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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended September 30, 2021

OR

 

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

For the transition period from __________________ to __________________

Commission File Number: 001-39768

 

Berkshire Grey, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

85-2994421

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

140 South Road

Bedford, MA

01730

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (833) 848-9900

 

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

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

 

BGRY

 

The NASDAQ Stock Market LLC

Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share

 

BGRYW

 

The NASDAQ Stock Market LLC

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

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

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

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

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

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

As of November 11, 2021, the registrant had 223,934,574 shares of Class A common stock, par value $0.0001 per share, and 5,750,000 shares of Class C common stock, par value $0.0001 per share, issued and outstanding.

 

 


Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

1

Item 1.

Financial Statements (Unaudited)

1

 

Consolidated Balance Sheets

1

 

Consolidated Statements of Operations and Comprehensive Loss

2

 

Consolidated Statements of Mezzanine Equity and Stockholders’ Deficit

3

 

Consolidated Statements of Cash Flows

5

 

Notes to Unaudited Consolidated Financial Statements

6

Item 2.

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

21

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

29

Item 4.

Controls and Procedures

30

PART II.

OTHER INFORMATION

31

Item 1.

Legal Proceedings

31

Item 1A.

Risk Factors

31

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

51

Item 3.

Defaults Upon Senior Securities

51

Item 4.

Mine Safety Disclosures

52

Item 5.

Other Information

52

Item 6.

Exhibits

53

Signatures

54

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

 

BERKSHIRE GREY, INC.

Consolidated Balance Sheets

(Unaudited)

(in thousands, except for share data)

 

 

 

September 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

203,135

 

 

$

93,857

 

Accounts receivable

 

 

7,778

 

 

 

16,752

 

Inventories, net

 

 

3,461

 

 

 

758

 

Deferred fulfillment costs (see Note 8 for related party transactions)

 

 

9,589

 

 

 

3,461

 

Prepaid expenses

 

 

6,831

 

 

 

804

 

Other current assets

 

 

2,418

 

 

 

132

 

Total current assets

 

 

233,212

 

 

 

115,764

 

Property and equipment, net

 

 

10,327

 

 

 

9,403

 

Restricted cash

 

 

1,121

 

 

 

1,121

 

Other non-current assets

 

 

24

 

 

 

101

 

Total assets

 

$

244,684

 

 

$

126,389

 

LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY/DEFICIT

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

4,677

 

 

$

1,681

 

Accrued expenses

 

 

17,922

 

 

 

7,771

 

Contract liabilities (see Note 8 for related party transactions)

 

 

14,125

 

 

 

22,331

 

Other current liabilities

 

 

153

 

 

 

182

 

Total current liabilities

 

 

36,877

 

 

 

31,965

 

Share-based compensation liability

 

 

19,225

 

 

 

3,047

 

Warrant Liabilities

 

 

17,848

 

 

 

 

Other non-current liabilities

 

 

1,976

 

 

 

2,057

 

Total liabilities

 

$

75,926

 

 

$

37,069

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

Mezzanine equity:

 

 

 

 

 

 

Redeemable convertible preferred stock – $0.0001 par value; nil shares authorized, issued, and outstanding as of September 30, 2021; and 188,353,093 shares authorized, 165,744,062 shares issued and outstanding as of December 31, 2020; aggregate liquidation preference of $239,447 as of December 31, 2020 (Note 9)

 

 

 

 

 

223,442

 

Stockholders’ equity (deficit):

 

 

 

 

 

 

Common stock – Class A shares, $0.0001 par value; 385,000,000 and 261,657,617 shares authorized, 222,597,413 and 28,292,106 shares issued, and 222,597,413 and 21,288,845 outstanding as of September 30, 2021 and December 31, 2020, respectively; Class C shares, par value $0.0001, 5,750,000 and nil shares issued and outstanding as of September 30, 2021 and December 30, 2020, respectively

 

 

23

 

 

 

3

 

Additional paid-in capital

 

 

437,379

 

 

 

17,578

 

Accumulated deficit

 

 

(268,639

)

 

 

(151,704

)

Accumulated other comprehensive (loss) income

 

 

(5

)

 

 

1

 

Total stockholders’ equity (deficit)

 

 

168,758

 

 

 

(134,122

)

Total liabilities, mezzanine equity, and stockholders’ equity (deficit)

 

$

244,684

 

 

$

126,389

 

 

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

 

1


 

BERKSHIRE GREY, INC.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(in thousands, except for share data)

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue (see Note 8 for related party transactions)

 

$

18,794

 

 

$

2,210

 

 

$

27,262

 

 

$

31,238

 

Cost of revenue (see Note 8 for related party transactions)

 

 

21,543

 

 

 

2,321

 

 

 

31,481

 

 

 

29,713

 

Gross (loss) profit

 

 

(2,749

)

 

 

(111

)

 

 

(4,219

)

 

 

1,525

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

19,286

 

 

 

2,971

 

 

 

28,138

 

 

 

9,693

 

Sales and marketing expense

 

 

7,174

 

 

 

2,906

 

 

 

45,197

 

 

 

6,244

 

Research and development expense

 

 

17,745

 

 

 

8,146

 

 

 

45,797

 

 

 

25,347

 

Total operating expenses

 

 

44,205

 

 

 

14,023

 

 

 

119,132

 

 

 

41,284

 

Loss from operations

 

 

(46,954

)

 

 

(14,134

)

 

 

(123,351

)

 

 

(39,759

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

9

 

 

3

 

 

 

23

 

 

 

276

 

Change in fair value of warrant liabilities

 

 

6,490

 

 

 

 

 

 

6,490

 

 

 

3,926

 

Other (expense), net

 

 

(17

)

 

 

(4

)

 

 

