The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of Desktop Metal's consolidated results of operations and financial condition. The discussion should be read in conjunction with Desktop Metal's consolidated financial statements and notes thereto included elsewhere in Annual Report on Form



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10-K. This discussion contains forward-looking statements and involves numerous
risks and uncertainties, including, but not limited to, those described under
the heading "Risk Factors". Actual results may differ materially from those
contained in any forward-looking statements.

Business Overview

Desktop Metal is pioneering a new generation of additive manufacturing
technologies focused on Additive Manufacturing 2.0, the volume production of end
use parts. We offer a comprehensive portfolio of integrated additive
manufacturing solutions comprised of hardware, software, materials and services
with support for metals, polymers, elastomers, ceramics, sands, composites, wood
and biocompatible materials. Our solutions span use cases across the product
life cycle, from product development to mass production and aftermarket
operations, and they address an array of industries, including automotive,
healthcare and dental, consumer products, heavy industry, aerospace, machine
design and research and development.

Our growth strategy begins with a commitment to research and development. Since
our founding in 2015, we have invested significant resources in research and
development towards building an extensive portfolio of proprietary and
differentiated technologies with a focus on making additive manufacturing an
easy-to-use, economic and scalable solution. These technologies represent the
cornerstones of our future product introductions, are critical to enhancing our
existing offerings, and are supported by over 650 patents or pending patent
applications. Our additive manufacturing platforms, which leverage these
technologies for the production of tools and end-use parts, enable businesses to
address their specific goals through a range of solutions that span price
points, throughput levels and operating environments.

Our product platforms offer several key advantages over competitive additive
manufacturing systems including breakthrough print speeds, competitive part
costs, accessible workflows and software, turnkey solutions and support for over
250 qualified materials, the sale of which represent a recurring revenue stream
from customers of our additive manufacturing solutions in addition to system
consumables and other services, such as installation, training and technical
support. As a result of these strengths, our solutions are lowering the barriers
to adopting additive manufacturing and unlocking new applications where
conventional manufacturing has customarily held cost and volume advantages.
Across printers, parts and materials, we intend to continue investing to advance
our current technology portfolio and develop new technologies that allow us to
serve a broader customer base and reach new verticals, thereby expanding our
addressable market and driving adoption of Additive Manufacturing 2.0.

We leverage our core competencies in technology innovation and product
development by marketing and selling our Additive Manufacturing 2.0 solutions
through a leading global distribution network, managed and augmented by our own
internal sales and marketing teams. This distribution network, which covers over
65 countries around the world, is composed of sales and distribution
professionals with decades of experience in digital manufacturing technologies
and works alongside our direct sales force to market and sell products across a
range of industries and price points. Similarly, our internal manufacturing and
supply chain teams to work collaboratively with our internal engineering
department and third-party contract manufacturers to scale up initial prototypes
for commercialization and volume commercial shipments. Together, our hybrid
distribution and manufacturing approaches allow us to produce, sell and service
our products at-scale in global markets and create substantial operating
leverage as we execute our strategy.

Our proprietary technology solutions also serve as the foundation for product
parts offerings in which we which we directly manufacture parts for sale to our
customers with a focus on key applications and verticals in which additive
manufacturing can provide significant design, performance, cost and supply chain
advantages relative to conventional manufacturing. These offerings will enable
us to provide a more holistic suite of solutions for our customers and enable
the accelerated adoption of our Additive Manufacturing 2.0 solutions across
select high-value production applications, which we refer to as "killer apps",
including, but not limited to, medical and dental devices, fluid power systems,
and sustainable, end-use wood parts. We believe such offerings will not only
create a high-margin revenue stream, but will also facilitate lead generation
for our additive manufacturing systems at scale and enable high-performance and
specialized applications using new materials ahead of broader market
introduction.

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Operating Results

For the year ended December 31, 2021, we recognized revenues of $112.4 million
and used cash in operating activities of $155.0 million, and we ended the year
with $269.6 million of cash, cash equivalents, and short-term investments. We
incurred a net loss of $240.3 million the year ended December 31, 2021. As of
December 31, 2021, we had $65.0 million in cash and cash equivalents, $204.6
million in short-term liquid investments, and current liabilities of $104.1

million.

Recent Developments

Desktop Health

On March 15, 2021, we announced the launch of Desktop Health, an expanded focus
on accelerating the growth of additive manufacturing solutions for dental,
orthodontic, otolaryngology and dermatology applications. Enabled by Desktop
Metal's proprietary technology infrastructure for end-use parts production,
including high-speed photopolymer, metal binder jetting and bioprinting additive
manufacturing technologies combined with an extensive library of advanced
materials, Desktop Health's mission is to create advanced, patient-specific
solutions in the medical field.

Trine Warrants



On April 12, 2021, the Staff of the SEC issued the "Staff Statement on
Accounting and Reporting Considerations for Warrants Issued by Special Purpose
Acquisition Companies ("SPACs")", or the Staff Statement". The Staff Statement
discussed "certain features of warrants issued in SPAC transactions" that "may
be common across many entities." The Staff Statement indicated that when one or
more of such features is included in a warrant, the warrant "should be
classified as a liability measured at fair value, with changes in fair value
each period reported in earnings." The Company has concluded that the warrants
purchased by Trine Sponsor IH, LLC in connection with Trine's initial public
offering, or the Private Placement Warrants, were to be classified as a
liability measured at fair value on the Company's consolidated balance sheet
upon the Business Combination on December 9, 2020, with subsequent changes in
fair value reported in our statement of operations each reporting period.
Effective March 2, 2021, all Private Placement Warrants were exercised and there
was no outstanding warrant liability.

Acquisitions

EnvisionTEC Acquisition


On February 16, 2021, pursuant to the Purchase Agreement and Plan of Merger
dated January 14, 2021, we consummated the EnvisionTEC Acquisition. We paid
$143.8 million in cash and issued 5,036,142 shares of our Class A Common Stock,
or Common Stock, with a fair value of $159.8 million as of the close of business
on the acquisition date. In connection with the transaction, the Company also
granted restricted stock awards totaling 475,848 shares of Common Stock, with a
fair value of $4.2 million, to key EnvisionTEC employees in August 2021, which
are subject to a three-year vesting period and continued employment.

