8-K/A
Butterfly Network, Inc. (BFLY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(Amendment No. 1)
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of theSecurities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 28, 2022
BUTTERFLY NETWORK, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-39292 | 84-4618156 |
|---|---|---|
| (State or other jurisdiction of<br><br> incorporation) | (Commission File Number) | (IRS Employer<br><br> <br>Identification No.) |
| 530 Old Whitfield StreetGuilford, Connecticut | ****<br><br> <br>06437 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code:
(203) 689-5650
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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 | BFLY | The New York Stock Exchange |
| Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share | BFLY WS | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ¨
EXPLANATORY NOTE
Butterfly Network, Inc. (the “Company”) has determined that an administrative error occurred in connection with the filing of its Current Report on Form 8-K that was filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2022 (the “Original Report”). While the Original Report was reviewed and approved by the appropriate officer of the Company prior to its filing with the SEC, the Company did not obtain a manual or electronic signature from the Company’s officer whose conformed signature was set forth in the Original Report, as required by Rule 12b-11 and Rule 302(b) of Regulation S-T under the Securities Exchange Act of 1934, as amended (the “Signature Authorization Rules”). This Amendment No. 1 on Form 8-K/A (the “Amendment No. 1”) to the Original Report is being filed in order to reflect that the Company has obtained the required signature to this Amendment No. 1 from the appropriate officer, as required by the Signature Authorization Rules.
Except as described above, this Amendment No. 1 does not modify or update disclosure in, or exhibits to, the Original Report. Furthermore, this Amendment No. 1 does not change the previously reported financial results, if any, nor does it reflect events occurring after the date of the Original Report. Information not affected by this Amendment No. 1 remains unchanged and reflects the disclosures made at the time the Original Report was made.
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On February 28, 2022, Butterfly Network, Inc. (the “Company”) issued a press release announcing its results for the fourth quarter and year ended December 31, 2021 and providing a business update. A copy of the press release is furnished as Exhibit 99.1 hereto.
The information in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits. |
| --- | --- |
| Exhibit No. | Description |
| --- | --- |
| 99.1 | Press Release dated February 28, 2022 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BUTTERFLY NETWORK, INC. | ||
|---|---|---|
| By: | /s/ Todd M. Fruchterman, M.D., Ph.D. | |
| Name: Todd M. Fruchterman, M.D., Ph.D. | ||
| Title: President and Chief Executive Officer | ||
| Date: March 28, 2022 |
Exhibit 99.1
Butterfly Network Reports Fourth Quarter andFull Year 2021 Financial Results
Full Year 2021 Revenue Growth of 35%
Positive Momentum Driving a New Standard ofCare with Butterfly
GUILFORD, Conn., and NEW YORK, February 28, 2022 -- Butterfly Network, Inc. (NYSE: BFLY) (“Butterfly”), a digital health company transforming care with handheld, whole-body ultrasound, today announced financial results for the quarter and full year ended December 31, 2021, and provided a business update.
Financial and Recent Business Highlights:
| ● | Reported revenue of $62.6 million for the full year ended December 31, 2021, representing a 35.3% increase from $46.3 million for the full year ended December 31, 2020. |
|---|---|
| ● | Launched Butterfly Blueprint^TM^ including AI-powered image capture and interpretation powered by Caption Health. |
| --- | --- |
| ● | Announced a large-scale Butterfly Blueprint deployment at The University of Rochester Medical Center. |
| --- | --- |
| ● | Partnered with Ambra, an Intelerad Company and maker of a leading cloud-based, medical image management to enhance ultrasound data integration with Butterfly Blueprint. |
| --- | --- |
“We have made significant progress in our first year as a public company,” said Dr. Todd Fruchterman, Butterfly’s President and Chief Executive Officer. “We generated substantial growth in both human healthcare and veterinarian markets including customer deployments, adoption by medical education institutions and global expansion through distributors and partnerships. At the same time, we also strengthened our people, began to evolve our business model, and our approach to innovation.” Fruchterman continued, “As we invest and grow in 2022, we are innovating to bring valuable clinical insights to every care setting worldwide and advancing our vision to make Butterfly as ubiquitous as the stethoscope.”
