||
Exercise Price |
Shares |
Contractual Life (in Years) |
Shares |
Contractual Life (in Years) |
||||||||||||||
$ | ||||||||||||||||||
— | ||||||||||||||||||
Weighted Average |
||||||||
Shares |
Fair Value |
|||||||
Outstanding at December 31, 2019 |
||||||||
Granted |
$ | |||||||
Vested |
||||||||
Forfeited and expired |
( |
) | ||||||
Outstanding at December 31, 2020 |
||||||||
Weighted |
||||||||||||||||
Weighted |
Average |
|||||||||||||||
Average |
Contractual |
Aggregate |
||||||||||||||
Shares |
Exercise Price |
Term (in Years) |
Intrinsic Value |
|||||||||||||
Outstanding at December 31, 2019 |
$ | |||||||||||||||
Exercised |
( |
) | ||||||||||||||
Outstanding at December 31, 2020 |
$ | |||||||||||||||
Exercisable as of December 31, 2020 |
||||||||||||||||
Year Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Marketing |
$ | $ | ||||||
Selling, general, and administrative |
||||||||
Total stock-based compensation expense |
$ | $ | ||||||
Series |
Shares Authorized |
Shares Issued and Outstanding |
Aggregate Liquidation Value |
Proceeds, Net of Issuance Costs |
Issue Price per Share |
|||||||||||||||
Series Seed |
$ | $ | $ | |||||||||||||||||
Series A |
||||||||||||||||||||
Series A-1 |
||||||||||||||||||||
Series B |
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Series B-1 |
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Series B-2 |
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Series C |
||||||||||||||||||||
Series D |
||||||||||||||||||||
Total |
$ | $ | ||||||||||||||||||
Series |
Shares Authorized |
Shares Issued and Outstanding |
Aggregate Liquidation Value |
Proceeds, Net of Issuance Costs |
Issue Price per Share |
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Series Seed |
$ | $ | $ | |||||||||||||||||
Series A |
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Series A-1 |
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Series B |
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Series B-1 |
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Series B-2 |
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Series C |
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Total |
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Shares |
Exercise Price |
Issued |
Expiration |
Fair Value at Issuance |
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|
$ | $ |
2020 |
2019 |
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Numerator: | Class A |
Class F |
Class A |
Class F |
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Net loss attributable to common stockholders |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Denominator: |
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Weighted average shares outstanding, basic and diluted |
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Basic and diluted net loss per share |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
December 31, |
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2020 |
2019 |
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Common stock issued for exercise of stock options subject to nonrecourse promissory notes |
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Common stock issued for early exercise of stock options |
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Redeemable convertible preferred stock |
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Stock options |
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RSUs |
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Warrants to purchase Class A common stock |
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Warrants to purchase redeemable convertible preferred stock |