Adaptive 3D Acquisition



On May 7, 2021, we, Diamond US Merger Sub, Inc., Diamond US LLC, Adaptive 3D
Holdings, Inc., or Adaptive 3D, and Fortis Advisor LLC entered into an Agreement
and Plan of Merger, or the A3D Merger Agreement, pursuant to which we acquired
Adaptive 3D. The total purchase price was $61.8 million, consisting of $24.1
million paid in cash and 3,133,276 shares of Common Stock with a fair value of
$37.7 million as of the close of business on the acquisition date.

Beacon Bio Acquisition



On June 10, 2021, we and Beacon Bio, Inc. entered into a Share Purchase
Agreement pursuant to which we acquired all outstanding securities of Beacon
Bio, Inc. The aggregate purchase price was $10.4 million, consisting of $6.1
million paid in cash and fully vested restricted stock units with an acquisition
date fair value of $4.3 million, subject to certain adjustments and
contingencies.

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Aerosint Acquisition


On June 24, 2021, we, DM Belgium BV/SRL, Aerosint SA, or Aerosint, and the
sellers named therein and representatives of such sellers, entered into a Share
Purchase Agreement pursuant to which we acquired all outstanding shares of
Aerosint. The total purchase price was $23.8 million, consisting of $6.2 million
paid in cash, 879,922 shares of our Common Stock with a fair value of $11.5
million as of the close of business on the acquisition date and contingent
consideration with a fair value of $6.1 million as of the acquisition date.

Dental Arts Labs Acquisition



On July 30, 2021, we and Dental Arts Laboratories, Inc., or Dental Arts Labs,
entered into a Stock Purchase Agreement of the same date, pursuant to which we
acquired all outstanding shares of Dental Arts Labs. The purchase price was
$26.0 million paid in cash. The Company also issued 1,190,468 restricted stock
units with a grant date fair value of $11.0 million, which are subject to a
four-year vesting period and continuing employment.

A.I.D.R.O. Acquisition


On September 7, 2021, we purchased the issued and outstanding capital stock of
A.I.D.R.O. Srl and its shareholders, or A.I.D.R.O., pursuant to a Stock Purchase
Agreement dated July 2, 2021. The purchase price was $5.6 million paid in cash.
The Company also issued 364,050 restricted stock units with a grant date fair
value of $3.2 million, which are subject to a four-year vesting period and
continuing employment.

Meta Additive Acquisition



On September 9, 2021, we and Meta Additive Ltd, or Meta Additive, entered into a
Stock Purchase Agreement of the same date, pursuant to which we acquired Meta
Additive. The purchase price consisted of cash consideration of $15.2 million,
including transaction costs of $0.1 million. In connection with the acquisition,
the Company issued 1,101,592 restricted stock units with a fair value of $9.0
million as of the acquisition date, which are subject to a four-year vesting
period and continuing employment.

Brewer Dental Acquisition



On October 14, 2021, we and Larry Brewer Dental Lab, Inc., or Brewer Dental,
entered into a Stock Purchase Agreement of the same date, pursuant to which we
acquired all outstanding shares of Brewer Dental. The purchase price was $7.6
million paid in cash. The Company also issued 252,096 restricted stock units
with a grant date fair value of $1.8 million, which are subject to a four-year
vesting period and continuing employment.

May Dental Acquisition



On October 29, 2021, we and May Dental Lab, Inc., or May Dental, entered into a
Stock Purchase Agreement of the same date, pursuant to which we acquired all
outstanding shares of May Dental. The purchase price was $12.5 million paid in
cash. The Company also issued 357,642 restricted stock units with a grant date
fair value of $2.5 million, which are subject to a four-year vesting period

and
continuing employment.

ExOne Acquisition


On November 12, 2021, we acquired The ExOne Company, or ExOne, pursuant to an
Agreement and Plan of Merger dated August 11, 2021. The total purchase price was
$613.0 million consisting of cash consideration of $201.4 million and 48,218,063
shares of our Common Stock with a fair value of $411.6 million as of the close
of business on the transaction date.

COVID-19



In March 2020, the World Health Organization declared the outbreak of COVID-19 a
pandemic. It is not possible to accurately predict the full impact of the
COVID-19 pandemic on our business, financial condition and results of operations
due to the evolving nature of the COVID-19 pandemic and the extent of its impact
across industries and geographies and numerous other uncertainties.

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For example, we face uncertainties about the duration and spread of the
outbreak, additional actions that may be taken by governmental entities, and the
impact it may have on the ability of us, our customers, our suppliers, our
manufacturers and our other business partners to conduct business. Governments
in affected regions have implemented, and may continue to implement, safety
precautions which include quarantines, travel restrictions, business closures,
cancellations of public gatherings and other measures as they deem necessary.
Many organizations and individuals, including our company and employees, are
taking additional steps to avoid or reduce infections, including limiting travel
and staying home from work. These measures are disrupting normal business
operations and have had significant negative impacts on businesses and financial
markets worldwide. We continue to monitor our operations and government
recommendations and have made modifications to our normal operations because of
the COVID-19 pandemic, including requiring most non-engineering or
operations-related team members to work remotely, utilizing heightened cleaning
and sanitization procedures, implementing new health and safety protocols and
reducing non-essential travel.

The COVID-19 pandemic has caused us to experience several adverse impacts,
including extended sales cycles to close new orders for our products, delays in
shipping and installing orders due to closed facilities and travel limitations
and delays in collecting accounts receivable. The rapid development and
uncertainty of the impacts of the COVID-19 pandemic precludes any prediction as
to the ultimate adverse impact of the COVID-19 pandemic on our business.
However, the COVID-19 pandemic, and the measures taken to contain it, present
material uncertainty and risk with respect to our performance and financial
results. In particular, businesses across an array of vertical markets are
temporarily reducing capital expenditure budgets globally as they seek to
preserve liquidity to ensure the longevity of their own operations, which in
turn may lead to reductions in purchases of our additive manufacturing
solutions. Further, office closures may prevent organizations from reaching
typical utilizations of our additive manufacturing solutions, resulting in
reductions in purchases of consumable materials. Additionally, the COVID-19
pandemic may contribute to facility closures at our third-party contract
manufacturers and key suppliers, causing delays and disruptions in product
manufacturing, which could affect our ability to ship products purchased by our
customers in a timely manner. Disruptions in the capital markets as a result of
the COVID-19 pandemic may also adversely affect our business if these impacts
continue for a prolonged period and we need additional liquidity.

