View(US:VIEW)2022-11-08 22:19Revenue Performance - Revenue for the three months ended September 30, 2022, was $23.8 million, representing a 25.8% increase from $18.9 million in the same period of 2021[189]. - For the nine months ended September 30, 2022, revenue was $57.1 million, up 25.3% from $45.6 million in the same period of 2021[189]. - Smart Building Platform revenue increased by 97.0% to $29.6 million for the nine months ended September 30, 2022, compared to $15.0 million in the same period of 2021[228]. - Revenue from the Smart Building Technologies offering has not been material to date, despite the integration of products into the Smart Building Platform[212]. - The company generates revenue from its View Smart Glass offering through the manufacturing and sale of insulated glass units (IGUs) and associated control systems, with revenue recognized over time as manufacturing progresses[202][204]. Cost and Expenses - Cost of revenue for the three months ended September 30, 2022, was $49.1 million, or 206.7% of net sales, down from 274.5% in the same period of 2021[232]. - Total costs and expenses for the three months ended September 30, 2022, were $105.9 million, representing 445.5% of revenue[227]. - Selling, general, and administrative expenses increased by $3.0 million (7.8%) for the three months ended September 30, 2022, compared to the same period in 2021, primarily due to $6.9 million of stock-based compensation expense[240]. - For the nine months ended September 30, 2022, selling, general, and administrative expenses rose by $30.3 million, driven by a $13.4 million increase in legal, consulting, and accounting expenses related to financial statement restatements[241]. - Research and development expenses decreased by 57.2% to $15.6 million for the three months ended September 30, 2022, compared to $36.3 million in the prior year[237]. Financial Position - Cash and cash equivalents as of October 31, 2022, were approximately $228 million, with a significant reduction in net cash outflow to $60 million for the three months ended September 30, 2022[193]. - Cash and cash equivalents totaled $51.3 million as of September 30, 2022, with working capital of $38.5 million[250]. - The accumulated deficit totaled $2,504.7 million as of September 30, 2022[250]. - The company plans to reduce cash spend and increase cash collections, resulting in a decrease of net cash outflow from $89.3 million in Q2 2022 to $60.0 million in Q3 2022[251]. - Net cash used in operating activities was $204.2 million for the nine months ended September 30, 2022, primarily due to a net loss adjusted for non-cash charges[260]. Production and Capacity - Smart Glass products are installed in over 40 million square feet of buildings, contributing to a total of 100 million square feet across all product lines[187]. - The company has a name-plate manufacturing capacity of approximately 5 million square feet of smart glass per year, with plans to increase this to 12.5 million square feet per year upon completion of a second production line[199]. - As of September 30, 2022, the company has invested over $400 million in capital expenditures, primarily in its factory, and expects to incur an additional $90 million over the next four years for facility automation and a second production line[200]. Market and Innovation - The company has over 1,400 patents and patent filings, indicating a strong commitment to technological innovation and R&D[194]. - Research indicates that employees near View Smart Glass sleep 37 minutes longer and perform 42% better on cognitive tests, highlighting the product's impact on health and productivity[185]. - The Inflation Reduction Act is expected to enhance demand for the company's products by reducing costs through the Investment Tax Credit[192]. - The company aims to expand its market presence by increasing awareness, recurring sales, and international market penetration[191]. Risks and Challenges - The company is responsible for the performance of the entire contract for the Smart Building Platform, including subcontracted work, which may lead to increased costs if subcontractors fail to perform as anticipated[211]. - The company anticipates that contract losses for individual contracts will decrease over time as a percentage of the total contract value as manufacturing volumes ramp up[216]. - Interest expense, net decreased by $0.2 million (79.8%) for the three months ended September 30, 2022, compared to the same period in the prior year, due to the full repayment of the revolving debt facility[245]. - The company had $14.7 million outstanding under its term loan debt arrangement as of September 30, 2022, with semi-annual payments of $0.7 million required starting June 30, 2022[257].