| QUARTERLY QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| QUARTERLY TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | 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. | ☐ |
Class | Outstanding as of July 25, 2022 | ||||
Common Stock, $0.0001 par value per share |
Page | |||||
June 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts receivable, net of allowances of $ | |||||||||||
Inventory, net | |||||||||||
Other current assets (includes $ | |||||||||||
Total current assets | |||||||||||
Energy storage systems, net | |||||||||||
Contract origination costs, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other noncurrent assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Accrued payroll | |||||||||||
Financing obligation, current portion | |||||||||||
Deferred revenue, current portion | |||||||||||
Other current liabilities (includes $ | |||||||||||
Total current liabilities | |||||||||||
Deferred revenue, noncurrent | |||||||||||
Asset retirement obligation | |||||||||||
Notes payable, noncurrent | |||||||||||
Convertible notes, noncurrent | |||||||||||
Financing obligation, noncurrent | |||||||||||
Lease liabilities, noncurrent | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 15) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive (loss) income | ( | ||||||||||
Accumulated deficit | ( | ( | |||||||||
Total Stem's stockholders' equity | |||||||||||
Non-controlling interests | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Services revenue | $ | $ | $ | $ | |||||||||||||||||||
Hardware revenue | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Cost of service revenue | |||||||||||||||||||||||
Cost of hardware revenue | |||||||||||||||||||||||
Total cost of revenue | |||||||||||||||||||||||
Gross margin | ( | ( | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Other expense, net: | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Loss on extinguishment of debt | ( | ( | |||||||||||||||||||||
Change in fair value of warrants and embedded derivative | ( | ( | |||||||||||||||||||||
Other income (expenses), net | ( | ( | |||||||||||||||||||||
Total other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Loss before income taxes | ( | ( | ( | ( | |||||||||||||||||||
Income tax benefit | |||||||||||||||||||||||
Net loss | ( | ( | ( | ( | |||||||||||||||||||
Net loss attributed to non-controlling interests | ( | ( | |||||||||||||||||||||
Net loss attributable to Stem | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per share attributable to Stem common stockholders, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted-average shares used in computing net loss per share to Stem common stockholders, basic and diluted |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||
Unrealized loss on available-for-sale securities | ( | ( | |||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||
Less: Comprehensive loss attributable to non-controlling interests | ( | ( | |||||||||||||||||||||
Total comprehensive loss attributable to Stem | $ | ( | $ | ( | $ | ( | $ | ( |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-controlling Interests | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment upon adoption of ASU 2020-06 (Note 10) | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment upon adoption of ASU 2016-13 | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Common stock issued upon business combination (Note 6) | — | — | — | ||||||||||||||||||||||||||||||||||||||
Stock option exercises, net of statutory tax withholdings | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Acquisition of non-controlling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Stock option exercises, net of statutory tax withholdings | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Issuance of common stock upon release of restricted stock units | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Shares issued for exercise of warrants | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Acquisition of non-controlling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | $ |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-controlling Interests | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
Recognition of beneficial conversion feature related to convertible notes | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock option exercises | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Legacy warrant exercises | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Merger and PIPE financing (Note 1) | — | — | — | ||||||||||||||||||||||||||||||||||||||
Conversion of warrants into common stock upon Merger (Note 11) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Conversion of convertible notes into common stock upon Merger (Note 10) | — | — | — | ||||||||||||||||||||||||||||||||||||||
Exchange of warrants into common stock (Note 11) | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock warrants for services (Note 11) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock option and stock warrant exercises | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization expense | |||||||||||
Non-cash interest expense, including interest expenses associated with debt issuance costs | |||||||||||
Stock-based compensation | |||||||||||
Change in fair value of warrant liability and embedded derivative | |||||||||||
Noncash lease expense | |||||||||||
Impairment of energy storage systems | |||||||||||
Issuance of warrants for services | |||||||||||
Net (accretion of discount) amortization of premium on investments | |||||||||||
Income tax benefit from release of valuation allowance | ( | ||||||||||
Provision for accounts receivable allowance | |||||||||||
Other | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventory | ( | ( | |||||||||
Other assets | ( | ( | |||||||||
Contract origination costs | ( | ( | |||||||||
Accounts payable, accrued expenses and other current liabilities | |||||||||||
Deferred revenue | |||||||||||
Lease liabilities | ( | ( | |||||||||
Other liabilities | ( | ||||||||||
Net cash used in operating activities | ( | ( | |||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of AlsoEnergy, net of cash acquired | ( | ||||||||||
Purchase of available-for-sale investments | ( | ||||||||||
Sales and maturities of available-for-sale investments | |||||||||||
Purchase of energy storage systems | ( | ( | |||||||||
Capital expenditures on internally-developed software | ( | ( | |||||||||
Purchase of property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from exercise of stock options and warrants | |||||||||||
Payments for taxes related to net share settlement of stock options | ( | ||||||||||
Net contributions from Merger and PIPE financing, net of transaction costs of $ | |||||||||||
Proceeds from financing obligations | |||||||||||
Repayment of financing obligations | ( | ( | |||||||||
Proceeds from issuance of convertible notes, net of issuance costs of $ | |||||||||||
Proceeds from issuance of notes payable, net of issuance costs of $ | |||||||||||
Investment from non-controlling interests | |||||||||||
Repayment of notes payable | ( | ||||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net (decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of year | |||||||||||
Cash and cash equivalents, end of period | $ | $ |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Cash paid for interest | $ | $ | |||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Change in asset retirement costs and asset retirement obligation | $ | $ | |||||||||
Exchange of warrants for common stock | $ | $ | |||||||||
Conversion of warrants upon merger | $ | $ | |||||||||
Conversion of convertible notes upon merger | $ | $ | |||||||||
Conversion of accrued interest into outstanding note payable | $ | $ | |||||||||
Right-of-use asset obtained in exchange for lease liability | $ | $ | |||||||||
Settlement of warrant liability into preferred stock due to exercise | $ | $ | |||||||||
Stock-based compensation capitalized to internal-use software | $ | $ |
Recapitalization | |||||
Cash — STPK trust and working capital cash | $ | ||||
Cash — PIPE (as described below) | |||||
Less: transaction costs and advisory fees paid | ( | ||||
Merger and PIPE financing | $ |
June 30, 2022 | |||||
Assets | |||||
Cash and cash equivalents | $ | ||||
Fixed assets, net | |||||
Total assets | |||||
Liabilities | |||||
Accounts payable | |||||
Total liabilities | $ |
Accounts Receivable | Revenue | Revenue | |||||||||||||||||||||||||||||||||
June 30, | December 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Customers: | |||||||||||||||||||||||||||||||||||
Customer A | * | % | * | * | * | * | |||||||||||||||||||||||||||||
Customer B | % | % | * | * | * | * | |||||||||||||||||||||||||||||
Customer C | * | % | * | * | * | * | |||||||||||||||||||||||||||||
Customer D | % | * | % | * | % | * | |||||||||||||||||||||||||||||
Customer E | * | * | % | * | * | * | |||||||||||||||||||||||||||||
Customer F | * | * | * | % | * | % | |||||||||||||||||||||||||||||
Customer G | * | * | * | % | * | * | |||||||||||||||||||||||||||||
Customer H | * | * | * | * | * | % | |||||||||||||||||||||||||||||
Customer I | * | * | * | % | * | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Hardware revenue | $ | $ | $ | $ | |||||||||||||||||||
Services revenue | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2022 | 2022 | ||||||||||
United States | $ | $ | |||||||||
Rest of the world | |||||||||||
Total revenue | $ | $ |
Total Remaining Performance Obligations | Percent Expected to be Recognized as Revenue | ||||||||||||||||||||||
Less Than One Year | Two to Five Years | Greater Than Five Years | |||||||||||||||||||||
Service revenue | $ | % | % | % | |||||||||||||||||||
Hardware revenue | % | % | % | ||||||||||||||||||||
Total revenue | $ |
Beginning balance as of January 1, 2022 | $ | ||||
Deferred revenue acquired upon business combination | |||||
Upfront payments received from customers | |||||
Upfront or annual incentive payments received | |||||
Revenue recognized related to amounts that were included in beginning balance of deferred revenue | ( | ||||
Revenue recognized related to amounts that were included in acquired balance of deferred revenue | ( | ||||
Revenue recognized related to deferred revenue generated during the period | ( | ||||
Ending balance as of June 30, 2022 | $ |
As of June 30, 2022 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | ||||||||||||||||||||
Corporate debt securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Commercial paper | ( | ||||||||||||||||||||||
U.S. government bonds | ( | ||||||||||||||||||||||
Certificate of deposits | |||||||||||||||||||||||
Treasury bills | ( | ||||||||||||||||||||||
Agency bonds | ( | ||||||||||||||||||||||
Total short-term investments | $ | $ | $ | ( | $ | ||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | ||||||||||||||||||||
Corporate debt securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
U.S. government bonds | ( | ||||||||||||||||||||||
Certificate of deposits | |||||||||||||||||||||||
Agency bonds | ( | ||||||||||||||||||||||
Total short-term investments | $ | $ | $ | ( | $ | ||||||||||||||||||
As of June 30, 2022 | |||||||||||
Amortized cost | Estimated Fair Value | ||||||||||
Due within one year | $ | $ | |||||||||
Due between one to two years | |||||||||||
Total | $ | $ | |||||||||
June 30, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market fund | $ | $ | $ | $ | |||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Treasury bills | |||||||||||||||||||||||
Total cash equivalents | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
U.S. government bonds | |||||||||||||||||||||||
Certificate of deposits | |||||||||||||||||||||||
Treasury bills | |||||||||||||||||||||||
Agency bonds | |||||||||||||||||||||||
Total financial assets | $ | $ | $ | $ |
December 31, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market fund | $ | $ | $ | $ | |||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
U.S. government bonds | |||||||||||||||||||||||
Certificate of deposits | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total financial assets | $ | $ | $ | $ |
Purchase Price | |||||
Cash consideration | $ | ||||
Equity consideration | |||||
Working capital adjustment | ( | ||||
Total consideration | $ |
Assets Acquired | |||||
Cash | $ | ||||
Accounts receivable | |||||
Other current assets | |||||
Inventory | |||||
Operating lease right-of-use assets | |||||
Separately identifiable intangible assets acquired other than goodwill | |||||
Other non-current assets | |||||
Total identifiable assets acquired | |||||
Liabilities Assumed | |||||
Accounts payable | |||||
Other current liabilities | |||||
Accrued payroll | |||||
Deferred revenue, current portion | |||||
Lease liabilities, current portion | |||||
Deferred revenue, noncurrent | |||||
Lease liabilities, noncurrent | |||||
Deferred tax liability | |||||
Other noncurrent liabilities | |||||
Total liabilities assumed | |||||
Total net identifiable assets acquired | |||||
Goodwill | |||||
Total consideration | $ |
Fair Value | Useful Life | ||||||||||
Trade name | $ | ||||||||||
Customer relationships | |||||||||||
Backlog | |||||||||||
Developed technology | |||||||||||
Separately identifiable intangible assets acquired other than goodwill | $ |
(Unaudited) | (Unaudited) | ||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( |
June 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
Goodwill | $ | $ | |||||||||
Recovery of escrow from AlsoEnergy acquisition | ( | ||||||||||
Effect of foreign currency translation | |||||||||||
Total goodwill | $ | $ |
June 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
Developed technology | $ | $ | |||||||||
Trade name | |||||||||||
Customer relationships | |||||||||||
Backlog | |||||||||||
Internally developed software | |||||||||||
Intangible assets | |||||||||||
Less: Accumulated amortization | ( | ( | |||||||||
Add: Currency translation adjustment | |||||||||||
Total intangible assets, net | $ | $ |
June 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
Energy storage systems placed into service | $ | $ | |||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Energy storage systems not yet placed into service | |||||||||||
Total energy storage systems, net | $ | $ |
June 30, 2022 | |||||
Outstanding principal | $ | ||||
Unamortized discount | ( | ||||
Carrying value of debt | $ |
June 30, 2022 | |||||
Long Term Debt | |||||
Outstanding principal | $ | ||||
Unamortized initial purchaser’s debt discount and debt issuance cost | ( | ||||
Net carrying amount | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2022 | 2022 | ||||||||||
Cash interest expense | |||||||||||
Contractual interest expense | $ | $ | |||||||||
Non-cash interest expense | |||||||||||
Amortization of debt discount and debt issuance cost | |||||||||||
Total interest expense | $ | $ |
Number of Options Outstanding | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Life (years) | Aggregate Intrinsic Value (in thousands) | ||||||||||||||||||||
