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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended December 31, 2023

OR

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

For the transition period from          to

PRESTO AUTOMATION INC.

(Exact name of registrant as specified in its charter)

Delaware

    

001-39830

    

84-2968594

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(IRS Employer Identification No.)

985 Industrial Road
San Carlos, California

    

94070

(Address Of Principal Executive Offices)

(Zip Code)

(650) 817-9012

Registrant’s telephone number, including area code

NOT APPLICABLE

(Former name or former address, if changed since last report)

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

Title of each class

    

Trading Symbol(s)

    

Name of each exchange
on which registered

Common stock, par value $0.0001 per share

PRST

The Nasdaq Stock Market LLC

Warrants, each whole warrant exercisable for one share of Common stock, each at an exercise price of $8.21 per share

PRSTW

The Nasdaq Stock Market LLC

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

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

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

Large accelerated filer

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

Emerging growth company

 

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

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

As of February 15, 2024, 80,791,967 shares of common stock, par value $0.0001 per share were issued and outstanding.

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PRESTO AUTOMATION INC.

Form 10-Q

For the Quarter Ended December 31, 2023

Table of Contents

Page

Cautionary Statement Regarding Forward-Looking Statements

ii

PART I . FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

1

Condensed Consolidated Balance Sheets

1

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

2

Condensed Consolidated Statements of Stockholders’ Deficit

3

Condensed Statements of Cash Flows

5

Notes to Condensed Consolidated Financial Statements

6

Item 2.

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

37

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

62

Item 4.

Controls and Procedures

63

PART II . OTHER INFORMATION

Item 1.

Legal Proceedings

65

Item 1A.

Risk Factors

65

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

68

Item 3.

Defaults Upon Senior Securities

68

Item 4.

Mine Safety Disclosures

68

Item 5.

Other Information

68

Item 6.

Exhibits

70

Signatures

72

i

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains statements that Presto Automation Inc. and its subsidiaries (together, the “Company” or “Presto”) believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements relating to expectations for future financial performance, business strategies or expectations for our business. These statements are based on the beliefs and assumptions of the management of the Company. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, it cannot provide assurance that it will achieve or realize these plans, intentions or expectations. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this Quarterly Report on Form 10-Q, words such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “strive,” “target,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

You should not place undue reliance on these forward-looking statements. Should one or more of a number of known and unknown risks and uncertainties materialize, or should any of our assumptions prove incorrect, the Company’s actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, the following:

Presto’s current liquidity resources raise substantial doubt about its ability to continue as a going concern and to comply with its debt covenants unless it raises additional capital to meet its obligations in the near term.
Presto’s limited operating history in a new and developing market makes it difficult to evaluate its current business and predict its future results.
Presto’s success depends on increasing the number of franchisees of our existing restaurant customers that use its solution, and, in particular, Presto Voice, and the timing of the deployments of contracted locations.
We have been evaluating strategic alternatives of our Presto Touch solution and considering whether to engage in a wind-down which would be a sale, partial sale or abandonment of the Presto Touch business in the coming months and we may be unable to realize the benefits we expect from doing so.
Presto’s sales cycles can be long and unpredictable, and its sales efforts require a considerable investment of time and expense.
Presto may be adversely affected if it is unable to optimize the number of human agents required to operate its Presto Voice solution to improve its unit cost structure.
Changes in Presto’s senior management team have impacted its organization’s focus and it is dependent on the continued services and performance of its current senior management team.
Presto’s ability to recruit, retain, and develop qualified personnel is critical to its success and growth.
Defects, errors or vulnerabilities in third party technology that is used in Presto’s solutions could harm its reputation and brand and adversely impact its business, financial condition, and results of operations.
Presto’s pricing decisions and pricing models may adversely affect its ability to attract new customers and retain existing customers.
If Presto fails to maintain a consistently high level of customer service or fails to manage its reputation, brand, business and financial results may be harmed.
Changes to Presto’s AI solutions could cause it to incur additional expenses and impact its product development program.

