Symbotic Inc 10-Q for FY2022 Q3

Symbotic Inc. (SYM)

10-Q 2022-08-05 For: 2022-06-25

Added on April 11, 2026

About this 10-Q

Symbotic Inc filed this 10-Q on August 5, 2022, covering the quarter ended June 25, 2022 (FY2022 Q3).

Headline figures

Quarter ended June 25, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $175.55M; up 33.5% from $131.49M a year earlier
Net loss: $32.88M; compared with a net loss of $37.77M a year earlier
Diluted EPS: -$0.03; compared with $0.00 a year earlier

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Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	x


TABLE OF CONTENTS
			Page
Part I - Financial Information			1
Item 1. Financial Statements			1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			26
Item 3. Quantitative and Qualitative Disclosures About Market Risk			38
Item 4. Controls and Procedures			38
Part II - Other Information			39
Item 1. Legal Proceedings			39
Item 1A. Risk Factors			39
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			39
Item 3. Defaults Upon Senior Securities			39
Item 4. Mine Safety Disclosures			39
Item 5. Other Information			39
Item 6. Exhibits			39
Signatures			41


	June 25, 2022		September 25, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	411,662	$	156,634
Accounts receivable	2,549		63,370
Inventories	126,985		33,561
Deferred expenses	550		489
Prepaid expenses and other current assets	49,435		6,366
Total current assets	591,181		260,420
Property and equipment, at cost	42,858		37,177
Less: Accumulated depreciation	(22,348)		(18,560)
Property and equipment, net	20,510		18,617
Intangible assets, net	800		1,164
Other long-term assets	340		334
Total assets	$	612,831	$	280,535
LIABILITIES, REDEEMABLE PREFERRED AND COMMON UNITS AND EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	96,995	$	28,018
Accrued expenses	51,081		31,131
Sales tax payable	6,625		18,405
Deferred revenue, current	290,406		259,418
Total current liabilities	445,107		336,972
Deferred revenue, long-term	88,613		216,538
Other long-term liabilities	5,983		3,993
Total liabilities	539,703		557,503

Commitments and contingencies (Note 11)	—		—

Redeemable preferred and common units:
Preferred units, Class B-1, 0 units authorized, issued, and outstanding at June 25, 2022 and 2 units authorized, 1 unit issued and outstanding at September 25, 2021	—		232,278
Preferred units, Class B, 0 units authorized, issued, and outstanding at June 25, 2022 and 1 unit authorized, issued, and outstanding at September 25, 2021	—		459,007
Common units, Class C, 0 units authorized, issued, and outstanding at June 25, 2022 and 428,571 units authorized, issued, and outstanding at September 25, 2021	—		144,975
Equity (deficit):


Common voting units, Class A, 0 units authorized, issued, and outstanding at June 25, 2022 and 7,071,424 units authorized, 5,997,632 units issued and outstanding at September 25, 2021	—		16,809
Common shares, Class A, 3,000,000,000 shares authorized, 50,664,146 shares issued and outstanding at June 25, 2022	5		—
Common voting shares, Class V-1, 1,000,000,000 shares authorized, 60,844,573 shares issued and outstanding at June 25, 2022	6		—
Common voting shares, Class V-3, 450,000,000 shares authorized, 416,933,025 shares issued and outstanding at June 25, 2022	42		—
Additional paid-in capital - warrants	58,126		26,999
Additional paid-in capital	1,231,992		—
Accumulated deficit	(1,281,020)		(1,154,944)
Accumulated other comprehensive loss	(2,139)		(2,092)
Total stockholders' equity / members' deficit	7,012		(1,113,228)
Noncontrolling interest	66,116		—
Total equity (deficit)	73,128		(1,113,228)
Total liabilities, redeemable preferred and common units, and equity (deficit)	$	612,831	$	280,535


	For the Three Months Ended				For the Nine Months Ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021
Revenue:
Systems	$	169,503	$	125,268	$	330,297	$	142,028
Software maintenance and support	862		1,232		2,802		2,776
Operation services	5,187		4,987		15,801		15,401
Total revenue	175,552		131,487		348,900		160,205
Cost of revenue:
Systems	136,015		125,643		264,475		138,740
Software maintenance and support	1,269		702		3,224		2,257
Operation services	6,724		5,478		18,283		16,613
Total cost of revenue	144,008		131,823		285,982		157,610
Gross profit (loss)	31,544		(336)		62,918		2,595
Operating expenses:
Research and development expenses	35,140		20,934		80,679		52,477
Selling, general, and administrative expenses	29,435		16,508		68,306		41,007
Total operating expenses	64,575		37,442		148,985		93,484
Operating loss	(33,031)		(37,778)		(86,067)		(90,889)
Other income, net	156		7		236		59
Loss before income tax	(32,875)		(37,771)		(85,831)		(90,830)
Income tax benefit (expense)	—		—		—		—
Net loss	(32,875)		(37,771)		(85,831)		(90,830)
Net loss attributable to Legacy Warehouse unitholders prior to the Business Combination	(19,178)		(37,771)		(72,134)		(90,830)
Net loss attributable to noncontrolling interests	(12,383)		—		(12,383)		—
Net loss attributable to common stockholders	$	(1,314)	$	—	$	(1,314)	$	—