Fourth Quarter 2021 Financial Results
Fourth quarter revenue increased 21.3% to $19.0 million from $15.7 million in the fourth quarter of 2020. Product revenue increased 15.1% to $14.4 million from $12.5 million in the fourth quarter of 2020. Subscription revenue increased 46.2% to $4.6 million from $3.1 million in the fourth quarter of 2020.
Gross profit for the fourth quarter of 2021 was $7.5 million, compared to gross profit of $8.7 million in the fourth quarter of 2020. Adjusted gross profit was $10.1 million for the fourth quarter of 2021, compared to an adjusted gross profit of $4.9 million in the fourth quarter of 2020.
Total gross margin for the quarter was 39.7%, compared to 55.6% in the fourth quarter of 2020. Adjusted gross margin was 53.3%, compared to 31.2% in the fourth quarter of 2020.
Operating expenses were $52.8 million, compared to $30.9 million in the fourth quarter of 2020, representing an increase of 71.0% primarily due to the build out of personnel and services to support growth initiatives and expenses related to being a publicly traded company.
Net loss was $15.2 million, compared to a net loss of $22.9 million during the fourth quarter of 2020. Adjusted EBITDA was a loss of $33.3 million during the fourth quarter of 2021, compared to a loss of $21.0 million in the fourth quarter of 2020.
Cash and cash equivalents were $422.8 million as of December 31, 2021.
A reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin for the three months and the year ended December 31, 2021 and 2020, is provided in the financial schedules that are part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading “Non-GAAP Financial Measures.”
Full Year 2021 Financial Results
Full year revenue increased 35.3% to $62.6 million from $46.3 million in full year 2020. Product revenue increased 24.8% to $47.9 million from $38.3 million in full year 2020. Subscription revenue increased 85.9% to $14.7 million from $7.9 million in 2020.
Gross profit for the full year 2021 was $17.1 million, compared to gross profit of negative $61.2 million in full year 2020. Adjusted gross profit was $31.6 million for the full year 2021, compared to an adjusted gross profit of $1.6 million in full year 2020.
Total gross margin for the full year 2021 was 27.3%, compared to a negative 132.4% in 2020. Adjusted gross margin was 50.5%, compared to 3.5% in full year 2020.
Full year operating expenses were $209.8 million, compared to $100.4 million in full year 2020, representing an increase of 109% primarily due to the build out of personnel and services to support growth initiatives and expenses related to being a publicly traded company.
Full year net loss was $32.4 million, compared to a net loss of $162.7 million for the full year 2020. Full year adjusted EBITDA was a loss of $121.8 million, compared to a loss of $85.2 million for the full year 2020.
2022 Financial Guidance
| ● | Revenue is expected to be approximately $83 million to $88 million, or approximately 33% to 41% growth year-over-year. |
|---|---|
| ● | Net loss is expected to be approximately $225 million to $245 million, assuming no change in the fair value of our warrants. Adjusted EBITDA loss is expected to be approximately $175 million to $195 million. |
| --- | --- |
Butterfly may incur charges, realize gains or losses, incur financing costs, or interest expense, or experience other events in 2022 that could cause actual results to vary materially from this guidance.
Conference Call
A conference call to review the fourth quarter and full year 2021 financial results and provide a business update is scheduled for February 28, 2022, at 8:30 am Eastern Time. Interested parties may access the conference call by dialing (888) 440-4052 (U.S.) or (646) 960-0827 (Outside U.S.) and referencing Conference ID 9393576. Additionally, a link to a live webcast of the call will be available in the Investor section of Butterfly's website.
About Butterfly Network, Inc.
Founded by Dr. Jonathan Rothberg in 2011, and recently listed on the New York Stock Exchange through a business combination with Longview Acquisition Corp., Butterfly created the world's first handheld, single probe whole-body ultrasound system using semiconductor technology, the Butterfly iQ+. Butterfly's mission is to democratize medical imaging and contribute to the aspiration of global health equity, making high-quality ultrasound affordable, easy-to-use, globally accessible, and intelligently connected, including for the 4.7 billion people around the world lacking access to ultrasound. Through its proprietary Ultrasound-on-Chip™ technology, Butterfly is paving the way for earlier detection and remote management of health conditions around the world. The Butterfly iQ+ can be purchased online today by healthcare practitioners in the United States, Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
Butterfly iQ+ is a prescription device intended for qualified healthcare professionals only.
For more information, visit www.butterflynetwork.com.
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (“GAAP”), the Company provides additional financial metrics that are not prepared in accordance with GAAP (“non-GAAP”). The non-GAAP financial measures included in this press release are Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin. The Company presents non-GAAP financial measures in order to assist readers of its consolidated financial statements in understanding the core operating results that its management uses to evaluate the business and for financial planning purposes. The Company’s non-GAAP financial measures, Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin, provide an additional tool for investors to use in comparing our financial performance over multiple periods.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin are key performance measures that the Company’s management uses to assess our operating performance. These non-GAAP measures facilitate internal comparisons of the Company’s operating performance on a more consistent basis. The Company uses these performance measures for business planning purposes and forecasting. The Company believes that Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin enhance an investor’s understanding of the Company’s financial performance as they are useful in assessing its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin may not be comparable to similarly titled measures of other companies because they may not calculate these measures in the same manner. Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating the Company’s performance, you should consider Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin alongside other financial performance measures prepared in accordance with GAAP, including net loss, gross profit, and gross margin.
The non-GAAP financial measures do not replace the presentation of the Company’s GAAP financial results and should only be used as a supplement to, not as a substitute for, the Company’s financial results presented in accordance with GAAP. In this press release, the Company has provided a reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin, the most directly comparable GAAP financial measures. A reconciliation of Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin to corresponding GAAP measures is not available on a forward-looking basis because the Company is unable to predict with reasonable certainty the non-cash component of employee compensation expense, changes in its working capital needs, variances in its supply chain, the impact of earnings or charges resulting from matters the Company considers not to be reflective, on a recurring basis, of its ongoing operations, and other such items without unreasonable effort. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP. Management strongly encourages investors to review the Company’s financial statements and publicly filed reports in their entirety and not rely on any single financial measure.
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to financial results, future performance, development of products and services, and the size and potential growth of current or future markets for its products and services. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of COVID-19 on the Company’s business, including issues relating to Omicron or other variants; the ability to recognize the anticipated benefits of the business combination; the Company’s ability to grow and manage growth profitably; the success, cost and timing of the Company’s product and service development activities; the potential attributes and benefits of the Company’s products and services; the degree to which our products and services are accepted by healthcare practitioners and patients for their approved uses; the Company’s ability to obtain and maintain regulatory approval for its products, and any related restrictions and limitations of any approved product; the Company’s ability to identify, in-license or acquire additional technology; the Company’s ability to maintain its existing license, manufacture, supply and distribution agreements; manufacturing and supply of the Company’s products; the Company’s ability to compete with other companies currently marketing or engaged in the development of products and services that the Company is currently marketing or developing; changes in applicable laws or regulations; the size and growth potential of the markets for the Company’s products and services, and its ability to serve those markets, either alone or in partnership with others; the pricing of the Company’s products and services and reimbursement for medical procedures conducted using its products and services; the Company’s estimates regarding expenses, revenue, capital requirements and needs for additional financing; the Company’s financial performance; the Company’s ability to raise financing in the future; and other risks and uncertainties indicated from time to time in the Company’s most recent Annual Report on Form 10-K or in subsequent filings that it makes with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions you not to place undue reliance upon any forward-looking statements, which speak only as of the date of this press release. The Company does not undertake or accept any obligation or undertake to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.
