Desktop Metal Announces Fourth Quarter and Full Year 2020 Financial Results

  • Began trading on the NYSE as the world’s first and only public company focused on Additive Manufacturing 2.0 (AM 2.0)
  • Commenced global shipments of the Shop System – our binder jetting platform focused on flexible, mid-volume production in job and machine shops
  • Commenced global shipments of the Production System P-1 – our binder jetting development platform featuring breakthrough Single Pass Jetting™ technology
  • Fourth quarter 2020 revenue of $8.4 million, up from $2.5 million in the third quarter of 2020
  • Robust liquidity position with cash and cash equivalents and short-term investments of $595.4 million as of December 31, 2020 to support organic and inorganic growth opportunities
  • Entered photopolymer additive manufacturing market through EnvisionTEC acquisition, which closed in the first quarter of 2021

BOSTON — (BUSINESS WIRE) — March 15, 2021 — Desktop Metal, Inc. (NYSE: DM), (“Desktop Metal” or “the Company”), a leader in mass production and turnkey additive manufacturing solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2020.

“The fourth quarter of 2020 was transformative for our Company as we became the only publicly traded pure-play AM 2.0 company,” said Ric Fulop, CEO and co-founder of Desktop Metal. “We achieved key milestones in our path to driving adoption of additive manufacturing with the global shipments of our Shop System and Production System P-1 solutions. Our acquisition of EnvisionTEC in February strengthens our market position by adding a compelling lineup of production-focused photopolymer printers and over 190 qualified materials to our portfolio. We are excited to continue building on our strong momentum by capitalizing on both high levels of customer interest and inorganic opportunities in the space as we enter this next chapter of our growth story.”

Fourth Quarter 2020 Business Highlights:

  • Completed business combination between Trine Acquisition Corp. and Desktop Metal, Inc. to become the world’s first publicly traded, pure-play AM 2.0 company
  • Received multi-million dollar award from the United States Department of Defense for the development of a high-volume manufacturing process to mass produce Cobalt-free hardmetal parts
  • Launched Live Sinter, a new process simulation software for powder metallurgy-based additive manufacturing
  • Commenced global shipments of Shop System, which became the #1 metal binder jetting system by unit share within its first quarter of salesi
  • Commenced global shipments of the Production System P-1

Fourth Quarter and Full Year 2020 Financial Highlights:

  • Fourth quarter revenue of $8.4 million, up from $2.5 million in the third quarter of 2020
  • Fourth quarter net loss of $25.4 million
  • Full year revenue of $16.5 million
  • Full year net loss of $90.4 million
  • Full year Adjusted EBITDA of $(73.5) million
  • Robust liquidity position with cash, cash equivalents and short-term investments of $595.4 million as of December 31, 2020

Recent Business Highlights:

  • Acquired EnvisionTEC, a leading global provider of volume production photopolymer 3D printing solutions for end-use parts, in February 2021, creating a comprehensive product portfolio across metals, polymers, composites, and biocompatible materials while strengthening our global distribution channel
  • Enhanced senior management team
    • Appointed James Haley as Chief Financial Officer, effective February 12, 2021
    • Appointed Arjun Aggarwal as Chief Product Officer, effective February 9, 2021
  • Announced and commenced global shipments of Studio System 2, a second generation of our office-friendly metal 3D printing platform that offers customers an accessible way to print metal parts in low volumes with a simplified two-step process
  • Streamlined capital structure and enhanced cash position by beginning the redemption process for DM public warrants, providing significant financial flexibility to invest in organic and inorganic growth opportunities with an additional $137 million in cash provided through March 10, 2021

Desktop Health:

In a separate press release issued today, Desktop Metal announced the launch of Desktop Health™, a new business dedicated to redefining patient-specific healthcare. Led by healthcare industry executive, Michael Jafar, who brings nearly 20 years of experience creating and scaling breakthrough healthcare products, Desktop Health’s mission is to change the way patients experience personalized healthcare, through innovation and science-based solutions. The business will leverage Desktop Metal’s comprehensive portfolio of additive manufacturing solutions in combination with its extensive library of advanced materials for current and future applications spanning dentistry, orthodontics, dermatology, orthopedics, cardiology, plastic surgery and printed regenerative tissues and grafts. Additional details on this launch can be found in the separate press release, accessible on the Investor Relations section of Desktop Metal’s website, ir.desktopmetal.com.