(57

)

 

 

(1

)

Net loss before income taxes

 

 

(40,472

)

 

 

(14,135

)

 

 

(116,895

)

 

 

(35,558

)

Income tax

 

 

28

 

 

 

 

 

 

40

 

 

 

2

 

Net loss

 

$

(40,500

)

 

$

(14,135

)

 

$

(116,935

)

 

$

(35,560

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Net foreign currency translation adjustments

 

 

 

 

 

 

 

 

(5

)

 

 

 

Total comprehensive loss

 

$

(40,500

)

 

$

(14,135

)

 

$

(116,940

)

 

$

(35,560

)

Net loss per common share (Class A and C) – basic and diluted

 

$

(0.22

)

 

$

(0.68

)

 

$

(1.52

)

 

$

(1.71

)

Weighted average shares outstanding – basic and diluted

 

 

183,838,219

 

 

 

20,882,502

 

 

 

76,685,048

 

 

 

20,782,379

 

 

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

 

2


 

BERKSHIRE GREY, INC.

Consolidated Statements of Mezzanine Equity and Stockholders’ Equity (Deficit)

(Unaudited)

(in thousands, except share data)

 

 

 

Mezzanine equity

 

 

 

Common stock

 

 

Additional
paid-in

 

 

Accumulated

 

 

Accumulated
other
comprehensive

 

 

Total
stockholders’

 

 

 

Shares

 

 

Amount

 

 

 

Class A Shares

 

 

Amount

 

 

Class C Shares

 

 

Amount

 

 

capital

 

 

deficit

 

 

income (loss)

 

 

equity/deficit

 

Balance – December 31, 2020

 

 

28,207,674

 

 

$

223,442

 

 

 

 

3,623,109

 

 

$

3

 

 

 

 

 

$

 

 

$

17,578

 

 

$

(151,704

)

 

$

1

 

 

$

(134,122

)

Retroactive application of recapitalization due to Merger (See note 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Equity

 

 

137,536,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

17,665,736

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Balance - December 31, 2020, after affect of Merger

 

 

165,744,062

 

 

 

223,442

 

 

 

 

21,288,845

 

 

 

4

 

 

 

 

 

 

 

 

 

17,578

 

 

 

(151,704

)

 

 

1

 

 

 

(134,121

)

Proceeds from exercise of stock options

 

 

 

 

 

 

 

 

 

1,347,220

 

 

 

 

 

 

 

 

 

 

 

 

278

 

 

 

 

 

 

 

 

 

278

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,165

 

 

 

 

 

 

 

 

 

1,165

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

(6

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(44,681

)

 

 

 

 

 

(44,681

)

Balance – March 31, 2021

 

 

165,744,062

 

 

 

223,442

 

 

 

 

22,636,065

 

 

 

4

 

 

 

 

 

 

 

 

 

19,021

 

 

 

(196,385

)

 

 

(5

)

 

 

(177,365

)

Proceeds from exercise of stock options

 

 

 

 

 

 

 

 

 

253,149

 

 

 

 

 

 

 

 

 

 

 

 

217

 

 

 

 

 

 

 

 

 

217

 

Reclassification of restricted stock to equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,836

 

 

 

 

 

 

 

 

 

8,836

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,163

 

 

 

 

 

 

 

 

 

1,163

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(31,754

)

 

 

 

 

 

(31,754

)

Balance – June 30, 2021

 

 

165,744,062

 

 

 

223,442

 

 

 

 

22,889,214

 

 

 

4

 

 

 

 

 

 

 

 

 

29,237

 

 

 

(228,139

)

 

 

(5

)

 

 

(198,903

)

Issuance of Common Shares Upon Merger (See note 3)

 

 

 

 

 

 

 

 

 

15,312,113

 

 

 

2

 

 

 

5,750,000

 

 

 

 

 

 

2,766

 

 

 

 

 

 

 

 

 

2,768

 

Issuance of PIPE Shares

 

 

 

 

 

 

 

 

 

16,500,000

 

 

 

1

 

 

 

 

 

 

 

 

 

164,999

 

 

 

 

 

 

 

 

 

165,000

 

Mezzanine Equity Conversion

 

 

(165,744,062

)

 

 

(223,442

)

 

 

 

165,744,062

 

 

 

16

 

 

 

 

 

 

 

 

 

223,426

 

 

 

 

 

 

 

 

 

223,442

 

Proceeds from exercise of stock options

 

 

 

 

 

 

 

 

 

2,152,024

 

 

 

 

 

 

 

 

 

 

 

 

866

 

 

 

 

 

 

 

 

 

866

 

Reclassification of restricted stock to equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,829

 

 

 

 

 

 

 

 

 

1,829

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,256

 

 

 

 

 

 

 

 

 

14,256

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(40,500

)

 

 

 

 

 

(40,500

)

Balance – September 30, 2021

 

 

 

 

$

 

 

 

 

222,597,413

 

 

$

23

 

 

 

5,750,000

 

 

$

 

 

$

437,379

 

 

$

(268,639

)

 

$

(5

)

 

$

168,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3


 

Balance – December 31, 2019

 

 

28,207,674

 

 

$

223,442

 

 

 

 

3,521,477

 

 

$

3

 

 

 

 

 

$

 

 

$

14,028

 

 

$

(94,061

)

 

$

 

 

$

(80,030

)

Retroactive application of recapitalization due to Merger (See note 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine Equity

 

 

137,536,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

17,170,194

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Balance - December 31, 2019, after affect of Merger

 

 

165,744,062

 

 

 

223,442

 

 

 

 

20,691,671

 

 

 

4

 

 

 

 

 

 

 

 

 

14,028

 

 

 

(94,061

)

 

 

 

 

 

(80,029

)