In the long-term, we believe that the COVID-19 pandemic will encourage organizations to reassess their supply chain structure and may accelerate their adoption of solutions such as additive manufacturing, which could allow for greater flexibility and a reduced reliance on overseas manufacturing.

Key Factors Affecting Operating Results



We believe that our performance and future success depend on many factors that
present significant opportunities for us but also pose risks and challenges,
including those discussed below and in "Risk Factors" section of this Annual
Report on Form 10-K.

Adoption of our Additive Manufacturing Solutions


We believe the world is at an inflection point in the adoption of additive
manufacturing solutions and that we are well-positioned to take advantage of
this opportunity across an array of industries due to our proprietary
technologies and global distribution capabilities. We expect that our results of
operations, including revenue and gross margins, will fluctuate for the
foreseeable future as businesses continue to shift away from conventional
manufacturing processes towards additive manufacturing for end-use parts. Our
turnkey and volume production solutions are designed to empower businesses to
realize the full benefits of additive manufacturing at-scale, including
geometric and design flexibility, mass customization and supply chain
engineering, among others. The degree to which potential and current customers
recognize these benefits and invest in our solutions will affect our financial
results.

Pricing, Product Cost and Margins



We began commercial shipments of several products in late 2020 and early 2021,
which offer customers a range of additive manufacturing solutions spanning
multiple price points, materials, throughput levels, operating environments and
technologies to enable them to find the solution that achieves their specific
goals. We also expect to commercialize additional previously announced products
in early 2022. Pricing for these products may vary by region due to
market-specific supply and demand dynamics and product lifecycles, and sales of
certain products have, or are expected to have, higher gross margins than
others. As a result, our financial performance depends, in part, on the mix of
products we sell during a given period. In addition, we are subject to price
competition, and our ability to compete in key markets will depend on the
success of our investments in new technologies and cost

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improvements as well as our ability to efficiently and reliability introduce cost-effective additive manufacturing solutions for our customers.

Continued Investment and Innovation



We believe that we are a leader in mass production and turnkey additive
manufacturing solutions, offering breakthrough technologies that enable high
throughput and ease-of-use through our broad product portfolio. Our performance
is significantly dependent on the investment we make in our research and
development efforts and on our ability to be at the forefront of the additive
manufacturing industry. It is essential that we continually identify and respond
to rapidly evolving customer requirements, develop and introduce innovative new
products, enhance existing products and generate customer demand for our
solutions. We believe that investment in our additive manufacturing solutions
will contribute to long-term revenue growth, but it may adversely affect our
near-term profitability.

Commercial Launch of Products

We continually invest in the development of new products and enhancements to
existing products to meet constantly evolving customer demands. Prior to
commercialization of new products, we must complete final testing, procurement
and manufacturing ramp up of these products in-house or at our third-party
contract manufacturers, as applicable. Any delays in successful completion of
these steps may impact our ability to generate revenue from these products.

Acquisitions and Transaction-Related Costs



As part of our growth strategy, we intend to continue to acquire or make
investments in other business, patents, technologies, products or services. Our
growth relies heavily on the successful integration of acquired companies,
including our ability to realize the anticipated business opportunities from
combining operations in an efficient and effective manner. We expect that the
results of our operations will fluctuate as we continue to integrate these
businesses, and the technologies, products, and services that they offer.
Additionally, our results of operations will be impacted by non-recurring
transaction-related costs, including integration costs, associated with these
acquisitions.

Components of Results of Operations

Revenue



The majority of our revenue results from the sales of products, including our
additive manufacturing systems and embedded on-device software and related
consumables. Product revenue is recognized upon transfer of control to the
customer, which generally takes place at the point of shipment or acceptance. If
we cannot objectively determine that the product provided to the customer is in
accordance with agreed-upon specifications, revenue is not recognized until
customer acceptance is received. We also generate a portion of our revenue from
software and support services. Software revenue is recognized (i) in the case of
on-device software, upon transfer of control to the customer, which generally
takes place upon shipment, and (ii) in the case of cloud-based software, which
is primarily sold through one-year annual contracts, ratably over the term of
the agreement. Revenue from support services for our additive manufacturing
systems is primarily generated through one-year annual contracts and is
recognized ratably over the term of the agreement. In certain circumstances, we
generate revenue through leases of machinery and equipment to customers. These
leases are classified as either operating or sales-type leases based on an
analysis of their underlying terms and conditions and generally have lease terms
ranging from one to five years.

We generate revenue and deliver products and services through direct sales to
end users utilizing both our inside sales and external partners. We also
generate revenue from sales to resellers, who purchase and resell our products
and also provide installation and support services for our additive
manufacturing solutions to end-users.

Cost of Sales



Our cost of sales consists of the cost of products and cost of services. Cost of
products includes the manufacturing cost of our additive manufacturing systems
and consumables, which primarily consists of amounts paid to our third-party
contract manufacturers and suppliers and personnel-related costs directly
associated with manufacturing operations. It also includes cost of labor,
materials

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and overhead for our produced parts offerings. Cost of services includes
personnel-related costs directly associated with the provision of support
services to our customers, which include engineers dedicated to remote support
as well as, training, support and the associated travel costs. Our cost of
revenues also includes depreciation and amortization, cost of spare or
replacement parts, warranty costs, excess and obsolete inventory and shipping
costs, and an allocated portion of overhead costs. We expect cost of revenue to
increase in absolute dollars in future periods as we expect our revenues to
continue to grow.

Gross Profit and Gross Margin

Our gross profit is calculated based on the difference between our revenues and cost of revenues. Gross margin is the percentage obtained by dividing gross profit by our revenue. Our gross profit and gross margin are, or may be, influenced by a number of factors, including:

? Market conditions that may impact our pricing;

? Product mix changes between established products and new products;

Growth in our installed customer base or changes in customer utilization of our

? additive manufacturing systems, which affects sales of our consumable materials

and may result in excess or obsolete inventories; and

? Our cost structure for manufacturing operations, including contract

manufacturers, relative to volume, and our product support obligations.

We expect our gross margins to fluctuate over time, depending on the factors described above.



Research and Development

Our research and development expenses represent costs incurred to support
activities that advance the development of innovative additive manufacturing
technologies, new product platforms and consumables, as well as activities that
enhance the capabilities of our existing product platforms. Our research and
development expenses consist primarily of employee-related personnel expenses,
prototypes, design expenses, consulting and contractor costs and an allocated
portion of overhead costs. We expect research and development costs will
increase on an absolute dollar basis over time as we continue to invest in
advancing our portfolio of additive manufacturing solutions.