Balances as of December 31, 2021 | $ | $ | |||||||||||||||||||||
Options granted | |||||||||||||||||||||||
Options exercised | ( | ||||||||||||||||||||||
Options forfeited | ( | ||||||||||||||||||||||
Balances as of June 30, 2022 | $ | $ | |||||||||||||||||||||
Options vested and exercisable — June 30, 2022 | $ | $ |
Number of RSUs Outstanding | Weighted-Average Grant Date Fair Value Per Share | ||||||||||
Balances as of December 31, 2021 | $ | ||||||||||
RSUs granted | |||||||||||
RSUs vested | ( | ||||||||||
RSUs forfeited | ( | ||||||||||
Balances as of June 30, 2022 | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Sales and marketing | $ | $ | $ | $ | |||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator - Basic: | |||||||||||||||||||||||
Net loss attributable to Stem common stockholders, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average number of shares outstanding used to compute net loss per share attributable to Stem common stockholders, basic and diluted | |||||||||||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( |
June 30, 2022 | June 30, 2021 | ||||||||||
Outstanding convertible promissory notes | |||||||||||
Outstanding 2028 Convertible Notes | |||||||||||
Outstanding stock options | |||||||||||
Outstanding warrants | |||||||||||
Outstanding RSUs | |||||||||||
Total |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Loss before benefit from income taxes | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Benefit from income taxes | $ | $ | $ | $ | |||||||||||||||||||
Effective tax rate | % | % | % | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | $ | 66.9 | $ | 19.3 | $ | 108.0 | $ | 34.8 | |||||||||||||||
Cost of revenue | (59.2) | (19.4) | (96.6) | (35.0) | |||||||||||||||||||
GAAP gross margin | 7.7 | (0.1) | 11.4 | (0.2) | |||||||||||||||||||
GAAP gross margin (%) | 12 | % | (1) | % | 11 | % | (1) | % | |||||||||||||||
Adjustments to Gross Margin (1): | |||||||||||||||||||||||
Amortization of capitalized software & developed technology | 2.6 | 1.3 | 4.7 | 2.5 | |||||||||||||||||||
Impairments | 1.0 | 0.3 | 1.8 | 1.2 | |||||||||||||||||||
Non-GAAP gross margin | $ | 11.3 | $ | 1.5 | $ | 17.9 | $ | 3.5 | |||||||||||||||
Non-GAAP gross margin (%) | 17 | % | 8 | % | 17 | % | 10 | % | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Net loss attributable to Stem | $ | (32,019) | $ | (100,216) | $ | (54,502) | $ | (182,769) | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Depreciation and amortization (1) | 12,910 | 5,543 | 21,806 | 11,555 | |||||||||||||||||||
Interest expense | 2,691 | 3,929 | 5,909 | 10,162 | |||||||||||||||||||
Loss on extinguishment of debt | — | 5,064 | — | 5,064 | |||||||||||||||||||
Stock-based compensation | 6,467 | 1,024 | 12,732 | 1,784 | |||||||||||||||||||
Vesting of warrants | — | 9,184 | — | 9,184 | |||||||||||||||||||
Change in fair value of warrants and embedded derivative | — | 67,179 | — | 133,577 | |||||||||||||||||||
Transaction costs in connection with business combination | — | — | 6,068 | — | |||||||||||||||||||
Litigation settlement | (1,127) | — | (727) | — | |||||||||||||||||||
Income tax benefit | (7) | — | (15,220) | — | |||||||||||||||||||
Adjusted EBITDA | $ | (11,085) | $ | (8,293) | $ | (23,934) | $ | (11,443) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Key Financial Metrics | |||||||||||||||||||||||
Revenue | $ | 66.9 | $ | 19.3 | $ | 108.0 | $ | 34.8 | |||||||||||||||
GAAP gross margin | $ | 7.7 | $ | (0.1) | $ | 11.4 | $ | (0.2) | |||||||||||||||
GAAP gross margin (%) | 12 | % | (1) | % | 11 | % | (1) | % | |||||||||||||||
Non-GAAP gross margin | $ | 11.3 | $ | 1.5 | $ | 17.9 | $ | 3.5 | |||||||||||||||
Non-GAAP gross margin (%) | 17 | % | 8 | % | 17 | % | 10 | % | |||||||||||||||
Net loss attributable to Stem | $ | (32.0) | $ | (100.2) | $ | (54.5) | $ | (182.8) | |||||||||||||||
Adjusted EBITDA | $ | (11.1) | $ | (8.3) | $ | (23.9) | $ | (11.4) | |||||||||||||||
Key Operating Metrics | |||||||||||||||||||||||
12-Month pipeline (in billions)* (1) | $ | 5.6 | $ | 1.7 | $ | 5.6 | $ | 1.7 | |||||||||||||||
Bookings (2) | $ | 225.7 | $ | 45.1 | $ | 376.5 | $ | 95.9 | |||||||||||||||
Contracted backlog* (3) | $ | 726.6 | $ | 249.7 | $ | 726.6 | $ | 249.7 | |||||||||||||||
Contracted storage AUM (in GWh)* (4) | 2.1 | 1.2 | 2.1 | 1.2 | |||||||||||||||||||
Solar monitoring AUM (in GW)* (5) | 32.1 | ** | 32.1 | ** | |||||||||||||||||||
CARR* (6) | $ | 57.6 | ** | $ | 57.6 | ** | |||||||||||||||||
* at period end | |||||||||||||||||||||||
** not available | |||||||||||||||||||||||
(1) As described below. | |||||||||||||||||||||||
(2) As described below. | |||||||||||||||||||||||
(3) Total value of bookings in dollars, as reflected on a specific date. Backlog increases as new contracts are executed (bookings) and decreases as integrated storage systems are delivered and recognized as revenue. | |||||||||||||||||||||||
(4) Total GWh of systems in operation or under contract. | |||||||||||||||||||||||
(5) Total GW of systems in operation or under contract. | |||||||||||||||||||||||
(6) Contracted Annual Recurring Revenue (CARR): Annual run rate for all executed software services contracts including contracts signed in the period for systems that are not yet commissioned or operating. |
Three Months Ended June 30, | $ Change | % Change | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Services revenue | $ | 12,521 | $ | 5,153 | $ | 7,368 | 143% | ||||||||||||||||
Hardware revenue | 54,426 | 14,184 | 40,242 | 284% | |||||||||||||||||||
Total revenue | 66,947 | 19,337 | 47,610 | 246% | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Cost of service revenue | 10,141 | 5,809 | 4,332 | 75% | |||||||||||||||||||
Cost of hardware revenue | 49,018 | 13,655 | 35,363 | 259% | |||||||||||||||||||
Total cost of revenue | 59,159 | 19,464 | 39,695 | 204% | |||||||||||||||||||
Gross margin | 7,788 | (127) | 7,915 | 6,232% | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | 12,955 | 3,913 | 9,042 | 231% | |||||||||||||||||||
Research and development | 8,963 | 4,827 | 4,136 | 86% | |||||||||||||||||||
General and administrative | 15,693 | 15,014 | 679 | 5% | |||||||||||||||||||
Total operating expenses | 37,611 | 23,754 | 13,857 | 58% | |||||||||||||||||||
Loss from operations | (29,823) | (23,881) | (5,942) | 25% | |||||||||||||||||||
Other expense, net: | |||||||||||||||||||||||
Interest expense | (2,691) | (3,929) | 1,238 | (32)% | |||||||||||||||||||
Loss on extinguishment of debt | — | (5,064) | 5,064 | (100)% | |||||||||||||||||||
Change in fair value of warrants and embedded derivative | — | (67,179) | 67,179 | (100)% | |||||||||||||||||||
Other income (expenses), net | 484 | (163) | 647 | (397)% | |||||||||||||||||||
Total other expense, net | (2,207) | (76,335) | 74,128 | (97)% | |||||||||||||||||||
Loss before income taxes | (32,030) | (100,216) | 68,186 | (68)% | |||||||||||||||||||
Income tax benefit | 7 | — | 7 | 100% | |||||||||||||||||||
Net loss | $ | (32,023) | $ | (100,216) | $ | 68,193 | (68)% | ||||||||||||||||
Net loss attributed to non-controlling interests | (4) | — | (4) | 100% | |||||||||||||||||||
Net loss attributable to Stem | $ | (32,019) | $ | (100,216) | $ | 68,197 | (68)% |
Six Months Ended June 30, | $ Change | % Change | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Services revenue | $ | 22,486 | $ | 10,035 | $ | 12,451 | 124% | ||||||||||||||||
Hardware revenue | 85,549 | 24,723 | 60,826 | 246% | |||||||||||||||||||
Total revenue | 108,035 | 34,758 | 73,277 | 211% | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Cost of service revenue | 18,774 | 12,715 | 6,059 | 48% | |||||||||||||||||||
Cost of hardware revenue | 77,829 | 22,286 | 55,543 | 249% | |||||||||||||||||||
Total cost of revenue | 96,603 | 35,001 | 61,602 | 176% | |||||||||||||||||||
Gross margin | 11,432 | (243) | 11,675 | 4,805% | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | 22,097 | 6,580 | 15,517 | 236% | |||||||||||||||||||
Research and development | 17,906 | 9,234 | 8,672 | 94% | |||||||||||||||||||
General and administrative | 36,205 | 17,706 | 18,499 | 104% | |||||||||||||||||||
Total operating expenses | 76,208 | 33,520 | 42,688 | 127% | |||||||||||||||||||
Loss from operations | (64,776) | (33,763) | (31,013) | 92% | |||||||||||||||||||
Other expense, net: | |||||||||||||||||||||||
Interest expense | (5,909) | (10,162) | 4,253 | (42)% | |||||||||||||||||||
Loss on extinguishment of debt | — | (5,064) | 5,064 | (100)% | |||||||||||||||||||
Change in fair value of warrants and embedded derivative | — | (133,577) | 133,577 | (100)% | |||||||||||||||||||
Other income (expenses), net | 959 | (203) | 1,162 | (572)% | |||||||||||||||||||
Total other expense, net | (4,950) | (149,006) | 144,056 | (97)% | |||||||||||||||||||
Loss before income taxes | (69,726) | (182,769) | 113,043 | (62)% | |||||||||||||||||||
Income tax benefit | 15,220 | — | 15,220 | 100% | |||||||||||||||||||
Net loss | $ | (54,506) | $ | (182,769) | $ | 128,263 | (70)% | ||||||||||||||||
Net loss attributed to non-controlling interests | (4) | — | (4) | 100% | |||||||||||||||||||
Net loss attributable to Stem | $ | (54,502) | $ | (182,769) | $ | 128,267 | (70)% |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Net cash used in operating activities | $ | (32,630) | $ | (41,833) | |||||||
Net cash used in investing activities | (556,030) | (8,596) | |||||||||
Net cash provided by (used in) financing activities | (7,981) | 517,187 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (136) | 438 | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | (596,777) | $ | 467,196 |
EXHIBIT INDEX | ||||||||||||||
Exhibit No. | Description | |||||||||||||
3.1 | Second Amended and Restated Certificate of Incorporation, dated April 28, 2021 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on May 4, 2021). | |||||||||||||
3.2 | Second Amended and Restated by-Laws, dated April 28. 2021 (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on May 4, 2021). | |||||||||||||
10.1 | ||||||||||||||
10.2 | ||||||||||||||
10.3 | ||||||||||||||
31.1 | ||||||||||||||
31.2 | ||||||||||||||
32.1 | ||||||||||||||
32.2 | ||||||||||||||
101.INS | Inline XBRL Instance Document | |||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
STEM, INC. | |||||||||||
By: | /s/ William Bush | ||||||||||
William Bush | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
Key Terms | |||||
These Key Terms set out the scope of this Agreement and certain key terms. | |||||
Parties: | |||||
Tesla: | Tesla, Inc., a Delaware corporation, whose principal place of business is at 3500 Deer Creek Road, Palo Alto, CA 94304. | ||||
Buyer: | Stem, Inc., a Delaware corporation whose registered office is at 100 California Street, Floor 14, San Francisco, CA 94111 | ||||
Systems: | |||||
System: | Battery energy storage system (“BESS”) with the power and energy capacities indicated in the relevant Accepted Purchase Order (as defined in Schedule 1) and the components thereof described in such Accepted Purchase Order (“BESS Components”). | ||||
Specifications: | The specifications for each System shall be the applicable specifications that are published in the Tesla Partner Portal on the date the Purchase Order for that System is submitted by Buyer. | ||||
Notices: | |||||
Tesla Notice Address: | Tesla, Inc. 3500 Deer Creek Road, Palo Alto, CA 94304, USA Attn: Energy Products [ ] | ||||
Tesla Address for submission of Capacity Reservation Orders and Purchase Orders: | [ ] | ||||
Buyer Notice Address: | Stem, Inc. 100 California Street, Floor 14, San Francisco, CA 94111. Attn: Bill Bush & Morgen Burkhart [ ] | ||||
Buyer Address for Invoices and Capacity Reservation Orders and Purchase Order responses: | [ ] | ||||
NDA: | |||||
NDA: | The mutual non-disclosure agreement dated May 16, 2021 between Tesla (or its Affiliate) and Buyer (or its Affiliate). | ||||
Credit: | |||||
Buyer Credit Limit: | $[ ], to be defined as the amount due by Buyer at any given time to Tesla for any Accepted Purchase Orders or Capacity Reservation Order Tesla may update the Buyer Credit Limit by five (5) Business Days written notice to Buyer from time to time, provided that Tesla shall not retroactively update the Buyer Credit Limit for Accepted Purchase Orders except that the foregoing does not limit Tesla’s remedies under Schedule 1, Section 24. | ||||
Buyer Credit Support: | N/A. | ||||
Tesla Partner Portal / Tesla Manuals: | |||||
Tesla Partner Portal | https://partners.teslamotors.com. Buyer acknowledges that it has been provided with temporary login details to the Tesla Partner Portal and has reviewed its contents. Tesla shall provide permanent login details for the Tesla Partner Portal to Buyer following the Effective Date | ||||
Tesla Manuals: | The applicable Tesla manuals that are published in the Tesla Partner Portal from time to time, and in effect as of the effective date of a Purchase Order, including without limitation the following: (a) BESS Site Design Manual; (b) BESS Specifications; (c) BESS Transportation and Storage Guidelines; (d) BESS Installation Manual; (e) BESS Operation and Maintenance Manual; (f) BESS Internal Commissioning Checklist; (g) BESS Commissioning Protocol; (h) Communications Manual; and (i) Marketing Guidelines for Tesla BESS Certified Companies. | ||||
Attachments: | |||||
The attachments below are incorporated by reference into this Agreement. In the event of any conflict between any Accepted Purchase Order, these Key Terms and any Schedule, the order of precedence shall be (i) the Accepted Purchase Order, (ii) these Key Terms and then (iii) the Schedules in order of appearance. | |||||
Schedule 1: | Framework BESS Sale & Purchase Agreement – Standard Terms & Conditions | ||||
Schedule 2A: | Form of Capacity Reservation Order | ||||
Schedule 2B: | Form of Purchase Order | ||||
Schedule 3: | Manufacturer’s Limited Warranty (as at Effective Date) | ||||
Schedule 4: | Service Level Agreement |
STEM, INC. /s/ Bill Bush (SIGNATURE) Bill Bush (PRINT NAME) CFO (PRINT TITLE) | TESLA, INC. /s/ Colby Hastings (SIGNATURE) Colby Hastings (PRINT NAME) Sr. Manager, Commercial Operations (PRINT TITLE) |
Rescheduling Fee Schedule | |||||
Timing of Customer’s Rescheduling Request | Rescheduling Fee (% of Product Price of rescheduled Product) | ||||
More than [ ] prior to the Scheduled Delivery date | [ ]% | ||||
[ ] prior to the Scheduled Delivery Date | Requires written permission of Supplier, with Rescheduling Fee to be determined pursuant to a Change Order |
Convenience Cancellation Fee Schedule for Products with Standard Lead Times | |||||
Timing of Cancellation | Convenience Cancellation Fee (% of Product Price of Canceled Product) | ||||
[ ] | [ ]% | ||||
[ ] | [ ]% | ||||
[ ] | [ ]% | ||||
[ ] | [ ]% |
Convenience Cancellation Fee Schedule for Products not subject to Standard Lead Times | |||||
Timing of Cancellation | Convenience Cancellation Fee (% of Product Price of Canceled Product) | ||||
More than [ ] prior to the Scheduled Delivery Date | [ ]% | ||||
