424B3

Filed Pursuant to Rule 424(b)(3)

 

Registration Statement No. 333-257768

 

Prospectus Supplement No. 8

 

(to Prospectus dated July 15, 2021)

 

 

 

 

 

 

https://cdn.kscope.io/e103b2d31817605c85e4bc0a6fb0eb0a-img118705990_0.jpg 

23andMe Holding Co.

 

280,940,853 Shares of Class A Common Stock

 

467,670 Shares of Class A Common Stock

 

Up to 25,065,665 Shares of Class A Common Stock Issuable Upon Exercise of Warrants

 

Up to 8,113,999 Warrants

 

__________________________

 

This prospectus supplement is being filed to update and supplement the information contained in the prospectus dated July 15, 2021 (the “Prospectus”), related to: (1) to the offer and sale from time to time by the selling securityholders named in the Prospectus (the “Selling Holders”) of up to: (i) 280,940,853 shares of our Class A Common Stock, par value $0.0001 per share (“Class A Common Stock”) and (ii) 8,113,999 warrants to purchase shares of Class A Common Stock originally issued in a private placement and (2) the issuance by us of up to (i) 25,065,665 shares of Class A Common Stock that may be issued upon exercise of warrants to purchase Class A Common Stock at an exercise price of $11.50 per share and (ii) 467,670 shares of Class A Common Stock reserved for issuance upon the exercise of outstanding options, with the information contained in our Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”) on February 11, 2022 (the “Quarterly Report”). Accordingly, we have attached the Quarterly Report to this prospectus supplement.

 

This prospectus supplement updates and supplements the information in the Prospectus and is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.

 

Our Class A Common Stock is listed on The Nasdaq Global Select Market (“Nasdaq”), under the symbol “ME.” On February 10, 2022, the closing price of a share of Class A Common Stock was $4.97.

 

 

__________________________
 

We are an “emerging growth company” under federal securities laws and are subject to reduced public company reporting requirements. Investing in our Class A Common Stock involves a high degree of risk. See the section entitled “Risk Factors” beginning on page 12 of the Prospectus and in any applicable prospectus supplement to read about factors you should consider before buying our securities.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

 

The date of this prospectus is February 11, 2022.

 


 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

 

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

 

For the quarterly period ended December 31, 2021

or

 

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

 

For the transition period from

 

to

 

 

Commission file number 001-39587

23ANDME HOLDING CO.

(Exact name of registrant as specified in its charter)

 

Delaware

87-1240344

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

 

223 N. Mathilda Avenue

Sunnyvale, California

94086

(Address of principal executive offices)

(Zip Code)

 

(650) 938-6300

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A common stock, $0.0001 par value per share

ME

The Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of January 31, 2022, there were 211,165,602 shares of Class A common stock, $0.0001 par value per share, and 235,962,975 shares of Class B common stock, $0.0001 par value per share, issued and outstanding.

 


 

23ANDME HOLDING CO.

TABLE OF CONTENTS

 

Page

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Condensed Consolidated Balance Sheets

4

Condensed Consolidated Statements of Operations and Comprehensive Loss

5

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity

(Deficit)

6

Condensed Consolidated Statements of Cash Flows

8

Notes to the Condensed Consolidated Financial Statements

9

 

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

36

Item 3. Quantitative and Qualitative Disclosures About Market Risk

54

Item 4. Controls and Procedures

55

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

56

Item 1A. Risk Factors

56

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

90

Item 3. Defaults Upon Senior Securities

90

Item 4. Mine Safety Disclosures

90

Item 5. Other Information

90

Item 6. Exhibits

90

Signature

92

 

 


 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
 

This quarterly report on Form 10-Q (this “Form 10-Q”), including, without limitation, statements under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations,” includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). Generally, statements that are not historical facts, including statements concerning 23andMe Holding Co.’s (the “Company,” “we,” “us,” or “our”) possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including, without limitation, words like “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations.

The forward-looking statements contained in this Form 10-Q are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control), and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, without limitation, those factors described under Part II, Item 1A: “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. These risks and others described under Part II, Item 1A: “Risk Factors” may not be exhaustive.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition, and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this Form 10-Q. In addition, even if our results or operations, financial condition, and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in this Form 10-Q, those results or developments may not be indicative of results or developments in subsequent periods.

3


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

23ANDME HOLDING CO.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

 

December 31,

 

 

March 31,

 

 

 

 

2021

 

 

2021

 

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash

 

$

586,204

 

 

$

282,489

 

 

Restricted cash

 

 

1,599

 

 

 

1,399

 

 

Accounts receivable, net (related party amounts of $105 and nil as of December 31, 2021 and March 31, 2021, respectively)

 

 

23,560

 

 

 

2,481

 

 

Inventories

 

 

17,132

 

 

 

6,239

 

 

Deferred cost of revenue

 

 

16,112

 

 

 

5,482

 

 

Prepaid expenses and other current assets (related party amounts of $207 and nil as of December 31, 2021 and March 31, 2021, respectively)

 

 

25,253

 

 

 

15,485

 

 

Total current assets

 

 

669,860

 

 

 

313,575

 

 

Property and equipment, net

 

 

52,249

 

 

 

60,884

 

 

Operating lease right-of-use assets

 

 

57,390

 

 

 

63,122

 

 

Restricted cash, noncurrent

 

 

6,974

 

 

 

6,974

 

 

Internal-use software, net

 

 

8,410

 

 

 

6,889

 

 

Intangible assets, net

 

 

78,458

 

 

 

 

 

Goodwill

 

 

351,598

 

 

 

 

 

Other assets

 

 

1,376

 

 

 

654

 

 

Total assets

 

$

1,226,315

 

 

$

452,098

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable (related party amounts of nil and $4,422 as of December 31, 2021 and March 31, 2021, respectively)

 

$

14,418

 

 

$

12,271

 

 

Accrued expenses and other current liabilities (related party amounts of $12,480 and $7,065 as of December 31, 2021 and March 31, 2021, respectively)

 

 

46,297

 

 

 

31,953

 

 

Deferred revenue (related party amounts of $26,171 and $30,140 as of December 31, 2021 and March 31, 2021, respectively)

 

 

111,961

 

 

 

71,255

 

 

Operating lease liabilities

 

 

6,875

 

 

 

6,140

 

 

Total current liabilities

 

 

179,551

 

 

 

121,619

 

 

Operating lease liabilities, noncurrent

 

 

80,832

 

 

 

87,582

 

 

Other liabilities

 

 

4,758

 

 

 

1,165

 

 

Total liabilities

 

$

265,141

 

 

$

210,366

 

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

Redeemable convertible preferred stock

 

 

 

 

 

 

 

Redeemable convertible preferred stock, $0.0001 par value per share, 10,000,000 shares authorized as of December 31, 2021, and $0.00001 par value per share, 209,512,070 shares authorized as of March 31, 2021; nil and 209,181,855 shares issued and outstanding as of December 31, 2021 and March 31, 2021, respectively; aggregate liquidation preference of nil and $874,107 as of December 31, 2021 and March 31, 2021, respectively

 

 

 

 

 

837,351

 

 

Stockholders' equity (deficit)

 

 

 

 

 

 

 

Common Stock - Class A shares, par value $0.0001, 199,176,879 shares issued and outstanding as of December 31, 2021, and par value $0.00001, 20,713,076 shares issued and outstanding as of March 31, 2021; Class B shares, par value $0.0001, 246,970,302 shares issued and outstanding as of December 31, 2021 and par value $0.00001, 103,816,708 shares issued and outstanding as of March 31, 2021

 

 

44

 

 

 

 

 

Additional paid-in capital

 

 

2,086,350

 

 

 

381,619

 

 

Accumulated other comprehensive income

 

 

(36

)

 

 

 

 

Accumulated deficit

 

 

(1,125,184

)

 

 

(977,238

)

 

Total stockholders’ equity (deficit)

 

 

961,174

 

 

 

(595,619

)

 

Total liabilities and stockholders’ equity (deficit)

 

$

1,226,315

 

 

$

452,098

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4


 

23ANDME HOLDING CO.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share and per share data)

 

 

 

Three Months Ended
December 31,

 

 

Nine Months Ended
December 31,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

 

Revenue (related party amounts of $8,069 and $8,554 for the three months ended December 31, 2021 and 2020, respectively, and $29,281 and $30,221 for the nine months ended December 31, 2021 and 2020, respectively)

 

$

56,891

 

 

$

55,477

 

 

$

171,334

 

 

$

155,338

 

 

Cost of revenue (related party amounts of $(54) and $59 for the three months ended December 31, 2021 and 2020, respectively, and $209 and $(592) for the nine months ended December 31, 2021 and 2020, respectively)

 

 

29,628

 

 

 

30,089

 

 

 

85,446

 

 

 

82,861

 

 

Gross profit

 

 

27,263

 

 

 

25,388

 

 

 

85,888

 

 

 

72,477

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (related party amounts of $6,300 and $4,238 for the three months ended December 31, 2021 and 2020, respectively, and $18,185 and $10,687 for the nine months ended December 31, 2021 and 2020, respectively)

 

 

50,298

 

 

 

41,684

 

 

 

139,053

 

 

 

114,260

 

 

Sales and marketing

 

 

41,979

 

 

 

12,258

 

 

 

70,987

 

 

 

31,242

 

 

General and administrative

 

 

31,687

 

 

 

16,589

 

 

 

60,547

 

 

 

45,094

 

 

Total operating expenses

 

 

123,964

 

 

 

70,531

 

 

 

270,587

 

 

 

190,596

 

 

Loss from operations

 

 

(96,701

)

 

 

(45,143

)

 

 

(184,699

)

 

 

(118,119

)

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

76

 

 

 

53

 

 

 

213

 

 

 

195

 

 

Change in fair value of warrant liabilities

 

 

3,695

 

 

 

 

 

 

32,989

 

 

 

 

 

Other (expense) income, net

 

 

22

 

 

 

445

 

 

 

39

 

 

 

1,318

 

 

Loss before benefit for income taxes

 

 

(92,908

)

 

 

(44,645

)

 

 

(151,458

)

 

 

(116,606

)

 

Benefit for income taxes

 

 

3,512

 

 

 

 

 

 

3,512

 

 

 

 

 

Net loss

 

$

(89,396

)

 

$

(44,645

)

 

$

(147,946

)

 

$

(116,606

)

 

Other comprehensive (loss) income

 

 

(36

)

 

 

 

 

 

(36

)

 

 

 

 

Total comprehensive loss

 

$

(89,432

)

 

$

(44,645

)

 

$

(147,982

)

 

$

(116,606

)

 

Net loss per share of Class A and Class B common stock attributable to common stockholders, basic and diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.21

)

 

$

(0.46

)

 

$

(0.44

)

 

$

(1.23

)

 

Weighted-average shares used to compute net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

426,591,111

 

 

 

96,974,875

 

 

 

334,491,905

 

 

 

95,185,171

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5


 

23ANDME HOLDING CO.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited)

(in thousands, except share and per share data)

 

 

 

Redeemable Convertible
Preferred Stock

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Accumulated Other Comprehensive

 

 

Accumulated

 

 

Total
Stockholders'
Equity

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 Capital

 

 

Income Loss

 

 

Deficit

 

 

(Deficit)

 

Balance as of March 31, 2021

 

 

91,198,378

 

 

$

837,351

 

 

 

54,292,140

 

 

$

 

 

$

381,619

 

 

$

 

 

$

(977,238

)

 

$

(595,619

)

Recapitalization

 

 

117,983,477

 

 

 

 

 

 

70,237,644

 

 

 

12

 

 

 

(12

)

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2021

 

 

209,181,855

 

 

 

837,351

 

 

 

124,529,784

 

 

 

12

 

 

 

381,607

 

 

 

 

 

 

(977,238

)

 

 

(595,619

)

Preferred stock conversion

 

 

(209,181,855

)

 

 

(837,351

)

 

 

209,181,855

 

 

 

21

 

 

 

837,330

 

 

 

 

 

 

 

 

 

837,351

 

Issuance of common stock upon Merger (net of transaction costs of $33,726)

 

 

 

 

 

 

 

 

46,901,747

 

 

 

5

 

 

 

200,574

 

 

 

 

 

 

 

 

 

200,579

 

Issuance of PIPE shares (related party amount of $25,000)

 

 

 

 

 

 

 

 

25,000,000

 

 

 

3

 

 

 

249,997

 

 

 

 

 

 

 

 

 

250,000

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

818,479

 

 

 

 

 

 

2,553

 

 

 

 

 

 

 

 

 

2,553

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,704

 

 

 

 

 

 

 

 

 

9,704

 

Net Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(42,026

)

 

 

(42,026

)

Balance as of June 30, 2021

 

 

 

 

$

 

 

 

406,431,865

 

 

$

41

 

 

$

1,681,765

 

 

 

 

 

$

(1,019,264

)

 

$

662,542

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

736,717

 

 

 

 

 

 

2,905

 

 

 

 

 

 

 

 

 

2,905

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,588

 

 

 

 

 

 

 

 

 

10,588

 

Net Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,524

)

 

 

(16,524

)

Balance as of September 30, 2021

 

 

 

 

$

 

 

 

407,168,582

 

 

$

41

 

 

$

1,695,258

 

 

 

 

 

$

(1,035,788

)

 

$

659,511

 

Issuance of common stock for acquisition of business

 

 

 

 

 

 

 

 

30,572,268

 

 

 

3

 

 

 

322,842

 

 

$

 

 

$

 

 

$

322,845

 

Issuance of common stock for Class A common stock warrant exercise

 

 

 

 

 

 

 

 

6,016,327

 

 

 

 

 

 

42,354

 

 

 

 

 

 

 

42,354

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

2,390,004

 

 

 

 

 

 

8,308

 

 

 

 

 

 

 

8,308

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,588

 

 

 

 

 

 

 

 

17,588

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36

)

 

 

 

 

(36

)

Net Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(89,396

)

 

 

(89,396

)

Balance as of December 31, 2021

 

 

 

 

$

 

 

 

446,147,181

 

 

$

44

 

 

$

2,086,350

 

 

$

(36

)

 

$

(1,125,184

)

 

$

961,174

 

 

6


 

 

(in thousands, except share and per share data)

 

 

 

Redeemable Convertible
Preferred Stock

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Accumulated

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 Capital

 

 

Deficit

 

 

Deficit

 

Balance as of March 31, 2020

 

 

86,443,341

 

 

$

755,083

 

 

 

44,318,298

 

 

$

 

 

$

172,736

 

 

$

(793,619

)

 

$

(620,883

)

Recapitalization

 

 

111,831,592

 

 

 

 

 

 

57,334,501

 

 

 

9

 

 

 

(9

)

 

 

 

 

 

 

Balance as of March 31, 2020

 

 

198,274,933

 

 

 

755,083

 

 

 

101,652,799

 

 

 

9

 

 

 

172,727

 

 

 

(793,619

)

 

 

(620,883

)

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

676,618

 

 

 

 

 

 

1,139

 

 

 

 

 

 

1,139

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,241

 

 

 

 

 

 

4,241

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,454

 

 

 

 

 

 

11,454

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(35,770

)

 

 

(35,770

)

Balance as of June 30, 2020

 

 

198,274,933

 

 

$

755,083

 

 

 

102,329,417

 

 

$

9

 

 

$

189,561

 

 

$

(829,389

)

 

$

(639,819

)

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

437,913

 

 

 

 

 

 

827

 

 

 

 

 

 

827

 

Issuance of common stock related to early exercise of stock options

 

 

 

 

 

 

 

 

6,881,095

 

 

 

 

 

 

 

 

 

 

 

 

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,241

 

 

 

 

 

 

4,241

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,964

 

 

 

 

 

 

10,964

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36,191

)

 

 

(36,191

)

Balance as of September 30, 2020

 

 

198,274,933

 

 

$

755,083

 

 

 

109,648,425

 

 

$

9

 

 

$

205,593

 

 

$

(865,580

)

 

$

(659,978

)

Issuance of Series F-1 preferred stock, net of issuance costs

 

 

10,906,922

 

 

$

82,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

1,177,055

 

 

 

 

 

 

1,746

 

 

 

 

 

 

1,746

 

Issuance of common stock related to early exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

6,410

 

 

 

 

 

 

6,410

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

15,095

 

 

 

 

 

 

15,095

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(44,645

)

 

 

(44,645

)

Balance as of December 31, 2020

 

 

209,181,855

 

 

$

837,350

 

 

 

110,825,480

 

 

$

9

 

 

$

228,844

 

 

$

(910,225

)

 

$

(681,372

)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7


 

23ANDME HOLDING CO.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

 

 

Nine Months Ended December 31,

 

 

 

 

2021

 

 

2020

 

 

 

 

(Unaudited)

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

 

$

(147,946

)

 

$

(116,606

)

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

15,345

 

 

 

13,969

 

 

Amortization and impairment of internal-use software

 

 

1,741

 

 

 

1,563

 

 

Stock-based compensation expense

 

 

37,473

 

 

 

37,222

 

 

Changes in fair value of warrant liabilities

 

 

(32,989

)

 

 

 

 

Loss (gain) on disposal of property and equipment

 

 

92

 

 

 

57

 

 

Gain on lease termination

 

 

(15

)

 

 

(876

)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable (related party amounts of $(105) and nil for the nine months ended December 31, 2021 and 2020, respectively)

 

 

(21,078

)

 

 

1,259

 

 

Inventories

 

 

(10,605

)

 

 

(2,127

)

 

Deferred cost of revenue

 

 

(10,630

)

 

 

(5,831

)

 

Prepaid expenses and other current assets (related party amounts of $(207) and nil for the nine months ended December 31, 2021 and 2020, respectively)

 

 

(7,697

)

 

 

5,483

 

 

Operating lease right-of-use assets

 

 

5,265

 

 

 

8,496

 

 

Other assets

 

 

(604

)

 

 

37

 

 

Accounts payable (related party amounts of $(4,422) and $(4,231) for the nine months ended December 31, 2021 and 2020, respectively)

 

 

(804

)

 

 

(215

)

 

Accrued expenses and other current liabilities (related party amounts of $5,416 and $749 for the nine months ended December 31, 2021 and 2020, respectively)

 

 

9,878

 

 

 

636

 

 

Deferred revenue (related party amounts of $(3,969) and $(5,221) for the nine months ended December 31, 2021 and 2020, respectively)

 

 

40,223

 

 

 

29,576

 

 

Operating lease liabilities

 

 

(5,655

)

 

 

(6,693

)

 

Other liabilities

 

 

(3,617

)

 

 

64

 

 

Net cash used in operating activities

 

 

(131,623

)

 

 

(33,986

)

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(2,421

)

 

 

(3,860