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Unity Announces Third Quarter 2020 Financial Results

Third quarter revenue of $200.8 million, up 53.3% year-over-year

Third quarter dollar-based net expansion rate of 144%

SAN FRANCISCO–(BUSINESS WIRE)–
Unity Software Inc. (NYSE: U), the world’s leading platform for creating and operating interactive, real-time 3D content, today announced results for the third quarter ended September 30, 2020.

“Companies in the gaming industry have been using real-time 3D technology to create immersive, interactive content for over two decades, and we are proud to be able to support more than 90% of the top game companies globally,” said John Riccitiello, President and Chief Executive Officer, Unity. “Now, developers in other industries are taking note and engaging with Unity in transforming their content to be real-time 3D. Creators – from game developers to artists, architects, automotive designers, filmmakers, and more – are turning to Unity to bring their imaginations to life.”

“We are very pleased to start our public company journey with such a strong quarter,” said Kim Jabal, Chief Financial Officer, Unity. “Revenue of $200.8 million in the third quarter, up 53.3% year-over-year, reflects the resilience of our business model and strong execution across our operational teams and geographies. Our robust growth has reinforced our confidence in the fundamental strength of our business model, and in the long-term opportunity that we see ahead.”

“Our fiscal year 2020 revenue outlook is a range of $752 million to $756 million. We expect fourth quarter revenue of $200 million to $204 million. We also anticipate an improvement in our full year 2020 non-GAAP operating margin to (9)%.”

Third Quarter 2020 Financial Highlights

• Revenue was $200.8 million, an increase of 53.3% from the third quarter of 2019.
• Loss from operations was $141.7 million, or 70.6% of revenue, compared to loss from operations of $41.7 million, or 31.9% of revenue, in the third quarter of 2019. Our third quarter results were impacted by a one-time charge associated with restricted stock unit expense recognition in connection with our initial public offering (“IPO”), as well as a charge related to the donation of 750,000 shares of our common stock to a charitable foundation upon closing of our IPO.
• Non-GAAP loss from operations was $8.4 million, or 4.2% of revenue, compared to a non-GAAP loss from operations of $27.8 million, or 21.2% of revenue, in the third quarter of 2019.
• Basic and diluted net loss per share was $0.97, compared to basic and diluted net loss per share of $0.76 in the third quarter of 2019.
• Basic and diluted non-GAAP net loss per share was $0.09, compared to basic and diluted non-GAAP net loss per share of $0.67 in the third quarter of 2019.
• Customers that generated more than $100,000 of revenue in the trailing twelve months as of September 30, 2020 was 739 compared to 553 as of September 30, 2019.
• Dollar-based net expansion rate as of September 30, 2020 was 144% compared to 132% as of September 30, 2019.
• Net cash provided by operating activities was $20.6 million for the third quarter of 2020, compared to net cash used in operating activities of $49.1 million for the same period last year. Free cash flow provided for the third quarter of 2020 was $10.9 million, compared to $55.7 million used for the same period last year. Cash and restricted cash was $1.8 billion as of September 30, 2020 compared to $0.5 billion as of June 30, 2020.

Recent Business Highlights

• Biggest Q3 gaming blockbusters powered by Unity. Since its August release, Mediatonic’s Fall Guys, which was not only created with Unity, but also uses Unity’s Operate Solutions to run the game, has sold more than 10 million copies on PC via the Steam game store and became the most-downloaded title on Sony’s PlayStation Plus subscription service in history. Genshin Impact, a multi-format, free-to-play game from miHoYo, had 10 million mobile downloads in its first day of release and GTFO, by 10 Chambers Collective, secured players in more than 140 countries and rose to the top 10 in South Korea on Steam.
• Cloud Content Delivery offers an enterprise-grade low-complexity Content Delivery Network (CDN) that helps game developers deliver live game content updates to the right users, at the right time. In September, we launched Cloud Content Delivery, a network aimed at simplifying costs, keeping app size down, and providing scale to small and large studios alike. A full end-to-end solution for storing, managing, and deploying content releases, Cloud Content Delivery was built to run cloud-based games as efficiently as possible, while consistently keeping players engaged. This enterprise-grade offering is available today as a free trial with no commitment.
• LEGO® microgame allows users to create content—no coding experience. Also launched in September, the LEGO® Microgame puts digital LEGO elements into the hands of new users to get them quickly building, customizing, and sharing their first 3D game in less than an hour. For creators who love building with LEGO bricks, this Microgame is the perfect place to start a new creative journey and make their first game — plus, it’s free and there’s no coding experience required.

Outlook

Unity is providing the following guidance for the fourth quarter and year ending December 31, 2020.

	Q4 2020		2020
	Guidance		Guidance
Revenue (in millions)	$200 — $204		$752 — $756
Year-over-year revenue growth	27% — 29%		39% — 40%
Non-GAAP loss from operations (in millions)	($40) — ($35)		($71) — ($66)
Non-GAAP operating margin	(17%) — (20%)		(9)%
Weighted-average fully diluted shares outstanding	321M

Unity has not reconciled its expectations as to non-GAAP loss from operations to GAAP loss from operations because stock-based compensation expense, employer tax related to employee stock transactions, and non-cash charitable contribution expense cannot be reasonably determined or predicted at this time. Accordingly, a reconciliation is not available, although it is important to note that these factors could be material to Unity’s results computed in accordance with GAAP.

Earnings Webcast Details

Unity plans to host a video webcast for analysts and investors today to discuss its third quarter 2020 financial results and outlook for its fourth quarter and full year 2020. The video webcast is scheduled to begin at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time and can be accessed at the Unity Investor Relations website at investors.unity.com. The video webcast will be available live, and a replay will be available on the Investor Relations website following completion of the live broadcast for approximately 90 days.

About Unity

Unity is the world’s leading platform for creating and operating interactive, real-time 3D content. Our platform provides a comprehensive set of software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. We serve customers of all sizes, at every stage of maturity, from individual creators to large enterprises, and we see opportunities for growth across all of these customer groups. For more information, visit unity.com.

Unity uses its Investor Relations website (investors.unity.com), filings with the SEC, press releases, public conference calls, and public webcasts as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to Unity’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled “About Non-GAAP Financial Measures.”

Forward-Looking Statements

This press release contains “forward-looking statements,” as that term is defined under federal securities laws, including, but not limited to, statements regarding Unity’s fourth quarter and full year 2020 outlook, strategies, business plans, priorities and objectives, potential market and growth opportunities; competitive position, product strategies and future product and platform features, technological or market trends and industry environment. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “seek,” “plan,” “project,” “looking ahead,” “look to,” “move into,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: (i) the impact of the ongoing COVID-19 pandemic on our business, as well as our customers, prospects, partners, and service providers; (ii) our future profitability and timing for achievement of profitability; (iii) our ability to retain existing customers and expand the use of our platform; (iv) our ability to further expand into new industries and attract new customers; (v) the impact of any changes of terms of service, policies or technical requirements from operating system platform providers or application stores which may result in changes to our or our customers’ business practices; (vi) our ability to maintain favorable relationships with hardware, operating system, device, game console and other technology providers; (vii) our ability to compete effectively in the markets in which we participate; (viii) breaches in our security measures, unauthorized access to our platform, our data, or our customers’ or other users’ personal data; (ix) our ability to manage growth effectively; and (x) the rapidly changing and increasingly stringent laws, contractual obligations and industry standards that relate to privacy, data security and the protection of children. Further information on these and additional risks that could affect Unity’s results is included in our filings with the Securities and Exchange Commission (“SEC”), including our final prospectus filed with the SEC on September 18, 2020, and our future reports that we may file with the SEC from time to time, which could cause actual results to vary from expectations. Unity assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.

Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Unity’s discretion and may not be delivered as planned or at all. Customers who purchase Unity services should make their purchase decisions based upon services, features, and functions that are currently available.

© 2020 Unity Software Inc. All rights reserved. The Unity design logos, “Unity” and our other registered or common law trademarks, service marks, or trade names are the property of Unity Software Inc. or its affiliates. Other trade names, trademarks, and service marks are the property of their respective owners.

About Non-GAAP Financial Measures

To supplement our consolidated financial statements prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we use certain non-GAAP performance financial measures, as described below, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe the following non-GAAP measures are useful in evaluating our operating performance. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance.

However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our consolidated financial statements presented in accordance with GAAP.

Non-GAAP Gross Profit and Non-GAAP Loss from Operations

We define non-GAAP gross profit as gross profit excluding stock-based compensation expense and employer tax related to employee stock transactions. We define non-GAAP loss from operations as loss from operations excluding stock-based compensation expense, employer tax related to employee stock transactions, amortization of acquired intangible assets, and non-cash charitable contribution expense. We use non-GAAP gross profit and non-GAAP loss from operations in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP gross profit and non-GAAP loss from operations provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as these metrics exclude stock-based compensation expense, employer tax related to employee stock transactions, amortization of acquired intangible assets, and non-cash charitable contribution expense, which we do not consider to be indicative of our overall operating performance.

Non-GAAP gross profit and non-GAAP loss from operations have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• they exclude expense associated with our equity compensation plan, although equity compensation has been, and will continue to be, an important part of our compensation strategy;
• non-GAAP loss from operations excludes the expense of amortization of acquired intangible assets, and although these are non-cash expenses, the assets being amortized may have to be replaced in the future and non-GAAP loss from operations does not reflect cash expenditure for such replacements;
• non-GAAP loss from operations excludes the expense associated with the charitable contribution of common stock to a donor-advised fund, and although this is a non-cash expense, we may make similar charitable contributions in the future; and
• the expenses and other items that we exclude in our calculation of non-GAAP net loss and non-GAAP net loss per share may differ from the expenses and other items, if any, that other companies may exclude from this measure or similarly titled measures, which reduces their usefulness as comparative measures.

Non-GAAP Net Loss and Non-GAAP Net Loss per Share

We define non-GAAP net loss and non-GAAP net loss per share as net loss and net loss per share excluding stock-based compensation expense, employer tax related to employee stock transactions, amortization of acquired intangible assets, and non-cash charitable contribution expense, as well as the related tax effects of these items. Non-GAAP net loss per share also adds back expense relating to deemed dividends representing excess paid over initial issuance price to repurchase convertible preferred stock. We use non-GAAP net loss and non-GAAP net loss per share in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that these non-GAAP measures provide our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.

Non-GAAP net loss and non-GAAP net loss per share have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• they exclude expense associated with our equity compensation plan, although equity compensation has been, and will continue to be, an important part of our compensation strategy;
• they exclude the expense of amortization of acquired intangible assets, and although these are non-cash expenses, the assets being amortized may have to be replaced in the future and non-GAAP loss from operations does not reflect cash expenditure for such replacements;
• they exclude the expense associated with the charitable contribution of common stock to a donor-advised fund, and although this is a non-cash expense, we may make similar charitable contributions in the future;
• as further described below, we must make certain assumptions in order to determine the income tax effect adjustment for non-GAAP net loss, which assumptions may not prove to be accurate; and
• the expenses and other items that we exclude in our calculation of non-GAAP net loss and non-GAAP net loss per share may differ from the expenses and other items, if any, that other companies may exclude from this measure or similarly titled measures, which reduces their usefulness as comparative measures.

Income Tax Effects of Non-GAAP Adjustments

We utilize a fixed projected tax rate in our computation of non-GAAP income tax effects to provide better consistency across interim reporting periods. In projecting this non-GAAP tax rate, we utilize a financial projection that excludes the direct impact of the non-GAAP adjustments described above, and eliminates the effects of non-recurring and period specific items which can vary in size and frequency. The projected rate considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. For the year ending December 31, 2020, we have determined the projected non-GAAP tax rate to be (17)%. We will periodically re-evaluate this tax rate, as necessary, for significant events, based on relevant tax law changes, material changes in the forecasted geographic earnings mix, and any significant acquisitions.

Free Cash Flow

We define free cash flow as net cash used in operating activities less cash used for purchases of property and equipment. We believe that free cash flow is a useful indicator of liquidity as it measures our ability to generate cash, or our need to access additional sources of cash, to fund operations and investments.

Free cash flow has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• it is not a substitute for net cash used in operating activities;
• other companies may calculate free cash flow or similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a tool for comparison; and
• the utility of free cash flow is further limited as it does not reflect our future contractual commitments and does not represent the total increase or decrease in our cash balance for any given period.

Key Metrics

We monitor the following key metrics to help us evaluate the health of our business, identify trends affecting our growth, formulate goals and objectives, and make strategic decisions.

Customers Contributing More Than $100,000 of Revenue

We focus on the number of customers that generated more than $100,000 of revenue in the trailing 12 months, as this segment of our customer base represents the majority of our revenue and revenue growth. We define a customer as an individual or entity that generated revenue during the measurement period. A single organization with multiple divisions, segments, or subsidiaries is generally counted as a single customer, even though we may enter into commercial agreements with multiple parties within that organization.

Dollar-Based Net Expansion Rate

We track our performance by measuring our dollar-based net expansion rate, which compares our Create and Operate Solutions revenue from the same set of customers across comparable periods, calculated on a trailing 12-month basis. Our dollar-based net expansion rate as of a period end is calculated as current period revenue divided by prior period revenue. Prior period revenue is the trailing 12-month revenue measured as of such prior period end and includes revenue from all customers that contributed revenue during such trailing 12-month period. Current period revenue is the trailing 12-month revenue from these same customers as of the current period end. Our dollar-based net expansion rate includes the effect of any customer renewals, expansion, contraction, and churn but excludes revenue from new customers in the current period.

UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
	As of
	September 30, 2020				December 31, 2019
Assets
Current assets:
Cash	$	1,759,415			$	129,959
Accounts receivable, net of allowances of $4,140 and $9,052 as of September 30, 2020 and December 31, 2019, respectively	225,525				204,898
Prepaid expenses	26,068				23,142
Other current assets	19,968				9,418
Total current assets	2,030,976				367,417
Property and equipment, net	89,930				78,976
Operating lease right‑of‑use assets	108,878				—
Goodwill	271,200				218,305
Intangible assets, net	59,269				62,034
Restricted cash	22,409				17,137
Other assets	23,034				18,991
Total assets	$	2,605,696			$	762,860
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	7,856			$	10,706
Accrued expenses and other current liabilities	86,954				66,463
Publisher payables	151,143				137,664
Income and other taxes payable	41,587				35,715
Deferred revenue	97,910				85,980
Operating lease liabilities	24,363				—
Total current liabilities	409,813				336,528
Long-term deferred revenue	16,531				10,596
Long-term operating lease liabilities	101,875				—
Other long-term liabilities	17,571				21,825
Total liabilities	545,790				368,949
Commitments and contingencies (Note 9)
Stockholders’ equity:
Convertible preferred stock, $0.000005 par value; no shares authorized, issued, and outstanding as of September 30, 2020; 102,674 shares authorized, and 95,899 shares issued and outstanding as of December 31, 2019	—				686,559
Preferred stock, $0.000005 par value; 100,000 shares authorized, and no shares issued and outstanding as of September 30, 2020; no shares authorized, issued, and outstanding as of December 31, 2019	—				—
Common stock, $0.000005 par value; 1,000,000 and 300,000 shares authorized as of September 30, 2020 and December 31, 2019, respectively; 270,967 and 123,261 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	2				1
Additional paid-in capital	2,777,400				226,173
Accumulated other comprehensive loss	(3,500		)		(3,632		)
Accumulated deficit	(713,996		)		(515,190		)
Total stockholders’ equity	2,059,906				393,911
Total liabilities and stockholders’ equity	$	2,605,696			$	762,860

UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except per share amounts)
(Unaudited)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2020				2019				2020				2019
Revenue	$	200,784			$	130,943			$	552,109			$	383,708
Cost of revenue	47,540				26,451				119,840				88,602
Gross profit	153,244				104,492				432,269				295,106
Operating expenses
Research and development	116,648				64,034				283,507				182,832
Sales and marketing	60,764				46,559				147,739				125,322
General and administrative	117,515				35,631				194,988				89,041
Total operating expenses	294,927				146,224				626,234				397,195
Loss from operations	(141,683		)		(41,732		)		(193,965		)		(102,089		)
Interest expense	(615		)		—				(1,403		)		—
Interest income and other expense, net	(2,023		)		(1,808		)		(829		)		(2,494		)
Loss before provision for income taxes	(144,321		)		(43,540		)		(196,197		)		(104,583		)
Provision for income taxes	398				2,009				2,609				8,028
Net loss	(144,719		)		(45,549		)		(198,806		)		(112,611		)
Other comprehensive loss, net of taxes:
Change in foreign currency translation adjustment	209				(227		)		132				(291		)
Comprehensive loss	$	(144,510	)		$	(45,776	)		$	(198,674	)		$	(112,902	)
Basic and diluted net loss per share:
Net loss per share attributable to our common stockholders, basic and diluted	$	(0.97	)		$	(0.76	)		$	(1.47	)		$	(1.39	)
Weighted-average shares used in per share calculation attributable to our common stockholders, basic and diluted	149,256				115,817				135,671				111,772

UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
Operating activities
Net loss	$	(144,719	)		$	(45,549	)		$	(198,806	)		$	(112,611	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	11,274				7,975				31,284				21,297
Amortization of debt issuance costs	31				—				97				—
Loss on disposition of property and equipment	94				157				558				157
Common stock charitable donation expense	63,615				—				63,615				—
Stock-based compensation expense	61,806				9,101				83,460				23,877
Impairment of assets	—				—				863				—
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(5,890		)		(2,663		)		(14,718		)		(8,022		)
Prepaid expenses	1,697				(5,765		)		(3,173		)		(9,635		)
Other current assets	1,754				3,237				(10,083		)		2,373
Operating lease right-of-use assets	6,250				—				18,258				—
Deferred tax, net	1,595				(208		)		1,709				(7,462		)
Other assets	166				(2,051		)		(143		)		(5,133		)
Accounts payable	(5,363		)		6,054				(4,158		)		887
Accrued expenses and other current liabilities	13,864				7,771				19,683				2,737
Publisher payables	11,808				(37,145		)		13,479				(12,969		)
Income and other taxes payable	1,162				3,668				(2,238		)		15,918
Operating lease liabilities	(5,415		)		—				(17,480		)		—
Other long-term liabilities	174				2,818				5,347				6,748
Deferred revenue	6,664				3,528				17,594				13,010
Net cash provided by (used in) operating activities	20,567				(49,072		)		5,148				(68,828		)
Investing activities
Purchase of property and equipment	(9,681		)		(6,637		)		(28,956		)		(16,442		)
Acquisition of intangible assets	—				—				(750		)		—
Business acquisitions, net of cash acquired	(11,630		)		(36,824		)		(34,968		)		(154,031		)
Net cash used in investing activities	(21,311		)		(43,461		)		(64,674		)		(170,473		)
Financing activities
Proceeds from revolving credit facility	—				—				125,000				—
Payment of principal related to revolving credit facility	(125,000		)		—				(125,000		)		—
Payment of debt issuance costs	—				—				(247		)		—
Proceeds from initial public offering, net of underwriting discounts, commissions, and offering costs	1,420,145				—				1,420,145				—
Proceeds from issuance of convertible preferred stock, net of issuance costs	—				—				149,970				124,918
Proceeds from issuance of common stock	—				255,882				100,000				355,882
Repurchase and extinguishment of convertible preferred stock	—				(48,714		)		—				(48,714		)
Purchase and retirement of treasury stock	—				(282,167		)		(110		)		(282,167		)
Proceeds from exercise of stock options	11,523				7,821				15,459				10,882
Proceeds from exercise of stock options in connection with nonrecourse promissory note	—				—				8,856				—
Net cash provided by (used in) financing activities	1,306,668				(67,178		)		1,694,073				160,801
Effect of foreign exchange rate changes on cash and restricted cash	233				(287		)		181				(327		)
Increase (decrease) in cash and restricted cash	1,306,157				(159,998		)		1,634,728				(78,827		)
Cash and restricted cash, beginning of period	475,667				354,444				147,096				273,273
Cash and restricted cash, end of period	$	1,781,824			$	194,446			$	1,781,824			$	194,446

UNITY SOFTWARE INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except percentages and per share data)
(Unaudited)
	Three Months Ended
	September 30,
	2020					2019
Gross profit reconciliation
GAAP gross profit	$	153,244				$	104,492
Add:
Stock-based compensation expense	5,072					903
Employer tax related to employee stock transactions	629					184
Non-GAAP gross profit	$	158,945				$	105,579
GAAP gross margin	76			%		80			%
Non-GAAP gross margin	79			%		81			%
Loss from operations reconciliation
GAAP loss from operations	$	(141,683	)			$	(41,732	)
Add:
Stock-based compensation expense	61,806					9,102
Employer tax related to employee stock transactions	3,070					2,110
Amortization of intangible assets expense	4,751					2,742
Charitable contribution to donor-advised fund	63,615					—
Non-GAAP loss from operations	$	(8,441	)			$	(27,778	)
GAAP operating margin	(71		)	%		(32		)	%
Non-GAAP operating margin	(4		)	%		(21		)	%
Net loss and net loss per share reconciliation
GAAP net loss	$	(144,719	)			$	(45,549	)
Add:
Stock-based compensation expense	61,806					9,102
Employer tax related to employee stock transactions	3,070					2,110
Amortization of intangible assets expense	4,751					2,742
Charitable contribution to donor-advised fund	63,615					—
Income tax effect of non-GAAP adjustments	(1,485		)			(3,612		)
Non-GAAP net loss	$	(12,962	)			$	(35,207	)
GAAP net loss per share attributable to our common stockholders, basic and diluted	$	(0.97	)			$	(0.76	)
Total impact on net loss per share, basic and diluted, from non-GAAP adjustments	0.88					0.09
Non-GAAP net loss per share attributable to our common stockholders, basic and diluted	$	(0.09	)			$	(0.67	)
Weighted-average common shares used in GAAP net loss per share computation, basic and diluted	149,256					115,817
Weighted-average common shares used in non-GAAP net loss per share computation, basic and diluted	149,256					115,817
Free cash flow reconciliation
Net cash provided by (used in) operating activities	$	20,567				$	(49,072	)
Less:
Purchase of property and equipment	(9,681		)			(6,637		)
Free cash flow	$	10,886				$	(55,709	)
Net cash used in investing activities	$	(21,311	)			$	(43,461	)
Net cash provided by financing activities	$	1,306,668				$	(67,178	)

Source: Unity

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[email protected]

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Amanda Taggart

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Software Networks Internet Data Management Consumer Electronics Technology Electronic Games Entertainment

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Posted on November 12, 2020 4:08 pm

Ameresco Secures Up to $30M Construction Loan Facility with Fifth Third Bank

Ameresco Secures Up to $30M Construction Loan Facility with Fifth Third Bank

Banking and financial services company collaborates with Ameresco to install renewable energy assets and accelerate the transition to a low-carbon economy

FRAMINGHAM, Mass.–(BUSINESS WIRE)–Ameresco, Inc., (NYSE: AMRC), a leading energy efficiency and renewable energy company, today announced it has closed a construction loan facility for up to $30 million to finance solar projects and assets.

The financing was secured through a construction loan facility from Fifth Third Bank, National Association. This non-recourse facility allows Ameresco to draw loan proceeds for solar projects in construction as a bridge to their permanent financing or sale upon commercial operation.

“This innovative facility represents a flexible source of construction capital for our solar assets,” said Doran Hole, chief financial officer of Ameresco. “Fifth Third has demonstrated its continued confidence in renewables and Ameresco’s ability to move projects forward despite challenging times.”

“This financing highlights the continued growth of the solar market, and Fifth Third’s commitment to the renewable energy industry,” said Eric Cohen, group head of Renewable Energy Finance at Fifth Third Bank, N.A. “As a financer in the industry since 2012, Fifth Third is proud to help clients across the country access capital and achieve their objectives.”

To learn more about the solar energy solutions Ameresco offers, visit www.ameresco.com/solution-solar-power/.

About Ameresco, Inc.

Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions for businesses and organizations throughout North America and Europe. Ameresco’s sustainability services include upgrades to a facility’s energy infrastructure and the development, construction and operation of renewable energy plants. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state and local governments, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,000 employees providing local expertise in the United States, Canada, and the United Kingdom. For more information, visit www.ameresco.com.

The announcement of the entry into a construction loan facility is not necessarily indicative of future availability of borrowings under such facility or of trends in the company’s overall access to financing. This facility was reflected in the company’s financial statements as of and for the period ended September 30, 2020.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112006011/en/

Ameresco: Leila Dillon, 508-661-2264, [email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Environment Commercial Building & Real Estate Construction & Property Finance Banking Professional Services Building Systems Alternative Energy Energy Residential Building & Real Estate

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NovaBay Pharmaceuticals Reports Third Quarter 2020 Financial Results

• Revenue increased 34% versus prior year
• Avenova^® unit sales set quarterly record
• Exited Q3 with $13.4 million in cash and equivalents
• Regained compliance with NYSE American continued-listing standards
• Launches CelleRx^® Clinical Reset™ into beauty market

Conference call begins at 4:30 p.m. Eastern time today

EMERYVILLE, Calif.–(BUSINESS WIRE)–NovaBay^® Pharmaceuticals, Inc. (NYSE American: NBY) reports financial results for the three and nine months ended September 30, 2020 and provides a business update.

“This is an exceptionally exciting time at NovaBay as Avenova unit sales set a new quarterly record and we prepare for the consumer launch of CelleRx Clinical Reset into the beauty market,” said Justin Hall, President and CEO of NovaBay Pharmaceuticals. “Product revenue for the quarter increased 34% to $2.2 million from the prior year, with Avenova revenue reaching its highest level since we introduced the direct-to-consumer channel. Online sales of Avenova Direct continued as the fastest-growing channel driven by our successful digital marketing programs featuring lifestyle messaging and increased customer outreach. Sales from our buy-and-sell channel also surged in recent months with the reopening of doctors’ offices across the country.