Sales and Marketing



Sales and marketing expenses consist primarily of employee-related costs for
individuals working in our sales and marketing departments, third party
commissions, costs related to trade shows and events and an allocated portion of
overhead costs. We expect our sales and marketing costs will increase on an
absolute dollar basis as we expand our headcount, initiate new marketing
campaigns and launch new product platforms.

General and Administrative


General and administrative expenses consist primarily of personnel-related
expenses associated with our executive, finance, legal, information technology
and human resources functions, as well as professional fees for legal, audit,
accounting and other consulting services, and an allocated portion of overhead
costs. We expect our general and administrative expenses will increase on an
absolute dollar basis as a result of operating as a public company, including
expenses necessary to comply with the rules and regulations applicable to
companies listed on a national securities exchange and related to compliance and
reporting obligations pursuant to the rules and regulations of the SEC, as well
as increased expenses for general and director and officer insurance, investor
relations, and other administrative and professional services. In addition, we
expect to incur additional costs as we hire additional personnel and enhance our
infrastructure to support the anticipated growth of the business.

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In-Process Research and Development



In-process research and development expense consists of acquired assets that are
deemed to have no future or alternative use, therefore, the acquisition costs
are expensed under Financial Accounting Standards Board, or FASB, Accounting
Standards Codification, or ASC Topic 730, Research and Development. We expect
in-process research and development to fluctuate depending on our acquisition
strategy and targets we acquire.

Change in Fair Value of Warrant Liability



Change in fair value of warrant liability consists of the change in fair value
of the Private Placement Warrants issued in connection with the Business
Combination. The fair value of the warrant liability is calculated using the
Black-Scholes model. We do not expect any further changes to the fair value of
the warrant liability because all outstanding Private Placement Warrants have
been exercised.

Interest Expense

Interest expense includes cash interest related to our term loan as well as amortization of deferred financing fees and costs.

Interest and Other Income, Net

Interest and other income, net includes interest earned on deposits and short-term investments and gains and losses on investments.

Income Taxes


Our income tax provision consists of an estimate for U.S. federal and state and
foreign income taxes based on enacted rates, as adjusted for allowable credits,
deductions, uncertain tax positions, changes in deferred tax assets and
liabilities and changes in tax law. Due to cumulative losses, we maintain a
valuation allowance against our U.S., state and foreign deferred tax assets.

Results of Operations

Comparison of the years ended December 31, 2021 and 2020

Revenue

The following table presents the revenue of each of our revenue streams, as well as the percentage of total revenue and change from the prior year.



                                             For the Years Ended December

31,


                                             2021                         2020                 Change in Revenues
(Dollars in thousands)               Revenue     % of Total      Revenue   

 % of Total            $            %
Products Revenue                    $ 105,994            94 %    $ 13,718            83 %     $     92,276      673 %
Services Revenue                        6,414             6 %       2,752            17 %            3,662      133 %
Total Revenue                       $ 112,408           100 %    $ 16,470           100 %     $     95,938      583 %


Total revenue for the years ended December 31, 2021 and 2020 was $112.4 million
and $16.5 million, respectively, an increase of $95.9 million, or583%. The
increase in total revenue was attributable to an increase in revenue from both
products and services.

We sold more products during the year ended December 31, 2021 as compared to the
year ended December 31, 2020, leading to an approximately 673% increase in
product revenue. This was primarily the result of an increase in unit shipments
across a more varied product mix during the year and additional revenue in
connection with acquisitions during the year ended December 31, 2021 compared to
the same period in 2020.

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Service revenue increased during the year ended December 31, 2021, as compared
to the year ended December 31, 2020, primarily due to an increase in support and
installation revenue from increased shipments during the period and additional
revenue in connection with acquisitions.

The following table presents revenue by geographic region, as well as the percentage of total revenue and change from the prior period.



                                              For the Years Ended December

31,


                                              2021                         2020                Change in Revenues
(Dollars in thousands)                Revenue     % of Total      Revenue     % of Total           $            %
Americas                             $  75,962            68 %    $  6,665            40 %    $    69,297     1,040 %
EMEA (Europe, the Middle East and
Africa)                                 24,097            21 %       7,788            47 %         16,309       209 %
APAC (Asia­Pacific)                     12,349            11 %       2,017            12 %         10,332       512 %
Total Revenue                        $ 112,408           100 %    $ 16,470           100 %    $    95,938       583 %



Total revenue increased during the year ended December 31, 2021 compared to the
year ended December 31, 2020, due to an increase in unit shipments in all
regions across a more varied product mix and additional revenue in connection
with acquisitions. Overall, there was an increased customer demand during the
year ended December 31, 2021 During the year ended December 31, 2020, customer
demand was lower as a result of the COVID-19 pandemic.

Cost of Sales



Total cost of sales during years ended December 31, 2021 and 2020 was
$94.1 million and $31.5 million, respectively, an increase of $62.6 million or
199%. The increase in total cost of sales was driven primarily by an increase in
product cost of sales, which resulted from greater product sales. The increase
was partially offset by a decrease in obsolescence-related charges in 2021,
compared to 2020. During 2020, we recognized a $2.9 million obsolescence
inventory charge related to product redesigns implemented to reduce costs and
enhance performance and functionality. Additionally, cost of sales increased in
2021 by $8.9 million due to amortization from intangible assets acquired and
$2.2 million due to inventory step-up adjustments associated with acquisitions,
both of which were recognized in cost of sales.

Gross Loss and Gross Margin

The following table presents gross loss by revenue stream, as well as change in gross loss dollars from the prior period.



                               For the
                             Years Ended
                            December 31,            Change in Gross
                          2021         2020               Loss

(Dollars in thousands)        Gross Loss              $              %
Products                $ 18,544    $ (13,227)   $     31,771       240 %
Services                   (251)       (1,822)          1,571        86 %
Total                   $ 18,293    $ (15,049)   $     33,342       222 %



Total gross profit (loss) during the years ended December 31, 2021 and 2020 was
$18.3 million and ($15.0) million, respectively. The increase in gross profit of
$33.3 million is driven by increased revenue compared to fixed costs and a more
favorable product mix sold, including products in connection with acquisitions,
during the year ended December 31, 2021, as compared to the year ended
December 31, 2020.

