View(US:VIEW)2023-03-31 12:24Revenue and Financial Performance - Revenue for the years ended December 31, 2022, and 2021 was $101.3 million and $74.0 million respectively, representing period-over-period growth of 36.9%[368] - Total revenue for the year ended December 31, 2022, was $101.3 million, an increase of $27.3 million or 36.9% from $74.0 million in 2021[411] - The Smart Building Platform generated $55.4 million in revenue, representing 54.6% of total revenue and a 93.0% increase from $28.7 million in 2021[411] - Selling, general, and administrative expenses increased by $28.5 million to $159.7 million, a rise of 21.7% from $131.2 million in 2021[417] - Net loss for the fiscal year 2022 was $337.1 million, slightly improved from a net loss of $342.978 million in 2021, resulting in a net loss per share of $1.56 compared to $1.97 in the previous year[511] - Negative cash flows from operations were approximately $259.7 million for the year ended December 31, 2022[427] - The company has not achieved profitable operations or positive cash flows from operations since its inception, raising substantial doubt about its ability to continue as a going concern[494] Capital and Investment - The company raised additional capital of $206.3 million during the fourth quarter of 2022 through the issuance of Convertible Senior Pay In Kind Toggle Notes[374] - As of December 31, 2022, the company has invested over $400 million in capital expenditures, with an expectation of an additional $90 million for future factory automation and a second production line[381] - The company raised net proceeds of $771.3 million from the merger, after deducting transaction costs of $43.9 million[519] - The company raised additional capital of $206.3 million in Q4 2022 through the issuance of Convertible Notes, after deducting fees and offering expenses[428] Research and Development - The company has over 1,400 patents and patent filings, reflecting a strong commitment to technological innovation and R&D[375] - Research and development expenses decreased by $23.2 million to $70.3 million, a reduction of 24.8% compared to $93.5 million in 2021[415] - The company plans to moderate research and development expenses in future periods to focus on profitability[378] Operational Efficiency - Cost of revenue decreased to $203.2 million, or 200.5% of net sales, from $194.7 million, or 263.1% of net sales in 2021, reflecting improved operational efficiency[413] - The cost of revenue is significantly impacted by base operating costs, which are expected to decrease as production volumes increase[399] - The company has reduced certain base operating costs as part of its restructuring plan to run a more efficient business[399] - The company expects annualized cash savings of approximately $50 million from cost-saving initiatives and a restructuring plan, fully in place by Q3 2023[431] Market and Economic Conditions - Current macro-economic factors, including higher interest rates and uncertainty in the lending markets, are negatively impacting the overall real estate market[373] - The Inflation Reduction Act of 2022 has increased demand for the company's products by reducing the net cost to customers through tax incentives[372] Assets and Liabilities - Total current liabilities as of December 31, 2022, amounted to $112.5 million, including $10.4 million accrued as estimated loss on Smart Building Platform contracts[430] - Total current assets decreased to $296.2 million in 2022 from $343.5 million in 2021, primarily due to a reduction in cash and cash equivalents from $281.1 million to $95.9 million[509] - Total liabilities increased significantly to $398.5 million in 2022 from $199.7 million in 2021, driven by an increase in non-current debt from $13.96 million to $109.8 million[509] Customer and Supplier Concentration - Three customers accounted for 13.2%, 12.9%, and 11.0% of total revenue for the year ended December 31, 2022[531] - The company relies on a limited number of suppliers, with three suppliers accounting for 30.7%, 12.9%, and 11.1% of total purchases for the year ended December 31, 2022[532] Impairments and Valuation - The company recorded an impairment of goodwill of $9.1 million in Q4 2022, following a decline in stock price and market capitalization[419] - The company recorded inventory impairments of $12.9 million and $10.4 million as of December 31, 2022, and 2021, respectively[547] - The company maintains a valuation allowance against U.S. federal and state deferred tax assets due to historical losses, indicating uncertainty in realizing these assets[409] Cash Flow and Financing Activities - Net cash used in operating activities for the fiscal year ended December 31, 2022, was $259.7 million, with a net loss of $337.1 million adjusted for non-cash charges[439] - Net cash provided by financing activities was $200.7 million for the fiscal year ended December 31, 2022, mainly from proceeds of $206.2 million from the issuance of convertible notes[444] - The company had $14.0 million outstanding under its term loan debt arrangement as of December 31, 2022, with semi-annual payments of $0.7 million required starting June 30, 2022[436] Smart Building Platform - The Smart Building Platform was launched in 2021, aiming to improve human experience, energy performance, and reduce carbon footprint in buildings[360] - The company generates revenue through its Smart Building Platform, which includes smart glass IGUs, framing fabrication, and installation services[382] - Revenue from Smart Building Platform contracts was $55.4 million for the year ended December 31, 2022, with initial contract loss accruals totaling $12.0 million[503] - Revenue for Smart Building Platform contracts is recognized over time as services are provided, typically using a cost-to-cost input method[457]