Everspin Press Releases
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Everspin Reports Unaudited Fourth Quarter and Full Year 2021 Financial Results
The Company Reports its Best Year in Company History – Profitable Year End Results
Fourth Quarter and Full Year 2021 Highlights
-
2021 full year revenue increased
$13.1 million , or 31%, to$55.1 million from$42.0 million in the prior year. -
Q4’21 revenue increased
$3.4 million , or 23%, to$18.2 million from$14.8 million in the prior quarter. This is an increase of$8.2 million , or 82%, compared to$10.0 million of revenue in Q4’20. -
The Company reported record net income of
$3.7 million for Q4’21, resulting in net income for 2021 of$4.3 million . This is compared to a net loss reported of$1.6 million for Q4’20, with a prior year net loss of$8.5 million . -
Adjusted EBITDA for 2021 improved to
$9.6 million , compared to negative$1.6 million for 2020. -
Basic EPS for 2021 was
$0.22 compared to a net loss per share of$0.45 in 2020. -
Ended Q4’21 with cash and equivalents of
$21.4 million , which is an increase from$14.6 million reported for both the end of the prior quarter and the end of the prior year. -
The Company generated cash flows from operating activities of
$9.4 million for 2021 compared to cash flows used in operating activities of$2.9 million in 2020.
“Q4’s record revenue and profitability was a result of our team’s relentless focus on monetizing our IP and growing our products. I am very proud of our team execution in tough market conditions through 2021,” stated
Fourth Quarter 2021 Results
Total revenue for the fourth quarter of 2021 was
MRAM product sales in the fourth quarter of 2021, which includes both Toggle and STT-MRAM revenue, was
Gross margin for the fourth quarter of 2021 was 62.8%, compared to 57.1% in the prior quarter and 52.3% in the fourth quarter of 2020.
GAAP operating expenses increased to
GAAP net income for the fourth quarter of 2021 was
Cash and cash equivalents as of
Business Outlook
For the first quarter 2022,
This outlook is dependent on
Use of Non-GAAP Financial Measures
We supplement the reporting of our financial information determined under generally accepted accounting principles in
Our management and board of directors use Adjusted EBITDA to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short-term and long-term operating and financing plans. Accordingly, we believe that Adjusted EBITDA provides useful information for investors in understanding and evaluating our operating results in the same manner as our management and our board of directors. Adjusted EBITDA is a non-GAAP financial measure and should be considered in addition to, not as superior to, or as a substitute for, net income (loss) reported in accordance with GAAP. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Conference Call
A telephone replay of the conference call will be available approximately two hours after the call through
About
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding future results that involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to the statements made under the caption “Business Outlook.” Forward-looking statements are identified by words such as “believe”, “will”, “may”, “estimate”, “continue”, “anticipate”, “intend”, “should”, “plan”, “expect”, “predict”, “could”, “potentially" or the negative of these terms or similar expressions. These include, but are not limited to, our future plans, strategies, objectives, expectations, intentions and financial performance, including the outlook and guidance for first quarter 2022 results; our expectations regarding supply constraints, expenses relating to 28nm STT MRAM product development and price increases from our supplies; and the assumptions that underlie these statements. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks set forth under the caption “Risk Factors” in Everspin’s Annual Report on Form 10-K for the year ended
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Condensed Balance Sheets (In thousands, except share and per share amounts) (Unaudited) |
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2021 |
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2020 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
|
$ |
21,409 |
|
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$ |
14,599 |
|
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Accounts receivable, net |
|
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8,193 |
|
|
|
7,607 |
|
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Inventory |
|
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6,396 |
|
|
|
5,721 |
|
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Prepaid expenses and other current assets |
|
|
826 |
|
|
|
270 |
|
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Total current assets |
|
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36,824 |
|
|
|
28,197 |
|
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Property and equipment, net |
|
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973 |
|
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1,946 |
|
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Right-of-use assets |
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913 |
|
|
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2,313 |
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Other assets |
|
|
734 |
|
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|
73 |
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Total assets |
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$ |
39,444 |
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$ |
32,529 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
1,776 |
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$ |
2,224 |
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Accrued liabilities |
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3,579 |
|
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2,232 |
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Deferred revenue |
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832 |
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— |
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Current portion of long-term debt |
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3,370 |
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4,242 |
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Operating lease liabilities |
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|
835 |
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1,508 |