Contacts:
InvestorsAgnes Lee
650.677.9138
alee@butterflynetwork.com
MediaHolly Spring
781.888.8219
hspring@butterflynetwork.com
BUTTERFLY NETWORK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSAND COMPREHENSIVE LOSS
(In thousands, except share and per share amounts)
(Unaudited)
| Three months ended<br><br> December 31, | Year ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Revenue: | ||||||||||||
| Product | $ | 14,413 | $ | 12,527 | $ | 47,868 | $ | 38,347 | ||||
| Subscription | 4,574 | 3,128 | 14,697 | 7,905 | ||||||||
| Total revenue | $ | 18,987 | $ | 15,655 | $ | 62,565 | $ | 46,252 | ||||
| Cost of revenue: | ||||||||||||
| Product | 8,218 | 11,028 | 29,308 | 46,294 | ||||||||
| Subscription | 887 | (192 | ) | 2,238 | 1,068 | |||||||
| Loss (gain) on product purchase commitments | 2,342 | (3,880 | ) | 13,965 | 60,113 | |||||||
| Total cost of revenue | $ | 11,447 | $ | 6,956 | $ | 45,511 | $ | 107,475 | ||||
| Gross profit | $ | 7,540 | $ | 8,699 | $ | 17,054 | $ | (61,223 | ) | |||
| Operating expenses: | ||||||||||||
| Research and development | $ | 20,002 | $ | 13,311 | 74,461 | 49,738 | ||||||
| Sales and marketing | 15,054 | 8,855 | 49,604 | 26,263 | ||||||||
| General and administrative | 17,789 | 8,744 | 85,717 | 24,395 | ||||||||
| Total operating expenses | 52,845 | 30,910 | 209,782 | 100,396 | ||||||||
| Loss from operations | $ | (45,305 | ) | $ | (22,211 | ) | $ | (192,728 | ) | $ | (161,619 | ) |
| Interest income | $ | 834 | $ | 47 | 2,573 | 285 | ||||||
| Interest expense | (6 | ) | (723 | ) | (651 | ) | (1,141 | ) | ||||
| Change in fair value of warrant liabilities | 30,567 | — | 161,095 | — | ||||||||
| Other income (expense), net | (1,257 | ) | (48 | ) | (2,577 | ) | (231 | ) | ||||
| Loss before provision for income taxes | $ | (15,167 | ) | $ | (22,935 | ) | $ | (32,288 | ) | $ | (162,706 | ) |
| Provision for income taxes | 49 | 7 | 121 | 39 | ||||||||
| Net loss and comprehensive loss | $ | (15,216 | ) | $ | (22,942 | ) | $ | (32,409 | ) | $ | (162,745 | ) |
| Net loss per common share attributable to Class A and B common stockholders, basic and diluted | $ | (0.08 | ) | $ | (3.73 | ) | $ | (0.19 | ) | $ | (26.87 | ) |
| Weighted-average shares used to compute net loss per share attributable to Class A and B common stockholders, basic and diluted | 198,004,664 | 6,145,688 | 173,810,053 | 6,056,574 |
BUTTERFLY NETWORK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
| 2020 | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 422,841 | $ | 60,206 | ||
| Accounts receivable, net | 11,936 | 5,752 | |||
| Inventories | 36,243 | 25,805 | |||
| Current portion of vendor advances | 27,500 | 2,571 | |||
| Prepaid expenses and other current assets | 13,384 | 2,998 | |||
| Total current assets | 511,904 | $ | 97,332 | ||
| Property and equipment, net | 14,703 | 6,870 | |||
| Non-current portion of vendor advances | 12,782 | 37,390 | |||
| Operating lease assets | 24,083 | — | |||
| Other non-current assets | 8,493 | 5,599 | |||
| Total assets | 571,965 | $ | 147,191 | ||
| Liabilities, convertible preferred stock and stockholders’ equity (deficit) | |||||
| Current liabilities: | |||||
| Accounts payable | 5,798 | $ | 16,400 | ||
| Deferred revenue, current | 13,071 | 8,443 | |||
| Accrued purchase commitments, current | 5,329 | 22,890 | |||