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Presto is subject to legal proceedings and government investigations which are costly and time-consuming to defend and may adversely affect its business, financial position, and results of operations.
Presto and certain of its third-party partners, service providers, and sub processors transmit and store personal information of its customers and their consumers. If the security of this information is compromised, Presto’s reputation may be harmed, and it may be exposed to liability and loss of business.
Presto is subject to stringent and changing privacy laws, regulations and standards, and contractual obligations related to data privacy and security, and noncompliance with such laws could adversely affect its business.
Security breaches, denial of service attacks, or other hacking and phishing attacks on Presto’s systems or the systems with which Presto’s solutions integrate could harm its reputation or subject Presto to significant liability, and adversely affect its business and financial results.
Presto is dependent upon its customers continued and unimpeded access to the internet, and upon their willingness to use the internet for commerce.
Presto’s efforts to generate revenues and/or reduce expenditures may not be sufficient and may make it difficult for Presto to implement its business strategy.
Presto has faced challenges complying with the covenants contained in its credit facility and, unless it can raise additional capital, it may need additional waivers which may not be forthcoming.
Presto requires additional capital, which additional financing is likely to result in restrictions on its operations or substantial dilution to its stockholders, to support the growth of its business, and this capital might not be available on acceptable terms, if at all.
Unfavorable conditions in the restaurant industry or the global economy could limit Presto’s ability to grow its business and materially impact its financial performance.
Presto’s results of operations may fluctuate from quarter to quarter and if it fails to meet the expectations of securities analysts or investors with respect to results of operations, its stock price and the value of your investment could decline.
Presto’s ability to use its net operating loss carryforwards and certain other tax attributes may be limited.
Recent turmoil in the banking industry may negatively impact Presto’s ability to acquire financing on acceptable terms if at all, and worsening conditions or additional bank failures could result in a loss of deposits over federally insured levels.
The restaurant technology industry is highly competitive. Presto may not be able to compete successfully against current and future competitors.
Mergers of or other strategic transactions by Presto’s competitors, its customers, or its partners could weaken its competitive position or reduce its revenue.
Presto’s growth depends in part on reliance on third parties and its ability to integrate with third-party applications and software.
Presto’s transaction revenue is partly dependent on its partners to develop and update third-party entertainment applications. The decisions of developers to remove their applications or change the terms of our commercial relationship could adversely impact Presto’s transaction revenue.
Payment transactions processed on Presto’s solutions may subject Presto to regulatory requirements and the rules of payment card networks, and other risks that could be costly and difficult to comply with or that could harm its business.

iii

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Presto relies upon Amazon Web Services, Microsoft Azure and other infrastructure to operate its platform, and any disruption of or interference with its use of these providers would adversely affect its business, results of operations, and financial condition.
Certain estimates and information contained in this report are based on information from third-party sources, and Presto does not independently verify the accuracy or completeness of the data contained in such sources or the methodologies for collecting such data.
Presto’s business is subject to a variety of U.S. laws and regulations, many of which are unsettled and still developing, and Presto or its customers’ failure to comply with such laws and regulations could subject Presto to claims or otherwise adversely affect its business, financial condition, or results of operations.
Significant changes in U.S. and international trade policies that restrict imports or increase tariffs could have a material adverse effect on Presto’s results of operations.
If Presto fails to adequately protect its intellectual property rights, its competitive position could be impaired and it may lose valuable assets, generate reduced revenue and become subject to costly litigation to protect its rights.
Presto has been, and may in the future be, subject to claims by third parties of intellectual property infringement, which, if successful could negatively impact operations and significantly increase costs.
Presto uses open-source software in its platform, which could negatively affect its ability to sell its services or subject it to litigation or other actions.
Presto may be unable to continue to use the domain names that it uses in its business or prevent third parties from acquiring and using domain names that infringe on, are similar to, or otherwise decrease the value of its brand, trademarks, or service marks.
Presto’s senior management team has limited experience managing a public company, and regulatory compliance obligations may divert its attention from the day-to-day management of its business.
As a public reporting company, Presto is subject to filing deadlines for reports that are filed pursuant to the Exchange Act, and its failure to timely file such reports may have material adverse consequences on its business.
As a public reporting company, Presto is subject to rules and regulations established from time to time by the SEC regarding its internal control over financial reporting. If Presto fails to establish and maintain effective internal control over financial reporting and disclosure controls and procedures, it may not be able to accurately report its financial results or report them in a timely manner.
Presto has identified material weaknesses in its internal controls over financial reporting and, if it fails to remediate these deficiencies, it may not be able to accurately or timely report its financial condition or results of operations.
Presto is an emerging growth company, and it cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make its common stock less attractive to investors.
Presto has and will continue to incur significant costs as a result of operating as a public company.
Provisions in Presto’s Charter and Bylaws may discourage, delay or prevent a merger, acquisition or other change in control in Presto’s company that stockholders may consider favorable, including transactions in which you might otherwise receive a premium for your shares.
Presto’s Charter provides that the Court of Chancery of the State of Delaware and the federal district courts of the United States of America are the exclusive forums for substantially all disputes between it and our stockholders, which could limit its stockholders’ ability to obtain a favorable judicial forum for disputes with Presto or its directors, officers, or employees.