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Other liabilities |
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50 |
|
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|
31 |
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Total current liabilities |
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10,442 |
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10,237 |
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Long-term debt, net of current portion |
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1,529 |
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3,748 |
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Operating lease liabilities, net of current portion |
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21 |
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|
903 |
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Long-term income tax liability |
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214 |
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|
229 |
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Total liabilities |
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$ |
12,206 |
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$ |
15,117 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, |
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— |
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— |
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Common stock, |
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2 |
|
|
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2 |
|
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Additional paid-in capital |
|
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180,067 |
|
|
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174,584 |
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Accumulated deficit |
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(152,831 |
) |
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(157,174 |
) |
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Total stockholders’ equity |
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27,238 |
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|
|
17,412 |
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Total liabilities and stockholders’ equity |
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$ |
39,444 |
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$ |
32,529 |
|
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Condensed Statements of Operations and Comprehensive Income (Loss) (In thousands, except share and per share amounts) (Unaudited) |
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Year Ended |
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2021 |
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2020 |
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Product sales |
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$ |
43,931 |
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$ |
39,848 |
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Licensing, royalty, patent, and other revenue |
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11,215 |
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2,183 |
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Total revenue |
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55,146 |
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42,031 |
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Cost of product sales |
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21,045 |
|
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23,746 |
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Cost of licensing, royalty, patent, and other revenue |
|
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1,029 |
|
|
|
196 |
|
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Total cost of sales |
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22,074 |
|
|
|
23,942 |
|
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Gross profit |
|
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33,072 |
|
|
|
18,089 |
|
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Operating expenses:1 |
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Research and development |
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12,628 |
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10,896 |
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General and administrative |
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10,949 |
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|
10,773 |
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Sales and marketing |
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4,460 |
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|
|
3,983 |
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Total operating expenses |
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28,037 |
|
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|
25,652 |
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Income (loss) from operations |
|
|
5,035 |
|
|
|
(7,563 |
) |
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Interest expense |
|
|
(547 |
) |
|
|
(665 |
) |
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Other expense, net |
|
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(141 |
) |
|
|
(24 |
) |
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Net income (loss) before income taxes |
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|
4,347 |
|
|
|
(8,252 |
) |
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Income tax expense |
|
|
(4 |
) |
|
|
(260 |
) |
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Net income (loss) and comprehensive income (loss) |
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$ |
4,343 |
|
|
$ |
(8,512 |
) |
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Net income (loss) per common share: |
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Basic |
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$ |
0.22 |
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$ |
(0.45 |
) |
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Diluted |
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$ |
0.22 |
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$ |
(0.45 |
) |
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Weighted average common shares used to compute net income (loss) per common share: |
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Basic |
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19,400,124 |