Fewer than [ ] prior to, but more than [ ] prior to the Scheduled Delivery Date | [ ]% | ||||
Fewer than [ ] prior to the Scheduled Delivery Date | [ ]% |
Rescheduling Fee Schedule for Products with a Delivery Location in the United States | |||||
Timing of Rescheduling | Rescheduling Fee (% of purchase price of rescheduled Product) | ||||
More than [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Less than [ ] from Purchase Order’s Guaranteed Delivery Date | Requires written permission of Supplier, [ ]% |
Rescheduling Fee Schedule for Products with a Delivery Location in Canada | |||||
Timing of Rescheduling | Rescheduling Fee (% of purchase price of rescheduled Product) | ||||
More than [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Less than [ ] from Purchase Order’s Guaranteed Delivery Date | Requires written permission of Supplier, [ ]% |
Convenience Cancellation Fee Schedule for Products Listed in Exhibit A and having a Delivery Location in the United States | |||||
Timing of Cancellation | Convenience Cancellation Fee (% of purchase price of Canceled Product) | ||||
More than [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Less than [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% |
Convenience Cancellation Fee Schedule for Products Listed in Exhibit A and having a Delivery Location in Canada | |||||
Timing of Cancellation | Convenience Cancellation Fee (% of purchase price of Canceled Product) | ||||
More than [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Less than [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% |
Convenience Cancellation Fee Schedule for Products Not Listed in Exhibit A | |||||
Timing of Cancellation | Convenience Cancellation Fee (% of purchase price of Canceled Product) | ||||
More than [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Between [ ] and [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% | ||||
Less than [ ] from Purchase Order’s Guaranteed Delivery Date | [ ]% |
Severity Level | Acknowledgement of Issue | Issue Resolution Time | Damages for Failure to meet Service Level in $ / kWh /day | ||||||||
Severity 1 | [ ] | [ ] | $[ ] | ||||||||
Severity 2 | [ ] | [ ] | $[ ] | ||||||||
Severity 3 | [ ] | [ ] | $[ ] |
Severity Level | Acknowledgement of Issue | Issue Resolution Time | ||||||
All | [ ] | [ ] |
STEM, INC. | |||||||||||
Date: August 4, 2022 | By: | /s/ John Carrington | |||||||||
Name: | John Carrington | ||||||||||
Title: | Chief Executive Officer |
STEM, INC. | |||||||||||
Date: August 4, 2022 | By: | /s/ William Bush | |||||||||
Name: | William Bush | ||||||||||
Title: | Chief Financial Officer | ||||||||||
STEM, INC. | |||||||||||
Date: August 4, 2022 | By: | /s/ John Carrington | |||||||||
Name: | John Carrington | ||||||||||
Title: | Chief Executive Officer |
STEM, INC. | |||||||||||
Date: August 4, 2022 | By: | /s/ William Bush | |||||||||
Name: | William Bush | ||||||||||
Title: | Chief Financial Officer | ||||||||||
(Principal Financial Officer) | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 1,639 | $ 91 |
Other current assets, due from related parties | 58 | 213 |
Other current liabilities, due to related parties | $ 354 | $ 306 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 154,226,275 | 144,671,624 |
Common stock, shares outstanding (in shares) | 154,226,275 | 144,671,624 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (32,023) | $ (100,216) | $ (54,506) | $ (182,769) |
Other comprehensive loss: | ||||
Unrealized loss on available-for-sale securities | (399) | 0 | (1,010) | 0 |
Foreign currency translation adjustment | (118) | (602) | (146) | (351) |
Other comprehensive loss | (32,540) | (100,818) | (55,662) | (183,120) |
Less: Comprehensive loss attributable to non-controlling interests | (4) | 0 | (4) | 0 |
Total comprehensive loss attributable to Stem | $ (32,536) | $ (100,818) | $ (55,658) | $ (183,120) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Transaction costs | $ 58,061 | |
Convertible Notes | ||
Payment of debt issuance costs | $ 0 | 8 |
Notes Payable | ||
Payment of debt issuance costs | $ 0 | $ 101 |
BUSINESS |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||
BUSINESS | BUSINESS Description of the Business Stem, Inc., together with its consolidated subsidiaries (“Stem,” the “Company,” “we,” “us,” or “our”), maintains one of the largest digitally connected, intelligent renewable energy networks, providing customers (i) with an energy storage system, sourced from leading, global battery original equipment manufacturers (“OEMs”), that the Company delivers through its partners, including solar project developers and engineering, procurement, and construction firms, (ii) ongoing software-enabled services to operate the energy storage systems for up to 20 years, through its Athena® artificial intelligence (“AI”) platform (“Athena”), and (iii) solar asset performance monitoring and control, through its PowerTrack software. In addition, in all the markets where the Company operates its customers’ energy storage systems, the Company has agreements to use the Athena platform to participate in energy markets and to share the revenue from such market participation. The Company delivers its battery hardware and software-enabled services through its Athena platform to its customers. The Company’s hardware and recurring software-enabled services mitigate customer energy costs through services such as time-of-use and demand charge management optimization and by aggregating the dispatch of energy through a network of virtual power plants. The resulting network created by the Company’s growing customer base increases grid resilience and reliability through the real-time processing of market-based demand cycles, energy prices and other factors in connection with the deployment of renewable energy resources to such customers. Additionally, the Company’s energy storage solutions support renewable energy generation by alleviating grid intermittency issues and thereby reducing customer dependence on traditional, fossil fuel resources. The Company’s PowerTrack platform provides a vertically-integrated solution that incorporates on-site power monitoring equipment that aggregates and communicates data to enable remote control of solar generation assets. PowerTrack provides direct access to individual site performance to measure and benchmark expected energy production, maximizing asset value for our customers. From time to time, the Company, through an indirect wholly-owned development subsidiary (“DevCo”) formed in January 2022, will enter into strategic joint ventures (each a “DevCo JV”) with qualified third parties for the development of select renewable energy projects (“DevCo Projects”). In this structure, DevCo forms a new DevCo JV entity as the majority owner, with the developer as the minority owner. The purpose of the DevCo JV is to develop and sell DevCo Projects and secure Company hardware and software services for those projects. In DevCo Projects, the Company makes development capital contributions to fund project development. The Company will in some cases also elect to make cash advances to hardware suppliers to accelerate project construction timelines given long lead times to secure hardware. This business model is intended to allow the Company to opportunistically deploy its balance sheet by providing development capital to key partners in strategic markets and securing hardware upfront, in order to generate higher-margin software and services revenue via exclusive long-term services contracts under the DevCo Projects. On February 1, 2022, the Company acquired all of the issued and outstanding capital stock of Also Energy Holdings, Inc. (“AlsoEnergy”), which has been consolidated since the date of acquisition. Through AlsoEnergy, the Company provides end-to-end turnkey solutions that monitor and manage renewable energy systems through AlsoEnergy’s PowerTrack software. PowerTrack includes data acquisitions and monitoring, performance modeling, agency reporting, internal reports, work order tickets, and supervisory control and data acquisition (“SCADA”) controls. AlsoEnergy has deployed systems at various international locations, but its primary customer base is in the United States, Germany and Canada. See Note 6 — Business Combinations. The Company operated as Rollins Road Acquisition Company (f/k/a Stem, Inc.) (“Legacy Stem”) prior to the Merger (as defined below). Stem, Inc. was incorporated on March 16, 2009 in the State of Delaware and is headquartered in San Francisco, California. Star Peak Acquisition Corp. Merger On December 3, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Star Peak Transition Corp. (“STPK”), an entity listed on the New York Stock Exchange under the trade symbol “STPK,” and STPK Merger Sub Corp., a Delaware corporation and wholly-owned subsidiary of STPK (“Merger Sub”), providing for, among other things, and subject to the conditions therein, the combination of the Company and STPK pursuant to the merger of Merger Sub with and into the Company, with the Company continuing as the surviving entity (the “Merger”). On April 28, 2021, shareholders of STPK approved the Merger, under which Stem received approximately $550.3 million, net of fees and expenses as follows (in thousands):
Immediately prior to the closing of the Merger, (i) all issued and outstanding shares of Legacy Stem preferred stock, par value $0.00001 per share (the “Legacy Stem Preferred Stock”), were converted into shares of Legacy Stem common stock, par value $0.000001 per share (the “Legacy Stem Common Stock”) in accordance with Legacy Stem’s amended and restated certificate of incorporation, (ii) all outstanding convertible promissory notes of Legacy Stem (the “Legacy Stem Convertible Notes”) were converted into Legacy Stem Preferred Stock in accordance with the terms of the Legacy Stem Convertible Notes and (iii) certain warrants issued by Legacy Stem to purchase Legacy Stem Common Stock and Legacy Stem Preferred Stock (the “Legacy Stem Warrants”) were exercised by holders into Legacy Stem Common Stock in accordance with the terms thereof. Upon the consummation of the Merger, each share of Legacy Stem common stock then issued and outstanding was canceled and converted into the right to receive shares of common stock of Stem using an exchange ratio of 4.6432. In connection with the execution of the Merger Agreement, STPK entered into separate subscription agreements (each, a “Subscription Agreement”) with a number of investors (each a “Subscriber”), pursuant to which the Subscribers agreed to purchase, and STPK agreed to sell to the Subscribers, an aggregate of 22,500,000 shares of common stock (the “PIPE Shares”), for a purchase price of $10 per share and an aggregate purchase price of $225.0 million, in a private placement pursuant to the subscription agreements (the “PIPE”). The PIPE investment closed simultaneously with the consummation of the Merger. The Merger was accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles (“GAAP”). Under this method of accounting, STPK was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Merger was treated as the equivalent of Stem issuing stock for the net assets of STPK, accompanied by a recapitalization. The net liabilities of STPK of $302.2 million, comprised primarily of the warrant liabilities associated with the Public and Private Placement Warrants discussed in Note 11 — Warrants, are stated at historical cost, with no goodwill or other intangible assets recorded. Liquidity The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and with the instructions to Form 10-Q and Article 10 of the Regulation S-X, assuming the Company will continue as a going concern. As of June 30, 2022, the Company had cash and cash equivalents of $151.0 million, short-term investments of $183.9 million, an accumulated deficit of $562.5 million and net working capital of $316.5 million, with $14.8 million of financing obligations coming due within the next 12 months. During the six months ended June 30, 2022, the Company incurred a net loss of $54.5 million and had negative cash flows from operating activities of $32.6 million. However, the net proceeds from the Merger of $550.3 million, the proceeds of $145.3 million from the exercise of Public Warrants (as described in Note 11 — Warrants), and the net proceeds of $445.7 million from the issuance of the Company’s 0.50% Green Convertible Senior Notes due 2028 (the “2028 Convertible Notes”) (as described in Note 10 — Convertible Promissory Notes) provided the Company with a significant amount of cash proceeds. As discussed in Note 6 — Business Combinations, the Company acquired 100% of the issued and outstanding capital stock of AlsoEnergy for an aggregate purchase price of $652.0 million, including $543.1 million in cash net of a working capital adjustment for an escrow recovery and $108.9 million in common stock. The Company believes that its cash position is sufficient to meet capital and liquidity requirements for at least the next 12 months after the date that the financial statements are available to be issued. The Company’s business prospects are subject to risks, expenses, and uncertainties frequently encountered by companies in the early stages of commercial operations. Prior to the Merger, the Company had been funded primarily by equity financings, convertible promissory notes and borrowings from affiliates. The attainment of profitable operations is dependent upon future events, including securing new customers and maintaining current ones, securing and maintaining adequate supplier relationships, building its customer base, successfully executing its business and marketing strategy, obtaining adequate financing to complete the Company’s development activities, and hiring and retaining appropriate personnel. Failure to generate sufficient revenues, achieve planned gross margins and operating profitability, control operating costs, or secure additional funding may require the Company to modify, delay or abandon some of its planned future expansion or development, or to otherwise enact operating cost reductions available to management, which could have a material adverse effect on the Company’s business, operating results and financial condition. COVID-19 There has been a trend in many parts of the world of increasing availability and administration of vaccines against COVID-19, as well as an easing of restrictions on social, business, travel and government activities and functions. On the other hand, infection rates and regulations continue to fluctuate in various regions of the world, and there are ongoing global effects resulting from the pandemic, including challenges and increases in costs for logistics and supply chains, such as increased port congestion, intermittent supplier delays and labor shortages. Ongoing government and business responses to COVID-19, along with COVID-19 variants and the resurgence of related disruptions, could have a continued material adverse effect on economic and market conditions and trigger a period of continued global and U.S. economic slowdown. The Company’s industry continues to face shortages and shipping delays affecting the supply of inverters, enclosures, battery modules and associated component parts for inverters and battery energy storage systems available for purchase. These shortages and delays can be attributed in part to the pandemic and resulting government action, as well as broader macroeconomic conditions that may persist once the immediate effects of the pandemic have subsided, and have been exacerbated by the ongoing conflict between Russia and Ukraine. While management believes that a majority of the Company’s suppliers have secured sufficient supply to permit them to continue delivery and installations through the end of 2022, if these shortages and delays persist into 2023, they could adversely affect the timing of when battery energy storage systems can be delivered and installed, and when (or if) the Company can begin to generate revenue from those systems. The Company cannot predict the full effects the pandemic will have on our business, cash flows, liquidity, financial condition and results of operations at this time due to numerous uncertainties. The Company will continue to monitor developments affecting its workforce, its suppliers, its customers and its business operations generally, and will take actions the Company determines are necessary in order to mitigate these.