| Accrued expenses and other current liabilities | 25,631 | 21,962 | |||
| Total current liabilities | 49,829 | $ | 69,695 | ||
| Deferred revenue, non-current | 5,476 | 2,790 | |||
| Convertible debt | — | 49,528 | |||
| Loan payable | — | 4,366 | |||
| Warrant liabilities | 26,229 | — | |||
| Accrued purchase commitments, non-current | 14,200 | 19,660 | |||
| Operating lease liabilities | 27,690 | — | |||
| Other non-current liabilities | 850 | 2,146 | |||
| Total liabilities | 124,274 | $ | 148,185 | ||
| Convertible preferred stock: | |||||
| Convertible preferred stock (Series A, B, C and D) .0001 par value with an aggregate liquidation preference of 0 and 383,829 at December 31, 2021 and 2020, respectively; 0 and 107,197,118 shares authorized, issued and outstanding at December 31, 2021 and 2020, respectively | — | 360,937 | |||
| Stockholders’ equity (deficit): | |||||
| Class A common stock .0001 par value; 600,000,000 and 116,289,600 shares authorized at December 31, 2021 and 2020, respectively; 171,613,049 and 6,593,291 shares issued and outstanding at December 31, 2021 and 2020, respectively | 17 | 1 | |||
| Class B common stock .0001 par value; 27,000,000 and 26,946,089 shares authorized at December 31, 2021 and 2020, respectively; 26,426,937 and 0 shares issued and outstanding at December 31, 2021 and 2020, respectively | 3 | — | |||
| Additional paid-in capital | 874,886 | 32,874 | |||
| Accumulated deficit | (427,215 | ) | (394,806 | ) | |
| Total stockholders’ equity (deficit) | 447,691 | $ | (361,931 | ) | |
| Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | 571,965 | $ | 147,191 |
All values are in US Dollars.
BUTTERFLY NETWORK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Year ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Cash flows from operating activities: | ||||||
| Net loss | $ | (32,409 | ) | $ | (162,745 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation and amortization | 2,090 | 1,316 | ||||
| Write-down of vendor advance | 2,300 | 10,560 | ||||
| Non-cash interest expense on convertible debt | 389 | 1,047 | ||||
| Write-down of inventories | 889 | 7,123 | ||||
| Stock-based compensation expense | 47,798 | 11,004 | ||||
| Change in fair value of warrant liabilities | (161,095 | ) | — | |||
| Other | 1,900 | 1,966 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (6,127 | ) | (4,377 | ) | ||
| Inventories | (11,285 | ) | (23,487 | ) | ||
| Prepaid expenses and other assets | (10,669 | ) | (20 | ) | ||
| Vendor advances | (2,621 | ) | 1,658 | |||
| Accounts payable | (10,521 | ) | 11,175 | |||
| Deferred revenue | 7,314 | 7,446 | ||||
| Accrued purchase commitments | (23,063 | ) | 42,550 | |||
| Change in operating lease assets and liabilities | 1,901 | — | ||||
| Accrued expenses and other liabilities | 4,022 | 13,084 | ||||
| Net cash used in operating activities | $ | (189,187 | ) | $ | (81,700 | ) |
| Cash flows from investing activities: | ||||||
| Purchases of marketable securities | (1,019,003 | ) | — | |||
| Sales of marketable securities | 1,017,010 | — | ||||
| Purchases of property and equipment | (7,877 | ) | (2,376 | ) | ||
| Net cash used in investing activities | $ | (9,870 | ) | $ | (2,376 | ) |
| Cash flows from financing activities: | ||||||
| Proceeds from exercise of stock options and warrants | 21,707 | 2,038 | ||||
| Net proceeds from equity infusion from the Business Combination | 548,403 | (657 | ) | |||
| Proceeds from loan payable | — | 4,366 | ||||
| Proceeds from issuance of convertible debt | — | 50,000 | ||||
| Payment of loan payable | (4,366 | ) | — | |||
| Payments of debt issuance costs | (52 | ) | (1,467 | ) | ||
| Net cash provided by financing activities | $ | 565,692 | $ | 54,280 | ||
| Net (decrease) increase in cash, cash equivalents and restricted cash | $ | 366,635 | $ | (29,796 | ) | |
| Cash, cash equivalents and restricted cash, beginning of period | 60,206 | 90,002 | ||||
| Cash, cash equivalents and restricted cash, end of period | $ | 426,841 | $ | 60,206 | ||
| Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets | ||||||
| Cash and cash equivalents | $ | 422,841 | $ | 60,206 | ||
| Restricted cash | 4,000 | — | ||||
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ | 426,841 | $ | 60,206 | ||
| Supplemental disclosure of non-cash investing and financing activities | ||||||
| Purchase of property and equipment | 1,841 | 564 | ||||
| Deferred offering costs and debt issuance costs | — | 3,106 |
BUTTERFLY NETWORK, INC.
ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN
(In thousands)
(Unaudited)
| Three months ended<br><br> December 31, | Year ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Revenue | $ | 18,987 | $ | 15,655 | $ | 62,565 | $ | 46,252 | ||||
| Cost of revenue | 11,447 | 6,956 | 45,511 | 107,475 | ||||||||
| Gross profit | $ | 7,540 | $ | 8,699 | $ | 17,054 | $ | (61,223 | ) | |||
| Gross margin | 39.7 | % | 55.6 | % | 27.3 | % | (132.4 | )% | ||||
| Add: | ||||||||||||
| Depreciation and amortization | 245 | 71 | 536 | 140 | ||||||||
| Warranty liability policy change | — | — | (560 | ) | — | |||||||
| Loss (gain) on purchase commitments | 2,342 | (3,880 | ) | 13,965 | 60,113 | |||||||
| Inventory write-downs | — | — | 582 | 2,570 | ||||||||
| Adjusted gross profit | $ | 10,127 | $ | 4,890 | $ | 31,577 | $ | 1,600 | ||||
| Adjusted gross margin | 53.3 | % | 31.2 | % | 50.5 | % | 3.5 | % |
BUTTERFLY NETWORK, INC.
ADJUSTED EBITDA
(In thousands)
(Unaudited)
| Three months ended<br><br> December 31, | Year ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||
| Net loss | $ | (15,216 | ) | $ | (22,942 | ) | $ | (32,409 | ) | $ | (162,745 | ) |
| Interest income | (834 | ) | (47 | ) | (2,573 | ) | (285 | ) | ||||
| Interest expense | 6 | 723 | 651 | 1,141 | ||||||||
| Change in fair value of warrant liabilities | (30,567 | ) | — | (161,095 | ) | — | ||||||
| Other expense, net | 1,257 | 48 | 2,577 | 231 | ||||||||
| Provision for income taxes | 49 | 7 | 121 | 39 | ||||||||
| Stock based compensation | 9,029 | 3,277 | 47,798 | 11,004 | ||||||||
| Depreciation and amortization | 670 | 412 | 2,090 | 1,316 | ||||||||
| CEO transition costs | — | — | 5,398 | — | ||||||||
| Warranty liability policy change | — | — | (560 | ) | — | |||||||
| Transaction bonus | — | — | 1,653 | — | ||||||||
| Impairments | — | 1,390 | — | 1,390 | ||||||||
| Loss (gain) on purchase commitments | 2,342 | (3,880 | ) | 13,965 | 60,113 | |||||||
| Inventory write-downs | — | — | 582 | 2,570 | ||||||||
| Adjusted EBITDA | $ | (33,264 | ) | $ | (21,012 | ) | $ | (121,802 | ) | $ | (85,226 | ) |