Symbotic Inc 10-K for FY2023

Symbotic Inc. (SYM)

10-K 2023-12-11 For: 2023-09-30

Added on April 11, 2026

About this 10-K

Symbotic Inc filed this 10-K on December 11, 2023, covering the fiscal year ended September 30, 2023 (FY2023).

Headline figures

Fiscal year ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.18B; up 98.4% from $593.31M a year earlier
Net loss: $23.87M; compared with a net loss of $6.86M a year earlier
Diluted EPS: -$0.37; compared with -$0.13 a year earlier

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Delaware			98-1572401
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

200 Research Drive Wilmington, MA 01887 (978) 284-2800
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.0001 per share	SYM	The Nasdaq Stock Market LLC


		Page
Part I
Item 1.	Business	3
Item 1A.	Risk Factors	18
Item 1B.	Unresolved Staff Comments	45
Item 2.	Properties	45
Item 3.	Legal Proceedings	46
Item 4.	Mine Safety Disclosures	46
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	46
Item 6.	[Reserved]	46
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	46
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	60
Item 8.	Financial Statements and Supplementary Data	62
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosures	105
Item 9A.	Controls and Procedures	105
Item 9B.	Other Information	106
Item 9C.	Disclosure Regarding Foreign Jurisdiction s that Prevent Inspections	106
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	107
Item 11.	Executive Compensation	107
Item 12.	Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters	107
Item 13.	Certain Relationships and Related Transactions, and Director Independence	107
Item 14.	Principal Accounting Fees and Services	107
Part IV
Item 15.	Exhibits, Financial Statement Schedules	107
Item 16.	Form 10-K Summary	110
Signatures


	Year Ended
	September 30, 2023		September 24, 2022
	(in thousands)
Revenue:
Systems	$	1,138,059	$	567,993
Software maintenance and support	6,601		3,735
Operation services	32,231		21,584
Total revenue	1,176,891		593,312
Cost of revenue:
Systems	940,076		464,179
Software maintenance and support	9,222		4,390
Operation services	37,854		25,096
Total cost of revenue	987,152		493,665
Gross profit	189,739		99,647
Operating expenses:
Research and development expenses	195,042		124,141
Selling, general, and administrative expenses	217,927		115,881
Total operating expenses	412,969		240,022
Operating loss	(223,230)		(140,375)
Other income, net	10,716		1,286
Loss before income tax	(212,514)		(139,089)
Income tax benefit	4,620		—
Net loss	$	(207,894)	$	(139,089)


	Year Ended
	September 30, 2023		September 24, 2022
Revenue:
Systems	97	%	96	%
Software maintenance and support	1		1
Operation services	3		4
Total revenue	100		100
Cost of revenue:
Systems	80		78
Software maintenance and support	1		1
Operation services	3		4
Total cost of revenue	84		83
Gross profit	16		17
Operating expenses:
Research and development expenses	17		21
Selling, general, and administrative expenses	19		20
Total operating expenses	35		40
Operating loss	(19)		(24)
Other income, net	1		—
Loss before income tax	(18)		(23)
Income tax benefit	—		—
Net loss	(18)	%	(23)	%


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


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


	Year Ended				Change
	September 30, 2023		September 24, 2022		Amount		%
	(dollars in thousands)
Systems	$	1,138,059	$	567,993	$	570,066	100	%
Software maintenance and support	6,601		3,735		2,866		77
Operation services	32,231		21,584		10,647		49
Total revenue	$	1,176,891	$	593,312	$	583,579	98	%


	Change
	(in thousands)
Employee-related costs	$	79,734
Prototype-related costs, allocated overhead expenses, and other	(8,833)
	$	70,901


Gross profit margin	16.1	%	16.8	%	4.1	%
Adjusted gross profit margin	18.4	%	16.9	%	4.3	%


			Payments due in:
	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years
	(in thousands)
Vendor commitments	$	1,159,595	$	1,137,100	$	22,261	$	234	$	—


Symbotic Inc.
Index to the Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID No. 248)			63
Consolidated Balance Sheets			64
Consolidated Statements of Operations			66
Consolidated Statements of Comprehensive Loss			67
Consolidated Statements of Changes in Redeemable Preferred and Common Units and Equity (Deficit)			68
Consolidated Statements of Cash Flows			70
Notes to the Consolidated Financial Statements			72


	September 30, 2023		September 24, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	258,770	$	353,457
Marketable securities	286,736		—
Accounts receivable	69,206		3,412
Unbilled accounts receivable	121,149		101,816
Inventories	136,121		91,900
Deferred expenses	34,577		29,150
Prepaid expenses and other current assets	85,236		25,663
Total current assets	991,795		605,398
Property and equipment, net	34,507		24,878
Intangible assets, net	217		650
Other long-term assets	24,191		337
Total assets	$	1,050,710	$	631,263
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	109,918	$	68,448
Accrued expenses	99,992		47,312
Sales tax payable	28,322		12,953
Deferred revenue	787,227		394,244
Total current liabilities	1,025,459		522,957
Deferred revenue	—		31,465
Other long-term liabilities	27,967		7,901
Total liabilities	1,053,426		562,323

Commitments and contingencies (Note 15)	—		—

Equity:
Class A Common Stock, 3,000,000,000 shares authorized, 82,112,881 and 57,718,836 shares issued and outstanding at September 30, 2023 and September 24, 2022, respectively	8		6
Class V-1 Common Stock, 1,000,000,000 shares authorized, 66,931,097 and 79,237,388 shares issued and outstanding at September 30, 2023 and September 24, 2022, respectively	7		8
Class V-3 Common Stock, 450,000,000 shares authorized, 407,528,941 and 416,933,025 shares issued and outstanding at September 30, 2023 and September 24, 2022, respectively	41		42
Additional paid-in capital - warrants	58,126		58,126
Additional paid-in capital	1,254,022		1,237,865
Accumulated deficit	(1,310,435)		(1,286,569)


Accumulated other comprehensive loss	(1,687)		(2,294)
Total stockholders' equity	82		7,184
Noncontrolling interest	(2,798)		61,756
Total equity	(2,716)		68,940
Total liabilities and equity	$	1,050,710	$	631,263


	Redeemable Preferred and Common Units																					Additional Paid-In Capital - Warrants		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)
	Common Units, Class C			Preferred Units, Class B-1			Preferred Units, Class B			Common Voting Units, Class A			Class A Common Stock			Class V-1 Common Stock			Class V-3 Common Stock
	Units	Amount		Units	Amount		Units	Amount		Units	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance at September 26, 2020	428,571	$	2,025	1	$	221,217	1	$	437,149	5,997,632	$	16,809	—	$	—	—	$	—	—	$	—	$	—	$	—	$	(4,418)	$	(856,858)	$	—	$	(844,467)
Retroactive application of recapitalization ratio (1)	24,493,538	—		24,041,299	—		47,508,299	—		361,551,314	—		—	—		—	—		—	—		—		—		—		—		—		—
Adjusted balance, beginning of period	24,922,109	$	2,025	24,041,300	$	221,217	47,508,300	$	437,149	367,548,946	$	16,809	—	$	—	—	$	—	—	$	—	$	—	$	—	$	(4,418)	$	(856,858)	$	—	$	(844,467)
Granted	2,997,310	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Forfeited	(2,997,310)	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Unit-based compensation	—	97		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Accretion of Class C Units to redemption value	—	142,853		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(142,853)		—		(142,853)
Preferred return	—	—		—	11,061		—	21,858		—	—		—	—		—	—		—	—		—		—		—		(32,919)		—		(32,919)
Provision for warrants	—	—		—	—		—	—		—	—		—	—		—	—		—	—		26,999		—		—		—		—		26,999
Net loss	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(122,314)		—		(122,314)
Other comprehensive loss	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		2,326		—		—		2,326
Balance at September 25, 2021	24,922,109	144,975		24,041,300	232,278		47,508,300	459,007		367,548,946	16,809		—	—		—	—		—	—		26,999		—		(2,092)		(1,154,944)		—		(1,113,228)
Granted	1,052,952	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Forfeited	(1,052,952)	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Unit-based compensation	—	52		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Accretion of Class C Units to redemption value	—	28,433		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(28,433)		—		(28,433)
Preferred return	—	—		—	8,130		—	16,065		—	—		—	—		—	—		—	—		—		—		—		(24,195)		—		(24,195)
Issuance of common stock under stock plans	—	—		—	—		—	—		—	—		1,831,505	—		—	—		—	—		—		219		—		—		(219)		—
Issuance of sponsor shares	—	—		—	—		—	—		—	—		3,616,000	—		—	—		—	—		—		431		—		—		(431)		—
Issuance of earnout units upon triggering event	—	—		—	—		—	—		—	—		—	—		20,000,000	2		—	—		—		(258)		—		—		256		—
Exchange of Class V-1 common stock	—	—		—	—		—	—		—	—		1,607,185	—		(1,607,185)	—		—	—		—		212		—		—		(212)		—
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		2,794		—		—		24,013		26,807
Additional paid-in capital adjustment resulting from VAP Unit modification	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		2,475		—		—		21,275		23,750
Provision for warrants	—	—		—	—		—	—		—	—		—	—		—	—		—	—		74,280		—		—		—		—		74,280
Exercise of warrants	—	—		—	—		—	—		43,756,942	320,929		—	—		—	—		—	—		(43,153)		—		—		—		—		277,776
Net loss pre business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(72,134)		—		(72,134)