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The following table presents gross margin by revenue stream, as well as the change in gross margin from the prior period.



                         For the Years
                             Ended          Change in Gross
                         December 31,            Margin
                         2021      2020    Percentage

(Dollars in thousands)   Gross Margin         Points      %
Products                    17 %   (96) %         1.14   118 %
Services                   (4) %   (66) %         0.62    94 %
Total                       16 %   (91) %         1.08   118 %



Total gross margin for the years ended December 31, 2021 and 2020, was 16% and
(91)%, respectively. The increase in total gross margin was primarily due to the
increase in gross margin from our product revenue, which resulted from a lower
product cost for units shipped in 2021 as compared to 2020. The increase in
gross margin was offset by a one-time acquisition accounting impact of inventory
fair value step up being recognized through earnings, which decreased gross
margin by 2%.

Research and Development


Research and development expenses during the years ended December 31, 2021 and
2020 were $68.1 million and $43.1 million, respectively, an increase of
$25.0 million, or 58%. The increase in research and development expenses was due
in part to increased expense related to acquired entities of $10.0 million. In
addition, compensation costs increased $12.6 million due to headcount growth, of
which $8.2 million relates to equity compensation and $4.4 million relates to
payroll costs, to support new product development and existing product
improvements. Additionally, engineering consulting costs, which were lowered
during the year ended December 31, 2020 due to the COVID-19 pandemic, increased
by $0.8 million in support of new product development efforts.

Sales and Marketing



Sales and marketing expenses during the years ended December 31, 2021 and 2020
were $48.0 million and $13.1 million, respectively, an increase of
$34.9 million, or 265%. The increase in sales and marketing expenses was
primarily due to increased expense related to acquired entities of $15.7
million. In addition, compensation costs increased $11.9 million, of which $3.7
million relates to equity compensation costs and $8.2 million relates to payroll
costs, due to headcount growth and higher commission expenses commensurate with
the increase in sales. Additionally, there was growth of $5.6 million in
marketing program spend driven primarily by the commercialization of new
products and related marketing efforts.

General and Administrative



General and administrative expenses during the years ended December 31, 2021 and
2020, were $78.0 million and $20.7 million, respectively, an increase of
$57.3 million, or 276%. The increase in general and administrative expenses was
primarily due to an increase of $18.5 million of professional fees incurred as a
result of merger and acquisition activity and related integration costs. General
and administrative expenses also increased by $17.2 million attributable to
entities acquired in 2021. In addition, compensation costs increased by $14.5
million, of which $7.5 million relates to equity compensation and $7.0 million
relates to payroll costs, due to headcount growth to support public company
requirements. Director and officer insurance increased by $4.0 million as a
public company.

In-Process Research and Development Assets Acquired



In-process research and development assets acquired during the year ended
December 31, 2021 were $25.6 million, compared to no expense for in-process
research and development assets acquired during the year ended
December 31, 2020. The increase is attributable to the Beacon Bio and Meta
Additive acquisitions, in which the company paid $25.6 million in cash and share
consideration, inclusive of transaction costs. As the acquired in-process
research and development assets were deemed to have no current or alternative
future use, the entire amount was recognized as expense in the consolidated
statement of operations for the year ended December 31, 2021.

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Change in Fair Value of Warrant Liability



Change in fair value of warrant liability during the years ended
December 31, 2021 and 2020, was a $56.6 million loss and $56.4 million gain,
respectively. The increase in fair value is the result of the remeasurement of
the Private Placement Warrant liability prior to the cashless exercise of the
Private Placement Warrants. The warrant liability increased $56.6 million as a
result of the remeasurement, which resulted in the $56.6 million loss. As of
March 2, 2021, all Private Placement Warrants were exercised and there was no
outstanding warrant liability.

Interest Expense



Interest expense during the years ended December 31, 2021 and 2020 was
$0.1 million and $0.3 million, respectively, a decrease of $0.2 million, or 55%.
Interest expense decreased primarily due to the payoff of the term loan in June
2021.

Interest and Other (Expense) Income, Net

Interest and other (expense) income, net during the years ended December 31, 2021 and 2020 was ($11.8) million and $1.0 million, respectively, a decrease of $12.8 million, or 1282%. The decrease is primarily due to an unrealized loss on equity investment of $12.5 million during the year ended December 31, 2021.

Income Taxes



We recorded an income tax benefit of $29.7 million during the year ended
December 31, 2021 compared to $0.9 million income tax benefit during the year
ended December 31, 2020. The increase was due to the partial release of the
valuation allowance related to the deferred tax liabilities acquired in various
acquisitions in 2021.

We have provided a valuation allowance for various jurisdictions as a result of
our historical net losses. We continue to assess our future taxable income by
jurisdiction based on our recent historical operating results, the expected
timing of reversal of temporary differences, various tax planning strategies
that we may be able to implement, the impact of potential operating changes on
our business and our forecast results from operations in future periods based on
available information at the end of each reporting period. To the extent that we
are able to reach the conclusion that deferred tax assets are realizable based
on any combination of the above factors in a single, or multiple, taxing
jurisdictions, a reversal of the related portion of our existing valuation
allowances may occur.

Non-GAAP Financial Information



In addition to our results determined in accordance with GAAP, we believe that
EBITDA and Adjusted EBITDA, each non-GAAP financial measures, are useful in
evaluating our operational performance. We use this non-GAAP financial
information to evaluate our ongoing operations and for internal planning and
forecasting purposes. We believe that this non-GAAP financial information, when
taken collectively, may be helpful to investors in assessing our operating
performance.

The non-GAAP financial information excludes, as applicable, stock-based
compensation expense, amortization of acquired intangible assets,
acquisition-related and other transactional charges, inventory step-up,
in-process research and development assets acquired, change in fair value of
investments and change in fair value of warrant liability. These items are
normally included in the comparable measures calculated and presented in
accordance with GAAP. Our management excludes these items when evaluating our
ongoing performance and/or evaluating earnings potential, and therefore excludes
them when presenting non-GAAP financial measures. Management uses non-GAAP
financial measures to supplement our GAAP results.

Stock-based compensation is a non-cash expense relating to stock-based awards
issued to executive officers, employees, and outside directors, consisting of
options and restricted stock units. We exclude this expense because it is a
non-cash expense and we assess our internal operations excluding this expense
and believe it facilitates comparisons to the performance of other companies in
our industry.

Amortization of acquired intangible assets is a non-cash expense that is impacted by the timing and magnitude of our acquisitions. We believe the assessment of our operations excluding these costs is relevant to our assessment of internal operations and to comparisons with the performance of other companies in our industry.



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Acquisition-related and other transactional charges are direct costs related to
potential and completed acquisitions, including transaction fees, due diligence
costs, severance, professional fees, and integration activities. Other
transactional charges include third-party costs related to structuring unusual
transactions. The occurrence and amount of these costs will vary depending on
the timing and size of acquisitions. We believe excluding acquisition-related
costs facilitates the comparison of our financial results to our historical
operating results and to other companies in our industry.

Inventory step-up are adjustments related to recording the inventory of acquired
business at fair value on the date of acquisition. These adjustments are booked
cost of sales. The occurrence and amount of these adjustments will vary
depending on the timing and size of acquisitions. We believe excluding inventory
step-up adjustments facilitates the comparison of our financial results to our
historical operating results and to other companies in our industry.

In-process research and development assets acquired are direct costs related to
assets acquisitions where the intangible assets acquired were determined to have
no alternative future use. This is a non-recurring expense and we believe
excluding acquired in-process research and development facilitates the
comparison of our financial results to our historical operating results and to
other companies in our industry.

Change in fair value of investments is a non-cash gain or loss impacted by the
change in fair value of convertible debt instruments and the equity investment.
We believe the assessment of our operations excluding this activity is relevant
to our assessment of internal operations and to comparisons with the performance
of other companies in our industry.

Change in fair value of warrant liability is a non-cash gain or loss impacted by
the fair value of the Private Placement Warrants. We believe the assessment of
our operations excluding this activity is relevant to our assessment of internal
operations and to comparisons with the performance of other companies in our
industry.

We use the below non-GAAP financial measures, and we believe that they assist
our investors, to make period-to-period comparisons of our operational
performance because they provide a view of our operating results without items
that are not, in our view, indicative of our core operating results. We believe
that these non-GAAP financial measures help illustrate underlying trends in our
business, and we use the measures to establish budgets and operational goals for
managing our business and evaluating our performance. We believe that providing
non-GAAP financial measures also affords investors a view of our operating
results that may be more easily compared to the results of other companies in
our industry that use similar financial measures to supplement their GAAP
results.

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The items excluded from the non-GAAP financial measures often have a material
impact on our financial results and such items often recur. Accordingly, the
non-GAAP financial measures included in this Annual Report on Form 10-K should
be considered in addition to, and not as a substitute for, the comparable
measures prepared in accordance with GAAP. The following tables reconcile each
of these non-GAAP financial measures to its most closely comparable GAAP measure
in our financial statements for the years ended December 31, 2021 and 2020:


                                                               For the Year Ended
                                                                  December 31,
(Dollars in thousands)                                         2021           2020
GAAP gross margin                                           $    18,293    $ (15,049)

Stock-based compensation included in cost of sales                1,018

290


Amortization of acquired intangible assets included in
cost of sales                                                     8,467

-


Inventory step-up adjustment in cost of sales                     2,194    

        -
Non-GAAP gross margin                                       $    29,972    $ (14,759)

GAAP operating loss                                         $ (201,455)    $ (92,055)
Stock-based compensation                                         28,778         8,006
Amortization of acquired intangible assets included in
cost of sales                                                     8,467

-


Amortization of acquired intangibles assets included in
operating expenses                                                9,114

758


Inventory step-up adjustment in cost of sales                     2,194

-


Acquisition-related and other transactional charges              23,788

1,101


In-process research and development assets acquired              25,581    

        -
Non-GAAP operating loss                                     $ (103,533)    $ (82,190)

GAAP net loss                                               $ (240,334)    $ (34,015)
Stock-based compensation                                         28,778         8,006
Amortization of acquired intangible assets included in
cost of sales                                                     8,467

-


Amortization of acquired intangibles assets included in
operating expenses                                                9,114

758


Inventory step-up adjustment in cost of sales                     2,194

-


Acquisition-related and other transactional charges              23,788

1,101


In-process research and development assets acquired              25,581

-


Change in fair value of investments                              12,475

-


Change in fair value of warrant liability                        56,576    

 (56,417)
Warrant expense                                                       -         1,915
Non-GAAP net loss                                           $  (73,361)    $ (78,652)

We define "EBITDA" as net loss plus net interest income, provision for income taxes, depreciation and amortization expense and in-process research and development assets acquired.

We define "Adjusted EBITDA" as EBITDA adjusted for change in fair value of warrant liability, change in fair value of investments, inventory step-up adjustments, stock-based compensation expense, warrant expense and transaction costs associated with acquisitions.



We believe that the use of EBITDA and Adjusted EBITDA provides an additional
tool for investors to use in evaluating ongoing operating results and trends
because it eliminates the effect of financing, capital expenditures, and
non-cash expenses such as stock-based compensation and warrants, and provides
investors with a means to compare our financial measures with those of
comparable companies, which may present similar non-GAAP financial measures to
investors. However, you should be aware that when evaluating EBITDA and Adjusted
EBITDA we may incur future expenses similar to those excluded when calculating
these measures. In addition, our presentation of these measures should not be
construed as an inference that our future results will be unaffected by unusual
or non-recurring items. Our computation of these measures, especially Adjusted
EBITDA, may not be comparable to other similarly titled measures computed by
other companies because not all companies calculate these measures in the same
fashion.

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Because of these limitations, EBITDA and Adjusted EBITDA should not be
considered in isolation or as a substitute for performance measures calculated
in accordance with GAAP. We compensate for these limitations by relying
primarily on our GAAP results and using EBITDA and Adjusted EBITDA on a
supplemental basis. You should review the reconciliation of net loss to EBITDA
and Adjusted EBITDA below and not rely on any single financial measure to
evaluate our business.

The following table reconciles net loss to EBITDA and Adjusted EBITDA during the years ended December 31, 2021 and 2020, respectively:



                                                       For the Years Ended
                                                           December 31,
(Dollars in thousands)                                  2021           2020

Net loss attributable to common stockholders $ (240,334) $ (34,015) Interest (income) expense, net

                             (334)

(610)


Income tax benefit                                      (29,668)

(940)


Depreciation and amortization                             24,854

8,589


In-process research and development assets acquired       25,581

-


EBITDA                                                 (219,901)

(26,976)


Change in fair value of warrant liability                 56,576

(56,417)


Change in fair value of investments                       12,475           

 -
Inventory step-up adjustment                               2,194             -
Stock compensation expense                                28,778         8,006
Warrant expense                                                -         1,915

Transaction costs associated with acquisitions            23,788           

 -
Adjusted EBITDA                                      $  (96,090)    $ (73,472)

Liquidity and Capital Resources



We have incurred a net loss in each of our annual periods since our inception.
We incurred net losses of $240.3 million and $34.0 million during the years
ended December 31, 2021 and 2020, respectively. As of December 31, 2021, we had
$269.6 million in cash, cash equivalents, and short-term investments.

Since inception, we have received cumulative net proceeds from the Business
Combination and the sale of our preferred and common stock of $973.4 million to
fund our operations. As of December 31, 2021, our principal sources of liquidity
were our cash, cash equivalents, and short-term investments of $269.6 million
which are principally invested in money market funds and fixed income
instruments.

In June 2018, we entered into a three-year, $20.0 million term loan, which
provided $10.0 million immediately with the remaining principal balance
available to be drawn in up to three draws of not less than $2.0 million for
12 months from close of the facility. We entered into this loan to fund capital
expenditures associated with our corporate office. The loan was repaid in full
in June 2021.

In April 2020, we received loan proceeds in the amount of approximately $5.4 million under the Paycheck Protection Program, or the PPP. The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act, provides for loans to qualifying businesses. We repaid the loan in full on May 13, 2020.


In connection with the acquisition of EnvisionTEC, we acquired $1.2 million in
PPP loans with a maturity date of April 3, 2022. Under the terms of the CARES
Act, PPP loan recipients can apply for forgiveness for all or a portion of the
loan which is dependent upon the recipient having initially qualified for the
loan. Furthermore, the loan is subject to forgiveness to the extent loan
proceeds are used for payroll costs, certain rents, utilities, and mortgage
interest expense. In May 2021, the outstanding loan balance was forgiven.

In connection with the acquisition of Adaptive 3D, we acquired $0.3 million in
PPP loans. In October 2021, substantially all of the outstanding balance was
forgiven, and the remaining immaterial balance was paid in full.

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In connection with the acquisition of Dental Arts Labs, we acquired $3.4 million in PPP loans. In September 2021, the outstanding balance was forgiven.



In connection with the acquisition of Dental Arts Labs, we acquired a
thirteen-month equipment financing agreement, or the Financing Agreement, in the
amount of $0.5 million. The Financing Agreement provides for an advance payment
of $0.5 million to secure equipment. Payments are made monthly under the
Financing Agreement upon acceptance, which has not yet occurred as of December
31, 2021.

In connection with the acquisition of A.I.D.R.O., we acquired three loans, the
Bank Loans, totaling $1.1 million in aggregate. The Bank Loans have term of 4.5
years and mature from September 2024 through September 2025, with interest rates
ranging from 1.70% to 2.10%. Payments of principal and interest are made
quarterly. As of December 31, 2021, we had paid $0.2 million and $0.9 million
remains outstanding.

We believe that our existing capital resources will be sufficient to support our
operating plan and cash commitments for at least the next 12 months. As of
December 31, 2021, we had $65.0 million in cash and cash equivalents, and
$204.6 million in short-term liquid investments. This liquid asset balance
significantly exceeds our current liabilities of $104.1 million as of the same
date. If we anticipate that our actual results will differ from our operating
plan, we believe we have sufficient capabilities to enact cost savings measures
to preserve capital.

We expect net losses to continue in connection with our ongoing activities, particularly as we continue to invest in commercialization and new product development. Additionally, we may engage in future acquisitions which may require additional capital.

Cash Flows



Since inception, we have primarily used proceeds from the Business Combination,
issuances of preferred stock and debt instruments to fund our operations. The
following table sets forth a summary of cash flows for the periods presented:

                                                                  For the Years Ended
                                                                      December 31,
(Dollars in thousands)                                             2021           2020

Net cash used in operating activities                           $ (155,048)    $ (80,575)
Net cash (used in) provided by investing activities               (427,294)

(36,983)


Net cash provided by (used in) financing activities                 166,550

534,922

Net change in cash, cash equivalents, and restricted cash $ (415,792)

$ 417,364

Cash Flows for the years ended December 31, 2021 and 2020

Operating Activities


Net cash used in operating activities was $155.0 million for the year ended
December 31, 2021, primarily consisting of $240.3 million of net losses,
adjusted for non-cash items, which primarily included loss on change in fair
value of warrant liability of $56.6 million, acquisition of in-process research
and development of $25.6 million, depreciation and amortization expense of $24.9
million and stock-based compensation expense of $28.8 million, as well as a
$36.7 million increase in cash consumed by working capital.

Net cash used in operating activities was $80.6 million for the year ended
December 31, 2020, primarily consisting of $34.0 million of net losses, adjusted
for non-cash items, which primarily included gain on change in fair value of
warrant liability of $56.4 million, depreciation and amortization expense of
$8.6 million, stock-based compensation expense of $8.0 million, and warrant
expense of $1.9 million, as well as a $7.9 million increase in cash consumed by
working capital.

Investing Activities

Net cash used in investing activities was $427.3 million for the year ended December 31, 2021, primarily consisting of purchases of marketable securities of $330.9 million, offset by proceeds from sales and maturities of marketable securities of $243.3 million. We



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also paid $287.6 million, net of cash acquired, for acquisitions, and $21.2
million, net of cash acquired, to acquire in-process research and development.
We made a $20.0 million investment in equity securities, invested $3.6 million
in other investments, and purchased $7.7 million of property and equipment.

Net cash used in investing activities was $37.0 million for the year ended
December 31, 2020, primarily consisting of purchases of marketable securities of
$136.3 million, offset by proceeds from sales and maturities of marketable
securities of $109.0 million. We also paid $5.3 million, net of cash acquired,
for acquisitions, made an investment in a privately held company in the form of
convertible debt in the amount of $3.0 million, and purchased $1.4 million

of
property and equipment.

Financing Activities

Net cash provided by financing activities was $166.5 million for the year ended
December 31, 2021, consisting primarily of $170.7 million in proceeds from the
exercise of public warrants and $6.4 million in proceeds from the exercise of
stock options, offset by the repayment of the term loan of $10.0 million.

