liability classified warrants,
net of anti-dilution warrants
issued (25,467) (12,555)
Amortization of debt discount
and debt issuance costs 4,046 2,433
Change in fair value of embedded
warrants and convertible
promissory notes (1,470) (48,271)
Debt issuance costs associated
with convertible promissory
notes 388 --
Loss on extinguishment of debt
and financing obligations -- 8,095
Paid-in-kind interest expense 5,675 4,604
Share and warrant cost on
termination of convertible note
agreement -- 2,412
Forgiveness of PPP Loan -- (2,000)
Change in fair value of unvested
founder shares liability (1,391) (1,392)
Noncash lease expense 256 264
Loss on disposal of property and
equipment -- 16
Changes in operating assets and
liabilities:
Accounts receivable, net 586 (689)
Inventories 22 474
Deferred costs 825 7,769
Prepaid expenses and other
current assets 125 (742)
Other long-term assets -- --
Accounts payable 202 1,480
Vendor financing facility --
Accrued liabilities (443) (2,137)
Deferred revenue (608) (8,954)
Other long-term liabilities (137) (247)
----------- ----------
Net cash used in operating
activities (32,177) (35,719)
----------- ----------
Cash Flows from Investing
Activities
Purchase of property and
equipment (396) (229)
Payments relating to capitalized
software (3,034) (3,584)
Investment in non-affiliate -- (2,000)
----------- ----------
Net cash used in investing
activities (3,430) (5,813)
----------- ----------
Cash Flows from Financing
Activities
Proceeds from the exercise of
common stock options 282 280
Proceeds from the issuance of
term loans and promissory
notes 6,400 60,250
Payment of debt issuance costs (435) (1,294)
Repayment of term loans (10,000) (32,980)
Proceeds from issuance of
premium financing 884 --
Repayment of premium financing (663) --
Payment of penalties and other
costs on extinguishment of
debt -- (6,144)
Proceeds from the issuance of
convertible notes 6,960 --
Proceeds from issuance of
financing obligations --
Principal payments of financing
obligations (527) (3,669)
Proceeds from issuance of common
stock 11,798 1,100
Contributions from Merger and
PIPE financing, net of
transaction costs and other
payments -- 49,840
Payment of deferred transaction
costs -- (1,890)
----------- ----------
Net cash provided by
financing activities 14,699 65,493
----------- ----------
Net increase in cash and cash
equivalents (20,908) 23,961
Cash and cash equivalents at
beginning of year 25,143 3,017
----------- ----------
Cash and cash equivalents at end
of year $ 4,235 $ 26,978
----------- ----------
Supplemental Disclosure of
Non-Cash Investing and Financing
Activities
Capitalization of stock-based
compensation expense to
capitalized software $ 323 $ 916
Issuance of warrants 148 1,352
Capital contribution from
shareholder in conjunction with
Credit Agreement -- 2,779
Issuance of warrants in
conjunction with Credit
Agreement 6,643 2,705
Issuance of warrants in
conjunction with Lago Term
Loan -- 843
Convertible note conversion to
common stock -- 41,392
Reclassification of warrants
from liabilities to equity -- 830
Recognition of liability
classified warrants upon
Merger -- 9,388
Recognition of Unvested Founder
Shares liability -- 1,588
Forgiveness of PPP Loan -- (2,000)
Transaction costs recorded in
accounts payable and accrued
liabilities 300 --
Right of use asset in exchange
for operating lease liability -- 308
Deemed dividend associated with 10,500 --
anti-dilution adjustment
Forfeiture of Common Stock in 750 --
exchange for Convertible Notes
PRESTO AUTOMATION INC.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
-------------------- ----------------------
2024 2023 2024 2023
--------- --------- --------- -----------
Adjusted EBITDA
Net income (loss) $(18,095) $(15,680) $(30,777) $ 2,080
Interest expense 3,126 2,991 10,441 9,397
Provision for
income taxes 45 3 41 8
Other (income)
expense, net -- (257) (92) (2,612)
Depreciation and
amortization 665 418 2,431 1,262
Impairment of
Intangible
assets -- -- 4,056 --
Impairment of
Inventory -- -- 425 --
Stock-based
compensation
expense 747 2,792 4,683 5,793
Earnout
stock-based
compensation
expense 1,260 1,604 3,934 3,479
Change in fair
value of
warrants and
convertible
promissory
notes (626) (1,599) (26,937) (61,043)
Restructuring
expense 414 -- 414 --
Loss on
extinguishment
of debt and
financial
obligations -- -- -- 8,095
Other financing
and financial
instrument
(costs) income,
net 250 -- (1,141) 1,768
Deferred
compensation
and bonuses
earned upon
closing of the
Merger -- -- -- 2,232
Public relations
fee due upon
closing of the
Merger -- -- -- 250
------- ------- ------- -------
Adjusted EBITDA $(12,214) $ (9,728) $(32,522) $(29,291)
------- ------- ------- -------
(END) Dow Jones Newswires
May 21, 2024 01:10 ET (05:10 GMT)
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