	Year Ended
	September 30, 2023		September 24, 2022
	(in thousands)
Net cash provided by (used in):
Operating activities	$	230,794	$	(148,247)
Investing activities	$	(299,464)	$	(17,950)
Financing activities	$	(24,101)	$	362,448


	Year Ended
	September 30, 2023		September 24, 2022		September 25, 2021
Customer A	88.4	%	94.4	%	66.9	%
Customer B	n/a		n/a		28.1	%
Aggregate Percent of Total Revenue	88.4	%	94.4	%	95.0	%


	September 30, 2023		September 24, 2022
Customer A	86.6	%	39.5	%
Customer B	10.3	%	40.7	%
Customer C	n/a		15.3	%
Aggregate Percent of Total Accounts Receivable	96.9	%	95.5	%


			Estimated Useful Life
Computer equipment and software, furniture and fixtures, and test equipment			3 - 5 years
Internal use software			5 years
Leasehold improvements			Shorter of estimated useful life or remaining term of the lease


Other comprehensive loss pre business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		37		—		—		37
Recapitalization of Preferred Units, Class C Units, Class A Voting Units, and creation of NCI (net of transaction costs of $37,104)	(24,922,109)	(173,460)		(24,041,300)	(240,408)		(47,508,300)	(475,072)		(411,305,888)	(337,738)		—	—		60,844,573	6		416,933,025	42		—		1,191,567		—		—		(301,973)		551,904
Recapitalization of SVF equity, PIPE, and FPA (net of transaction costs of $30,315)	—	—		—	—		—	—		—	—		50,664,146	5		—	—		—	—		—		40,425		—		—		381,276		421,706
Net loss post business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(6,863)		(60,092)		(66,955)
Other comprehensive loss post business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		(239)		—		(2,136)		(2,375)
Balance at September 24, 2022	—	—		—	—		—	—		—	—		57,718,836	6		79,237,388	8		416,933,025	42		58,126		1,237,865		(2,294)		(1,286,569)		61,756		68,940
Net loss	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(23,866)		(184,028)		(207,894)
Issuance of common stock under stock plans, net of shares withheld for employee taxes	—	—		—	—		—	—		—	—		2,825,576	—		—	—		—	—		—		(3,337)		—		—		(23,161)		(26,498)
Issuance of common stock under employee stock purchase plan, net of shares withheld for employee taxes	—	—		—	—		—	—		—	—		225,788	—		—	—		—	—		—		91		—		—		704		795
Exchange of Class V-1 and Class V-3 common stock	—	—		—	—		—	—		—	—		21,342,681	2		(11,938,597)	(1)		(9,404,084)	(1)		—		956		—		—		(956)		—
Cancellation of Class V-1 common stock	—	—		—	—		—	—		—	—		—	—		(367,694)	—		—	—		—		—		—		—		—		—
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		18,447		—		—		138,281		156,728
Other comprehensive loss	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		607		—		4,606		5,213
Balance at September 30, 2023	—	$	—	—	$	—	—	$	—	—	$	—	82,112,881	$	8	66,931,097	$	7	407,528,941	$	41	$	58,126	$	1,254,022	$	(1,687)	$	(1,310,435)	$	(2,798)	$	(2,716)


Net increase (decrease) in cash, cash equivalents, and restricted cash	(92,539)		196,823		98,370
Cash, cash equivalents, and restricted cash —beginning of period	353,457		156,634		58,264
Cash, cash equivalents, and restricted cash —end of period	$	260,918	$	353,457	$	156,634

Non-cash activities:
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	8,734	$	—	$	—
Preferred Return, Class B-1	—		8,130		11,061
Preferred Return, Class B	—		16,065		21,858


	Amount
Cash proceeds from SVF 3, net of redemptions	$	47,021
Cash proceeds from PIPE Financing	205,000
Cash proceeds from forward purchase agreement	200,000
Less: cash payment of transaction expenses and underwriting fees - SVF 3	(30,315)
Net cash proceeds from the Business Combination and PIPE Financing	421,706
Less: repurchase by Symbotic Inc. of New Symbotic Holdings Common Units	(300,000)
Cash received for Class V-1 and Class V-3 Common Stock	70
Less: transaction expenses - Symbotic	(37,104)
Net contributions from the Business Combination	$	84,672