Conference Call Information:

Desktop Metal will host a conference call on March 15, 2021 at 8:30 a.m. ET to discuss fourth quarter 2020 financial results. To listen to the conference call via telephone, dial 1-877-407-4018 or 1-201-689-8471 (international callers/U.S. toll) and enter the conference ID number 13717409. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of Desktop Metal’s website, ir.desktopmetal.com. A replay of the call will be accessible at the webcast link after the conference call.

Full Year 2020 Financial Results

DESKTOP METAL, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

December 31,

 

 

2020

 

2019

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

483,525

 

 

$

66,161

 

Short-term investments

 

 

111,867

 

 

 

84,754

 

Accounts receivable

 

 

6,516

 

 

 

4,523

 

Inventory

 

 

9,708

 

 

 

8,405

 

Prepaid expenses and other current assets

 

 

976

 

 

 

1,888

 

Total current assets

 

 

612,592

 

 

 

165,731

 

Restricted cash

 

 

612

 

 

 

612

 

Property and equipment, net

 

 

12,160

 

 

 

18,387

 

Capitalized software, net

 

 

312

 

 

 

446

 

Goodwill

 

 

2,252

 

 

 

2,252

 

Acquired technology, net

 

 

9,102

 

 

 

2,994

 

Other noncurrent assets

 

 

4,879

 

 

 

2,289

 

Total Assets

 

$

641,909

 

 

$

192,711

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

7,591

 

 

$

10,228

 

Customer deposits

 

 

1,480

 

 

 

2,325

 

Current portion of operating lease liability

 

 

868

 

 

 

806

 

Accrued expenses and other current liabilities

 

 

7,565

 

 

 

5,053

 

Deferred revenue

 

 

3,004

 

 

 

2,230

 

Current portion of long-term debt, net of deferred financing costs

 

 

9,991

 

 

 

 

Total current liabilities

 

 

30,499

 

 

 

20,642

 

Long-term debt, net of deferred financing costs

 

 

 

 

 

9,972

 

Lease liability, net of current portion

 

 

2,157

 

 

 

3,026

 

Total liabilities

 

 

32,656

 

 

 

33,640

 

Commitments and Contingencies (Note 15)

 

 

 

 

 

 

Legacy Convertible Preferred Stock (Note 17)

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

Preferred Stock, $0.0001 par value—authorized, 50,000,000 shares; no shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively

 

 

 

 

 

 

Common Stock, $0.0001 par value—500,000,000 shares authorized; 226,756,733 and 160,500,702 shares issued at December 31, 2020 and December 31, 2019, respectively, 224,626,597 and 154,913,934 shares outstanding at December 31, 2020 and December 31, 2019, respectively

 

 

23

 

 

 

16

 

Additional paid-in capital

 

 

993,933

 

 

 

453,242

 

Accumulated deficit

 

 

(384,694

)

 

 

(294,262

)

Accumulated other comprehensive (loss) income

 

 

(9

)

 

 

75

 

Total Stockholders’ Equity

 

 

609,253

 

 

 

159,071

 

Total Liabilities and Stockholders’ Equity

 

$

641,909

 

 

$

192,711

 

DESKTOP METAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

2020

 

2019

Revenues

 

 

 

 

 

 

Products

 

$

13,718

 

 

$

22,758

 

Services

 

 

2,752

 

 

 

3,681

 

Total revenues

 

 

16,470

 

 

 

26,439

 

Cost of sales

 

 

 

 

 

 

Products

 

 

26,945

 

 

 

45,268

 

Services

 

 

4,574

 

 

 

5,528

 

Total cost of sales

 

 

31,519

 

 

 

50,796

 

Gross margin

 

 

(15,049

)

 

 

(24,357

)

Operating expenses

 

 

 

 

 

 

Research and development

 

 

43,136

 

 

 

54,656

 

Sales and marketing

 

 

13,136

 

 

 

18,749

 

General and administrative

 

 

20,734

 

 

 

11,283

 

Total operating expenses

 

 

77,006

 

 

 

84,688

 

Loss from operations

 

 

(92,055

)

 

 

(109,045

)

Interest expense

 

 

(328

)

 

 

(503

)

Interest and other income, net

 

 

1,011

 

 

 

5,952

 

Loss before income taxes

 

 

(91,372

)

 

 

(103,596

)

Income tax benefit

 

 

940

 

 

 

 

Net loss

 

$

(90,432

)

 

$

(103,596

)

Net loss per share—basic and diluted

 

$

(0.57

)

 

$

(0.69

)

DESKTOP METAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

2020

 

2019

Net loss

 

$

(90,432

)

 

$

(103,596

)

Other comprehensive (loss) income, net of taxes:

 

 

 

 

 

 

Unrealized (loss) gain on available-for-sale marketable securities, net

 

 

(84

)

 

 

171

 

Total comprehensive loss, net of taxes of $0

 

$

(90,516

)

 

$

(103,425

)

DESKTOP METAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

2020

 

2019

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(90,432

)

 

$

(103,596

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

8,589

 

 

 

8,087

 

Stock-based compensation

 

 

8,006

 

 

 

5,215

 

Expense related to Common Stock warrants issued

 

 

1,915

 

 

 

1,038

 

Loss (gain) on disposal of property and equipment

 

 

18

 

 

 

(7

)

Gain on investment, related to Make Composites, Inc.

 

 

 

 

 

(1,426

)

Impairment of capitalized software

 

 

 

 

 

444

 

Amortization (accretion) of discount on investments

 

 

75

 

 

 

(1,570

)

Amortization of debt financing cost

 

 

19

 

 

 

19

 

Provision for bad debt

 

 

377

 

 

 

199

 

Net increase in accrued interest related to marketable securities

 

 

(3

)

 

 

(36

)

Income tax benefit

 

 

(940

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(2,370

)

 

 

(1,664

)

Inventory

 

 

(1,303

)

 

 

(1,694

)

Prepaid expenses and other current assets

 

 

901

 

 

 

809

 

Accounts payable

 

 

(2,637

)

 

 

(4,455

)

Accrued expenses and other current liabilities

 

 

(2,391

)

 

 

3,272

 

Customer deposits

 

 

(845

)

 

 

152

 

Deferred revenue

 

 

774

 

 

 

(1,693

)

Change in right of use assets and lease liabilities, net

 

 

(328

)

 

 

(296

)

Net cash used in operating activities

 

 

(80,575

)

 

 

(97,202

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,429

)

 

 

(6,867

)

Purchase of other investments

 

 

(3,000

)

 

 

 

Capitalized software

 

 

 

 

 

(321

)

Purchase of marketable securities

 

 

(136,286

)

 

 

(215,584

)

Proceeds from sales and maturities of marketable securities

 

 

109,016

 

 

 

196,836

 

Cash paid for asset acquisition, net of cash acquired

 

 

(5,284

)

 

 

(96

)

Net cash used in investing activities

 

 

(36,983

)

 

 

(26,032

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from Preferred Stock issuances, net of issuance cost

 

 

 

 

 

159,644

 

Proceeds from reverse recapitalization, net of issuance costs

 

 

534,597

 

 

 

 

Proceeds from exercise of stock options

 

 

325

 

 

 

708

 

Proceeds from PPP loan

 

 

5,379

 

 

 

 

Repayment of PPP loan

 

 

(5,379

)

 

 

 

Net cash provided by financing activities

 

 

534,922

 

 

 

160,352

 

Net increase in cash, cash equivalents, and restricted cash

 

 

417,364

 

 

 

37,118

 

Cash and cash equivalents at beginning of year

 

 

66,161

 

 

 

29,043

 

Restricted cash

 

 

612

 

 

 

612

 

Cash, cash equivalents, and restricted cash at year-end

 

$

484,137

 

 

$

66,773

 

Supplemental cash flow information:

 

 

 

 

 

 

Interest paid

 

$

322

 

 

$

485

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Net liabilities assumed from Trine in Business Combination

 

$

2,650

 

 

 

 

Accrued reverse recapitalization transaction costs

 

$

1,901

 

 

 

 

Common Stock issued for acquisitions

 

$

500

 

 

$

3,563

 

Accrued purchase price for asset acquisition

 

$

200

 

 

 

 

Tax liabilities related to withholdings on Common Stock issued in connection with acquisitions

 

$

102

 

 

 

 

Additions to right of use assets and lease liabilities

 

$

 

 

$

296

 

Purchase of property and equipment included in accrued expenses and other current liabilities

 

$

 

 

$

109

 

Common Stock forfeited in satisfaction of note receivable

 

$

 

 

$

249

 


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