Net cash provided by financing activities was $534.9 million for the year ended
December 31, 2020, consisting primarily of proceeds from the Business
Combination and the private placement of shares of our Class A common stock
pursuant to subscription agreements in connection with the Business Combination,
or the PIPE financing.

Off-Balance Sheet Arrangements


In the normal course of operations, ExOne's German subsidiary, ExOne GmbH,
issues short-term financial guarantees and letters of credit to third parties in
connection with certain commercial transactions requiring security through a
credit facility with a German bank. At December 31, 2021, total outstanding
financial guarantees and letters of credit issued were $2.7 million. For further
discussion related to financial guarantees and letters of credit, refer to Note
17 to the consolidated financial statements in Part II, Item 8 of this Annual
Report on Form 10-K.

We have no other off-balance sheet arrangements and do not utilize any "structured debt," "special purpose" or similar unconsolidated entities for liquidity or financing purposes.

Critical Accounting Policies and Significant Estimates



Our discussion and analysis of financial condition and results of operations are
based upon our consolidated financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States.
Certain of our accounting policies require the application of judgment in
selecting the appropriate assumptions for calculating financial estimates. By
their nature, these judgments are subject to an inherent degree of uncertainty.
We periodically evaluate the judgments and estimates used for our critical
accounting policies to ensure that such judgments and estimates are reasonable
for our interim and year-end reporting requirements. These judgments and
estimates are based on our historical experience (where available), current
trends and information available from other sources, as appropriate. If
different conditions result from those assumptions used in our judgments, the
results could be materially different from our estimates. We believe the
following critical accounting policy requires significant judgments and
estimates in the preparation of our consolidated financial statements:

Revenue Recognition


We recognize revenue from sale of products upon transfer of control, which is
generally at the point of shipment. If we cannot objectively determine that the
product provided to the customer is in accordance with agreed-upon
specifications, revenue is not recognized until customer acceptance is received.
Revenue from sale of services may be recognized over the life of the associated
service contract or as services are performed, depending on the nature of the
services being provided. In certain circumstances, we generate revenue through
leases of machinery and equipment to customers, which are classified as either
operating or sales-type leases and generally have lease terms ranging from one
to five years.

Our contracts with customers often include promises to transfer multiple
products and services to the customer. Judgment is required to determine the
separate performance obligations present in a given contract, which we have
concluded are generally capable of being distinct and accounted for as separate
performance obligations. We use standalone selling price, or SSP, to allocate

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revenue to each performance obligation. Significant judgment is required to determine the SSP for each distinct performance obligation in a contract.



We began generating revenue in the fourth quarter of 2018, and as such we
generally use our stand-alone sales price as our SSP, and we use our best
estimate for the performance obligations where we do not have stand-alone sales.
The absence of observable prices resulting from our relatively short period of
revenue generation requires us to estimate the SSPs of distinct performance
obligations in a given contract.

We determine SSP using market conditions and other observable inputs. We
typically have more than one SSP for individual products and services due to the
stratification of our customers. The SSP generally varies by size of the
customer. Our determination of SSP may change in the future as standalone sales
of products and services occur, providing observable prices.

Stock-Based Compensation



Our historical and outstanding stock-based compensation awards under our equity
compensation plans have typically included service-based, performance-based, or
market-based vesting conditions. We have applied the fair value recognition
provisions of FASB ASC Topic 718, Compensation-Stock Compensation to account for
the stock-based compensation for employees and non-employees. We recognize
compensation costs related to stock options granted to employees and
non-employees based on estimated fair value of the award on the date of grant.
For awards with only service-based vesting conditions, we recognize stock-based
compensation expense over the requisite service period, and record compensation
cost using the straight-line method less a historical forfeiture rate. For
awards with performance-based or market-based vesting conditions, we recognize
compensation cost on a tranche-by-tranche basis, or the accelerated attribution
method.

Determining the amount of stock-based compensation to be recorded requires us to
develop estimates of the fair value of stock-based awards as of their
measurement date. Following the Business Combination, the fair value of our
common stock is determined based on the quoted market price of our common stock.
Prior to the Business Combination, there was no public market for our equity
instruments, as a result, the estimated fair value of our common stock had
historically been determined by our board of directors with input from
management. We engaged an independent third-party valuation specialist to
perform a valuation of our common stock and assessed other factors including
financial performance, capital structure, forecasted operating results and
valuations of publicly traded peer companies.

Calculating the fair value of stock-based awards requires that we make highly
subjective assumptions. To determine the fair-value of grants with market-based
conditions, we use a Monte Carlo simulation which requires management to make a
number of key assumptions, including the estimated fair value of the common
stock underlying the award, expected volatility, expected term, risk-free
interest rate and expected dividend yield. The risk-free interest rate is
determined using the rate of return on U.S. treasury notes with a life that
approximates the expected term.

Acquisitions



We account for business combinations using the acquisition method of accounting,
which requires that the assets acquired and liabilities assumed be recorded at
their respective estimated fair values as of the acquisition date. The excess of
the fair value of the purchase consideration over the fair values of these
identifiable assets and liabilities is recorded as goodwill. While we use our
best estimates and judgments, our estimates are inherently uncertain and subject
to refinement. During the measurement period, which may be up to one year from
the acquisition date, we may record adjustments to the fair value of these
tangible and intangible assets acquired and liabilities assumed, with the
corresponding offset to goodwill. We continue to collect information and
reevaluate these estimates and assumptions quarterly and record any adjustments
to our preliminary estimates to goodwill provided that we are within the
measurement period.

The judgments made in determining the estimated fair value assigned to the
assets acquired, as well as the estimated useful life of each asset, can
materially impact the consolidated statements of operations of the periods
subsequent to the acquisition through depreciation and amortization, and in
certain instances through impairment charges, if the asset becomes impaired in
the future. In determining the estimated fair value for intangible assets, we
typically utilize the income approach, which discounts the projected future net
cash flow using a discount rate deemed appropriate by management that reflects
the risks associated with such projected future cash flow. Significant estimates
and assumptions include revenue growth rates, technology migration curves,

the
customer

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attrition rate, and discount rates. Determining the useful life of an intangible
asset also requires judgment, as different types of intangible assets will have
different useful lives and certain assets may even be considered to have
indefinite useful lives.

Recent Accounting Pronouncements

Information regarding recent accounting pronouncements is included in "Note 2. Summary of Significant Accounting Policies" to our consolidated financial statements in this Annual Report on Form 10-K.

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