“Our groundbreaking product CelleRx Clinical Reset creates a new category in skin care,” he added. “Previously we marketed CelleRx to only medical professionals without targeting the consumer market. With a completely new marketing approach for CelleRx Clinical Reset, we intend to leverage our pharmaceutical pedigree in the beauty industry. Clinical Reset disrupts the layer of bacteria that settles and grows on the face, yet is a gentle way to get skin back to a healthy baseline to heal itself and to better absorb skincare products. Clinical Reset’s unveiling will include robust social media and print advertising campaigns targeted directly to the consumer market. Initial sales will be through our newly designed website, cellerx.com.

“We exited the quarter with our strongest cash position since the commercial launch of Avenova in 2015 and have sufficient funds to support current operations through full year 2021, including our enhanced online advertising programs for Avenova and the consumer launch of CelleRx Clinical Reset. We raised $6.4 million in the third quarter from the renegotiation of warrants, which also enabled us to regain compliance with NYSE American continued-listing requirements,” Mr. Hall added. “I’m proud of our many recent accomplishments as they position NovaBay for a bright future.

“We continue actively working with the U.S. Food and Drug Administration (FDA) on a number of items. Our application for Emergency Use Authorization (EUA) to sell the fluorecare^® rapid COVID-19 antibody test is still under review and we have successfully remediated the recent Warning Letter regarding our COVID-19 Avenova marketing. Lastly, we continue to work with the Environmental Protection Agency (EPA) on the inclusion of Avenova on its list of approved disinfectants that kill the COVID-19 virus on hard surfaces,” concluded Mr. Hall.

Third Quarter Financial Results

Net product revenue for the third quarter of 2020 was $2.2 million, a 34% increase from $1.6 million for the third quarter of 2019. Avenova revenue for the third quarter of 2020 was $1.8 million, a 14% increase from $1.6 million for the third quarter of 2019. The increase reflects a higher number of Avenova Direct and buy-and-sell units sold, partially offset by a decrease in the number of units sold through our retail and partner pharmacy channels. The increase in revenue due to unit sales was partially offset by the lower average net selling price associated with Avenova Direct units. Net product revenue for the third quarter of 2020 also includes $0.2 million from the sales of a PhaseOne, a private-label prescription skin and wound care product, with no comparable revenue in the prior-year period.

Gross margin on net product revenue remained unchanged at 75% for the third quarters of 2020 and 2019.

Operating expenses for the third quarter of 2020 were $3.7 million, compared with $2.9 million for the third quarter of 2019. Sales and marketing expenses for the third quarter of 2020 were $1.7 million, compared with $1.5 million for the third quarter of 2019, reflecting an increase in Avenova digital advertising and costs associated with the consumer launch of CelleRx Clinical Reset, partially offset by lower headcount-related costs and lower travel and related expenses due to the impact of COVID-19. General and administrative (G&A) expenses for the third quarter of 2020 were $1.9 million, compared with $1.3 million for the third quarter of 2019, with the increase due to higher legal fees and the cost of the McGovern arbitration. Research and development (R&D) expenses for the third quarter of 2020 were $125,000, compared with $49,000 for the third quarter of 2019.

Operating loss for the third quarter of 2020 was $2.1 million, compared with the operating loss of $1.7 million for the third quarter of 2019.

Non-cash loss on the change of fair value of warrant liability for the third quarter of 2020 was $1.6 million, compared with a non-cash gain of $1.5 million for the third quarter of 2019.

Non-cash gain from adjustments to the fair value of an embedded derivative liability for the third quarter of 2020 was $1,000, compared with $0.7 million for the third quarter of 2019.

Other income, net, for the third quarter of 2020 of $0.4 million is primarily related to qualified expenses incurred under the Paycheck Production Program. This compares with other expense, net, of $0.7 million for the third quarter of 2019, which was due primarily to interest expense recognized on a convertible note that was settled prior to the end of the third quarter of 2020.

The net loss for the third quarter of 2020 was $3.2 million, or $0.08 per share, compared with a net loss for the third quarter of 2019 of $282,000, or $0.01 per share.

Nine Month Financial Results

Net product revenue for the nine months ended September 30, 2020 was $8.0 million, a 66% increase from $4.9 million for the nine months ended September 30, 2019. Gross margin on net product revenue was 61% for the first nine months of 2020, compared with 77% for the first nine months of 2019.

For the nine months ended September 30, 2020, sales and marketing expenses decreased 29% to $4.7 million, G&A expenses of $4.6 million increased 12% and R&D expenses of $0.2 million were relatively unchanged, compared with the nine months ended September 30, 2019.

Operating loss for the first nine months of 2020 was $4.7 million, a 35% improvement from the operating loss of $7.2 million for the first nine months of 2019.

Non-cash loss on the change of fair value of warrant liability for the first nine months of 2020 was $5.2 million, compared with a non-cash gain of $0.9 million for the first nine months of 2019.

Non-cash gain from adjustments to the fair value of an embedded derivative liability for the nine months ended September 30, 2020 was $3,000, compared with $0.4 million for the nine months ended September 30, 2019.

Other income, net, for the first nine months of 2020 was $0.6 million, compared with other expense, net, for the first nine months of 2019 of $1.2 million.

The net loss for the nine months ended September 30, 2020 was $9.3 million, or $0.28 per share, compared with a net loss for the nine months ended September 30, 2019 of $7.0 million, or $0.36 per share.

NovaBay reported cash and cash equivalents of $13.4 million as of September 30, 2020, compared with $6.9 million as of December 31, 2019. The Company raised net proceeds of $5.2 million from the sale of common stock through an ATM agreement during the quarter ended June 30, 2020 and $6.4 million from the renegotiation of warrants during the quarter ended September 30, 2020.

Conference Call

NovaBay management will host an investment community conference call today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss the Company’s financial and operational results and to answer questions. Shareholders and other interested parties may participate in the conference call by dialing 866-677-7731 from within the U.S. or 480-405-6745 from outside the U.S., and requesting the NovaBay Pharmaceuticals call.

A live webcast of the call will be available at http://novabay.com/investors/events and will be archived for 90 days. A replay of the call will be available beginning two hours after the call ends through 11:59 p.m. Eastern time November 26, 2020 by dialing 855-859-2056 from within the U.S. or 404-537-3406 from outside the U.S., and entering the conference identification number 8439986.

About NovaBay Pharmaceuticals, Inc.: Going Beyond Antibiotics^®

NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company focusing on commercializing and developing its non-antibiotic anti-infective products to address the unmet therapeutic needs of the global, topical anti-infective market with its two distinct product categories: the NEUTROX^® family of products and the AGANOCIDE^® compounds. The Neutrox family of products includes AVENOVA^® for the eye care market, CELLERX^® for the aesthetic dermatology market and NEUTROPHASE^® for the wound care market. The Aganocide compounds, still under development, have target applications in the dermatology and urology markets.

Forward-Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial progress and future financial performance of NovaBay Pharmaceuticals, Inc. This release contains forward-looking statements that are based upon management’s current expectations, assumptions, estimates, projections and beliefs. These statements include, but are not limited to, statements regarding our business strategies and current product offerings, potential future product offerings, possible regulatory clearance of any of our products or future products, and any future revenue that may result from selling these products, as well as generally the Company’s expected future financial results. These forward-looking statements are identified by the use of words such as “launch,” “leverage,” “position,” and “continue,” among others. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or achievements to be materially different and adverse from those expressed in or implied by the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, risks and uncertainties relating to the size of the potential market for our products, the possibility that the available market for the Company’s products will not be as large as expected, the Company’s products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the Company’s cash needs, the effect on sales and potential reputational damage resulting from decisions or actions taken by regulators, including Warning Letters issued by the FDA, and any other potential regulatory problems that may arise. Other risks relating to NovaBay’s business, including risks that could cause results to differ materially from those projected in the forward-looking statements in this press release, are detailed in NovaBay’s latest Form 10-Q/K filings with the Securities and Exchange Commission, especially under the heading “Risk Factors.” The forward-looking statements in this release speak only as of this date, and NovaBay disclaims any intent or obligation to revise or update publicly any forward-looking statement except as required by law.

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Avenova Purchasing Information

For NovaBay Avenova purchasing information:

Please call 800-890-0329 or email [email protected].

www.Avenova.com

Financial tables to follow

NOVABAY PHARMACEUTICALS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except par value amounts)
		September 30,				December 31,
		2020				2019
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	13,413			$	6,937
Accounts receivable, net of allowance for doubtful accounts ($0 and $51 at September 30, 2020 and December 31, 2019, respectively)			1,119				1,066
Inventory, net of allowance for excess and obsolete inventory and lower of cost or estimated net realizable value adjustments ($194 and $247 at September 30, 2020 and December 31, 2019, respectively)			785				492
Prepaid expenses and other current assets			695				886
Total current assets			16,012				9,381
Operating lease right-of-use assets			518				1,252
Property and equipment, net			76				110
Other assets			476				477
TOTAL ASSETS		$	17,082			$	11,220
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Current liabilities:
Accounts payable		$	796			$	331
Accrued liabilities			1,655				1,778
Operating lease liabilities			400				930
Note payable, related party			104				1,202
Convertible note			—				1,409
Other current liabilities			48				37
Total current liabilities			3,003				5,687
Operating lease liabilities-non-current			197				505
Warrant liability			—				4,055
Total liabilities			3,200				10,247
Stockholders’ equity:
Preferred stock: 5,000 shares authorized; none issued and outstanding at September 30, 2020 and December 31, 2019			—				—
Common stock, $0.01 par value; 75,000 shares and 50,000 shares authorized at September 30, 2020 and December 31, 2019, respectively; 41,760 and 27,938 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively			417				279
Additional paid-in capital			147,774				125,718
Accumulated deficit			(134,309	)			(125,024	)
Total stockholders’ equity			13,882				973
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	17,082			$	11,220

NOVABAY PHARMACEUTICALS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (in thousands except per share data)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Sales:
Product revenue, net		$	2,167			$	1,615			$	8,038			$	4,854
Other revenue, net			3				—				8				41
Total sales, net			2,170				1,615				8,046				4,895
Product cost of goods sold			536				401				3,157				1,145
Gross profit			1,634				1,214				4,889				3,750
Research and development			125				49				249				166
Sales and marketing			1,692				1,544				4,675				6,610
General and administrative			1,879				1,333				4,633				4,136
Total operating expenses			3,696				2,926				9,557				10,912
Operating loss			(2,062	)			(1,712	)			(4,668	)			(7,162	)
Non-cash (loss) gain on changes in fair value of warrant liability			(1,589	)			1,480				(5,224	)			936
Non-cash gain on changes in fair value of embedded derivative liability			1				669				3				423
Other income (expense), net			429				(719	)			605				(1,166	)
Loss before provision for income taxes			(3,221	)			(282	)			(9,284	)			(6,969	)
Provision for income taxes			—				—				(1	)			(3	)
Net loss and comprehensive loss		$	(3,221	)		$	(282	)		$	(9,285	)		$	(6,972	)
Net loss per share attributable to common stockholders (basic)		$	(0.08	)		$	(0.01	)		$	(0.28	)		$	(0.36	)
Net loss per share attributable to common stockholders (diluted)		$	(0.08	)		$	(0.02	)		$	(0.28	)		$	(0.36	)
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock (basic)			40,037				23,096				32,614				19,623
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock (diluted)			40,067				23,213				32,642				19,623

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005993/en/

NovaBay Contact
Justin Hall

Chief Executive Officer and General Counsel

510-899-8800

[email protected]

Investor Contact
LHA Investor Relations

Jody Cain

310-691-7100

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Biotechnology Infectious Diseases Health Pharmaceutical Optical

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Alpine Immune Sciences Reports Third Quarter 2020 Financial Results and Provides Corporate Update

– Conference call and webcast today at 4:30 p.m. ET –

SEATTLE–(BUSINESS WIRE)–
Alpine Immune Sciences, Inc. (NASDAQ:ALPN), a leading clinical-stage immunotherapy company focused on developing innovative treatments for cancer and autoimmune / inflammatory diseases, today provided a corporate update and reported financial results for the third quarter ended September 30, 2020.

“Over the last quarter, we built upon the strong momentum created from our option and license agreement with AbbVie for worldwide rights to ALPN-101, by completing an additional private financing with top-tier biotech investors led by Omega Funds, among others,” said Mitch Gold, executive chair and chief executive officer. “These transformative deals have provided us the capital to continue progressing our multiple product candidates through clinical trials.”

Third Quarter 2020 and Subsequent Updates

• Raised $60 Million in a Private Placement. In July, Alpine raised $60 million in gross proceeds through a private placement led by Omega Funds with participation from Avidity Partners, EcoR1 Capital, LLC, Invus Public Equities, L.P., and Samsara BioCapital, among others. Alpine intends to use the net proceeds to fund the development of its clinical and preclinical pipeline as well as for general corporate purposes.
• Preparation for a Phase 2 study of ALPN-101 in systemic lupus erythematosus (SLE). Alpine and AbbVie have agreed on the design of an international Phase 2 study of ALPN-101 in adults with active lupus, anticipated to commence enrollment in the first half of 2021. SLE is a potentially life-threatening, multi-system, chronic autoimmune disease with few approved treatment options. As previously announced, ALPN-101 is the subject of an option and licensing agreement with AbbVie.
• Continued enrollment in NEON-1, a Phase 1 study of ALPN-202 in advanced malignancies. Enrollment is ongoing in the dose escalation portion of NEON-1, a Phase 1, first-in-human monotherapy study of ALPN-202, a first-in-class conditional CD28 costimulator and dual checkpoint inhibitor.

Financial Highlights

• As of September 30, 2020, Alpine had cash, cash equivalents, restricted cash, and short-term investments totaling $141.3 million.
• Revenue was $1.9 million for the quarter ended September 30, 2020 compared to $0.3 million in the quarter ended September 30, 2019.
• Research and development expenses for the third quarter ended September 30, 2020 were $6.2 million compared to $9.5 million for the third quarter ended September 30, 2019.
• General and administrative expenses for the third quarter ended September 30, 2020 were $2.7 million compared to $2.5 million for the third quarter ended September 30, 2019.
• Alpine recorded a net loss of $6.1 million and $11.5 million for the third quarters ended September 30, 2020 and 2019, respectively.

As of September 30, 2020, Alpine had $141.3 million in cash, cash equivalents, restricted cash, and short-term investments. Alpine expects that its current cash resources, combined with the potential $75 million in pre-option exercise milestones payable under its option and license agreement with AbbVie, for the development and commercialization of ALPN-101, are sufficient to fund Alpine’s planned operations into 2024, including a planned Phase 2 study of ALPN-101 in systemic lupus erythematosus and the further development of ALPN-202 and ALPN-303.

For additional information regarding Alpine’s planned operations, please refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation – Liquidity and Capital Resources” in Alpine’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, which Alpine anticipates filing with the Securities and Exchange Commission on or about November 12, 2020.

Conference Call

Individuals interested in listening to the conference call may do so by dialing (800) 816-3005 for domestic callers, or (857) 770-0069 for international callers, and using the conference ID: 4382628; or from the webcast link in the investor relations section of the company’s website at: www.alpineimmunesciences.com. The recorded webcast will be available for replay for approximately 30 days following the call.

About Alpine Immune Sciences, Inc.

Alpine Immune Sciences, Inc. is committed to leading a new wave of immune therapeutics. With world-class research and development capabilities, a highly productive scientific platform, and a proven management team, Alpine is creating multifunctional immunotherapies via unique protein engineering technologies designed to improve patients’ lives. For more information, visit www.alpineimmunesciences.com. Follow @AlpineImmuneSci on Twitter and LinkedIn.

“Secreted Immunomodulatory Proteins”, “SIP”, “Transmembrane Immunomodulatory Protein,” “TIP,” “Variant Ig Domain,” “vIgD” and the Alpine logo are registered trademarks or trademarks of Alpine Immune Sciences, Inc. in various jurisdictions.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not based on historical fact and include statements regarding our platform technology and potential therapies, the timing of and results from clinical trials and preclinical development activities, clinical and regulatory objectives and the timing thereof, expectations regarding the sufficiency of cash combined with the potential $75 million in pre-option exercise milestones payable under our option and license agreement with AbbVie to fund operations into 2024, the potential efficacy, safety profile, future development plans, addressable market, regulatory success, and commercial potential of our product candidates, our ability to achieve milestones in our collaboration with AbbVie, the progress and potential of our other ongoing development programs, the timing of our public presentations and potential publication of future clinical data, the efficacy of our clinical trial designs, anticipated enrollment in our clinical trials and the timing thereof, expectations regarding our ongoing collaborations, our anticipated use of the net proceeds from our July 2020 financing and our ability to successfully develop and achieve milestones in our development programs. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions and include words such as “may,” “will,” “should,” “would,” “expect,” “plan,” “intend,” and other similar expressions, among others. These forward-looking statements are based on current assumptions that involve risks, uncertainties, and other factors that may cause actual results, events, or developments to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties, many of which are beyond our control, include, but are not limited to: the impact of the COVID-19 pandemic on our business, research and clinical development plans and timelines and results of operations, including the impact on our clinical trial sites, collaborators, and contractors who act for or on our behalf, may be more severe and prolonged than currently anticipated; clinical trials may not demonstrate safety and efficacy of any of our product candidates; our ongoing discovery and preclinical efforts may not yield additional product candidates; our discovery-stage and preclinical programs may not advance into the clinic or result in approved products; any of our product candidates may fail in development, may not receive required regulatory approvals, or may be delayed to a point where they are not commercially viable; we may not achieve additional milestones in our proprietary or partnered programs; the impact of competition; adverse conditions in the general domestic and global economic markets; as well as the other risks identified in our filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof and we undertake no obligation to update forward-looking statements, and readers are cautioned not to place undue reliance on such forward-looking statements.

Alpine Immune Sciences, Inc.
Selected Consolidated Balance Sheet Data
(In thousands)
		September 30, 2020				December 31, 2019
		(unaudited)
Cash and cash equivalents		$	141,075			$	16,123
Short-term investments		—				24,397
Total current assets		142,550				42,302
Total assets		154,033				54,093
Total current liabilities		35,849				8,681
Total stockholders’ equity		67,468				29,474
Total liabilities and stockholders’ equity		154,033				54,093

Consolidated Statement of Operations and Comprehensive Income (Loss) Data
(In thousands, except share and per share amounts)	Three Months Ended September 30,										Nine Months Ended September 30,
	2020					2019					2020					2019
	(unaudited)
Collaboration revenue	$	1,913				$	289				$	3,692				$	856
Operating expenses:
Research and development	6,156					9,532					18,130					30,048
General and administrative	2,728					2,467					7,850					7,365
Total operating expenses	8,884					11,999					25,980					37,413
Loss from operations	(6,971		)			(11,710		)			(22,288		)			(36,557		)
Other income (expense):
Interest expense	(214		)			(66		)			(560		)			(197		)
Interest income	11					301					202					1,042
Other income	1,037					—					1,042					—
Loss before taxes	(6,137		)			(11,475		)			(21,604		)			(35,712		)
Income tax benefit	—					—					6					—
Net loss	$	(6,137	)			$	(11,475	)			$	(21,598	)			$	(35,712	)
Comprehensive income (loss):
Unrealized gain (loss) on investments	—					5					(16		)			37
Unrealized gain (loss) on foreign currency translation	14					(7		)			(35		)			(17		)
Comprehensive loss	$	(6,123	)			$	(11,477	)			$	(21,649	)			$	(35,692	)
Weighted-average shares used to compute basic and diluted net loss per share	22,277,146					18,586,950					19,826,985					18,281,707
Basic and diluted net loss per share	$	(0.28	)			$	(0.62	)			$	(1.09	)			$	(1.95	)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005954/en/

Alpine Immune Sciences Inc.

Contact:

Paul Rickey, Chief Financial Officer

Alpine Immune Sciences, Inc.

206-788-4545

[email protected]

Laurence Watts, Managing Director

Gilmartin Group, LLC.

619-916-7620

[email protected]

KEYWORDS: United States North America Washington

INDUSTRY KEYWORDS: Oncology Health Other Science Research Science Pharmaceutical Biotechnology

MEDIA:

Posted on November 12, 2020 4:08 pm

Laird Superfood Appoints Scott McGuire as Chief Operating Officer

Laird Superfood Appoints Scott McGuire as Chief Operating Officer

SISTERS, Ore.–(BUSINESS WIRE)–
Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood”), today announced that Scott McGuire has been appointed Chief Operating Officer, effective November 16, 2020. Mr. McGuire joins Laird Superfood with over 30 years of operational and executive leadership experience in various CPG-related businesses. Jamie Eichman, the Company’s current COO, is transitioning to the new role of Chief Administrative Officer.

“We are thrilled to have Scott join the Laird team,” said Paul Hodge Jr., Co-founder, President and Chief Executive Officer of Laird Superfood. “Throughout his career, Scott has demonstrated a deep understanding of the CPG industry and we believe that his extensive experience in operations, supply chain management and shipping and fulfilment will be instrumental as we build Laird Superfood into a unique platform within several multi-billion dollar addressable markets. We look forward to his leadership.”

Mr. McGuire came to Laird from Bonduelle Fresh Americas, a leader in providing plant based, fresh food products. Most recently, he served as the Chief Supply Chain Officer and held various roles over the last 7 years that included Operations, S&OP, Demand Planning and Execution, Customer Service, Agriculture Purchasing and Operations, and Transportation and Logistics. Before joining Bonduelle Fresh Americas, Mr. McGuire ran his own consulting practice, Joseph Logistics and Supply Chain Solutions, where he provided consulting services for various CPG clients, including Nestlé USA. Prior to that, he served as Nestlé USA’s National Director of Logistics for the company’s Direct-Store Delivery (DSD) division. He also served as Service and Distribution Director for Pepsico’s Frito-Lay Division.

Mr. McGuire holds a bachelor’s degree in Industrial Engineering from Cal Poly San Luis Obispo.

Scott McGuire added, “It is an exciting time at Laird and it is a privilege to be working alongside Paul and his exceptional team. I look forward to applying my experience to drive the company’s growth strategy in the evolving food and beverage industry.”

About Laird Superfood

Laird Superfood, Inc. creates award-winning, plant-based superfood products that are both delicious and functional. The Company’s products are designed to enhance your daily ritual and keep consumers fueled naturally throughout the day. The Company was co-founded in 2015 by the world’s most prolific big-wave surfer, Laird Hamilton. Laird Superfood’s offerings are environmentally conscientious, responsibly tested, and made with real ingredients. Shop all products online at lairdsuperfood.com and join the Laird Superfood community on social media for the latest news and daily doses of inspiration.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005942/en/

ICR

Ashley DeSimone

[email protected]

KEYWORDS: United States North America Oregon New York

INDUSTRY KEYWORDS: Supermarket Retail Other Retail Food/Beverage

MEDIA:

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Lyra Therapeutics to Participate in Fireside Chat at the Jefferies Virtual London Healthcare Conference

WATERTOWN, Mass.–(BUSINESS WIRE)–
Lyra Therapeutics, Inc. (Nasdaq: LYRA), a clinical-stage therapeutics company focused on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose and throat (ENT) diseases, today announced that Maria Palasis, Ph.D., Lyra’s President and Chief Executive Officer, will participate in a fireside chat at the Jefferies Virtual London Healthcare Conference on Thursday, November 19, 2020 at 12:00 p.m. ET.

Interested parties can access the live audio webcast for this conference from the Investor Relations section of the company’s website at www.lyratherapeutics.com. The webcast replay will be available after the conclusion of the live presentation for approximately 30 days.

About Lyra Therapeutics

Lyra Therapeutics, Inc. is a clinical-stage therapeutics company focused on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose and throat (ENT) diseases. The company’s lead product candidate, LYR-210, is designed to deliver up to six months of continuous anti-inflammatory drug therapy to the sinonasal passages for the treatment of chronic rhinosinusitis (CRS) in patients who have not undergone surgery for the disease. Lyra is also developing LYR-220 for CRS patients who have undergone a prior surgery and have persistent disease. Beyond CRS, the company believes its XTreo™ platform, comprised of drug administered through a bioresorbable polymeric matrix, has the potential to address other disease areas by precisely, consistently and locally delivering medicines for sustained periods with a single administration.

For more information, please visit www.lyratherapeutics.com and follow us on LinkedIn and Twitter.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding the company’s lead product candidate LYR-210 and its cash balance for fiscal year ended December 31, 2020. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the fact that the company has incurred significant losses since inception and expects to incur losses for the foreseeable future; the company’s need for additional funding, which may not be available; the company’s limited operating history; the fact that the company has no approved products; the fact that the company’s product candidates are in various stages of development; the fact that the company may not be successful in its efforts to identify and successfully commercialize its product candidates; the fact that clinical trials required for the company’s product candidates are expensive and time-consuming, and their outcome is uncertain; the fact that the FDA may not conclude that certain of the company’s product candidates satisfy the requirements for the Section 505(b)(2) regulatory approval pathway; the company’s inability to obtain required regulatory approvals; effects of recently enacted and future legislation; the possibility of system failures or security breaches; effects of significant competition; the fact that the successful commercialization of the company’s product candidates will depend in part on the extent to which governmental authorities and health insurers establish coverage, adequate reimbursement levels and pricing policies; failure to achieve market acceptance; product liability lawsuits; the fact that the company relies on third parties for the manufacture of materials for its research programs, pre-clinical studies and clinical trials; the company’s reliance on third parties to conduct its preclinical studies and clinical trials; the company’s inability to succeed in establishing and maintaining collaborative relationships; the company’s reliance on certain suppliers critical to its production; failure to obtain and maintain or adequately protect the company’s intellectual property rights; failure to retain key personnel or to recruit qualified personnel; difficulties in managing the company’s growth; effects of natural disasters; the fact that the global pandemic caused by COVID-19 could adversely impact the company’s business and operations, including the company’s clinical trials; the fact that the price of the company’s common stock may be volatile and fluctuate substantially; significant costs and required management time as a result of operating as a public company and any securities class action litigation. These and other important factors discussed under the caption “Risk Factors” in the company’s Quarterly Report on Form 10-Q filed with the SEC on November 10, 2020 and its other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While the company may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, even if subsequent events cause its views to change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005919/en/

Investor Contact:

Laurence Watts

619-916-7620

[email protected]

Media Contact:

Kathryn Morris

914-204-6412

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Health Pharmaceutical

MEDIA:

Posted on November 12, 2020 4:08 pm

TransAct Technologies to Present Virtually and Host 1×1 Investor Meetings at the Annual Southwest IDEAS Investor Conference on November 18th & 19th

TransAct Technologies to Present Virtually and Host 1×1 Investor Meetings at the Annual Southwest IDEAS Investor Conference on November 18^th & 19^th

HAMDEN, Conn.–(BUSINESS WIRE)–TransAct Technologies Incorporated (Nasdaq: TACT), a global leader in software-driven technology and printing solutions for high-growth markets, today announced Bart Shuldman, Chairman and Chief Executive Officer will participate in the virtual Southwest IDEAS Investor Conference on November 18, 2020. TransAct Technologies’ presentation will be webcasted and is scheduled to be available at 7:00 am CST on November 18^th. The presentation can be accessed through the Southwest IDEAS conference portal for registered participants, in the investor relations section of the Company’s website: visit www.transact-tech.com, and on the IDEAS conference website: www.IDEASconferences.com.

About IDEAS Investor Conferences

The mission of the IDEAS Conferences is to provide independent regional venues for quality companies to present their investment merits to an influential audience of investment professionals. Unlike traditional bank-sponsored events, IDEAS Investor Conferences are “Sponsored BY the Buyside FOR the Buyside” and for the benefit of regional investment communities. Conference sponsors collectively have more than $200 billion in assets under management and include: Adirondack Research and Management, Allianz Global Investors: NFJ Investment Group, Ariel Investments, Aristotle Capital Boston, Barrow Hanley Mewhinney & Strauss, BMO Global Asset Management, Constitution Research & Management, Inc., Fidelity Investments, First Wilshire Securities Management, Inc., Gamco Investors, Granahan Investment Management, Great Lakes Advisors, Greenbrier Partners Capital Management, LLC, GRT Capital Partners, LLC, Hodges Capital Management, Ironwood Investment Management, Keeley Teton Advisors, Luther King Capital Management, Marble Harbor Investment Counsel, Perritt Capital Management, Punch & Associates, Westwood Holdings Group, Inc., and William Harris Investors.

The IDEAS Investor Conferences are held annually in Boston, Chicago and Dallas and are produced by Three Part Advisors, LLC. Additional information about the events can be located at www.IDEASconferences.com.

If interested in participating or learning more about the IDEAS conferences, please contact Lacey Wesley at (817) 769 -2373 or [email protected].

About TransAct Technologies Incorporated

TransAct Technologies Incorporated is a global leader in developing software-driven technology and printing solutions for high-growth markets including restaurant solutions, POS automation, casino and gaming, and oil and gas. The Company’s solutions are designed from the ground up based on customer requirements and are sold under the BOHA!™, AccuDate™, EPICENTRAL®, Epic®, Ithaca® and Printrex® brands. TransAct has sold over 3.3 million printers and terminals around the world and is committed to providing world-class service, spare parts and accessories to support its installed product base. Through the TransAct Services Group, the Company also provides customers with a complete range of supplies and consumable items both online at http://www.transactsupplies.com and through its direct sales team. TransAct is headquartered in Hamden, CT. For more information, please visit http://www.transact-tech.com or call (203) 859-6800.

BOHA! is a trademark of TRANSACT Technologies Incorporated. ©2020 TRANSACT Technologies Incorporated. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005886/en/

Investor Contact:

Steve DeMartino

President and Chief Financial Officer

TransAct Technologies Incorporated

203-859-6810

Michael Bowen

ICR, Inc.

[email protected]

203-682-8299

Marc P. Griffin

ICR, Inc.

[email protected]

646-277-1290

KEYWORDS: Connecticut United States North America

INDUSTRY KEYWORDS: Software Entertainment Restaurant/Bar Oil/Gas Data Management Energy Technology General Entertainment Other Entertainment Retail Electronic Games Casino/Gaming

MEDIA:

Posted on November 12, 2020 4:08 pm

CuriosityStream Announces Third Quarter 2020 Financial Results

CuriosityStream Announces Third Quarter 2020 Financial Results

• Third quarter 2020 revenue of $8.7 million, up 83% year-over-year
• Gross margin increases to 61% year-over-year from 59% in Q3 2019
• Strengthens executive team with key industry veterans  

SILVER SPRING, Md.–(BUSINESS WIRE)–
CuriosityStream Inc. (NASDAQ: CURI), a global factual entertainment company, today announced its financial results for the third quarter ending September 30, 2020.

“We had a strong third quarter, with an 83% year-over-year increase in revenue and growth across all lines of business. Our subscribers more than doubled year over year, with notable increases in annual plans and international subscriptions, as we continued to offer fresh and unique original content every week,” said Clint Stinchcomb, President & CEO. “We continue to be on a three-year trajectory of doubling annual revenue with large recurring revenues and high gross margins as we drive growth across the entire business.”

Third Quarter 2020 Financial Results

• Revenue of $8.7 million, up from $4.8 million in the third quarter of 2019;
• Total paying subscribers of approximately 13 million, up 108% year-over-year;
• Gross margin increased 200 basis points year-over-year to 61%;
• Operating loss was $(6.8) million compared to operating loss of $(10.1) million in the third quarter of 2019;
• EBITDA was $(6.7) million compared to EBITDA of $(10.0) million in the third quarter of 2019;
• GAAP net loss was $(6.7) million and GAAP basic and diluted net loss per share was $(0.56);
• Sources of cash totaled $23.3 million as of September 30, 2020.

Business Highlights

• Closed business combination with Software Acquisition Group, Inc. (NASDAQ: SAQN) and began trading on the NASDAQ exchange under ticker symbol “CURI” on October 15, 2020, becoming the first streaming media company devoted to factual entertainment to go public;
• Named international media executive Bakori Davis to the newly created position of Managing Director and Head of International Distribution;
• Named industry veteran Nate Stamos VP of Brand Partnerships;
• Appointed entertainment and cable industry pioneer Matthew Blank, former Chairman and CEO of Showtime Networks, Inc., to CuriosityStream’s Board of Directors;
• Announced several brand-defining original series including MY WILD BACKYARD,the third season of 4th AND FOREVER, DOUG TO THE RESCUE and NATURE THROUGH HER EYES;
• In a separate release today, CuriosityStream announced the November 19th, 2020 world premiere of the original new series BEYOND THE SPOTLIGHT from Executive Producer Leonardo DiCaprio and Appian Way Productions and Stephen David Entertainment. First episodes feature Shaquille O’Neal, Kristen Bell and Samuel L. Jackson and LaTanya Richardson Jackson.

Financial Outlook

For the fourth quarter of 2020, CuriosityStream currently expects the following:

• Revenue of at least $11.3 million, or 69% year-over-year growth

For the full year 2020 & 2021, CuriosityStream currently expects the following:

• 2020 revenue of at least $39.5 million, or 119% year-over-year growth
• 2021 revenue of at least $71 million, or 80% year-over-year growth

Conference Call Information

CuriosityStream will host a Q&A conference call today to discuss the Company’s Q3 2020 results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live audio webcast of the call will be available on the CuriosityStream Investor Relations website at https://investors.curiositystream.com. A live dial-in is available domestically at (800) 585-8367 or internationally at (416) 621-4642, with passcode 9085595.

An audio replay of the conference call will be available for two weeks following the call and available on the CuriosityStream Investor Relations website at https://investors.curiositystream.com.

Forward-Looking Statements

Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, CuriosityStream’s expectations or predictions of future financial or business performance or conditions and the information under the heading “Financial Outlook” in this press release. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “predicts” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed under “Risk Factors” in the Definitive Proxy Statement on Schedule 14A filed on September 22, 2020, and in CuriosityStream’s other SEC filings. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. Forward-looking statements are based on the current belief of the management of CuriosityStream, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and CuriosityStream is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC.