			Shares
Class A - Public Stockholders			4,540,146
Class A - Sponsor Shares (1) (4)			5,624,000
Class A - Subscription Agreements			20,500,000
Class A - Forward Purchase Agreement			20,000,000
Class V-1 Legacy Warehouse Holders (1) (2) (3)			60,844,573
Class V-3 Legacy Warehouse Holders (1) (3)			416,933,025
Total Shares at Closing			528,441,744


	Class A Common Stock	Class V-1 and Class V-3 Common Stock	Total	Class A Common Stock		Class V-1 and Class V-3 Common Stock		Total
Beginning of period	57,718,836	496,170,413	553,889,249
Issuances	3,051,364	—	3,051,364
Exchanges	21,342,681	(21,342,681)	—
Cancellations	—	(367,694)	(367,694)
End of period	82,112,881	474,460,038	556,572,919	14.8	%	85.2	%	100	%


	September 30, 2023
ROU assets:
Other long-term assets	$	12,398

Lease Liabilities:
Accrued expenses and other current liabilities	$	1,347
Other long-term liabilities	12,291
Total lease liabilities	$	13,638


	September 30, 2023
Fiscal year 2024	$	2,335
Fiscal year 2025	2,037
Fiscal year 2026	2,419
Fiscal year 2027	2,551
Fiscal year 2028 and thereafter	8,833
Total future minimum payments	$	18,175
Less: Implied interest	(4,537)
Total lease liabilities	$	13,638


	Total
Fiscal year 2023	$	2,301
Fiscal year 2024	2,335
Fiscal year 2025	2,037
Fiscal year 2026	557
Fiscal year 2027 and thereafter	—
Total future minimum payments	$	7,230


	September 30, 2023
Severance liability at September 24, 2022	$	1,051
Severance charges	6,388
Cash paid and other	(6,237)
Severance liability at September 30, 2023	$	1,202


			Estimated Weighted Average Useful Life
Customer relationships			10 years
Trademarks			3 years


	Total
Fiscal year 2024	$	217
Fiscal year 2025 and thereafter	—
Total	$	217


	Year Ended
	September 30, 2023
Current:
Federal	$	—
State	307
International	(13)
Total current taxes	$	294

Deferred:
Federal	$	—
State	—
International	(4,914)
Total deferred taxes	$	(4,914)

Provision (benefit) for Income Taxes	$	(4,620)


	Shares	Weighted Average Grant Date Fair Value
Outstanding at September 25, 2021	—	$	—
Granted	14,363,196	15.81
Vested	(1,831,505)	15.81
Forfeited	(166,104)	15.81
Outstanding at September 24, 2022	12,365,587	$	15.81
Granted	7,625,784	15.72
Vested	(4,187,313)	15.78
Forfeited	(2,920,043)	15.62
Outstanding at September 30, 2023	12,884,015	$	15.81


			Year Ended
			September 30, 2023
Risk-free interest rate (%)			0.03 - 0.05
Expected term (years)			0.25 - 0.66
Volatility (%)			63.67 - 76.21
Expected dividends			—


			Class C Units
Balance at September 26, 2020			428,571
Granted			51,543
Redeemed			—
Forfeited			(51,543)
Balance at September 25, 2021			428,571
Granted			18,107
Redeemed			—
Forfeited			(18,107)
Balance at June 7, 2022			428,571
Vested at June 7, 2022			375,930


			Year Ended
	June 7, 2022		September 25, 2021
Dividend yield	0	%	0	%
Volatility(a)	45.0	%	40.0%
Risk-free interest rate(b)	2.30	%	0.29	%
Expected term (years)(c)	2.00		2.00


			VAP Units
Balance at September 26, 2020			4,389,257
Granted			—
Exercised			—
Forfeited			(349,637)
Balance at September 25, 2021			4,039,620
Granted			—
Exercised			(255,845)
Forfeited			(92,664)
Balance at August 16, 2022			3,691,111
Converted to restricted stock units			(3,691,111)
Balance at September 24, 2022			—


	Selected Assumption
Strike price	$	41.972
Volatility (a)	48.0%
Risk-free interest rate (b)	4.44%
Expected term (years) (c)	3.00


			Warrant Units
Outstanding and nonvested at September 25, 2021			267,281
Granted			258,972
Vested			(267,281)
Outstanding and nonvested at September 24, 2022			258,972
Granted			11,434,360
Vested			(258,972)
Outstanding and nonvested at September 30, 2023			11,434,360


#			Indicates management contract or compensatory plan
++			Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.
^			Certain confidential information contained in this document, marked by brackets and asterisks, has been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K, because the Company customarily and actually treats such information as private or confidential and the omitted information is not material.