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A market for Presto’s securities may not continue, which would adversely affect the liquidity and price of its securities.
The Nasdaq Stock Market LLC (“Nasdaq”) may delist Presto’s securities from trading on its exchange, which could limit investors’ ability to make transactions in its securities and subject Presto to additional trading restrictions.
Future offerings of debt or offerings or issuances of equity securities by Presto may adversely affect the market price of Presto’s common stock or otherwise dilute all other stockholders.
If securities or industry analysts do not publish or cease publishing research or reports about Presto, its business, or its market, or if they change their recommendations regarding Presto’s securities adversely, the price and trading volume of Presto’s securities could decline.
Presto may be subject to securities litigation, which is expensive and could divert management’s attention and strategic alternatives.

We may also be impacted by other factors disclosed in this Quarterly Report on Form 10-Q and the Company’s other filings with the Securities and Exchange Commission (the “SEC”).

The Company’s forward-looking statements speak only as of the date of their initial issuance, and the Company does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise.

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

PRESTO AUTOMATION INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In thousands, except share and per share amounts)

    

As of

    

As of

    

December 31, 

June 30,

    

2023

    

2023

    

Assets

Current assets:

Cash and cash equivalents

$

3,375

$

15,143

Restricted cash

10,000

10,000

Accounts receivable, net of allowance of $124 and $746, respectively

 

1,791

 

1,831

Inventories

 

312

 

629

Deferred costs, current

 

1,447

 

2,301

Prepaid expenses and other current assets

 

1,847

 

1,162

Total current assets

 

18,772

 

31,066

Deferred costs, net of current portion

 

207

 

92

Investment in non-affiliate

2,000

2,000

Property and equipment, net

 

506

 

909

Intangible assets, net

 

7,497

 

10,528

Goodwill

 

1,156

 

1,156

Other long-term assets

 

728

 

936

Total assets

$

30,866

$

46,687

Liabilities and Stockholders’ Deficit

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable

$

3,596

$

3,295

Accrued liabilities

 

3,845

 

4,319

Financing obligations, current

 

3,624

 

1,676

Term loans, current

 

55,632

 

50,639

Deferred revenue, current

 

1,105

 

1,284

Total current liabilities

 

67,802

 

61,213

Financing obligations, net of current

3,000

Warrant liabilities

 

4,705

 

25,867

Deferred revenue, net of current portion

 

163

 

299

Other long-term liabilities

 

25

 

1,535

Total liabilities

 

72,695

 

91,914

Commitments and Contingencies (Refer to Note 8)

 

  

 

  

Stockholders’ deficit:

 

  

 

  

Preferred stock, $0.0001 par value–1,500,000 shares authorized as of December 31, 2023 and June 30, 2023, respectively; no shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively

 

 

Common stock, $0.0001 par value–180,000,000 shares authorized as of December 31, 2023 and June 30, 2023, and 70,335,628 and 57,180,531 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively

 

7

 

5

Additional paid-in capital

 

206,109

 

190,031

Accumulated deficit

 

(247,945)

 

(235,263)

Total stockholders’ deficit

 

(41,829)

 

(45,227)

Total liabilities and stockholders’ deficit

$

30,866

$

46,687

The accompanying notes are an integral part of these condensed consolidated financial statements.