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with GAAP for interim reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed balance sheet at December 31, 2021 has been derived from the audited financial statements at that date, but certain notes or other information that are normally required by GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. In the opinion of Stem management, all normal and recurring adjustments considered necessary for a fair statement of the results for the interim period presented have been included in the accompanying unaudited financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and consolidated variable interest entities (“VIEs”). The Company presents non-controlling interests within the equity section of its condensed consolidated balance sheets, and the amount of consolidated net loss that is attributable to Stem and the non-controlling interest in its condensed consolidated statements of operations. All intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2021. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022 or for any other future interim period or year. Variable Interest Entities Beginning in January 2022, the Company formed DevCo JVs with the purpose of originating potential battery storage facility projects in the specific locations and conducting early-stage planning and development activities. The Company determined that the DevCo JVs are variable interest entities (“VIEs”) as they lack sufficient equity to finance their activities without additional financial support. The Company determined that it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits from the VIE that could potentially be significant. Accordingly, the Company has determined that it is the primary beneficiary of the DevCo JVs, and as a result, the DevCo JVs’ operating results, assets and liabilities are consolidated by the Company. The following table summarizes the carrying values of the assets and liabilities of the DevCo JVs that are consolidated by the Company (in thousands):
For the six months ended June 30, 2022, the Company contributed approximately $5.6 million in capital investments for hardware purchases. The net loss from the DevCo JVs during the six months ended June 30, 2022 was not material. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. Actual results could differ from those estimates and such differences could be material to the financial position and results of operations. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, depreciable life of energy systems; the amortization of acquired intangibles; the amortization of financing obligations; deferred commissions and contract fulfillment costs; the valuation of energy storage systems, internally developed software, and asset retirement obligations; and the fair value of equity instruments, equity-based instruments, warrant liabilities, embedded derivatives and net assets acquired in a business combination. Segment Information Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, management has determined that the Company operates as one operating segment that is focused exclusively on innovative technology services that transform the way energy is distributed and consumed. The operations acquired as part of the acquisition of AlsoEnergy have been included in the Company’s operating segment. Net assets outside of the U.S. were less than 10% of total net assets as of June 30, 2022 and December 31, 2021. Concentration of Credit Risk and Other Uncertainties At times, the Company may be subject to a concentration of credit risk in relation to certain customers due to the purchase of large energy storage systems made by such customers. The Company routinely assesses the creditworthiness of its customers. The Company has not experienced any material losses related to receivables from individual customers, or groups of customers, during the six months ended June 30, 2022 and 2021. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for credit losses is believed by management to be probable in the Company’s accounts receivable. Significant Customers A significant customer represents 10% or more of the Company’s total revenue or accounts receivable, net balance at each reporting date. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows:
*Total less than 10% for the respective period. There are inherent risks whenever a large percentage of total revenue is concentrated in a limited number of customers. Should a significant customer: terminate or fail to renew its contracts with us, in whole or in part, for any reason, or experience significant financial or operating difficulties, it could have a material adverse effect on our financial condition and results of operations. In general, a customer that makes up a significant portion of revenues in one period, may not make up a significant portion in subsequent periods. See “We depend on significant customers for a substantial portion of our revenue. If we fail to retain or expand our customer relationships or significant customers reduce their purchases, our revenue could decline significantly” in Part II, Item 1A. “Risk Factors” of this report for additional information about certain risks related to the concentration of our customers. Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the unaudited condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Level 3 — Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The Company’s assessment of the significance of a specific input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. Financial assets and liabilities held by the Company measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 include cash and cash equivalents, short-term investments, and convertible promissory notes. Recently Adopted Accounting Standards The Company has adopted ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), effective January 1, 2022 using the modified retrospective approach. ASU 2020-06 simplifies the accounting for convertible instruments. The guidance removes certain accounting models which separate conversion features from the host contract for convertible instruments. As a result of the adoption of ASU 2020-06, the 2028 Convertible Notes are no longer bifurcated into separate liability and equity components in the June 30, 2022 condensed consolidated balance sheet. Rather, the $460.0 million principal amount of the Company’s 2028 Convertible Notes was classified as a liability in the June 30, 2022 condensed consolidated balance sheet. Upon adoption of ASU 2020-06, an adjustment was recorded to the 2028 Convertible Notes liability component, equity component (additional paid-in-capital) and accumulated deficit. The cumulative effect of the change was recognized as an adjustment to the opening balance of accumulated deficit at the date of adoption. The comparative information has not been restated and continues to be presented according to accounting standards in effect for those periods. This adjustment was calculated based on the carrying amount of the 2028 Convertible Notes as if it had always been treated only as a liability. Further, an adjustment was recorded to the debt discount and issuance costs as if these had always been treated as a contra liability only. Interest expense related to the accretion of the 2028 Convertible Notes is no longer recognized. Interest expense for the 2028 Convertible Notes for the three and six months ended June 30, 2022 would have been $3.8 million and $7.5 million higher without the adoption of ASU 2020-06, respectively. As such, net loss attributable to the Company per common share for the three and six months ended June 30, 2022 is $0.02 and $0.05 lower due to the effect of adoption of ASU 2020-06, respectively. In June 2016, the FASB issued ASU 2016-13, Financial instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, which amends the guidance on the impairment of financial instruments by requiring measurement and recognition of expected credit losses for financial assets held. This ASU is effective for public and private companies’ fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and December 15, 2022, respectively. As the Company is no longer an emerging growth company as of January 1, 2022, the Company adopted ASU 2016-13 effective on such date, utilizing the modified retrospective transition method. Upon adoption, the Company updated its impairment model to utilize a forward-looking current expected credit losses (“CECL”) model in place of the incurred loss methodology for financial instruments measured at amortized cost, primarily including its accounts receivable. The adoption did not have a material effect on the Company’s unaudited condensed consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. Under ASU 2021-08, an acquirer must recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The Company early adopted ASU 2021-08 on a prospective basis effective January 1, 2022. As indicated in Note 6 — Business Combinations, the Company completed the acquisition of AlsoEnergy on February 1, 2022. The adoption of ASU 2021-08 resulted in the recognition of deferred revenue at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 was effective for public entities for interim and annual periods beginning after December 15, 2020, with early adoption permitted. ASU 2019-12 will be effective for private entities for annual periods beginning after December 15, 2021, and interim periods beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12 effective May 1, 2021. The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements.
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REVENUE |
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REVENUE | REVENUE Disaggregation of Revenue The following table provides information on the disaggregation of revenue as recorded in the consolidated statements of operations (in thousands):
The table above includes AlsoEnergy’s hardware and services revenue of $6.9 million and $7.2 million, respectively, for the three months ended June 30, 2022 and $11.7 million and $12.0 million, respectively, for the six months ended June 30, 2022. The following table summarizes reportable revenue by geographic regions determined based on the location of the customers (in thousands):
Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities (deferred revenue) and amounts that will be billed and recognized as revenue in future periods. As of June 30, 2022, the Company had $363.8 million of remaining performance obligations, and the approximate percentages expected to be recognized as revenue in the future are as follows (in thousands, except percentages):
Contract Balances Deferred revenue primarily includes cash received in advance of revenue recognition related to energy optimization services and incentives. The following table presents the changes in the deferred revenue balance during the six months ended June 30, 2022 (in thousands):
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SHORT-TERM INVESTMENTS |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHORT-TERM INVESTMENTS | SHORT-TERM INVESTMENTS The following tables summarize the estimated fair value of the Company’s short-term investments and the gross unrealized holding gains and losses as of June 30, 2022 and December 31, 2021 (in thousands):
The following table presents the contractual maturities of the Company’s short-term investments as of June 30, 2022 (in thousands):
The Company periodically reviews the individual securities that have unrealized losses on a regular basis to evaluate whether or not any security has experienced, or is expected to experience, credit losses resulting in the decline in fair value. The Company evaluates, among other factors, whether the Company intends to sell any of these marketable securities and whether it is more likely than not that the Company will be required to sell any of them before recovery of the amortized cost basis. During the six months ended June 30, 2022, the Company did not record an allowance for credit losses, as management believes any such losses would be immaterial based on the high-grade credit rating for each of the short-term investments as of the end of each period.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value accounting is applied for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. At June 30, 2022 and December 31, 2021, the carrying amount of accounts receivable, other current assets, accounts payable, and accrued and other current liabilities approximated their estimated fair value due to their relatively short maturities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table provides the financial instruments measured at fair value (in thousands):
The Company’s money market funds are classified as Level 1 because they are valued using quoted market prices. The Company’s short-term investments consist of available-for-sale securities and are classified as Level 2 because their value is based on valuations using significant inputs derived from or corroborated by observable market data. Fair Value of Convertible Promissory NotesThe convertible notes are recorded at face value less unamortized debt issuance costs (see Note 10 — Convertible Promissory Notes for additional details) on the condensed consolidated balance sheet as of June 30, 2022. As of June 30, 2022, the estimated fair value of the convertible notes was $282.7 million based on Level 2 quoted bid prices of the convertible notes in an over-the-counter market on the last trading date of the reporting period.
