(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices) | (Zip code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | ||||||||
99.1 | ||||||||
104 | Cover page interactive data file |
ESS TECH, INC. | |||||
By: | /s/ Anthony Rabb | ||||
Name: | Anthony Rabb | ||||
Title: | Chief Financial Officer |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenue: | ||||||||||||||
Revenue | $ | 371 | $ | — | ||||||||||
Revenue - related parties | 1 | — | ||||||||||||
Total revenue | 372 | — | ||||||||||||
Operating expenses: | ||||||||||||||
Research and development | 17,732 | 12,898 | ||||||||||||
Sales and marketing | 1,852 | 1,501 | ||||||||||||
General and administrative | 5,287 | 7,789 | ||||||||||||
Total operating expenses | 24,871 | 22,188 | ||||||||||||
Loss from operations | (24,499) | (22,188) | ||||||||||||
Other income (expense): | ||||||||||||||
Interest income (expense), net | 1,252 | (29) | ||||||||||||
Gain on revaluation of common stock warrant liabilities | 688 | 16,504 | ||||||||||||
Other income (expense), net | 658 | 4 | ||||||||||||
Total other income (expense) | 2,598 | 16,479 | ||||||||||||
Net loss and comprehensive loss to common stockholders | $ | (21,901) | $ | (5,709) | ||||||||||
Net loss per share - basic and diluted | $ | (0.14) | $ | (0.04) | ||||||||||
Weighted average shares used in per share calculation - basic and diluted | 154,123,911 | 151,683,819 |
March 31, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 87,811 | $ | 34,767 | |||||||
Restricted cash, current | 1,413 | 1,213 | |||||||||
Accounts receivable, net | 689 | 4,952 | |||||||||
Short-term investments | 31,196 | 105,047 | |||||||||
Prepaid expenses and other current assets | 3,952 | 5,657 | |||||||||
Total current assets | 125,061 | 151,636 | |||||||||
Property and equipment, net | 18,373 | 17,570 | |||||||||
Operating lease right-of-use assets | 3,102 | 3,401 | |||||||||
Restricted cash, non-current | 676 | 675 | |||||||||
Other non-current assets | 239 | 271 | |||||||||
Total assets | $ | 147,451 | $ | 173,553 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 2,699 | $ | 3,036 | |||||||
Accrued and other current liabilities | 8,533 | 14,125 | |||||||||
Accrued product warranties | 2,874 | 1,643 | |||||||||
Operating lease liabilities, current | 1,464 | 1,421 | |||||||||
Deferred revenue | 5,929 | 6,168 | |||||||||
Notes payable, current | 1,522 | 1,600 | |||||||||
Total current liabilities | 23,021 | 27,993 | |||||||||
Notes payable, non-current | — | 315 | |||||||||
Deferred revenue, non-current | 2,442 | 2,442 | |||||||||
Operating lease liabilities, non-current | 2,151 | 2,535 | |||||||||
Common stock warrant liabilities | 2,521 | 3,209 | |||||||||
Other non-current liabilities | 80 | 85 | |||||||||
Total liabilities | 30,215 | 36,579 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock ($0.0001 par value; 200,000,000 shares authorized, none issued and outstanding as of March 31, 2023 and December 31, 2022) | — | — | |||||||||
Common stock ($0.0001 par value; 2,000,000,000 shares authorized, 154,344,930 and 153,821,339 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively) | 16 | 16 | |||||||||
Additional paid-in capital | 757,700 | 755,537 | |||||||||
Accumulated deficit | (640,480) | (618,579) | |||||||||
Total stockholders’ equity | 117,236 | 136,974 | |||||||||
Total liabilities and stockholders’ equity | $ | 147,451 | $ | 173,553 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (21,901) | $ | (5,709) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 1,077 | 196 | |||||||||
Non-cash interest (income) expense | (762) | 14 | |||||||||
Non-cash lease expense | 299 | 275 | |||||||||
Stock-based compensation expense | 2,059 | 2,760 | |||||||||
Change in fair value of common stock warrant liabilities | (688) | (16,504) | |||||||||
Other non-cash income and expenses, net | (48) | — | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 4,330 | 785 | |||||||||
Prepaid expenses and other assets | 1,731 | 405 | |||||||||
Accounts payable | (529) | (1,852) | |||||||||
Accrued and other current liabilities | (4,657) | 421 | |||||||||
Accrued product warranties | 1,231 | — | |||||||||
Deferred revenue | (306) | — | |||||||||
Operating lease liabilities | (346) | (165) | |||||||||
Net cash used in operating activities | (18,510) | (19,374) | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (2,610) | (4,041) | |||||||||
Maturities and purchases of short-term investments, net | 74,668 | — | |||||||||
Net cash provided by (used in) investing activities | 72,058 | (4,041) | |||||||||
Cash flows from financing activities: | |||||||||||
Payments on notes payable | (400) | (483) | |||||||||
Proceeds from stock options exercised | 104 | 47 | |||||||||
Repurchase of shares from employees for income tax withholding purposes | — | (2,808) | |||||||||
Other, net | (7) | — | |||||||||
Net cash used in financing activities | (303) | (3,244) | |||||||||
Net change in cash, cash equivalents and restricted cash | 53,245 | (26,659) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 36,655 | 240,232 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 89,900 | $ | 213,573 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for operating leases included in cash used in operating activities | $ | 413 | $ | 403 | |||||||
Non-cash investing and financing transactions: | |||||||||||
Purchase of property and equipment included in accounts payable and accrued and other current liabilities | 623 | 2,235 | |||||||||
Right-of-use operating lease assets obtained in exchange for lease obligations | — | 4,534 | |||||||||
Right-of-use finance lease assets obtained in exchange for lease obligations | — | 123 | |||||||||
Cash and cash equivalents | $ | 87,811 | $ | 212,331 | |||||||
Restricted cash, current | 1,413 | 1,167 | |||||||||
Restricted cash, non-current | 676 | 75 | |||||||||
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ | 89,900 | $ | 213,573 |
Three Months Ended March 31, | ||||||||
2023 | ||||||||
Research and development | $ | 17,732 | ||||||
Less: stock-based compensation | (993) | |||||||
Non-GAAP research and development | $ | 16,739 | ||||||
Sales and marketing | $ | 1,852 | ||||||
Less: stock-based compensation | (150) | |||||||
Non-GAAP sales and marketing | $ | 1,702 | ||||||
General and administrative | $ | 5,287 | ||||||
Less: stock-based compensation | (916) | |||||||
Non-GAAP general and administrative | $ | 4,371 | ||||||
Total operating expenses | $ | 24,871 | ||||||
Less: stock-based compensation | (2,059) | |||||||
Non-GAAP total operating expenses | $ | 22,812 |
Three Months Ended March 31, | ||||||||
2023 | ||||||||
Net loss | $ | (21,901) | ||||||
Interest income (expense), net | (1,252) | |||||||
Stock-based compensation | 2,059 | |||||||
Depreciation | 1,071 | |||||||
Gain on revaluation of common stock warrant liabilities | (688) | |||||||
Other income (expense), net | (658) | |||||||
Adjusted EBITDA | $ | (21,369) |
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