Loss per share of Class A Common Stock: (1)
Basic and Diluted	$	(0.03)	$	—	$	(0.03)	$	—
Weighted-average shares of Class A Common Stock outstanding:
Basic and Diluted	50,664,146		—		50,664,146		—


☒			QUARTERLY 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


	Three Months Ended June 25, 2022
	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			Common Shares, Class A			Common Voting Shares, Class V-1			Common Voting Shares, Class V-3
	Units	Amount		Units	Amount		Units	Amount		Units	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance at March 26, 2022	428,571	$	168,613	1	$	238,085	1	$	470,482	6,444,373	$	217,604	—	$	—	—	$	—	—	$	—	$	—	$	—	$	(2,041)	$	(1,248,771)	$	—	$	(1,033,208)
Retroactive application of recapitalization ratio (1)	24,493,538	—		24,041,299	—		47,508,299	—		388,481,909	—		—	—		—	—		—	—		—		—		—		—		—		—
Adjusted balance, beginning of period	24,922,109	$	168,613	24,041,300	$	238,085	47,508,300	$	470,482	394,926,282	$	217,604	—	$	—	—	$	—	—	$	—	$	—	$	—	$	(2,041)	$	(1,248,771)	$	—	$	(1,033,208)
Granted	560,524	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Forfeited	(560,524)	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Unit-based compensation	—	3		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Accretion of class C Units to redemption value	—	4,844		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(4,844)		—		(4,844)
Preferred Return	—	—		—	2,323		—	4,590		—	—		—	—		—	—		—	—		—		—		—		(6,913)		—		(6,913)
Provision for warrants	—	—		—	—		—	—		—	—		—	—		—	—		—	—		74,280		—		—		—		—		74,280
Exercise of warrants	—	—		—	—		—	—		16,379,606	120,134		—	—		—	—		—	—		(16,154)		—		—		—		—		103,980
Net loss pre business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(19,178)		—		(19,178)
Other comprehensive loss pre business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		(14)		—		—		(14)
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	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(1,314)		(12,383)		(13,697)
Other comprehensive loss post business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		(84)		—		(804)		(888)
Balance at June 25, 2022	—	$	—	—	$	—	—	$	—	—	$	—	50,664,146	$	5	60,844,573	$	6	416,933,025	$	42	$	58,126	$	1,231,992	$	(2,139)	$	(1,281,020)	$	66,116	$	73,128


	Three Months Ended June 26, 2021
	Redeemable Preferred and Common Units												Additional Paid-In Capital - Warrants		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Equity (Deficit)
	Common Units, Class C			Preferred Units, Class B-1			Preferred Units, Class B			Common Voting Units, Class A
	Units	Amount		Units	Amount		Units	Amount		Units	Amount
Balance at March 27, 2021	428,571	$	1,874	1	$	226,748	1	$	448,078	5,997,632	$	16,809	$	—	$	(2,506)	$	(926,186)	$	(911,883)
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	$	1,874	24,041,300	$	226,748	47,508,300	$	448,078	367,548,946	$	16,809	$	—	$	(2,506)	$	(926,186)	$	(911,883)
Granted	—	—		—	—		—	—		—	—		—		—		—		—
Forfeited	—	—		—	—		—	—		—	—		—		—		—		—
Unit-based compensation	—	30		—	—		—	—		—	—		—		—		—		—
Accretion of Class C Units to redemption value	—	53,251		—	—		—	—		—	—		—		—		(53,251)		(53,251)
Preferred Return	—	—		—	2,765		—	5,464		—	—		—		—		(8,229)		(8,229)
Provision for warrants	—	—		—	—		—	—		—	—		26,999		—		—		26,999
Net loss	—	—		—	—		—	—		—	—		—		—		(37,771)		(37,771)
Other comprehensive loss	—	—		—	—		—	—		—	—		—		1,024		—		1,024
Balance at June 26, 2021	24,922,109	$	55,155	24,041,300	$	229,513	47,508,300	$	453,542	367,548,946	$	16,809	$	26,999	$	(1,482)	$	(1,025,437)	$	(983,111)


	Nine Months Ended June 25, 2022
	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			Common Shares, Class A			Common Voting Shares, Class V-1			Common Voting Shares, Class V-3
	Units	Amount		Units	Amount		Units	Amount		Units	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance at September 25, 2021	428,571	$	144,975	1	$	232,278	1	$	459,007	5,997,632	$	16,809	—	$	—	—	$	—	—	$	—	$	26,999	$	—	$	(2,092)	$	(1,154,944)	$	—	$	(1,113,228)
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	$	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)
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)
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	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(1,314)		(12,383)		(13,697)
Other comprehensive loss post business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		(84)		—		(804)		(888)
Balance at June 25, 2022	—	$	—	—	$	—	—	$	—	—	$	—	50,664,146	$	5	60,844,573	$	6	416,933,025	$	42	$	58,126	$	1,231,992	$	(2,139)	$	(1,281,020)	$	66,116	$	73,128