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BUSINESS COMBINATIONS |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On February 1, 2022, Stem, Inc. acquired 100% of the outstanding shares of AlsoEnergy. AlsoEnergy provides end-to-end turnkey solutions that monitor and manage renewable energy systems. AlsoEnergy has deployed systems at various international locations, but its largest customer bases are in the United States, Germany and Canada. The combined company delivers a one-stop-shop solution for front-of-meter and commercial and industrial (“C&I”) customers with solar and storage needs. The total consideration to acquire AlsoEnergy was $652.0 million, comprised of $543.1 million in cash, net of a working capital adjustment for an escrow recovery, and $108.9 million in the form of 8,621,006 shares of the Company’s common stock. The Company incurred $6.1 million of transaction costs related to the acquisition of AlsoEnergy, which were recorded in general and administrative expense during the six months ended June 30, 2022. The following table summarizes the purchase price as a part of the acquisition of AlsoEnergy (in thousands):
The following table summarizes the fair values of assets acquired and liabilities assumed in the acquisition of AlsoEnergy at the date of acquisition (in thousands):
Based on the accounting guidance provided in ASC 805, the Company accounted for the acquisition of AlsoEnergy as a business combination in which the Company determined that AlsoEnergy was a business. The Company's purchase price allocation for the acquisition of AlsoEnergy is preliminary and subject to revision as additional information about the fair value of the assets and liabilities becomes available. In the second quarter of 2022, a working capital adjustment was made that resulted in the decrease of goodwill of $0.9 million. The fair values assigned to tangible and intangible assets acquired, and liabilities assumed, are based on management’s estimates and assumptions and may be subject to change as additional information is received. Additional information that existed as of the closing date but not known at the time of this filing may become known to the Company during the remainder of the 12-month measurement period. The Company will continue to collect information and reevaluate these estimates and assumptions quarterly. The following table and accompanying paragraphs below summarize the intangible assets acquired, their fair value as of the acquisition date, and their estimated useful lives for amortizable intangible (in thousands, except estimated useful life, which is in years):
Trade names include the AlsoEnergy and PowerTrack trade names, which were measured at fair value using the relief-from-royalty method. Customer relationships represent the estimated fair values of the underlying relationship with AlsoEnergy customers measured using the multiple-period excess earnings method under the income approach. Backlog relates to subscriptions contracts that were measured at fair value using the multiple-period excess earnings method under the income approach. Developed technology represents the preliminary fair value of AlsoEnergy’s renewable energy platform that was measured using the relief-from-royalty method of the income approach. The amortization expense for all acquired intangible assets will be recognized on a straight-line basis over their respective estimated useful lives. Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired. The acquisition of AlsoEnergy resulted in the recognition of $545.0 million of goodwill. The Company believes that goodwill acquired primarily consists of expanded market and product opportunities, including acceleration of growth of renewable energy onto the power grid, expanded value for the Company’s customers to manage and optimize combined solar and energy storage systems through the vertical integration of software solutions, as well as access of the Company’s product offerings to international markets. Goodwill created as a result of the acquisition of AlsoEnergy is not expected to be deductible for tax purposes. A net deferred tax liability of $15.5 million was established for the intangible assets acquired net of deferred tax assets, which primarily consists of net operating loss carryforwards and deferred revenue. Goodwill has been allocated to the Company’s single reporting unit. The Company included the financial results of AlsoEnergy in its unaudited condensed consolidated financial statements from the acquisition date, which contributed revenue of $14.1 million and $23.7 million of revenue during the three and six months ended June 30, 2022, respectively, and net loss of $5.8 million and $9.3 million during the three and six months ended June 30, 2022, respectively. Unaudited Pro Forma Financial Information The following unaudited pro forma financial information summarizes the combined results of operations for the Company and AlsoEnergy, as if the acquisition had occurred on January 1, 2021. The pro forma financial information is as follows (in thousands):
The pro forma financial information for the periods presented above has been calculated after adjusting the results of AlsoEnergy to reflect the business combination accounting effects resulting from this acquisition, including the elimination of transaction costs incurred by the Company, amortization expense from acquired intangible assets, and settlement of stock option awards. The historical consolidated financial statements have been adjusted in the pro forma combined financial statements to give effect to pro forma events that are directly attributable to the business combination. The pro forma financial information is for informational purposes only, and is not indicative of either future results of operations, or results that may have been achieved had the acquisition been consummated as of the beginning of 2022 or 2021.
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GOODWILL AND INTANGIBLE ASSETS, NET |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill Goodwill consists of the following (in thousands):
Intangible Assets, Net Intangible assets, net, consists of the following (in thousands):
Amortization expense for intangible assets was $6.2 million and $1.3 million for the three months ended June 30, 2022 and 2021, respectively, and $10.4 million and $2.5 million for the six months ended June 30, 2022 and 2021, respectively.
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ENERGY STORAGE SYSTEMS, NET |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ENERGY STORAGE SYSTEMS, NET | ENERGY STORAGE SYSTEMS, NET Energy Storage Systems, Net Energy storage systems, net, consists of the following (in thousands):
Depreciation expense for energy storage systems was approximately $3.7 million and $3.6 million for the three months ended June 30, 2022 and 2021, respectively, and approximately $7.4 million and $7.3 million for the six months ended June 30, 2022 and 2021, respectively. Depreciation expense is recognized in cost of service revenue.
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NOTES PAYABLE |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE | NOTES PAYABLE Revolving Loan Due to SPE Member In April 2017, the Company entered into a revolving loan agreement with an affiliate of a member of certain of the Company’s special purpose entities (“SPE”). This agreement was, from time to time, subsequently amended. The purpose of this revolving loan agreement was to finance the Company’s purchase of hardware for its various energy storage system projects. The agreement had a total revolving loan capacity of $45.0 million that bore fixed interest at 10% with a maturity date of June 2020. In May 2020, concurrent with the 2020 Credit Agreement discussed below, the Company entered into an amendment to the revolving loan agreement, which reduced the loan capacity to $35.0 million and extended the maturity date to May 2021. The amendment increased the fixed interest rate for any borrowings outstanding more than nine months to 14% thereafter. Additionally, under the original terms of the revolving loan agreement, the Company was able to finance 100% of the value of the hardware purchased up to the total loan capacity. The amendment reduced the advance rate to 85%, with an additional reduction to 70% in August 2020. The amendment was accounted for as a modification of the debt, which did not have a material impact on the unaudited condensed consolidated financial statements. In April 2021, the Company repaid the remaining outstanding balance of this facility with the proceeds received from the Merger. The facility was terminated after the repayment in April 2021. Term Loan Due to Former Non-Controlling Interest Holder In June 2018, the Company acquired the outstanding member interests of an entity controlled by the Company for $8.1 million. The Company financed this acquisition by entering into a term loan agreement with the noncontrolling member bearing fixed interest of 4.5% per quarter (18.0% per annum) on the outstanding principal balance. The loan required fixed quarterly payments throughout the term of the loan, which was scheduled to be paid in full by April 1, 2026. In May 2020, the Company amended the term loan and, using the proceeds from the 2020 Credit Agreement discussed below, prepaid $1.5 million of principal and interest on the note, of which $1.0 million was towards the outstanding principal balance, thereby reducing the fixed quarterly payment due to the lender. In relation to this amendment, the Company was required to issue warrants for 400,000 shares of common stock resulting in a discount to the term loan of $0.2 million. In April 2021, the Company repaid the remaining outstanding balance of this facility with the proceeds received from the Merger. Upon prepayment of this facility, the Company incurred $2.6 million in prepayment penalties that were recorded to loss on extinguishment of debt in the Company’s statement of operations. The facility was terminated after the repayment in April 2021. 2020 Credit Agreement In May 2020, the Company entered into a credit agreement (“2020 Credit Agreement”) with a new lender that provided the Company with proceeds of $25.0 million to provide the Company with access to working capital towards the purchase of energy storage system equipment. The 2020 Credit Agreement has a maturity date of the earlier of (1) May 2021, (2) the maturity date of the revolving loan agreement, or (3) the maturity date of the convertible promissory notes discussed below. The loan bore interest of 12% per annum, of which 8% was paid in cash and 4% added back to principal of the loan balance every quarter. The Company used a portion of the proceeds towards payments associated with existing debt as previously discussed. In April 2021, the Company repaid the remaining outstanding balance of this facility with the proceeds received from the Merger. Upon prepayment of this facility, the Company incurred $1.4 million in prepayment penalties that were recorded to loss on extinguishment of debt in the Company’s statement of operations. The facility was terminated after the repayment in April 2021. 2021 Credit Agreement In January 2021, a wholly owned Canadian subsidiary of the Company entered into a credit agreement to provide a total of $2.7 million towards the financing of certain energy storage systems. The credit agreement is structured on a non-recourse basis and the system will be operated by the Company. The credit agreement has a stated interest of 5.45% and a maturity date of June 2031. The Company received an advance under the credit agreement of $1.8 million in January 2021. The repayment of advances received under this credit agreement is determined by the lender based on the proceeds generated by the Company through the operation of the underlying energy storage systems. As of June 30, 2022, and December 31, 2021, the outstanding balance was $1.9 million. The Company was in compliance with all covenants contained in the 2021 Credit Agreement as of June 30, 2022. The Company’s outstanding debt consisted of the following as of June 30, 2022 (in thousands): CONVERTIBLE PROMISSORY NOTESAs of December 31, 2020, the Company had various convertible notes outstanding to investors. The Company refers to the collective group of all such note instruments as the “Pre-Merger Convertible Promissory Notes.” As of December 31, 2020, these Pre-Merger Convertible Promissory Notes had a balance of $67.6 million. During the year ended December 31, 2021, the Company issued additional convertible notes, including convertible promissory notes issued and sold in January 2021 (the “Q1 2021 Convertible Notes”) and the 2028 Convertible Notes. Upon effectiveness of the Merger on April 28, 2021, all outstanding Pre-Merger Convertible Promissory Notes and the Q1 2021 Convertible Notes were converted to common stock and cancelled (see “—Conversion and Cancellation of Convertible Promissory Notes Upon Merger” below). As of December 31, 2021, the Pre-Merger Convertible Promissory Notes and the Q1 2021 Convertible Notes were no longer outstanding.
Q1 2021 Convertible Notes In January 2021, the Company issued and sold the Q1 2021 Convertible Notes under the same terms as the then existing Pre-Merger Convertible Promissory Notes to various investors with aggregate gross proceeds of $1.1 million. The Company evaluated the conversion option within the Q1 2021 Convertible Notes and determined the effective conversion price was beneficial to the note holders. Conversion and Cancellation of Convertible Promissory Notes Upon Merger Immediately prior to the effectiveness of the Merger, the entire balance of the Company’s outstanding Pre-Merger Convertible Promissory Notes and the Q1 2021 Convertible Notes issued by Legacy Stem automatically converted into shares of Legacy Stem Common Stock. Upon the effectiveness of the Merger, these shares of Legacy Stem Common Stock automatically converted into 10,921,548 shares of common stock of Stem. The balance associated with the outstanding Pre-Merger Convertible Promissory Notes and the Q1 2021 Convertible Notes totaling $77.7 million, including $7.7 million of interest accrued on the notes through the date of Merger, was reclassified to additional paid-in-capital. The unamortized portion of the debt discount associated with the outstanding Q1 2021 Convertible Notes totaling $1.1 million was fully expensed to loss on extinguishment of debt on the Company’s statement of operations. 2028 Convertible Notes and Capped Call Options 2028 Convertible Notes On November 22, 2021, the Company issued $460.0 million aggregate principal amount of its 2028 Convertible Notes in a private placement offering to qualified institutional buyers (the “Initial Purchasers”) pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2028 Convertible Notes are senior, unsecured obligations of the Company and bear interest at a rate of 0.5% per year, payable in cash semi-annually in arrears in June and December of each year, beginning in June 2022. The notes will mature on December 1, 2028, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock. The Notes are redeemable for cash at the Company’s option at any time given certain conditions (as discussed below), at an initial conversion rate of 34.1965 shares of common stock per $1,000 principal amount of 2028 Convertible Notes, which is equivalent to an initial conversion price of approximately $29.24 (the “2028 Conversion Price”) per share of the Company’s common stock. The conversion rate is subject to customary adjustments for certain events as described in the Indenture. The Company may redeem for cash all or any portion of the 2028 Convertible Notes, at the Company’s option, on or after December 5, 2025 if the last reported sale price of the Company’s common stock has been at least 130% of the 2028 Conversion Price then in effect for at least 20 trading days at a redemption price equal to 100% of the principal amount of the 2028 Convertible Notes to be redeemed, plus accrued and unpaid interest. The Company’s net proceeds from this offering were approximately $445.7 million, after deducting the Initial Purchasers’ discounts and debt issuance costs. To minimize the impact of potential dilution to the Company’s common stockholders upon conversion of the 2028 Convertible Notes, the Company entered into separate capped calls transactions (the “Capped Calls”) as described below. Upon adoption of ASU 2020-06, the Company allocated all of the debt discount to long-term debt. The debt discount is amortized to interest expense using the effective interest method, computed to be 0.9%, over the life of the 2028 Convertible Notes or approximately its seven-year term. The outstanding 2028 Convertible Notes balances as of June 30, 2022 are summarized in the following table (in thousands):
The following table presents total interest expense recognized related to the 2028 Convertible Notes during the three and six months ended June 30, 2022 (in thousands):
Capped Call Options On November 17, 2021, in connection with the pricing of the 2028 Convertible Notes, and on November 19, 2021, in connection with the exercise in full by the Initial Purchasers of their option to purchase additional Notes, the Company entered into Capped Calls with certain counterparties. The Company used $66.7 million of the net proceeds to pay the cost of the Capped Calls. The Capped Calls have an initial strike price of $29.2428 per share, which corresponds to the initial conversion price of the 2028 Convertible Notes and is subject to anti-dilution adjustments. The Capped Calls have a cap price of $49.6575 per share, subject to certain adjustments. The Capped Calls are considered separate transactions entered into by and between the Company and the Capped Calls counterparties, and are not part of the terms of the 2028 Convertible Notes. The Company recorded a reduction to additional paid-in capital of $66.7 million during the year ended December 31, 2021 related to the premium payments for the Capped Calls. These instruments meet the conditions outlined in ASC 815 to be classified in stockholders’ equity and are not subsequently remeasured as long as the conditions for equity classification continue to be met.
