sdgr-10q_20210331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021 

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to           

Commission File Number: 001-39206

 

Schrodinger, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

95-4284541

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

120 West 45th Street, 17th Floor

New York, NY

10036

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (212) 295-5800

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common stock, par value $0.01 per share

 

SDGR

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  

As of May 5, 2021, the registrant had 61,340,937 shares of common stock, $0.01 par value per share, and 9,164,193 shares of limited common stock, $0.01 par value per share, outstanding.

 

 

 

 


 

 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements

5

 

Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 (Unaudited)

5

 

Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020 (Unaudited)

6

 

Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2021 and 2020 (Unaudited)

7

 

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the three months ended March 31, 2021 and 2020 (Unaudited)

8

 

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 (Unaudited)

9

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

10

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

25

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4.

Controls and Procedures

36

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

37

Item 1A.

Risk Factors

37

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

68

Item 3.

Defaults Upon Senior Securities

69

Item 4.

Mine Safety Disclosures

69

Item 5.

Other Information

69

Item 6.

Exhibits

70

 

 

 

 


Table of Contents

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, or this Quarterly Report, contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this Quarterly Report, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or the negative of these words or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

The forward-looking statements in this Quarterly Report include, among other things, statements about:

 

 

the potential advantages of our physics-based computational platform;

 

 

our strategic plans to accelerate the growth of our software business;

 

 

our research and development efforts for our internal drug discovery programs and our computational platform;

 

 

the initiation, timing, progress, and results of our internal drug discovery programs or the drug discovery programs of our collaborators;

 

 

our plans to discover and develop product candidates and to maximize their commercial potential by advancing such product candidates ourselves or in collaboration with others;

 

 

our plans to leverage the synergies between our businesses;

 

 

the timing of, the ability to submit applications for and the ability to obtain and maintain regulatory approvals for any product candidates we or one of our collaborators may develop;

 

 

our drug discovery collaborations and our estimates or expectations regarding any milestone or other payments we may receive from such collaborations, including pursuant to our collaboration with Bristol-Myers Squibb Company;

 

 

our expectations regarding our ability to fund our operating expenses and capital expenditure requirements with our cash, cash equivalents, and marketable securities;

 

 

the potential advantages of our drug discovery programs;

 

 

the rate and degree of market acceptance of our software solutions;

 

 

the potential impact of the COVID-19 pandemic on our business, operations, liquidity and prospects;

 

 

the rate and degree of market acceptance and clinical utility of our products;

 

 

our estimates regarding the potential market opportunity for our software solutions and any product candidate we or any of our collaborators may in the future develop;

 

 

our marketing capabilities and strategy;

 

 

our intellectual property position;

 

 

our ability to identify technologies with significant commercial potential that are consistent with our commercial objectives;

 

 

our expectations related to the use of our cash, cash equivalents, and marketable securities;

 

 

our expectations related to the key drivers of our performance;

 

 

the impact of government laws and regulations;

 

 

our competitive position and expectations regarding developments and projections relating to our competitors and any competing products, technologies, or therapies that are or become available;

 

 

our ability to maintain and establish collaborations or obtain additional funding;

 

 

our reliance on key personnel and our ability to identify, recruit, and retain skilled personnel; and

 

 

our expectations regarding the time during which we will be an emerging growth company under the Jumpstart our Business Startup Act of 2012.

2


Table of Contents

 

We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions, and expectations disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included in this Quarterly Report, particularly in “Risk Factor Summary” below and Part II, Item 1A. Risk Factors”, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Moreover, we operate in a competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, collaborations, joint ventures, or investments we may make or enter into.

You should read this Quarterly Report and the documents that we file with the Securities and Exchange Commission, or the SEC, with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained in this Quarterly Report are made as of the date of this Quarterly Report, and we do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

Unless the context otherwise requires, we use the terms “company,” “we,” “us” and “our” in this Quarterly Report to refer to Schrödinger, Inc. and its consolidated subsidiaries.


3


Table of Contents

 

 

RISK FACTOR SUMMARY

Our business is subject to a number of risks of which you should be aware before making an investment decision. Below we summarize what we believe are the principal risk factors but these risks are not the only ones we face, and you should carefully review and consider the full discussion of our risk factors in the section titled “Risk Factors”, together with the other information in this Quarterly Report.

 

We have a history of significant operating losses, and we expect to incur losses over the next several years.

 

If we are unable to increase sales of our software, or if we and our current and future collaborators are unable to successfully develop and commercialize drug products, our revenues may be insufficient for us to achieve or maintain profitability.

 

Our quarterly and annual results may fluctuate significantly, which could adversely impact the value of our common stock.

 

If our existing customers do not renew their licenses, do not buy additional solutions from us, or renew at lower prices, our business and operating results will suffer.

 

A significant portion of our revenues are generated by sales to life sciences industry customers, and factors that adversely affect this industry could also adversely affect our software sales.

 

The markets in which we participate are highly competitive, and if we do not compete effectively, our business and operating results could be adversely affected.

 

We may never realize a return on our investment of resources and cash in our drug discovery collaborations.

 

Although we believe that our computational platform has the potential to identify more promising molecules than traditional methods and to accelerate drug discovery, our focus on using our platform technology to discover and design molecules with therapeutic potential may not result in the discovery and development of commercially viable products for us or our collaborators.

 

We may not be successful in our efforts to identify or discover product candidates and may fail to capitalize on programs, collaborations, or product candidates that may present a greater commercial opportunity or for which there is a greater likelihood of success.

 

As a company, we do not have any experience in clinical development and have not advanced any product candidates into clinical development.

 

A widespread outbreak of an illness or other health issue, such as the COVID-19 pandemic, could negatively affect various aspects of our business and make it more difficult to meet our obligations to our customers, and could result in reduced demand from our customers as well as delays in our drug discovery and development programs.

 

If we fail to comply with our obligations under our existing license agreements with Columbia University, under any of our other intellectual property licenses, or under any future intellectual property licenses, or otherwise experience disruptions to our business relationships with our current or any future licensors, we could lose intellectual property rights that are important to our business.

 

If we are unable to obtain, maintain, enforce, and protect patent protection for our technology and product candidates or if the scope of the patent protection obtained is not sufficiently broad, our competitors could develop and commercialize technology and products similar or identical to ours, and our ability to successfully develop and commercialize our technology and product candidates may be adversely affected.

 

Our future success depends on our ability to retain key executives and to attract, retain, and motivate qualified personnel.

 

We are pursuing multiple business strategies and expect to expand our development and regulatory capabilities, and as a result, we may encounter difficulties in managing our multiple business units and our growth, which could disrupt our operations.

 

Our actual operating results may differ significantly from our guidance.

 

Our executive officers, directors, and principal stockholders, if they choose to act together, have the ability to significantly influence all matters submitted to stockholders for approval.

 

4


Table of Contents

 

 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

SCHRÖDINGER, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except for share and per share amounts)

 

Assets

 

March 31, 2021

 

 

December 31, 2020

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

133,122

 

 

$

202,296

 

Restricted cash

 

 

500

 

 

 

500

 

Marketable securities

 

 

515,372

 

 

 

440,395

 

Accounts receivable, net of allowance for doubtful accounts of $60 and $60

 

 

11,270

 

 

 

31,423

 

Unbilled and other receivables, net for allowance for unbilled receivables of $20 and $0

 

 

7,020

 

 

 

3,955

 

Prepaid expenses

 

 

7,954

 

 

 

4,409

 

Total current assets

 

 

675,238

 

 

 

682,978

 

Property and equipment, net

 

 

4,799

 

 

 

5,140

 

Equity investments

 

 

52,931

 

 

 

45,664

 

Right of use assets

 

 

8,865

 

 

 

10,129

 

Other assets

 

 

2,356

 

 

 

2,352

 

Total assets

 

$

744,189

 

 

$

746,263

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

7,220

 

 

$

8,398

 

Accrued payroll, taxes, and benefits

 

 

10,345

 

 

 

12,000

 

Deferred revenue

 

 

40,759

 

 

 

45,403

 

Lease liabilities

 

 

3,576

 

 

 

4,543

 

Other accrued liabilities

 

 

5,721

 

 

 

2,861

 

Total current liabilities

 

 

67,621

 

 

 

73,205

 

Deferred revenue, long-term

 

 

37,356

 

 

 

41,164

 

Lease liabilities, long-term

 

 

6,836

 

 

 

7,221

 

Other liabilities, long-term

 

 

600

 

 

 

654

 

Total liabilities

 

 

112,413

 

 

 

122,244

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and

   outstanding at March 31, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Common stock, $0.01 par value. Authorized 500,000,000 shares; 61,300,675 and 60,713,534 shares issued and

   outstanding at March 31, 2021 and December 31, 2020, respectively

 

 

613

 

 

 

607

 

Limited common stock, $0.01 par value. Authorized 100,000,000 shares; 9,164,193 shares issued and

   outstanding at March 31, 2021 and December 31, 2020, respectively

 

 

92

 

 

 

92

 

Additional paid-in capital

 

 

760,574

 

 

 

752,558

 

Accumulated deficit

 

 

(129,588

)

 

 

(129,559

)

Accumulated other comprehensive income

 

 

77

 

 

 

317

 

Total stockholders’ equity of Schrödinger stockholders

 

 

631,768

 

 

 

624,015

 

Noncontrolling interest

 

 

8

 

 

 

4

 

Total stockholders’ equity

 

 

631,776

 

 

 

624,019

 

Total liabilities and stockholders’ equity

 

$

744,189

 

 

$

746,263

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

5


Table of Contents

 

SCHRÖDINGER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except for share and per share amounts)

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Revenues:

 

 

 

 

 

 

 

 

Software products and services

 

$

26,340

 

 

$

23,812

 

Drug discovery

 

 

5,787

 

 

 

2,362

 

Total revenues

 

 

32,127

 

 

 

26,174

 

Cost of revenues:

 

 

 

 

 

 

 

 

Software products and services

 

 

5,906

 

 

 

4,001

 

Drug discovery

 

 

10,057

 

 

 

6,548

 

Total cost of revenues

 

 

15,963

 

 

 

10,549

 

Gross profit

 

 

16,164

 

 

 

15,625

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

21,448

 

 

 

13,700

 

Sales and marketing

 

 

5,239

 

 

 

4,789

 

General and administrative

 

 

13,389

 

 

 

8,936

 

Total operating expenses

 

 

40,076

 

 

 

27,425

 

Loss from operations

 

 

(23,912

)

 

 

(11,800

)

Other (expense) income:

 

 

 

 

 

 

 

 

Loss on equity investments

 

 

(1,781

)

 

 

 

Change in fair value

 

 

24,824

 

 

 

(3,079

)

Interest income

 

 

420

 

 

 

699

 

Total other income (expense)

 

 

23,463

 

 

 

(2,380

)

Loss before income taxes

 

 

(449

)

 

 

(14,180

)

Income tax expense

 

 

74

 

 

 

91

 

Net loss

 

 

(523

)

 

 

(14,271

)

Net loss attributable to noncontrolling interest

 

 

(494

)

 

 

(445

)

Net loss attributable to Schrödinger common and

   limited common stockholders

 

$

(29

)

 

$

(13,826

)

Net loss per share attributable to Schrödinger

     common and limited common stockholders, basic

     and diluted:

 

$

 

 

$

(0.34

)

Weighted average shares used to compute net loss

     per share attributable to Schrödinger common and

     limited common stockholders, basic and diluted:

 

 

70,071,625

 

 

 

40,666,970

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

6


Table of Contents

 

 

SCHRÖDINGER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Loss (Unaudited)

(in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Net loss attributable to Schrödinger common and

   limited common stockholders

 

$

(29

)

 

$

(13,826

)

Changes in market value of investments, net of tax:

 

 

 

 

 

 

 

 

Unrealized loss on marketable securities

 

 

(240

)

 

 

(458

)

Comprehensive loss

 

$

(269

)

 

$

(14,284

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 

7


Table of Contents

 

 

SCHRÖDINGER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Unaudited)

(in thousands, except for share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Series E preferred

stock

 

Series D preferred

stock

 

Series C preferred

stock

 

Series B preferred

stock

 

Series A preferred

stock

 

 

Common stock

 

Limited common

stock

 

Additional

paid-in

 

Accumulated

 

other

comprehensive

 

Non

controlling

 

Total

stockholders’

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Shares

 

Amount

 

Shares

 

Amount

 

Shares

 

Amount

 

 

Shares

 

Amount

 

Shares

 

Amount

 

capital

 

deficit

 

loss (income)

 

interest

 

equity (deficit)

 

Balance at December 31,

   2020

 

 

$

 

 

 

$

 

 

 

$

 

 

 

$

 

 

 

$

 

 

 

60,713,534

 

$

607

 

 

9,164,193

 

$

92

 

$

752,558

 

$

(129,559

)

$

317

 

$

4

 

$

624,019

 

Change in unrealized

   loss on marketable

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(240

)

 

 

 

(240

)

Issuances of common

   stock upon stock option

   exercise

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

587,141

 

 

6

 

 

 

 

 

 

3,650

 

 

 

 

 

 

 

 

3,656

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,366

 

 

 

 

 

 

 

 

4,366

 

Contributions by

   non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

498

 

 

498

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(29

)

 

 

 

(494

)

 

(523

)

Balance at March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61,300,675

 

 

613

 

 

9,164,193

 

 

92

 

 

760,574

 

 

(129,588

)

 

77

 

 

8

 

 

631,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31,

   2019

 

73,795,777

 

$

109,270

 

 

39,540,611

 

$

22,000

 

 

47,242,235

 

$

19,844

 

 

29,468,101

 

$

9,840

 

 

134,704,785

 

$

30,626

 

 

 

6,121,821

 

$

61

 

 

 

$

 

$

11,655

 

$

(105,096

)

$

16

 

$

41

 

$

(93,323

)

Change in unrealized

   loss on marketable

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(458

)

 

 

 

(458

)

Issuances of common

   stock upon stock option

   exercise

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57,581

 

 

1

 

 

 

 

 

 

176

 

 

 

 

 

 

 

 

177

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,775

 

 

 

 

 

 

 

 

1,775

 

Issuances of common

   stock upon initial public

   offering, net of issuance

   costs of $22,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,664,704

 

 

136

 

 

 

 

 

 

209,497

 

 

 

 

 

 

 

 

209,633

 

Conversion of convertible

   preferred stock into

   common

   stock

 

(73,795,777

)

 

(109,270

)

 

(17,844,124

)

 

(9,928

)

 

 

 

 

 

 

 

 

 

(134,704,785

)

 

(30,626

)

 

 

30,278,832

 

 

303

 

 

 

 

 

 

149,521

 

 

 

 

 

 

 

 

149,824

 

Exchange of convertible

   preferred stock into

   limited

   common stock

 

 

 

 

 

(21,696,487

)

 

(12,072

)

 

(47,242,235

)

 

(19,844

)

 

(29,468,101

)

 

(9,840

)

 

 

 

 

 

 

 

 

 

 

13,164,193

 

 

132

 

 

41,624

 

 

 

 

 

 

 

 

41,756

 

Contributions by

   non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

435

 

 

435

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,826

)

 

 

 

(445

)

 

(14,271

)

Balance at March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,122,938

 

 

501

 

 

13,164,193

 

 

132

 

 

414,248

 

 

(118,922

)

 

(442

)

 

31

 

 

295,548

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 

8


Table of Contents

 

 

SCHRÖDINGER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(523

)

 

$

(14,271

)

Adjustments to reconcile net loss to net cash used in

 

 

 

 

 

 

 

 

operating activities:

 

 

 

 

 

 

 

 

Loss on equity investments

 

 

1,781

 

 

 

 

Noncash revenue from equity investments

 

 

(5

)

 

 

(46

)

Fair value adjustments

 

 

(24,824

)

 

 

3,079

 

Depreciation

 

 

887

 

 

 

877

 

Stock-based compensation

 

 

4,366

 

 

 

1,775

 

Noncash research and development expenses

 

 

498

 

 

 

435

 

Noncash investment accretion

 

 

1,955

 

 

 

83

 

Loss on disposal of property and equipment

 

 

19

 

 

 

 

Decrease (increase) in assets:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

20,153

 

 

 

2,404

 

Unbilled and other receivables

 

 

(3,065

)

 

 

5,154

 

Reduction in the carrying amount of right of use assets

 

 

1,264

 

 

 

1,299

 

Prepaid expenses and other assets

 

 

(3,549

)

 

 

(1,106

)

Increase (decrease) in liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 

(1,230

)

 

 

2,110

 

Accrued payroll, taxes, and benefits

 

 

(1,655

)

 

 

(2,289

)

Deferred revenue

 

 

(8,447

)

 

 

(3,378

)

Lease liabilities

 

 

(1,352

)

 

 

(1,266

)

Other accrued liabilities

 

 

2,806

 

 

 

(638

)

Net cash used in operating activities

 

 

(10,921

)

 

 

(5,778

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(513

)

 

 

(843

)

Purchases of equity investments

 

 

 

 

 

(2,869

)

Distribution from equity investment

 

 

40

 

 

 

 

Proceeds from sale of equity investments

 

 

15,735

 

 

 

 

Purchases of marketable securities

 

 

(143,671

)

 

 

(127,109

)

Proceeds from maturity of marketable securities

 

 

66,500

 

 

 

42,908

 

Net cash used in investing activities

 

 

(61,909

)

 

 

(87,913

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Issuances of common stock upon initial public offering, net