	Nine Months Ended June 26, 2021
	Redeemable Preferred and Common Units												Additional Paid-In Capital - Warrants		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Equity (Deficit)
	Common Units, Class C			Preferred Units, Class B-1			Preferred Units, Class B			Common Voting Units, Class A
	Units	Amount		Units	Amount		Units	Amount		Units	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	1,834,277	—		—	—		—	—		—	—		—		—		—		—
Forfeited	(1,834,277)	—		—	—		—	—		—	—		—		—		—		—
Unit-based compensation	—	70		—	—		—	—		—	—		—		—		—		—
Accretion of Class C Units to redemption value	—	53,060		—	—		—	—		—	—		—		—		(53,060)		(53,060)
Preferred Return	—	—		—	8,296		—	16,393		—	—		—		—		(24,689)		(24,689)
Provision for warrants	—	—		—	—		—	—		—	—		26,999		—		—		26,999
Net loss	—	—		—	—		—	—		—	—		—		—		(90,830)		(90,830)
Other comprehensive loss	—	—		—	—		—	—		—	—		—		2,936		—		2,936
Balance at June 26, 2021	24,922,109	$	55,155	24,041,300	$	229,513	47,508,300	$	453,542	367,548,946	$	16,809	$	26,999	$	(1,482)	$	(1,025,437)	$	(983,111)


	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


	Common Shares, Class A	Common Voting Shares, Class V-1 and V-3	Total	Common Shares, Class A		Common Voting Shares, Class V-1 and V-3		Total
Beginning of period	—	—	—
Issuance	50,664,146	477,777,598	528,441,744	9.6	%	90.4	%	100	%
End of period	50,664,146	477,777,598	528,441,744	9.6	%	90.4	%	100	%


	Period Ended
	June 25, 2022		September 25, 2021
Accounts receivable	$	2,549	$	63,370
Contract assets	$	37,274	$	—
Contract liabilities	$	379,019	$	475,956


FORM 10-Q


	June 25, 2022		September 25, 2021
Raw materials and components	$	117,088	$	33,065
Finished goods	9,897		496
Total inventories	$	126,985	$	33,561


	June 25, 2022								September 25, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	396,306	$	—	$	—	$	396,306	$	152,204	$	—	$	—	$	152,204
Total assets	$	396,306	$	—	$	—	$	396,306	$	152,204	$	—	$	—	$	152,204


	June 7, 2022		September 25, 2021
Dividend yield	—	%	—	%
Volatility (a)	45.00	%	40.00	%
Risk-free interest rate (b)	2.30	%	0.29	%
Expected term (years) (c)	2.00		2.00


	June 25, 2022		September 25, 2021
Computer equipment and software, furniture and fixtures, and test equipment	$	39,940	$	34,268
Leasehold improvements	2,918		2,909
Total property and equipment	42,858		37,177
Less accumulated depreciation	(22,348)		(18,560)
Property and equipment, net	$	20,510	$	18,617


	Three Months Ended				Nine Months Ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021
Balance at beginning of period	$	4,390	$	—	$	3,735	$	—
Provision	1,578		3,109		3,590		3,109
Warranty usage	(470)		(237)		(1,827)		(237)
Balance at end of period	$	5,498	$	2,872	$	5,498	$	2,872


			Class C Units
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


			VAP Units
Balance at September 25, 2021			4,039,620
Granted			—
Exercised			(255,845)
Forfeited			(92,664)
Balance at June 25, 2022			3,691,111

Vested at June 25, 2022			3,629,643
Vested and exercisable at June 25, 2022			2,419,762


			Selected Assumption
Dividend yield			0%
Volatility (a)			43.00%
Risk-free interest rate (b)			1.65%
Expected term (years) (c)			10.00


	June 25, 2022			September 25, 2021
United States	$	19,483		$	17,355
Canada	1,027			1,262
Total property and equipment, net	$	20,510		$	18,617
Percentage of property and equipment, net held outside of the United States	5		%	7		%


	For the Three Months Ended				Change
	June 25, 2022		June 26, 2021		Amount		%
	(dollars in thousands)
Systems	$	169,503	$	125,268	$	44,235	35	%
Software maintenance and support	862		1,232		(370)		(30)	%
Operation services	5,187		4,987		200		4	%
Total revenue	$	175,552	$	131,487	$	44,065	34	%


	Change
	(in thousands)
Employee-related costs	$	9,073
Prototype-related costs, allocated overhead expenses, and other	5,133
	$	14,206


			Payments due in:
	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years
	(in thousands)
Operating lease obligations	$	7,909	$	2,333	$	4,655	$	921	$	—
Vendor commitments	571,355		553,062		18,293		—		—
Total	$	579,264	$	555,395	$	22,948	$	921	$	—


Symbotic Inc.

By:			/s/ Thomas Ernst
Name:			Thomas Ernst
Title:			Chief Financial Officer and Treasurer


Date: August 5, 2022	By:	/s/ Michael J. Loparco
		Michael J. Loparco
		Chief Executive Officer
		(Principal Executive Officer)