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PRESTO AUTOMATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

(in thousands, except share and per share amounts)

    

Three months ended

    

Six months ended

    

December 31, 

December 31, 

    

2023

    

2022

    

2023

    

2022

    

Revenue

Platform

$

2,175

$

4,131

$

4,241

$

8,529

Transaction

 

2,718

 

3,221

 

5,537

 

6,180

Total revenue

 

4,893

 

7,352

 

9,778

 

14,709

Cost of revenue

 

  

 

  

 

  

 

  

Platform

 

1,327

 

4,219

 

2,523

 

8,208

Transaction

 

2,439

 

2,833

 

4,960

 

5,477

Depreciation, amortization and impairments

 

2,079

 

291

 

3,044

 

582

Total cost of revenue

 

5,845

 

7,343

 

10,527

 

14,267

Gross profit (loss)

 

(952)

 

9

 

(749)

 

442

Operating expenses:

 

  

 

  

 

  

 

  

Research and development

 

7,298

 

5,112

 

11,782

 

11,381

Sales and marketing

 

1,921

 

2,227

 

3,835

 

4,626

General and administrative

 

9,729

 

6,276

 

16,799

 

12,200

Total operating expenses

 

18,948

 

13,615

 

32,416

 

28,207

Loss from operations

 

(19,900)

 

(13,606)

 

(33,165)

 

(27,765)

Change in fair value of warrants and convertible promissory notes

 

5,286

 

(378)

 

26,311

 

59,444

Interest expense

 

(3,557)

 

(3,030)

 

(7,315)

 

(6,406)

Loss on extinguishment of debt and financing obligations

 

 

(337)

 

 

(8,095)

Other financing and financial instrument income (costs), net

 

107

 

 

1,391

 

(1,768)

Other income, net

 

10

 

327

 

92

 

2,355

Total other income (expense), net

 

1,846

 

(3,418)

 

20,479

 

45,530

Income (loss) before provision (benefit) for income taxes

 

(18,054)

 

(17,024)

 

(12,686)

 

17,765

Provision (benefit) for income taxes

 

 

5

 

(4)

 

5

Net income (loss) and comprehensive income (loss)

$

(18,054)

$

(17,029)

$

(12,682)

$

17,760

Reconciliation of net income (loss) and comprehensive income (loss) attributable to common stockholders for net income (loss) per share:

Less deemed dividend attributable to the anti-dilution provision

(1,500)

(1,500)

Net income (loss) and comprehensive income (loss) attributable to common stockholders

(19,554)

(17,029)

(14,182)

17,760

Net income (loss) per share attributable to common stockholders, basic

$

(0.31)

$

(0.33)

$

(0.23)

$

0.44

Net income (loss) per share attributable to common stockholders, diluted

(0.31)

(0.33)

(0.23)

0.35

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic

 

63,599,890

 

50,998,941

 

60,721,231

 

40,475,200

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted

 

63,599,890

 

50,998,941

 

60,721,231

 

50,775,172

The accompanying notes are an integral part of these condensed consolidated financial statements

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PRESTO AUTOMATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(UNAUDITED)

(in thousands, except share data)

Additional

Total

Common Stock

Paid-In

Accumulated

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Deficit

Beginning balance at June 30, 2023

 

57,180,531

$

5

$

190,031

$

(235,263)

$

(45,227)

Issuance of common stock upon exercise of stock options

 

1,449,879

 

1

 

235

 

 

236

Issuance of common stock upon vesting of restricted stock units

 

1,053,099

 

 

 

 

Cancellation of restricted stock awards in connection with the CyborgOps acquisition

(97,881)

Issuance of warrants to customer

88

88

Issuance of common stock, net of issuance costs of $1,069

10,000,000

1

8,930

8,931

Issuance of common stock to Zaffran Special Opportunities, LLC

750,000

Earnout shares stock-based compensation

 

 

 

2,675

 

 

2,675

Stock-based compensation

 

 

 

4,150

 

 

4,150

Net loss

 

 

 

 

(12,682)

 

(12,682)

Balance at December 31, 2023

 

70,335,628

$

7

$

206,109

$

(247,945)

$

(41,829)

    

Convertible

    

    

    

Additional

    

    

Total

Preferred Stock

Common Stock

Paid-In

Accumulated

Stockholders’

    

Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Deficit

    

Deficit

Balance at June 30, 2022

 

28,343,420

$

28

 

6,196,257

$

6

$

78,290

$

(200,783)

$

(122,459)

Recapitalization upon Merger

 

(28,343,420)

 

(28)

 

21,778,182

 

(3)

 

31

 

 

Adjusted balance, beginning of period

 

 

 

27,974,439

 

3

 

78,321

 

(200,783)

 

(122,459)