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|
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18,782,287 |
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Diluted |
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19,972,145 |
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18,782,287 |
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1Operating expenses include stock-based compensation as follows: |
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Research and development |
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$ |
1,280 |
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$ |
903 |
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General and administrative |
|
|
1,465 |
|
|
|
2,710 |
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Sales and marketing |
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|
482 |
|
|
|
355 |
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Total stock-based compensation |
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$ |
3,227 |
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$ |
3,968 |
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Condensed Statement of Cash Flows (In thousands) (Unaudited) |
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Year Ended |
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2021 |
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2020 |
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Cash flows from operating activities |
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|
|
|
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Net income (loss) |
|
$ |
4,343 |
|
|
$ |
(8,512 |
) |
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Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
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Depreciation and amortization |
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1,455 |
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|
1,982 |
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Loss on disposal of property and equipment |
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— |
|
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|
30 |
|
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Stock-based compensation |
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|
3,227 |
|
|
|
3,968 |
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Non-cash warrant revaluation |
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19 |
|
|
|
(2 |
) |
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Non-cash interest expense |
|
|
319 |
|
|
|
323 |
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Changes in operating assets and liabilities: |
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|
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Accounts receivable |
|
|
(586 |
) |
|
|
(1,808 |
) |
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Inventory |
|
|
(675 |
) |
|
|
2,142 |
|
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Prepaid expenses and other current assets |
|
|
(556 |
) |
|
|
269 |
|
|
Other assets |
|
|
11 |
|
|
|
— |
|
|
Accounts payable |
|
|
(571 |
) |
|
|
(820 |
) |
|
Accrued liabilities |
|
|
1,696 |
|
|
|
(303 |
) |
|
Deferred revenue |
|
|
832 |
|
|
|
— |
|
|
Lease liabilities |
|
|
(155 |
) |
|
|
(192 |
) |
|
Net cash provided by (used in) operating activities |
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|
9,359 |
|
|
|
(2,923 |
) |
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Cash flows from investing activities |
|
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|
|
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Purchases of property and equipment |
|
|
(1,030 |
) |
|
|
(320 |
) |
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Net cash used in investing activities |
|
|
(1,030 |
) |
|
|
(320 |
) |
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Cash flows from financing activities |
|
|
|
|
|
|
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Payments on long-term debt |
|
|
(3,400 |
) |
|
|
— |
|
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Payments of debt issuance costs |
|
|
(11 |
) |
|
|
— |
|
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Payments on finance lease obligation |
|
|
— |
|
|
|
(9 |
) |
|
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
|
|
1,892 |
|
|
|
1,280 |
|
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Proceeds from issuance of common stock in at-the-market offering, net of issuance costs |
|
|
— |
|
|
|
2,084 |
|
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Net cash (used in) provided by financing activities |
|
|
(1,519 |
) |
|
|
3,355 |
|
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Net increase in cash and cash equivalents |
|
|
6,810 |
|
|
|
112 |
|
|
Cash and cash equivalents at beginning of period |
|
|
14,599 |
|
|
|
14,487 |
|
|
Cash and cash equivalents at end of period |
|
$ |
21,409 |
|
|
$ |
14,599 |
|
|
Supplementary cash flow information: |
|
|
|
|
|
|
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Interest paid |
|
$ |
228 |
|
|
$ |
342 |
|
|
Operating cash flows paid for operating leases |
|
$ |
1,603 |
|
|
$ |
1,736 |
|
|
Financing cash flows paid for finance leases |
|
$ |
— |
|
|
$ |
9 |
|
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
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Increase of right-of-use asset and lease liability due to lease modification |
|
$ |
— |
|
|
$ |
545 |
|
|
Purchases of property and equipment in accounts payable and accrued liabilities |
|
$ |
340 |
|
|
$ |
216 |
|
|
Bonus settled in shares of common stock |
|
$ |
364 |
|
|
$ |
315 |
|
|
Issuance of warrant with debt |
|
$ |
— |
|
|
$ |
152 |
|
|
Adjusted EBITDA Reconciliation (In thousands) (Unaudited) |
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|
|
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Year Ended |
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|
|
|
2021 |
|
2020 |
||||
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Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
||
|
Net income (loss) |
|
$ |
4,343 |
|
$ |
(8,512 |
) |
|
|
Depreciation and amortization |
|
|
1,455 |
|
|
|
1,982 |
|
|
Stock-based compensation expense |
|
|
3,227 |
|
|
|
3,968 |
|
|
Interest expense |
|
|
547 |
|
|
|
665 |
|
|
Income tax expense |
|
|
4 |
|
|
|
260 |
|
|
Adjusted EBITDA |
|
$ |
9,576 |
|
|
$ |
(1,637 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220302006024/en/
T: 480-347-1082
E: anuj.aggarwal@everspin.com
Source: