lasr-20210331

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 March 31, 2021

☐ 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 001-38462

________________________________________________________

NLIGHT, INC.

(Exact name of Registrant as specified in its charter)

________________________________________________________

Delaware

91-2066376

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification Number)

5408 NE 88th Street, Building E

Vancouver, Washington 98665

(Address of principal executive office, including zip code)

(360) 566-4460

(Registrant's telephone number, including area code)

__________________________________________

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


Title of Each Class	Trading Symbol	Name of Exchange on which Registered
Common Stock, par value $0.0001 per share	LASR	The Nasdaq Stock Market LLC

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 May 3, 2021, the Registrant had 42,807,788 shares of common stock outstanding.


TABLE OF CONTENTS
			Page

Part I. Financial Information			1
Item 1. Unaudited Interim Financial Statements			1
Consolidated Balance Sheets: March 31, 2021 and December 31, 2020 (unaudited)			1
Consolidated Statements of Operations: Three Months Ended March 31, 2021 and 2020 (unaudited)			2
Consolidated Statements of Comprehensive Loss: Three Months Ended March 31, 2021 and 2020 (unaudited)			3
Consolidated Statements of Stockholders' Equity: Three Months Ended March 31, 2021 and 2020 (unaudited)			4
Consolidated Statements of Cash Flows: Three Months Ended March 31, 2021 and 2020 (unaudited)			5
Notes to Consolidated Financial Statements (unaudited)			6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			16
Item 3. Quantitative and Qualitative Disclosures About Market Risk			22
Item 4. Controls and Procedures			23
Part II. Other Information			23
Item 1. Legal Proceedings			23
Item 1A. Risk Factors			23
Item 6. Exhibits			23
Signatures			25

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. UNAUDITED INTERIM FINANCIAL STATEMENTS

nLIGHT, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)


	As of
	March 31, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	185,638	$	102,282
Accounts receivable, net of allowances of $295 and $367	31,658		31,820
Inventory	58,804		54,706
Prepaid expenses and other current assets	9,548		11,767
Total current assets	285,648		200,575
Restricted cash	250		291
Lease right-of-use assets	18,153		12,302
Property, plant and equipment, net of accumulated depreciation of $67,834 and $66,262	46,127		44,480
Intangible assets, net of accumulated amortization of $7,278 and $6,280	7,409		8,345
Goodwill	12,447		12,484
Other assets, net	5,038		5,167
Total assets	$	375,072	$	283,644

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	23,644	$	21,057
Accrued liabilities	13,922		15,321
Deferred revenues	2,589		2,528
Current portion of lease liabilities	2,751		2,273
Current portion of long-term debt	—		184
Total current liabilities	42,906		41,363
Non-current income taxes payable	7,730		7,556
Long-term lease liabilities	15,846		10,375
Long-term debt	29		215
Other long-term liabilities	4,506		4,221
Total liabilities	71,017		63,730
Stockholders' equity:

Common stock - $0.0001 par value; 190,000 shares authorized, 42,783 shares issued and outstanding at March 31, 2021, and 39,793 shares issued and outstanding at December 31, 2020	15		15
Additional paid-in capital	449,496		358,544
Accumulated other comprehensive loss	(921)		(259)
Accumulated deficit	(144,535)		(138,386)
Total stockholders’ equity	304,055		219,914
Total liabilities and stockholders’ equity	$	375,072	$	283,644

See accompanying notes to consolidated financial statements.

Table of Contents

nLIGHT, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)


	Three Months Ended March 31,
	2021		2020
Revenue:
Products	$	47,335	$	36,930
Development	14,010		6,285
Total revenue	61,345		43,215
Cost of revenue:
Products	30,395		27,900
Development	13,305		5,814
Total cost of revenue	43,700		33,714
Gross profit	17,645		9,501
Operating expenses:
Research and development	11,710		8,538
Sales, general, and administrative	11,714		7,700
Total operating expenses	23,424		16,238
Loss from operations	(5,779)		(6,737)
Other income (expense):
Interest income (expense), net	(74)		283
Other income (expense), net	26		(116)
Loss before income taxes	(5,827)		(6,570)
Income tax expense	322		905
Net loss	$	(6,149)	$	(7,475)


Net loss per share, basic	$	(0.15)	$	(0.20)
Net loss per share, diluted	$	(0.15)	$	(0.20)
Shares used in per share calculations:
Basic	40,048		37,846
Diluted	40,048		37,846

See accompanying notes to consolidated financial statements.

Table of Contents

nLIGHT, Inc.

Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)


	Three Months Ended March 31,
	2021		2020
Net loss	$	(6,149)	$	(7,475)
Other comprehensive loss:
Foreign currency translation adjustments, net of tax	(662)		(496)
Comprehensive loss	$	(6,811)	$	(7,971)

See accompanying notes to consolidated financial statements.

Table of Contents

nLIGHT, Inc.

Consolidated Statements of Stockholders' Equity

(In thousands)

(Unaudited)


		Three Months Ended March 31, 2021
	Common stock	Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit			Total stockholders' equity
			Shares					Amount














Balance, December 31, 2020		39,793		$	15	$	358,544		$	(259)	$	(138,386)	$	219,914
Net loss		—		—		—			—		(6,149)		(6,149)
Proceeds from follow-on offering, net of offering costs		2,537		—		82,355			—		—		82,355
Issuance of common stock pursuant to exercise of stock options		452		—		574			—		—		574
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax		1		—		(31)			—		—		(31)

Stock-based compensation		—		—		8,054			—		—		8,054
Cumulative translation adjustment		—		—		—			(662)		—		(662)
Balance, March 31, 2021		42,783		$	15	$	449,496		$	(921)	$	(144,535)	$	304,055

SEC Form 10-Q filed by nLIGHT, Inc.