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CONVERTIBLE PROMISSORY NOTES |
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CONVERTIBLE PROMISSORY NOTES | NOTES PAYABLE Revolving Loan Due to SPE Member In April 2017, the Company entered into a revolving loan agreement with an affiliate of a member of certain of the Company’s special purpose entities (“SPE”). This agreement was, from time to time, subsequently amended. The purpose of this revolving loan agreement was to finance the Company’s purchase of hardware for its various energy storage system projects. The agreement had a total revolving loan capacity of $45.0 million that bore fixed interest at 10% with a maturity date of June 2020. In May 2020, concurrent with the 2020 Credit Agreement discussed below, the Company entered into an amendment to the revolving loan agreement, which reduced the loan capacity to $35.0 million and extended the maturity date to May 2021. The amendment increased the fixed interest rate for any borrowings outstanding more than nine months to 14% thereafter. Additionally, under the original terms of the revolving loan agreement, the Company was able to finance 100% of the value of the hardware purchased up to the total loan capacity. The amendment reduced the advance rate to 85%, with an additional reduction to 70% in August 2020. The amendment was accounted for as a modification of the debt, which did not have a material impact on the unaudited condensed consolidated financial statements. In April 2021, the Company repaid the remaining outstanding balance of this facility with the proceeds received from the Merger. The facility was terminated after the repayment in April 2021. Term Loan Due to Former Non-Controlling Interest Holder In June 2018, the Company acquired the outstanding member interests of an entity controlled by the Company for $8.1 million. The Company financed this acquisition by entering into a term loan agreement with the noncontrolling member bearing fixed interest of 4.5% per quarter (18.0% per annum) on the outstanding principal balance. The loan required fixed quarterly payments throughout the term of the loan, which was scheduled to be paid in full by April 1, 2026. In May 2020, the Company amended the term loan and, using the proceeds from the 2020 Credit Agreement discussed below, prepaid $1.5 million of principal and interest on the note, of which $1.0 million was towards the outstanding principal balance, thereby reducing the fixed quarterly payment due to the lender. In relation to this amendment, the Company was required to issue warrants for 400,000 shares of common stock resulting in a discount to the term loan of $0.2 million. In April 2021, the Company repaid the remaining outstanding balance of this facility with the proceeds received from the Merger. Upon prepayment of this facility, the Company incurred $2.6 million in prepayment penalties that were recorded to loss on extinguishment of debt in the Company’s statement of operations. The facility was terminated after the repayment in April 2021. 2020 Credit Agreement In May 2020, the Company entered into a credit agreement (“2020 Credit Agreement”) with a new lender that provided the Company with proceeds of $25.0 million to provide the Company with access to working capital towards the purchase of energy storage system equipment. The 2020 Credit Agreement has a maturity date of the earlier of (1) May 2021, (2) the maturity date of the revolving loan agreement, or (3) the maturity date of the convertible promissory notes discussed below. The loan bore interest of 12% per annum, of which 8% was paid in cash and 4% added back to principal of the loan balance every quarter. The Company used a portion of the proceeds towards payments associated with existing debt as previously discussed. In April 2021, the Company repaid the remaining outstanding balance of this facility with the proceeds received from the Merger. Upon prepayment of this facility, the Company incurred $1.4 million in prepayment penalties that were recorded to loss on extinguishment of debt in the Company’s statement of operations. The facility was terminated after the repayment in April 2021. 2021 Credit Agreement In January 2021, a wholly owned Canadian subsidiary of the Company entered into a credit agreement to provide a total of $2.7 million towards the financing of certain energy storage systems. The credit agreement is structured on a non-recourse basis and the system will be operated by the Company. The credit agreement has a stated interest of 5.45% and a maturity date of June 2031. The Company received an advance under the credit agreement of $1.8 million in January 2021. The repayment of advances received under this credit agreement is determined by the lender based on the proceeds generated by the Company through the operation of the underlying energy storage systems. As of June 30, 2022, and December 31, 2021, the outstanding balance was $1.9 million. The Company was in compliance with all covenants contained in the 2021 Credit Agreement as of June 30, 2022. The Company’s outstanding debt consisted of the following as of June 30, 2022 (in thousands): CONVERTIBLE PROMISSORY NOTESAs of December 31, 2020, the Company had various convertible notes outstanding to investors. The Company refers to the collective group of all such note instruments as the “Pre-Merger Convertible Promissory Notes.” As of December 31, 2020, these Pre-Merger Convertible Promissory Notes had a balance of $67.6 million. During the year ended December 31, 2021, the Company issued additional convertible notes, including convertible promissory notes issued and sold in January 2021 (the “Q1 2021 Convertible Notes”) and the 2028 Convertible Notes. Upon effectiveness of the Merger on April 28, 2021, all outstanding Pre-Merger Convertible Promissory Notes and the Q1 2021 Convertible Notes were converted to common stock and cancelled (see “—Conversion and Cancellation of Convertible Promissory Notes Upon Merger” below). As of December 31, 2021, the Pre-Merger Convertible Promissory Notes and the Q1 2021 Convertible Notes were no longer outstanding.
Q1 2021 Convertible Notes In January 2021, the Company issued and sold the Q1 2021 Convertible Notes under the same terms as the then existing Pre-Merger Convertible Promissory Notes to various investors with aggregate gross proceeds of $1.1 million. The Company evaluated the conversion option within the Q1 2021 Convertible Notes and determined the effective conversion price was beneficial to the note holders. Conversion and Cancellation of Convertible Promissory Notes Upon Merger Immediately prior to the effectiveness of the Merger, the entire balance of the Company’s outstanding Pre-Merger Convertible Promissory Notes and the Q1 2021 Convertible Notes issued by Legacy Stem automatically converted into shares of Legacy Stem Common Stock. Upon the effectiveness of the Merger, these shares of Legacy Stem Common Stock automatically converted into 10,921,548 shares of common stock of Stem. The balance associated with the outstanding Pre-Merger Convertible Promissory Notes and the Q1 2021 Convertible Notes totaling $77.7 million, including $7.7 million of interest accrued on the notes through the date of Merger, was reclassified to additional paid-in-capital. The unamortized portion of the debt discount associated with the outstanding Q1 2021 Convertible Notes totaling $1.1 million was fully expensed to loss on extinguishment of debt on the Company’s statement of operations. 2028 Convertible Notes and Capped Call Options 2028 Convertible Notes On November 22, 2021, the Company issued $460.0 million aggregate principal amount of its 2028 Convertible Notes in a private placement offering to qualified institutional buyers (the “Initial Purchasers”) pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2028 Convertible Notes are senior, unsecured obligations of the Company and bear interest at a rate of 0.5% per year, payable in cash semi-annually in arrears in June and December of each year, beginning in June 2022. The notes will mature on December 1, 2028, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock. The Notes are redeemable for cash at the Company’s option at any time given certain conditions (as discussed below), at an initial conversion rate of 34.1965 shares of common stock per $1,000 principal amount of 2028 Convertible Notes, which is equivalent to an initial conversion price of approximately $29.24 (the “2028 Conversion Price”) per share of the Company’s common stock. The conversion rate is subject to customary adjustments for certain events as described in the Indenture. The Company may redeem for cash all or any portion of the 2028 Convertible Notes, at the Company’s option, on or after December 5, 2025 if the last reported sale price of the Company’s common stock has been at least 130% of the 2028 Conversion Price then in effect for at least 20 trading days at a redemption price equal to 100% of the principal amount of the 2028 Convertible Notes to be redeemed, plus accrued and unpaid interest. The Company’s net proceeds from this offering were approximately $445.7 million, after deducting the Initial Purchasers’ discounts and debt issuance costs. To minimize the impact of potential dilution to the Company’s common stockholders upon conversion of the 2028 Convertible Notes, the Company entered into separate capped calls transactions (the “Capped Calls”) as described below. Upon adoption of ASU 2020-06, the Company allocated all of the debt discount to long-term debt. The debt discount is amortized to interest expense using the effective interest method, computed to be 0.9%, over the life of the 2028 Convertible Notes or approximately its seven-year term. The outstanding 2028 Convertible Notes balances as of June 30, 2022 are summarized in the following table (in thousands):
The following table presents total interest expense recognized related to the 2028 Convertible Notes during the three and six months ended June 30, 2022 (in thousands):
Capped Call Options On November 17, 2021, in connection with the pricing of the 2028 Convertible Notes, and on November 19, 2021, in connection with the exercise in full by the Initial Purchasers of their option to purchase additional Notes, the Company entered into Capped Calls with certain counterparties. The Company used $66.7 million of the net proceeds to pay the cost of the Capped Calls. The Capped Calls have an initial strike price of $29.2428 per share, which corresponds to the initial conversion price of the 2028 Convertible Notes and is subject to anti-dilution adjustments. The Capped Calls have a cap price of $49.6575 per share, subject to certain adjustments. The Capped Calls are considered separate transactions entered into by and between the Company and the Capped Calls counterparties, and are not part of the terms of the 2028 Convertible Notes. The Company recorded a reduction to additional paid-in capital of $66.7 million during the year ended December 31, 2021 related to the premium payments for the Capped Calls. These instruments meet the conditions outlined in ASC 815 to be classified in stockholders’ equity and are not subsequently remeasured as long as the conditions for equity classification continue to be met.
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WARRANTS |
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Equity [Abstract] | |
WARRANTS | WARRANTS Legacy Stem Warrants Prior to the Merger, the Company had issued warrants to purchase shares of Legacy Stem’s preferred stock in conjunction with various debt financings. The Company has also issued warrants to purchase shares of Legacy Stem’s common stock. Upon effectiveness of the Merger, the Company had 50,207,439 warrants outstanding, of which substantially all were converted into 2,759,970 shares of common stock of Stem. Upon conversion of the warrants, the existing warrant liabilities were remeasured to fair value resulting in a gain on remeasurement of $100.9 million and a total warrant liability of $60.6 million, which was then reclassified to additional paid-in-capital. At June 30, 2022, there were 2,533 Legacy Stem Warrants outstanding. These instruments are exercisable into the Company’s common stock and are equity classified. Public Warrants and Private Placement Warrants As part of STPK’s initial public offering, under a Warrant Agreement dated as of August 20, 2020 (the “Warrant Agreement”) and, prior to the effectiveness of the Merger, STPK issued 12,786,168 warrants, each of which entitled the holder to purchase one share of common stock at an exercise price of $11.50 per share of common stock (the “Public Warrants”). Simultaneously with the closing of the initial public offering, STPK completed the private sale of 7,181,134 million warrants to STPK’s sponsor (the “Private Warrants”). Upon issuance, these warrants met the criteria for liability classification. Upon the effectiveness of the Merger, Stem assumed the outstanding Public Warrants and Private Warrants, which continued to meet the criteria for liability classification, resulting in assumed warrant liabilities of $185.9 million and $116.7 million, respectively, or a total warrant liability of $302.6 million. Such warrants were initially recorded at fair value and remeasured to fair value at each reporting period. The fair value of the Private Warrants was determined using the Black-Scholes method. Black-Scholes inputs used to value the warrants are based on information from purchase agreements and within valuation reports prepared by an independent third party for the Company. Inputs include exercise price, selection of guideline public companies, volatility, fair value of common stock, expected dividend rate and risk-free interest rate. On June 25, 2021, the Company entered into an exchange agreement (the “Exchange Agreement”) with the holders of the 7,181,134 outstanding Private Placement Warrants, pursuant to which such holders received 4,683,349 shares of the Company’s common stock on June 30, 2021, in exchange for the cancellation of all outstanding Private Placement Warrants. The Exchange Shares were issued in reliance upon the exemption provided by Section 3(a)(9) of the Securities Act of 1933, as amended. Immediately prior to the exchange, the Private Warrants were marked to fair value, resulting in a loss of $52.0 million. As a result of the Exchange Agreement, there are no Private Warrants outstanding. On August 20, 2021, the Company issued an irrevocable notice for redemption of all 12,786,129 of the Company’s outstanding public warrants at 5:00 p.m. Eastern time on September 20, 2021 (“Redemption Date”). Pursuant to the notice of redemption, holders exercised 12,638,723 Public Warrants for a purchase price of 11.50 per share, for proceeds to the Company of approximately $145.3 million. The Company redeemed all remaining outstanding Public Warrants that had not been exercised as of 5:00 p.m. Eastern time on the Redemption Date. As a result of the settlement of the Public Warrants, the Company recorded a gain of $134.9 million on the revaluation of the warrant liability. The Company also recorded a gain of $2.1 million on the redemption of unexercised Public Warrants. These gains are recorded in “change in fair value of warrants and embedded derivative” in the condensed consolidated statements of operation for the year ended December 31, 2021. The Public Warrants have been delisted from the NYSE, and there are no Public Warrants outstanding. Warrants Issued for Services On April 7, 2021, the Company entered into a strategic relationship with an existing shareholder not deemed to be a related party to jointly explore, on a non-exclusive basis possible business opportunities to advance projects in the United States, the United Kingdom, Europe and Asia. As consideration for the strategic relationship, upon closing of the Merger, the Company issued warrants to purchase 350,000 shares of the Company’s common stock at an exercise price of $0.01 per share. These warrants were deemed to have been fully earned as of the grant date. The warrants were valued at fair market value as of the grant date totaling $9.2 million and recorded to general and administrative expense in the Company’s statement of operations. In May 2021, all of these warrants were exercised for shares of the Company’s common stock.
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STOCK-BASED COMPENSATION |
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STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Equity Incentive Plans Under both the Stem, Inc. 2009 Equity Incentive Plan (the “2009 Plan”) and the Stem, Inc. 2021 Equity Incentive Plan (the “2021 Plan,” and together with the 2009 Plan, the “Plans”), the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and other awards that are settled in shares of the Company’s common stock. The Plans permit net settlement of vested awards, pursuant to which the award holder forfeits a portion of the vested award to satisfy the purchase price (in the case of stock options), the holder’s withholding tax obligation, if any, or both. When the holder net settles the tax obligation, the Company pays the amount of the withholding tax to the U.S. government in cash, which is accounted for as an adjustment to additional paid-in-capital. The Company does not intend to grant new awards under the 2009 Plan. All shares that remain available for future grants are under the 2021 Plan. Stock Options The following table summarizes the stock option activity for the period ended June 30, 2022:
As of June 30, 2022, the Company had approximately $21.9 million of remaining unrecognized stock-based compensation expense for stock options, which is expected to be recognized over a weighted average period of 2.0 years. Restricted Stock Units The following table summarizes the RSU activity for the period ended June 30, 2022:
As of June 30, 2022, the Company had approximately $82.7 million of remaining unrecognized stock-based compensation expense for RSUs, which is expected to be recognized over a weighted average period of 2.7 years. Stock-Based Compensation The following table summarizes stock-based compensation expense recorded in each component of operating expenses in the Company’s consolidated statements of operations and comprehensive loss (in thousands):
Research and development expenses of $0.6 million and $1.1 million corresponding to internal-use software, were capitalized during the three and six months ended June 30, 2022, respectively.
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NET LOSS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET LOSS PER SHARE | NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts):
The following table shows total outstanding potentially dilutive shares excluded from the computation of diluted loss per share as their effect would have been anti-dilutive, as of June 30, 2022 and 2021:
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The following table reflects the Company's benefit for income taxes and the effective tax rates for the periods presented below (in thousands, except effective tax rate):
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingencies The Company is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain and it is not possible to definitively predict the ultimate disposition of any of these proceedings. The Company does not believe that there are any pending legal proceedings or other loss contingencies that will, either individually or in the aggregate, have a material adverse impact on the Company’s unaudited condensed consolidated financial statements. Commitments On February 1, 2022, as part of the acquisition of AlsoEnergy, the Company recognized a $1.3 million operating lease liability and corresponding operating lease right-of-use (“ROU”) asset, which are included in the condensed consolidated balance sheet as of June 30, 2022. The operating lease liability and operating lease ROU asset correspond to 15,847 and 13,947 square feet of leased office, manufacturing, laboratory and warehouse space in Boulder, Colorado and Longmont, Colorado, respectively. As of the acquisition date, the remaining lease terms for Boulder and Longmont are for 34 and 35 months, respectively. These lease agreements contemplate options to extend the non-cancelable lease term, which have been determined not reasonably certain to be exercised. Combined base rent for these two locations is $39,725 per month with escalating payments. Legal Proceedings On April 29, 2020, the Company filed a lawsuit against one of its insurers alleging breach of contract. On May 2, 2022, the Company received settlement proceeds of $1.1 million net of legal costs and fees, which was recorded within general and administrative expense in the condensed consolidated statements of operations for the three and six months ended June 30, 2022.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with GAAP for interim reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed balance sheet at December 31, 2021 has been derived from the audited financial statements at that date, but certain notes or other information that are normally required by GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. In the opinion of Stem management, all normal and recurring adjustments considered necessary for a fair statement of the results for the interim period presented have been included in the accompanying unaudited financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and consolidated variable interest entities (“VIEs”). The Company presents non-controlling interests within the equity section of its condensed consolidated balance sheets, and the amount of consolidated net loss that is attributable to Stem and the non-controlling interest in its condensed consolidated statements of operations. All intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2021. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022 or for any other future interim period or year.
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Variable Interest Entities | Variable Interest EntitiesBeginning in January 2022, the Company formed DevCo JVs with the purpose of originating potential battery storage facility projects in the specific locations and conducting early-stage planning and development activities. The Company determined that the DevCo JVs are variable interest entities (“VIEs”) as they lack sufficient equity to finance their activities without additional financial support. The Company determined that it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits from the VIE that could potentially be significant. Accordingly, the Company has determined that it is the primary beneficiary of the DevCo JVs, and as a result, the DevCo JVs’ operating results, assets and liabilities are consolidated by the Company. |
Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. Actual results could differ from those estimates and such differences could be material to the financial position and results of operations. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, depreciable life of energy systems; the amortization of acquired intangibles; the amortization of financing obligations; deferred commissions and contract fulfillment costs; the valuation of energy storage systems, internally developed software, and asset retirement obligations; and the fair value of equity instruments, equity-based instruments, warrant liabilities, embedded derivatives and net assets acquired in a business combination.
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Segment Information | Segment Information Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, management has determined that the Company operates as one operating segment that is focused exclusively on innovative technology services that transform the way energy is distributed and consumed. The operations acquired as part of the acquisition of AlsoEnergy have been included in the Company’s operating segment.
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Concentration of Credit Risk and Other Uncertainties | Concentration of Credit Risk and Other Uncertainties At times, the Company may be subject to a concentration of credit risk in relation to certain customers due to the purchase of large energy storage systems made by such customers. The Company routinely assesses the creditworthiness of its customers. The Company has not experienced any material losses related to receivables from individual customers, or groups of customers, during the six months ended June 30, 2022 and 2021. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for credit losses is believed by management to be probable in the Company’s accounts receivable.
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Significant Customers | Significant CustomersA significant customer represents 10% or more of the Company’s total revenue or accounts receivable, net balance at each reporting date. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the unaudited condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Level 3 — Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The Company’s assessment of the significance of a specific input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. Financial assets and liabilities held by the Company measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 include cash and cash equivalents, short-term investments, and convertible promissory notes.
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Recently Adopted Accounting Standards | Recently Adopted Accounting Standards The Company has adopted ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), effective January 1, 2022 using the modified retrospective approach. ASU 2020-06 simplifies the accounting for convertible instruments. The guidance removes certain accounting models which separate conversion features from the host contract for convertible instruments. As a result of the adoption of ASU 2020-06, the 2028 Convertible Notes are no longer bifurcated into separate liability and equity components in the June 30, 2022 condensed consolidated balance sheet. Rather, the $460.0 million principal amount of the Company’s 2028 Convertible Notes was classified as a liability in the June 30, 2022 condensed consolidated balance sheet. Upon adoption of ASU 2020-06, an adjustment was recorded to the 2028 Convertible Notes liability component, equity component (additional paid-in-capital) and accumulated deficit. The cumulative effect of the change was recognized as an adjustment to the opening balance of accumulated deficit at the date of adoption. The comparative information has not been restated and continues to be presented according to accounting standards in effect for those periods. This adjustment was calculated based on the carrying amount of the 2028 Convertible Notes as if it had always been treated only as a liability. Further, an adjustment was recorded to the debt discount and issuance costs as if these had always been treated as a contra liability only. Interest expense related to the accretion of the 2028 Convertible Notes is no longer recognized. Interest expense for the 2028 Convertible Notes for the three and six months ended June 30, 2022 would have been $3.8 million and $7.5 million higher without the adoption of ASU 2020-06, respectively. As such, net loss attributable to the Company per common share for the three and six months ended June 30, 2022 is $0.02 and $0.05 lower due to the effect of adoption of ASU 2020-06, respectively. In June 2016, the FASB issued ASU 2016-13, Financial instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, which amends the guidance on the impairment of financial instruments by requiring measurement and recognition of expected credit losses for financial assets held. This ASU is effective for public and private companies’ fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and December 15, 2022, respectively. As the Company is no longer an emerging growth company as of January 1, 2022, the Company adopted ASU 2016-13 effective on such date, utilizing the modified retrospective transition method. Upon adoption, the Company updated its impairment model to utilize a forward-looking current expected credit losses (“CECL”) model in place of the incurred loss methodology for financial instruments measured at amortized cost, primarily including its accounts receivable. The adoption did not have a material effect on the Company’s unaudited condensed consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. Under ASU 2021-08, an acquirer must recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The Company early adopted ASU 2021-08 on a prospective basis effective January 1, 2022. As indicated in Note 6 — Business Combinations, the Company completed the acquisition of AlsoEnergy on February 1, 2022. The adoption of ASU 2021-08 resulted in the recognition of deferred revenue at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 was effective for public entities for interim and annual periods beginning after December 15, 2020, with early adoption permitted. ASU 2019-12 will be effective for private entities for annual periods beginning after December 15, 2021, and interim periods beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12 effective May 1, 2021. The adoption of this standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements.
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BUSINESS (Tables) |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule Of Reverse Recapitalization | On April 28, 2021, shareholders of STPK approved the Merger, under which Stem received approximately $550.3 million, net of fees and expenses as follows (in thousands):
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The following table summarizes the carrying values of the assets and liabilities of the DevCo JVs that are consolidated by the Company (in thousands):
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Schedule of Significant Customers | For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows:
*Total less than 10% for the respective period.
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REVENUE (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table provides information on the disaggregation of revenue as recorded in the consolidated statements of operations (in thousands):
The following table summarizes reportable revenue by geographic regions determined based on the location of the customers (in thousands):
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Schedule of Remaining Performance Obligations | As of June 30, 2022, the Company had $363.8 million of remaining performance obligations, and the approximate percentages expected to be recognized as revenue in the future are as follows (in thousands, except percentages):
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Schedule of Contract Balances | The following table presents the changes in the deferred revenue balance during the six months ended June 30, 2022 (in thousands):
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SHORT-TERM INVESTMENTS (Tables) |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-Term Investments | The following tables summarize the estimated fair value of the Company’s short-term investments and the gross unrealized holding gains and losses as of June 30, 2022 and December 31, 2021 (in thousands):
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Schedule of Contractual Maturities of Short-Term Investments | The following table presents the contractual maturities of the Company’s short-term investments as of June 30, 2022 (in thousands):
|
FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Measured at Fair Value | The following table provides the financial instruments measured at fair value (in thousands):
|
BUSINESS COMBINATIONS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summarizes the Purchase Price as a part of the Acquisition | The following table summarizes the purchase price as a part of the acquisition of AlsoEnergy (in thousands):
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Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of assets acquired and liabilities assumed in the acquisition of AlsoEnergy at the date of acquisition (in thousands):
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Schedule of Useful Lives of Intangible Assets Acquired | The following table and accompanying paragraphs below summarize the intangible assets acquired, their fair value as of the acquisition date, and their estimated useful lives for amortizable intangible (in thousands, except estimated useful life, which is in years):
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Schedule of Unaudited Pro Forma Information | The pro forma financial information is as follows (in thousands):
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GOODWILL AND INTANGIBLE ASSETS, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Goodwill consists of the following (in thousands):
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Schedule of Intangible Assets | Intangible assets, net, consists of the following (in thousands):
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ENERGY STORAGE SYSTEMS, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Energy Storage Systems, Net | Energy storage systems, net, consists of the following (in thousands):
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NOTES PAYABLE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Schedule of Outstanding Debt | The Company’s outstanding debt consisted of the following as of June 30, 2022 (in thousands):
|
CONVERTIBLE PROMISSORY NOTES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Convertible Debt | The outstanding 2028 Convertible Notes balances as of June 30, 2022 are summarized in the following table (in thousands):
The following table presents total interest expense recognized related to the 2028 Convertible Notes during the three and six months ended June 30, 2022 (in thousands):
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity Under the Plan | The following table summarizes the stock option activity for the period ended June 30, 2022:
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Schedule of Restricted Stock Activity | The following table summarizes the RSU activity for the period ended June 30, 2022:
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Schedule of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense recorded in each component of operating expenses in the Company’s consolidated statements of operations and comprehensive loss (in thousands):
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NET LOSS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts):
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Schedule of Potentially Dilutive Shares | The following table shows total outstanding potentially dilutive shares excluded from the computation of diluted loss per share as their effect would have been anti-dilutive, as of June 30, 2022 and 2021:
|
INCOME TAXES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Provision (Benefit) for Income Taxes and the Effective Tax Rates | The following table reflects the Company's benefit for income taxes and the effective tax rates for the periods presented below (in thousands, except effective tax rate):
|
BUSINESS - Schedule of Reverse Recapitalization (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Apr. 28, 2021 |
Jun. 30, 2021 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash — STPK trust and working capital cash | $ 383,383 | |
Cash — PIPE (as described below) | 225,000 | |
Less: transaction costs and advisory fees paid | (58,061) | $ (58,061) |
Merger and PIPE financing | $ 550,322 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets | ||
Cash and cash equivalents | $ 151,003 | $ 747,780 |
Fixed assets, net | 98,427 | 106,114 |
Total assets | 1,426,702 | 1,191,830 |
Liabilities | ||
Total liabilities | 823,275 | $ 524,003 |
Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Cash and cash equivalents | 4,597 | |
Fixed assets, net | 1,353 | |
Total assets | 5,950 | |
Liabilities | ||
Accounts payable | 143 | |
Total liabilities | $ 143 |
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 66,947 | $ 19,337 | $ 108,035 | $ 34,758 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 64,202 | 103,660 | ||
Rest of the world | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,745 | 4,375 | ||
Hardware revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 54,426 | 14,184 | 85,549 | 24,723 |
Services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 12,521 | $ 5,153 | $ 22,486 | $ 10,035 |
REVENUE - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 66,947 | $ 19,337 | $ 108,035 | $ 34,758 |
Hardware revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 54,426 | 14,184 | 85,549 | 24,723 |
Services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,521 | $ 5,153 | 22,486 | $ 10,035 |
AlsoEnergy, Inc | Hardware revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,900 | 11,700 | ||
AlsoEnergy, Inc | Services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 7,200 | $ 12,000 |
REVENUE - Contract Balances (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Contract With Customer, Liability [Roll Forward] | |
Beginning balance | $ 37,443 |
Deferred revenue acquired upon business combination | 49,626 |
Upfront payments received from customers | 85,598 |
Upfront or annual incentive payments received | 3,868 |
Revenue recognized related to amounts that were included in beginning balance of deferred revenue | (4,488) |
Revenue recognized related to amounts that were included in acquired balance of deferred revenue | (7,983) |
Revenue recognized related to deferred revenue generated during the period | (48,523) |
Ending balance | $ 115,541 |
SHORT-TERM INVESTMENTS - Schedule of Contractual Maturities of Short-Term Investments (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Amortized cost | ||
Due within one year | $ 154,073 | |
Due between one to two years | 31,002 | |
Amortized Cost | 185,075 | $ 173,183 |
Estimated Fair Value | ||
Due within one year | 153,152 | |
Due between one to two years | 30,738 | |
Debt securities: | $ 183,890 | $ 173,008 |
SHORT-TERM INVESTMENTS - Additional Information (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Investments, Debt and Equity Securities [Abstract] | |
Allowance for credit losses recorded | $ 0 |
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Convertible Notes | Level 2 | |
Debt Instrument [Line Items] | |
Convertible debt | $ 282.7 |
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 01, 2022 |
Jun. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | ||||
Goodwill | $ 546,732 | $ 546,732 | $ 1,741 | |
AlsoEnergy, Inc | ||||
Business Acquisition [Line Items] | ||||
Percent of outstanding shares acquired | 100.00% | |||
Aggregate purchase price | $ 652,027 | |||
Cash paid, net of working capital adjustment | 543,100 | |||
Business combination, consideration transferred, equity interests issued and issuable | 108,883 | |||
Transaction costs | 6,100 | |||
Decrease of goodwill | 900 | |||
Goodwill | 545,016 | 545,000 | 545,000 | |
Deferred tax liability | 15,476 | 15,500 | 15,500 | |
Total revenue | 14,100 | 23,700 | ||
Operating loss | $ 5,800 | $ 9,300 | ||
AlsoEnergy, Inc | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred, equity interests issued and issuable | $ 108,900 | |||
Business acquisition, equity interest Issued or issuable (in shares) | 8,621,006 |
BUSINESS COMBINATIONS - Purchase Price as a part of the Acquisition (Details) - AlsoEnergy, Inc $ in Thousands |
Feb. 01, 2022
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Cash consideration | $ 544,059 |
Equity consideration | 108,883 |
Working capital adjustment | (915) |
Total consideration | $ 652,027 |
BUSINESS COMBINATIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Feb. 01, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Liabilities Assumed | |||
Goodwill | $ 546,732 | $ 1,741 | |
AlsoEnergy, Inc | |||
Assets Acquired | |||
Cash | $ 10,135 | ||
Accounts receivable | 9,614 | ||
Other current assets | 1,795 | ||
Inventory | 3,701 | ||
Operating lease right-of-use assets | 1,333 | ||
Separately identifiable intangible assets acquired other than goodwill | 152,100 | ||
Other non-current assets | 1,032 | ||
Total identifiable assets acquired | 179,710 | ||
Liabilities Assumed | |||
Accounts payable | 1,985 | ||
Other current liabilities | 1,596 | ||
Accrued payroll | 2,533 | ||
Deferred revenue, current portion | 17,486 | ||
Lease liabilities, current portion | 431 | ||
Deferred revenue, noncurrent | 32,140 | ||
Lease liabilities, noncurrent | 902 | ||
Deferred tax liability | 15,500 | 15,476 | |
Other noncurrent liabilities | 150 | ||
Total liabilities assumed | 72,699 | ||
Total net identifiable assets acquired | 107,011 | ||
Goodwill | $ 545,000 | 545,016 | |
Total consideration | $ 652,027 |
BUSINESS COMBINATIONS - Useful Lives of Intangible Assets Acquired (Details) - AlsoEnergy, Inc $ in Thousands |
Feb. 01, 2022
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
Separately identifiable intangible assets acquired other than goodwill | $ 152,100 |
Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Separately identifiable intangible assets acquired other than goodwill | $ 11,300 |
Useful Life | 7 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Separately identifiable intangible assets acquired other than goodwill | $ 106,800 |
Useful Life | 12 years |
Backlog | |
Finite-Lived Intangible Assets [Line Items] | |
Separately identifiable intangible assets acquired other than goodwill | $ 3,900 |
Useful Life | 1 year 1 month 6 days |
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Separately identifiable intangible assets acquired other than goodwill | $ 30,100 |
Useful Life | 7 years |
BUSINESS COMBINATIONS - Unaudited Pro Forma Information (Details) - AlsoEnergy, Inc - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Business Acquisition [Line Items] | ||||
Total revenue | $ 66,947 | $ 32,428 | $ 111,871 | $ 60,001 |
Net loss | $ (32,023) | $ (105,316) | $ (62,411) | $ (199,473) |
GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill Consists (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 547,556 | $ 1,625 |
Recovery of escrow from AlsoEnergy acquisition | (915) | 0 |
Effect of foreign currency translation | 91 | 116 |
Goodwill, Total | $ 546,732 | $ 1,741 |
ENERGY STORAGE SYSTEMS, NET - Schedule of Energy Storage Systems, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (52,125) | $ (45,250) |
Total energy storage systems, net | 98,427 | 106,114 |
Energy storage systems placed into service | ||
Property, Plant and Equipment [Line Items] | ||
Total energy storage systems, gross | 144,215 | 143,592 |
Energy storage systems not yet placed into service | ||
Property, Plant and Equipment [Line Items] | ||
Total energy storage systems, gross | $ 6,337 | $ 7,772 |
ENERGY STORAGE SYSTEMS, NET - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 3.7 | $ 3.6 | $ 7.4 | $ 7.3 |
NOTES PAYABLE - Revolving Loan Due to SPE Member (Details) - Line of Credit - Revolving Loan Due To SPE Member - USD ($) $ in Millions |
1 Months Ended | ||
---|---|---|---|
Aug. 31, 2020 |
May 31, 2020 |
Apr. 30, 2017 |
|
Debt Instrument [Line Items] | |||
Total capacity | $ 35.0 | $ 45.0 | |
Fixed interest rate, annual | 14.00% | 10.00% | |
Period threshold for interest rate | 9 months | ||
Percent of capacity usage for financing of hardware purchases | 70.00% | 85.00% | 100.00% |
NOTES PAYABLE - Term Loan Due to Former Non-Controlling Interest Holder (Details) - USD ($) $ in Millions |
1 Months Ended | ||
---|---|---|---|
Apr. 30, 2021 |
May 31, 2020 |
Jun. 30, 2018 |
|
Debt Instrument [Line Items] | |||
Payment to acquire noncontrolling interest | $ 8.1 | ||
Term Loan Due To Former Non-Controlling Interest Holder | Term Loan | |||
Debt Instrument [Line Items] | |||
Fixed interest rate, quarterly | 4.50% | ||
Fixed interest rate, annual | 18.00% | ||
Prepaid principal and interest | $ 1.5 | ||
Prepaid principal | $ 1.0 | ||
Warrants issued (in shares) | 400,000 | ||
Unamortized discount | $ 0.2 | ||
Debt instrument, prepayment penalties | $ 2.6 |
NOTES PAYABLE - 2020 and 2021 Credit Agreements (Details) - Line of Credit - USD ($) $ in Millions |
1 Months Ended | ||||
---|---|---|---|---|---|
Apr. 30, 2021 |
Jan. 31, 2021 |
May 31, 2020 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
2020 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Proceeds from credit agreement | $ 25.0 | ||||
Fixed interest rate, annual | 12.00% | ||||
Fixed interest rate, paid in cash | 8.00% | ||||
Fixed interest rate, added back to principal | 4.00% | ||||
Prepayment penalties | $ 1.4 | ||||
2021 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Proceeds from credit agreement | $ 1.8 | ||||
Fixed interest rate, annual | 5.45% | ||||
Total capacity | $ 2.7 | ||||
Outstanding balance | $ 1.9 | $ 1.9 |
NOTES PAYABLE - Schedule of Outstanding Debt (Details) - Notes Payable $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Outstanding principal | $ 1,875 |
Unamortized discount | (202) |
Carrying value of debt | $ 1,673 |
CONVERTIBLE PROMISSORY NOTES - Outstanding 2028 Convertible Notes (Details) - Convertible Notes - 2028 Convertible Notes $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Outstanding principal | $ 460,000 |
Unamortized initial purchaser’s debt discount and debt issuance cost | (13,086) |
Carrying value of debt | $ 446,914 |
CONVERTIBLE PROMISSORY NOTES - Interest Expense Recognized Related to Convertible Note (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Debt Instrument [Line Items] | |||
Amortization of debt discount and debt issuance cost | $ 902 | $ 7,119 | |
2028 Convertible Notes | Convertible Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 575 | 1,150 | |
Amortization of debt discount and debt issuance cost | 496 | 991 | |
Total interest expense | $ 1,071 | $ 2,141 |
STOCK-BASED COMPENSATION - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining unrecognized stock-based compensation expense | $ 21.9 | $ 21.9 |
Internally developed software | Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount capitalized | 0.6 | $ 1.1 |
Outstanding stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period for recognition of stock-based compensation expense | 2 years | |
RSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining unrecognized stock-based compensation expense | $ 82.7 | $ 82.7 |
Weighted average period for recognition of stock-based compensation expense | 2 years 8 months 12 days |
STOCK-BASED COMPENSATION - RSU Activity (Details) - RSU - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Number of RSUs Outstanding | ||
RSUs outstanding, ending of period (in shares) | 6,021,852 | 1,799,677 |
RSUs granted (in shares) | 4,672,680 | |
RSUs vested (in shares) | (131,665) | |
RSUs forfeited (in shares) | (318,840) | |
Weighted-Average Grant Date Fair Value Per Share | ||
RSUs outstanding, weighted average grant date fair value (in dollars per share) | $ 16.03 | $ 36.01 |
RSUs granted, weighted average grant date fair value (in dollars per share) | 9.06 | |
RSUs vested, weighted average grant date fair value (in dollars per share) | 35.81 | |
RSUs forfeited, weighted average grant date fair value (in dollars per share) | $ 18.46 |
STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 6,467 | $ 1,024 | $ 12,732 | $ 1,784 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1,106 | 168 | 1,930 | 252 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 562 | 264 | 1,869 | 419 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 4,799 | $ 592 | $ 8,933 | $ 1,113 |
INCOME TAXES - Provision (Benefit) for Income Taxes and the Effective Tax Rates (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Loss before benefit from income taxes | $ (32,030) | $ (100,216) | $ (69,726) | $ (182,769) |
Benefit from income taxes | $ 7 | $ 0 | $ 15,220 | $ 0 |
Effective tax rate | 0.00% | 0.00% | 21.80% | 0.00% |
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Benefit from income taxes | $ 7 | $ 0 | $ 15,220 | $ 0 |
Effective tax rate | 0.00% | 0.00% | 21.80% | 0.00% |
COMMITMENTS AND CONTINGNECIES (Details) |
May 02, 2022
USD ($)
|
Feb. 01, 2022
USD ($)
ft²
|
---|---|---|
Lessee, Lease, Description [Line Items] | ||
Settlement amount expected to be received | $ 1,100,000 | |
AlsoEnergy, Inc | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease liability | $ 1,300,000 | |
Base rent per month | $ 39,725 | |
AlsoEnergy, Inc | Boulder, Colorado | ||
Lessee, Lease, Description [Line Items] | ||
Area of lease | ft² | 15,847 | |
Lease term | 34 months | |
AlsoEnergy, Inc | Longmont, Colorado | ||
Lessee, Lease, Description [Line Items] | ||
Area of lease | ft² | 13,947 | |
Lease term | 35 months |
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