In addition to factors previously disclosed in CuriosityStream’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) the effect of the merger on CuriosityStream’s business relationships, operating results, and business generally; (ii) failure to realize the benefits expected from the merger; (iii) risks that the merger disrupts CuriosityStream’s current plans and operations and potential difficulties in CuriosityStream’s employee retention as a result of the merger; (iv) the effects of pending and future legislation; (viii) risks related to CuriosityStream’s limited operating history; (ix) the amount of the costs, fees, expenses and other charges related to the merger; (x) risks of the internet, online commerce and media industry; (xi) the highly competitive nature of the internet, online commerce and media industry and CuriosityStream’s ability to compete therein; (xii) litigation, complaints, and/or adverse publicity; (xiii) the ability to meet Nasdaq’s listing standards and (ix) privacy and data protection laws, privacy or data breaches, or the loss of data.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present EBITDA in this press release. Our use of non-GAAP financial measures has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of financial results as reported under GAAP.

We use this non-GAAP financial measure in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. This measure provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of core operating results, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, EBITDA is widely used by investors and securities analysts to measure a company’s operating performance. We exclude the following items from one or more of our non-GAAP financial measures: other income, income taxes, and depreciation and amortization.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, (1) stock-based compensation expense has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy, (2) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (3) EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) or tax payments that may represent a reduction in cash available to us. The non-GAAP measure we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. A reconciliation of these non-GAAP measures has been provided in the financial statement tables included in this press release and investors are encouraged to review the reconciliation.

About CuriosityStream

Launched by media visionary John Hendricks, CuriosityStream is one of the world’s leading global factual streaming services and media companies. Our documentary series and features cover every topic from space exploration to adventure to the secret life of pets, empowering viewers of all ages to fuel their passions and explore new ones. With thousands of titles, many in Ultra HD 4K, including exclusive originals, CuriosityStream features stunning visuals and unrivaled storytelling to demystify science, nature, history, technology, society, and lifestyle. CuriosityStream programming is available worldwide to watch on TV, desktop, mobile and tablets. Find us on Roku, Apple TV Channels and Apple TV, Xbox One, Amazon Fire TV, Google Chromecast, iOS and Android, as well as Amazon Prime Video Channels, YouTube TV, Sling TV, DISH, Comcast Xfinity on Demand, Cox Communications, Altice USA, Suddenlink, T- Mobile, Frndly TV, Vidgo, Sony, LG, Samsung and VIZIO smart TVs, Liberty Global, Com Hem, MultiChoice, StarHub TV, Totalplay, Millicom, Okko, Gazprom and other global distribution partners and platforms. For more information, visit CuriosityStream.com.

CuriosityStream Inc. Unaudited Statements of Operations (in thousands, except for per share data)
		For the three months ended September 30,								For the nine months ended September 30,
		2020				2019				2020				2019
Revenues		$	8,744			$	4,791			$	28,260			$	11,336
Operating expenses
Cost of revenues			3,411				1,946				10,748				4,384
Advertising and marketing			7,800				9,410				28,673				26,124
General and administrative			4,286				3,539				12,191				10,388
			15,497				14,895				51,612				40,896
Operating loss			(6,753	)			(10,104	)			(23,352	)			(29,560	)
Other income (expense)
Interest and other income (expense)			101				475				519				1,719
Loss before income taxes			(6,652	)			(9,629	)			(22,833	)			(27,841	)
Provision for income taxes			41				30				118				103
Net loss		$	(6,693	)		$	(9,659	)		$	(22,951	)		$	(27,944	)
Less preferred dividends and accretion of issuance costs (Note 6)			(4,523	)			(4,059	)			(13,114	)			(11,725	)
Net loss attributable to common stockholders		$	(11,216	)		$	(13,718	)		$	(36,065	)		$	(39,669	)
Net loss per share attributable to common stockholders
Basic and diluted			(0.56	)			(0.69	)			(1.80	)			(1.98	)
Weighted average number of common shares outstanding

CuriosityStream Inc. Balance Sheets (in thousands, except par value)
		September 30,				December 31,
		2020				2019
		(unaudited)
Assets
Current assets
Cash and cash equivalents		$	3,374			$	8,819
Restricted cash			5,000				–
Short-term investments			12,114				35,525
Accounts receivable			5,800				1,777
Other current assets			2,951				2,460
Total current assets			29,239				48,581
Investments			2,770				15,654
Property and equipment, net			1,358				1,451
Content assets, net			23,826				16,627
Other assets			2,790				151
Total assets		$	59,983			$	82,464
Liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)
Current liabilities
Current content liabilities		$	2,165			$	3,306
Accounts payable			2,323				5,245
Accrued expenses and other liabilities			2,542				2,266
Deferred revenue			8,885				7,101
Line of credit			950				–
Total current liabilities			16,865				17,918
Non-current deferred rent liability			905				824
Total liabilities			17,770				18,742
Commitments and contingencies
Redeemable convertible preferred stock, $0.01 par value, 30,000 shares authorized at September 30, 2020 and December 31, 2019; aggregate liquidation preference of $175,104 and $162,514 as of September 30, 2020 and December 31, 2019, respectively; 14,557 shares issued and outstanding at September 30, 2020 and December 31, 2019			168,288				155,174
Stockholders’ equity (deficit)
Class A Common stock, $0.01 par value – 50,000 shares authorized at September 30, 2020 and December 31, 2019, respectively; 14 and nil shares issued and outstanding at September 30, 2020 and December 31, 2019 respectively			–				–
Class B Common stock, $0.01 par value – 25,000 shares authorized at September 30, 2020 and December 31, 2019; 20,000 shares issued and outstanding at September 30, 2020 and December 31, 2019			200				200
Additional paid-in capital			–				–
Accumulated other comprehensive income			55				189
Accumulated deficit			(126,330	)			(91,841	)
Total stockholders’ equity (deficit)			(126,075	)			(91,452	)
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)		$	59,983			$	82,464

CuriosityStream Inc. Unaudited Statements of Cash Flows (in thousands)
		For the nine months ended September 30,
		2020				2019
Cash flows from operating activities
Net loss		$	(22,951	)		$	(27,944	)
Adjustments to reconcile net loss to net cash used in operating activities
Additions to content assets			(14,004	)			(12,029	)
Change in content liabilities			(1,141	)			1,241
Amortization of content assets			6,805				2,441
Amortization, depreciation and accretion			399				64
Stock-based compensation			1,540				671
Changes in operating assets and liabilities
Accounts receivable			(4,023	)			(244	)
Other assets			(773	)			945
Accounts payable			(3,263	)			1,460
Accrued expenses and other liabilities			124				407
Deferred revenue			1,784				1,253
Net cash used in operating activities			(35,503	)			(31,735	)
Cash flows from investing activities
Purchases of property and equipment			(299	)			(590	)
Sales of investments			39,744				30,309
Maturities of investments			8,500				7,947
Purchase of investments			(12,227	)			(48,243	)
Net cash provided by (used in) investing activities			35,718				(10,577	)
Cash flows from financing activities
Exercise of stock options			36				–
Borrowings on line of credit			8,250				–
Repayments on line of credit			(7,300	)			–
Payment of offering costs			(1,646	)			–
Net cash used in financing activities			(660	)			–
Net decrease in cash, cash equivalents and restricted cash			(445	)			(42,312	)
Cash, cash equivalents and restricted cash, beginning of period			8,819				62,516
Cash, cash equivalents and restricted cash, end of period		$	8,374			$	20,204
Supplemental schedule of non-cash financing activities:
Preferred dividends and accretion of issuance costs		$	13,114			$	11,725

Reconciliation of GAAP Financial Metrics to Non-GAAP
(in thousands)
(unaudited)
Reconciliation of Net Loss to EBITDA
	For the three months ended September 30,								For the nine months ended September 30,
		2020				2019				2020				2019
Net loss	$	(6,693	)		$	(9,659	)		$	(22,951	)		$	(27,944	)
Other income		(101	)			(475	)			(519	)			(1,719	)
Income taxes		41				30				118				103
Depreciation and amortization		83				63				256				170
EBITDA	$	(6,670	)		$	(10,041	)		$	(23,096	)		$	(29,390	)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112006054/en/

CuriosityStream Public Relations:

Vanessa Gillon

[email protected]

CuriosityStream Investor Relations:

Denise Garcia

[email protected]

KEYWORDS: United States North America Maryland

INDUSTRY KEYWORDS: Film & Motion Pictures Online General Entertainment Entertainment TV and Radio

MEDIA:

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