Issuance of common stock upon exercise of stock options

 

 

 

146,823

 

 

60

 

 

60

Fair value of issued warrants on common stock

853

853

Issuance of common stock upon net exercise of warrants

136,681

Issuance of common stock

133,333

1,000

1,000

Issuance of common stock upon vesting of restricted stock units

488,598

Issuance of shares and transfer of warrants upon termination of convertible note agreement

323,968

2,412

2,412

Conversion of convertible notes into common stock

8,147,938

1

41,391

41,392

Warrants issued with Credit Agreement

2,076

2,076

Reclassification of liability classified warrants to equity

830

830

Contribution by shareholder in conjunction with Credit Agreement

2,779

2,779

Earnout shares stock-based compensation

1,874

1,874

Merger and PIPE Financing

13,879,828

1

35,737

35,738

Stock-based compensation

 

 

 

 

 

3,461

 

 

3,461

Net income

17,760

17,760

Balance at December 31, 2022

 

$

 

51,231,608

$

5

$

170,794

$

(183,023)

$

(12,224)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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PRESTO AUTOMATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(UNAUDITED)

(in thousands, except share data)

Additional

Total

Common Stock

Paid-In

Accumulated

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Deficit

Balance at September 30, 2023

 

57,855,594

$

6

$

193,812

$

(229,891)

$

(36,073)

Issuance of common stock upon exercise of stock options

 

1,086,912

 

 

40

 

 

40

Issuance of common stock upon vesting of restricted stock units

 

643,122

 

 

 

 

Warrants issued to customer

144

144

Issuance of common stock, net of issuance costs of $1,129

 

10,000,000

 

1

 

8,870

 

 

8,871

Issuance of common stock to Zaffran Special Opportunities, LLC

750,000

Earnout shares stock-based compensation

 

 

 

1,322

 

 

1,322

Stock-based compensation

 

 

 

1,921

 

 

1,921

Net loss

 

 

 

 

(18,054)

 

(18,054)

Balance at December 31, 2023

 

70,335,628

$

7

$

206,109

$

(247,945)

$

(41,829)

    

Convertible

    

    

    

Additional

    

    

Total

Preferred Stock

Common Stock

Paid-In

Accumulated

Stockholders’

    

Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Deficit

    

Deficit

Balance at September 30, 2022

 

$

51,039,859

5

167,156

(165,994)

1,167

Issuance of common stock upon exercise of stock options

 

 

 

103,111

 

 

24

 

 

24

Issuance of common stock upon vesting of restricted stock units

88,638

Fair value of newly issued common stock warrants

853

853

Earnout shares stock-based compensation

1,696

1,696

Stock-based compensation

 

 

 

 

 

1,065

 

 

1,065

Net loss

 

 

 

 

 

 

(17,029)

 

(17,029)

Balance at December 31, 2022

 

$

 

51,231,608

$

5

$

170,794

$

(183,023)

$

(12,224)

The accompanying notes are an integral part of these condensed consolidated financial statements

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PRESTO AUTOMATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

    

Six months ended

    

December 31, 

    

2023

    

2022

    

Cash Flows from Operating Activities

 

  

 

  

 

Net income (loss)

$

(12,682)

$

17,760

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

  

 

  

Depreciation and amortization

 

1,844

 

845

Impairment of intangible assets

4,056

Impairment of inventory

425

Stock-based compensation

 

3,935

 

3,002

Earnout share stock-based compensation

 

2,675

 

1,874

Contra-revenue associated with warrant agreement (Refer to Note 3)

289

615

Noncash expense attributable to fair value liabilities assumed in Merger

 

 

34

Change in fair value of liability classified warrants

 

(26,311)

 

(11,188)

Change in fair value of embedded warrants and convertible promissory notes

 

 

(48,271)

Amortization of debt discount and debt issuance costs

 

2,412

 

1,884

Loss on extinguishment of debt and financing obligations

 

 

8,095

Paid-in-kind interest expense

 

4,276

 

2,366

Share and warrant cost on termination of convertible note agreement

 

 

2,412

Forgiveness of PPP Loan

 

 

(2,000)

Change in fair value of unvested sponsor shares liability

 

(1,391)

 

(1,160)

Noncash lease expense

 

167

 

168

Loss on disposal off property and equipment

 

 

14

Changes in operating assets and liabilities: