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    VIEW   US92671V1061

VIEW, INC.

(VIEW)
  Report
Delayed Nasdaq  -  04:00:00 2023-02-03 pm EST
0.9155 USD   -1.47%
01/26Arden Group Selects View Smart Windows for Mixed-Use Residential Development at 4650 Broadway
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01/26Arden Group Selects View Smart Windows for Mixed-Use Residential Development at 4650 Broadway
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01/26Arden Group Selects View, Inc.'s Smart Windows for Mixed-Use Residential Development At 4650 Broadway
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VIEW, INC. Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

11/08/2022 | 05:22pm EST
The following management's discussion and analysis is provided in addition to
the accompanying condensed consolidated financial statements and notes, and for
a full understanding of the Company's results of operations and financial
condition should be read in conjunction with the condensed consolidated
financial statements and notes included in this Quarterly Report on Form 10-Q
included in Part I, Item 1, "Financial Statements (Unaudited)" and the
consolidated financial statements and notes for the fiscal year ended
December 31, 2021 included in the Company's 2021 Annual Report on Form 10-K
filed with the U.S. Securities and Exchange Commission ("SEC") on June 15, 2022.

Overview

Our Business

We are a leading smart buildings platform and technology company that transforms
buildings to improve human health and experience, reduce energy consumption and
carbon emissions, and generate additional revenue for building owners.

Our innovative products are designed to enable people to lead healthier and more
productive lives by increasing access to daylight and views, while minimizing
associated glare and heat from the sun and keeping occupants comfortable. These
products also simultaneously reduce energy consumption from lighting and HVAC,
thus reducing carbon emissions. To achieve these benefits, we design,
manufacture, and provide electrochromic or smart glass panels to which we add a
1 micrometer (~1/100th the thickness of human hair) proprietary electrochromic
coating. These smart glass panels, in combination with our proprietary network
infrastructure, software and algorithms, intelligently adjust in response to the
sun by tinting from clear to dark states, and vice versa, to minimize heat and
glare without ever blocking the view. In addition, we offer a suite of fully
integrated, cloud-connected smart-building products that are designed to enable
us to further optimize the human experience within buildings, improve
cybersecurity, further reduce energy usage and carbon footprint, reduce real
estate operating costs, provide real estate owners greater visibility into and
control over the utilization of their assets, and provide a platform on which to
integrate and deploy new technologies into buildings.

Our earlier generation products are described best as "smart glass," which are primarily composed of three components that all work together to produce a solution:

•the insulating glass unit; which is either double or triple pane with a micrometer semiconductor (or electrochromic) coating;

•the network infrastructure; which is composed of the controllers, connectors, sensors, and cabling; and

•the software; which includes the predictive algorithms, artificial intelligence, remote management tools, and user-facing iOS and Android apps, to control the tint of the glass.


After we completed installations in a few hundred buildings, we identified an
opportunity to use our network infrastructure and cabling as the backbone on
which different smart and connected devices in a typical building could operate.
We believe customers using View Smart Glass can leverage our network as their
building's operations technology infrastructure to reduce duplicative labor
costs, reduce materials usage, provide better cyber security, improve visibility
and management of connected devices, and future-proof the building through easy
upgradability.

Recognizing the opportunity to significantly improve the human experience,
energy performance and carbon footprint in buildings, and real estate operating
costs through adoption of technology, we began selling a Smart Building
Platform, which is a fully integrated smart window platform, to building owners
starting in 2021. Concurrent with the commencement of the sales efforts, we also
began hiring an extensive team of construction managers, project managers, and
building specialists to enable us to work towards delivering the fully installed
and integrated Smart Building Platform, which had historically been the
responsibility of the general contractor's glazing and low-voltage electrician
("LVE") subcontractors.

The Smart Building Platform includes an upgraded network infrastructure and end-to-end design and deployment services, and also enables next generation Smart Building Technologies. We began offering our Smart Building Platform for the following strategic reasons:


•To optimize the design, aesthetics, energy performance and cost of the entire
smart façade (or digital skin) of the building, rather than just one component
(smart glass), thus benefiting both customers and View.

•To elevate the window selection and purchase decision to a customer and decision maker that has a more global view of the project and is in a much better position to make an informed decision regarding all the benefits provided by our Smart Building Platform.

•To accelerate the integration of new technologies into the fabric of the building. Today, this includes integrating environmental quality sensors and immersive, transparent, high-definition displays into smart windows. Importantly, our smart façade design enables future hardware and software upgrades into the building infrastructure.

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•We believe delivering a digital, connected façade and smart building platform
will enable future business opportunities and pricing models as buildings, both
existing and new, incorporate additional technology and connected products.

Our next generation, smart building network is designed as a scalable and open
infrastructure in which the smart window is now another node of the network; in
addition, the network is now equipped to host other connected devices and
applications, from both View and third parties, as additional nodes on the
network. The network has its own 48v direct current power and
power-over-ethernet ports to incorporate other connected devices on a standard
protocol. Also integrated into the network throughout the building is gigabit
speed linear ethernet coaxial cable, as well as optical fiber. Computer
processing is also built into the backbone of the network with x86 and ARM
processing cores. The network also includes an operating system with
capabilities to run third party applications and services, security protocol to
protect buildings from cyberattacks, and several elements of a digital twin of
the building. Our smart building network also hosts artificial intelligence and
machine learning engines, which we developed, and also provides access to
artificial intelligence and machine learning engines that are in the cloud. The
exterior of the building is the largest in surface area. With the smart building
network, the entire exterior of the building can be digitized. Activating the
exterior through digitization creates multiple opportunities for building owners
and occupants.

Our Smart Building Platform enables other devices and smart building applications to be built and connected to our smart building network. A few applications we have already built and deployed on our next generation network include:


•Transparent Displays: View Immersive Display. Integrated into the smart window
and connected to the same network as the glass, Immersive Display allows users
to turn their windows into the equivalent of an iPad or tablet - an interactive
digital display that allows users a new way to digest multi-media content.
Immersive Displays are large-format (55 inches and larger), digital,
high-definition, interactive canvases that can be used to broadcast content,
host video calls and display information and digital art to large groups of
people, while maintaining a view of the outdoors through the window on which it
is integrated.

•Personalized Health: View Sense. An integrated, enterprise-grade, secure,
sensor module that monitors multiple environmental variables (e.g., CO2,
Temperature, Volatile Organic Compounds, Humidity, Dust, Light, and Noise) to
provide illustrative data and information to building management teams in order
to improve building performance and enhance human health and comfort.

Our R&D continues to focus on not only improving the smart glass product but
also on continually bringing more smart building applications and capabilities
to market, as well as collaborating with other industry partners to integrate
their devices and applications with our smart building network, with the aim of
making building occupants more comfortable, healthier, and more productive,
making buildings more sustainable, and providing better information to building
owners to streamline operations and reduce operating costs.

In terms of the value propositions to our customers, our earlier generation
smart glass product focused primarily on improving occupant experience and
reducing energy costs through adjustments of the glass tint. The current
generation of the product focuses not only on improving energy savings and user
experience through smart glass; it also focuses on increasing occupant
productivity, creating healthier buildings, and using data from other devices to
develop broader insights that further improve building operations and reduce
energy usage. Current scientific research supports that cognitive function and
in turn, productivity goes up when building occupants are exposed to more
natural light and comfortable workspaces; they sleep better, and they experience
less eye strain, fewer headaches, and lower stress. In a study published in the
International Journal of Environmental Health and Public Health in 2020,
researchers at the University of Illinois and SUNY Upstate Medical University
found that employees working next to View Smart Glass during the day slept 37
minutes longer each night, experienced half as many headaches, and performed 42%
better on cognitive tests. The research was sponsored in part by View.

We also recognized that the new Smart Building Platform offering would
potentially enable us to move 'up' the supply chain of the construction
industry. Whereas our traditional offering placed us in the role of a supplier
to subcontractors of the General Contractor ("GC"), the level of integration and
oversight needed to ensure a quality installation and integration of the
complete smart building platform is designed to incentivize building owners and
GCs to engage directly with us, engaging us to assume the role of the prime
contractor for the platform rather than supplier of subcomponent materials. This
would also better position us to upsell additional goods and services to the
building owners in the future, which could be more efficiently integrated into
the smart building platform than with the traditional offering.

Today, our Smart Glass products are installed into over 40 million square feet
of buildings, including offices, hospitals, airports, educational facilities,
hotels, and multi-family residences. In addition to our Smart Building Platform,
we continue to sell smart windows through our Smart Glass offering and several
individual smart building products through our Smart Building Technologies
offerings. Across our combined product lines, our products are installed in 100
million square feet of buildings.

To date, we have devoted our efforts and resources towards the development, manufacture, and sale of our product platforms, which we believe have begun to show strong market traction. We have also devoted significant resources to enable our View

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Smart Building Platform, a new offering beginning in 2021. For the three months
ended September 30, 2022 and 2021, our revenue was $23.8 million and $18.9
million, respectively, representing period-over-period growth of 25.8%. For the
nine months ended September 30, 2022 and 2021, our revenue was $57.1 million and
$45.6 million, respectively, representing period-over-period growth of 25.3%.

Key Factors Affecting Operating Results

Execution of Growth Strategies


We believe that we are just beginning to address our market opportunity, which
we expect to be driven by four multi-decade, secular trends: (i) climate change,
Environmental, Social and Governance ("ESG") and sustainability, (ii) a growing
focus on human health inside buildings, (iii) an increased desire for better
human experiences in buildings, and (iv) a growing demand for smart and
connected buildings.

To capitalize on these trends and our market opportunity, we must execute on
multiple growth initiatives, the success of which may depend on our ability to
develop mainstream acceptance of our products, including (i) increasing
awareness of our products and their benefits across major markets in North
America and internationally, (ii) increasing recurring sales, (iii) expanding
our product portfolio, (iv) expanding our sales channels to include real estate
brokers, (v) continuing to develop strong relationships with ecosystem partners
such as building owners, developers, tenants, architects, contractors, low
voltage electricians and glaziers, and (vi) expanding outside North America into
international markets.

On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was passed by
Congress and signed into law by President Joe Biden. The IRA includes the
implementation of a new alternative minimum tax, an excise tax on stock
buybacks, and significant tax incentives for energy and climate incentives, and
other provisions. We are evaluating the impact of the Investment Tax Credit
("ITC") available to our customers under the IRA, which is expected to bring the
cost of our products to cost parity with conventional windows. We believe the
ITC will increase demand for our products by reducing the net cost of our
products to our customers. However, the impact of the ITC cannot be known with
any certainty, and we may not recognize any or all of the expected benefits of
the ITC.

The above growth strategies depend upon our ability to continue as a going
concern. As discussed further in   Note 14  , we entered into an agreement on
October 25, 2022 resulting in the sale of $200.0 million aggregate principal
amount of Convertible Senior PIK Toggle Notes (the "Notes"). In addition, we
implemented plans to reduce cash spend and increase cash collections during the
third quarter of 2022, which resulted in a decrease of net cash outflow of
$29.3 million, from $89.3 million for the three months ended June 30, 2022 to
$60.0 million for the three months ended September 30, 2022. As of October 31,
2022, we had approximately $228 million in cash and cash equivalents. Due to the
historical rate of cash outflows, we are not currently able to conclude that our
existing cash and cash equivalents balance as of the date of this filing will be
adequate to fund our forecasted operating costs and meet our obligations; we
have therefore determined that there is substantial doubt about our ability to
continue as a going concern. While we plan to continue to reduce cash outflow
when compared to prior periods, our ability to fund our operating costs and meet
our obligations beyond twelve months from the date of this filing is dependent
upon our ability to attain and maintain profitable operations by entering into
profitable sales contracts and generating sufficient operating cash flow. Our
business will require significant amounts of capital to sustain operations and
we will need to make the investments we need to execute these long-term business
plans.

Technology Innovation

With more than 1,400 patents and patent filings and over 14 years of research
and development experience, we have a history of technological innovation. We
have a strong research and development team, including employees with expertise
in all aspects of the development process, including materials science,
electronics, networking, hardware, software, and human factors research. As we
have since inception, we intend to continue making significant investments in
research and development and hiring top technical and engineering talent to
improve our existing products and develop new products, which will increase our
differentiation in the market. In 2021 and 2020, we introduced a new suite of
products to complement our market-leading smart glass and optimize the human
experience while making buildings more intelligent. These products are
collectively referred to under the umbrella brand name "The Smart Building
Cloud":

•View Net. Our next generation controls, software, and services ("CSS"), a
cloud-connected, network infrastructure offering that powers View's smart glass
products and can incorporate and power other smart building devices from View
and other companies. This high bandwidth data and low voltage power network
serves as the backbone to an intelligent building platform and provides
future-proofing by enabling the addition of new capabilities during a building's
lifetime.

•View Immersive Display. Our transparent, digital, interactive surface product
that incorporates see-through, high definition displays directly onto the smart
window.
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•View Sense. Modules that provide the ability to measure and optimize light, humidity, temperature, air quality, dust, and noise to improve occupant wellness.


•View Secure Edge. Our plug-and-play edge-to-cloud solution that enables IT and
digital innovation teams to securely connect new and existing buildings to the
cloud; centrally manage building networks, systems, and data in the cloud; and
deploy edge applications for real-time processing, insights, and optimizations.

•View Remote Access. Our secure access portal that enables IT teams to reduce
the cost and cybersecurity risks of maintaining smart buildings by providing
vendors and technicians with secure, auditable, time-bound remote access to
building networks and devices.

•View Building Performance. Our configurable application and web-based tool that
enables building managers to measure, optimize and automate building performance
with comprehensive, contextual, and actionable insights consolidated from
disparate on-premises and cloud-based systems.

•View Workplace Experience. Our configurable application and web-based tool that
enables corporate facilities managers to create healthier, more efficient, and
more productive workplaces by uncovering actionable insights related to building
health, space utilization and workplace operations.

We expect our research and development expenses to increase in absolute dollars over time to maintain our differentiation in the market.

Competition


We compete in the commercial window industry and the electrochromic glass
industry, as well as within the larger smart building products industry, each of
which is highly competitive and continually evolving as participants strive to
distinguish themselves within their markets, including through product
improvement, addition of new features, and price. We believe that our main
sources of competition are existing commercial window manufacturers,
electrochromic glass manufacturers, and companies developing smart building
products and intrusion detection solution technologies. We believe the primary
competitive factors in our markets are:

•Technological innovation;

•Ability to integrate multiple systems efficiently and effectively;

•Product performance;

•Product quality, durability, and price;

•Execution track record; and

•Manufacturing efficiency.

Capacity


View currently manufactures the insulating glass units ("IGUs") included in the
View Smart Glass and View Smart Building Platform product offerings at our
production facility located in Olive Branch, Mississippi. We operate a
sophisticated manufacturing facility designed for performance, scale,
durability, and repeatability. Our manufacturing combines talent, equipment, and
processes from the semiconductor, flat panel display, solar and glass processing
industries. Our proprietary manufacturing facility has been in use since 2010.
We currently operate one production line in our facility with a name-plate
capacity of approximately 5 million square feet of smart glass per year. In
addition, we have partially completed the construction of a second production
line at our Olive Branch facility. Once operational, we expect our facility's
name-plate capacity to increase by an additional 7.5 million square feet of
smart glass per year, bringing our total name-plate capacity of our facility to
12.5 million square feet per year.

As of September 30, 2022, we have invested over $400 million in capital
expenditures primarily in our factory. We expect to incur additional factory
capital expenditure of up to approximately $90 million over the next four years
with respect to facility automation and completion of the second production line
to support the expected growth in demand for our products. This will require
additional financing in order to make these additional investments. We believe
our facility, including the second production line, will enable us to achieve
economies of scale, meet future demand, and achieve profitability.
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Components of Results of Operations

Revenue

View Smart Glass


We generate revenue under our View Smart Glass offering from (i) the
manufacturing and sale of IGUs that are coated on the inside with our
proprietary technology and are designed, programmed, and built to customer
specifications that include sizes for specific windows, skylights, and doors in
specified or designated areas of a building and (ii) selling the CSS, which
includes sky sensors, window controllers and control panels with embedded
software, cables and connectors, that, when combined with the IGUs enable the
IGUs to tint. Also included in CSS is a system design service, in which a design
document is prepared to lay out the IGUs and CSS hardware for the building, as
well as a commissioning service, in which the installed IGUs and CSS components
are tested and tinting configurations are set by View. The glaziers and LVEs
subcontracted by the end user are responsible for ensuring satisfactory
adherence to the design document as the products are installed.

Our View Smart Glass revenue primarily relies on securing design wins with end
users of our products and services, which typically are the owners, tenants, or
developers of buildings. We start the selling process by pitching the View Smart
Glass benefits and business outcomes to the building owners, tenants, or
developers. The pricing for a project is primarily driven by the make-up, size,
shape, total units of the IGU, and associated CSS. The design win is typically
secured through a non-binding agreement with the owners, tenants, or developers
of the buildings. Once a design win is secured, we negotiate and enter into
legally binding agreements with our Smart Glass customers (typically glaziers
for the IGUs and LVEs or general contractors for CSS) to deliver the Smart Glass
products and services.

Our IGUs are custom-built and sold to customers through legally binding
contracts. Each contract to provide IGUs includes multiple distinct IGUs. We
recognize revenue from our IGU contracts over time as the IGU manufacturing work
progresses.

Our contracts to provide the CSS network infrastructure include the sale of
electrical connections schema, sky sensors, window controllers and control
panels with embedded software, cables and connectors, and professional services
to provide a system We recognize revenue at a point in time upon shipment of the
control panels and electrical components, and upon customer acceptance for the
design and commissioning services, both of which have a relatively short period
of time over which the services are provided.

In limited circumstances, we contract to provide extended or enhanced warranties
of our products outside of the terms of its standard assurance warranty, which
are recognized as revenue over the respective term of the warranty period.

View Smart Building Platform


Our View Smart Building Platform is a complete interrelated and integrated
platform that combines our smart glass IGUs, the fabrication, unitization, and
installation of the framing of those IGUs, any combination of View Smart
Building Technologies, and installation of the completed smart glass windows and
CSS components into a fully installed Smart Building Platform. We enter into
contracts to provide our View Smart Building Platform with our customers, which
typically are the owners, tenants or developers of buildings, or the general
contractor acting on behalf of our customers.

In contrast to the View Smart Glass product delivery method, we are the
principal party responsible for delivering the fully integrated Smart Building
Platform. In doing so, we take responsibility for all activities needed to
fulfill the single performance obligation of transferring control to the
customer of a fully operational Smart Building Platform deliverable; from
design, fabrication, installation, integration, commissioning, and testing.
Underlying these activities is our responsibility for performing an essential
and significant service of integrating each of the inputs of our completed
solution. These inputs include our smart network infrastructure and IGUs, both
of which are integrated into the window glazing system, which is fabricated by
an unrelated subcontractor contracted by us to work on our behalf, as well as
designing how the entire Smart Building Platform will be integrated and
installed into the customer's architectural specifications for the building that
is being constructed or retrofitted. Our integration services also include the
activities of installing, commissioning, and testing the Smart Building Platform
to enable the transfer of a complete and operational system. We also use
subcontractors we select and hire for portions of the installation labor. Given
that our responsibility is to provide the service of integrating each of the
inputs into a single combined output, we control that output before it is
transferred to the customer and accordingly, we are the principal in the
arrangement and will recognize the entire arrangement fee as revenue, with any
fees that we pay to our subcontractors recognized in our cost of revenue.

The pricing for a Smart Building Platform project is primarily driven by the
make-up, size, shape, total units of the IGU, associated CSS, and costs
associated with the management and performance of system design, fabrication,
unitization, and installation efforts. We assume the risk of delivery and
performance of the Smart Building Platform to our customer, and manage this
through three key elements to ensure a pleasant end-user experience: 1) we have
a contractual right and obligation to direct the activities of the
subcontractors; 2) we perform quality inspections; and 3) we engage qualified
personnel to protect our interest and direct the actions of the subcontractors.
The end product to the customer is a single-solution Smart Building
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Platform that uses artificial intelligence to adjust the building environment to improve occupant health and productivity, as well as reduce building energy usage and carbon footprint.


We recognize View Smart Building Platform revenue over time as services are
performed using a cost-to-cost input method where progress on the performance
obligation is measured by the proportion of actual costs incurred to the total
costs expected to complete the contract.

In the course of providing the View Smart Building Platform, we routinely engage
subcontractors we select for fabricating and unitizing the specific smart glass
products and for installation of the framed IGUs and smart building
infrastructure components and incur other direct costs. We are responsible for
the performance of the entire contract, including subcontracted work. Thus, we
may be subject to increased costs associated with the failure of one or more
subcontractors to perform as anticipated.

View Smart Building Technologies


Our Smart Building Technologies offering includes a suite of products that can
be either integrated into the View Smart Building Platform, added-on to View
Smart Glass contracts or sold separately. These products, collectively referred
to under the umbrella name "The Smart Building Cloud", include the View Secure
Edge, View Remote Access, View Building Performance, and View Workplace
Experience products related to our acquisition of ioTium and WorxWell during
2021. Our customers are typically the owners or tenants of buildings. Revenue
generated from these products has not been material to date.

Some of our View Smart Building Technologies contracts offer software as a
service pricing, which includes the use of our software applications, as a
service, typically billed on a monthly or annual basis. Our contracts associated
with these products, including implementation, support, and other services,
represent a single promise to provide continuous access to our software
solutions and their processing capabilities in the form of a service. Revenue on
these services is recognized over the contract period. Revenue recognized for
these contracts has not been material to date.

Cost of Revenue


Cost of revenue consists primarily of the costs to manufacture and source our
products, including the costs of materials, customer support, outside services,
shipping, personnel expenses, including salaries and related personnel expenses
and stock-based compensation expense, equipment and facility expenses including
depreciation of manufacturing equipment, rent and utilities, and insurance and
taxes, warranty costs, and inventory valuation provisions.

The primary factor that impacts our cost of revenue as a percentage of revenues
is the significant base operating costs that we incur as a result of our
investment in manufacturing capacity to provide for future demand. At current
production volume, these significant base operating costs result in higher costs
to manufacture each IGU when compared to the sales price per IGU. As demand for
our products increases and we achieve higher production yields, our cost of
revenue as a percentage of revenue will decrease. Additional factors that impact
our cost of revenue as a percentage of revenues include manufacturing
efficiencies, cost of material, and mix of products. We expect to continue to
incur significant base operating costs that will be absorbed over larger volumes
of production as we scale our business.

Cost of revenues also includes the cost of subcontractors engaged to fabricate
and unitize the specific smart glass products and for installation of IGUs and
smart building infrastructure components. Further, and in contrast to View Smart
Glass contracts in which losses associated with IGUs are recognized over time,
our cost of revenue for our Smart Building Platform contracts includes the
recognition of contract losses recorded upfront at contract execution within an
initial loss accrual when the total current estimated costs for these contracts
exceeds total contracted revenue. Revenue for these contracts is recognized as
progress is made toward fulfillment of the performance obligation and cost of
revenue is recognized equal to the revenue recognized. Actual costs incurred in
excess of the revenue recognized are recorded against the initial loss accrual,
which is then reduced. Given the growing nature of our business, we incur
significant base operating costs attributable to our IGU production costs, which
is a significant factor to the losses on these contracts. As we continue to ramp
up our manufacturing volumes, we expect to absorb these base operating costs
over larger volumes of production; therefore, we expect that the contract loss
for individual contracts will decrease over time as a percentage of the total
contract value. These economies of production have not been realized to date and
the total amount of contract losses may not decrease in the near term as we
continue to grow this business.

Research and Development Expenses


Research and development expenses consist primarily of costs related to
research, design, maintenance, and enhancements of our products, including
software, which are expensed as incurred. Research and development expenses
consist primarily of costs incurred for salaries and related personnel expenses,
including stock-based compensation expense, for personnel related to the
development of improvements and expanded features for our products, materials
and supplies used in development and testing, payments to consultants, outside
manufacturers, patent related legal costs, facility costs and depreciation. With
the
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recent completion of certain projects and focus on operational efficiencies, we
expect that our research and development expenses will begin to decrease as a
percentage of revenue as our business grows.

Selling, General and Administrative Expenses


Selling, general, and administrative expenses consist primarily of salaries and
related personnel expenses, including stock-based compensation, costs related to
sales and marketing, finance, legal and human resource functions, contractor and
professional services fees, audit and compliance expenses, insurance costs,
advertising and promotional expenses and general corporate expenses, including
facilities and information technology expenses.

We expect our selling, general, and administrative expenses to reflect an
increase in absolute dollars for the full year of 2022, as we have scaled
headcount to grow our presence in key geographies to support our customers and
growing business, and as a result of operating as a public company, including
compliance with the rules and regulations of the SEC and Nasdaq, legal, audit,
higher expenses for directors and officer insurance, investor relations
activities, and other administrative and professional services. In future
periods, we expect our selling, general and administrative expenses to decline
as a percentage of revenue as we have the infrastructure in place to support our
growing business.

Interest Expense, Net

Interest expense, net consists primarily of interest paid on our debt facilities
and amortization of debt discounts and issuance costs during the first quarter
of fiscal year 2021, interest paid on our finance leases and interest received
or earned on our cash and cash equivalents balances.

Other Expense (Income), Net

Other expense (income), net primarily consists of penalties we expect to incur for the proposed settlement of an environmental matter in 2021, and foreign exchange gains and losses.

Gain on Fair Value Change, Net


Our Sponsor Earn-out Shares, Private Warrants and redeemable convertible
preferred stock warrants are or were subject to remeasurement to fair value at
each balance sheet date. Changes in fair value as a result of the remeasurement
are recognized in gain on fair value change, net in the condensed consolidated
statements of comprehensive loss. The redeemable convertible preferred stock
warrants were converted to common stock as a result of the Merger. We will
continue to adjust the remaining outstanding instruments for changes in fair
value until the Earn-Out Triggering Events are met, which is the earlier of the
exercise or expiration of the Warrants.

Loss on Extinguishment of Debt


Loss on extinguishment of debt comprises a loss arising from the extinguishment
of debt as a result of repayment in full of our revolving debt facility in the
first quarter of 2021.

Provision (benefit) for Income Taxes


Our provision (benefit) for income taxes consists of an estimate of federal,
state, and foreign income taxes based on enacted federal, state, and foreign tax
rates, as adjusted for allowable credits, deductions, uncertain tax positions,
changes in deferred tax assets and liabilities, and changes in tax law. Due to
the level of historical losses, we maintain a valuation allowance against U.S.
federal and state deferred tax assets as we have concluded it is more likely
than not that these deferred tax assets will not be realized.
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Results of Operations

The following table sets forth our historical operating results for the periods indicated (in thousands, except percentages):


                                                        Three Months Ended September 30,                                                               

Nine Months Ended September 30,

                                                2022                                           2021                                           2022                                            2021
                                   Amount                % of Revenue             Amount             % of Revenue                Amount                % of Revenue             Amount              % of Revenue
Revenue                      $        23,762                    100.0  %       $  18,884                    100.0  %       $        57,090                    100.0  %       $   45,579                    100.0  %
Costs and expenses:
Cost of revenue                       49,126                    206.7  %          51,828                    274.5  %               129,219                    226.3  %          137,617                    301.9  %
Research and development              15,554                     65.5  %          36,314                    192.3  %                56,157                     98.4  %           73,924                    162.2  %
Selling, general, and
administrative                        41,174                    173.3  %          38,210                    202.3  %               124,888                    218.8  %           94,543                    207.4  %
Total costs and expenses             105,854                    445.5  %         126,352                    669.1  %               310,264                    543.5  %          306,084                    671.5  %
Loss from operations                 (82,092)                  (345.5) %        (107,468)                  (569.1) %              (253,174)                  (443.5) %         (260,505)                  (571.5) %
Interest and other expense
(income), net
Interest expense, net                     58                      0.2  %             287                      1.5  %                   324                      0.6  %            5,906                     13.0  %

Other expense (income), net              118                      0.5  %            (100)                    (0.5) %                   259                      0.5  %            6,320                     13.9  %
Gain on fair value change,
net                                     (226)                    (1.0) %         (13,078)                   (69.3) %                (6,511)                   (11.4) %          (18,426)                   (40.4) %
Loss on extinguishment of
debt                                       -                        -  %               -                        -  %                     -                        -  %           10,018                     22.0  %
Interest and other (income)
expense, net                             (50)                    (0.2) %         (12,891)                   (68.3) %                (5,928)                   (10.4) %            3,818                      8.4  %
Loss before provision
(benefit) of income taxes            (82,042)                  (345.3) %         (94,577)                  (500.8) %              (247,246)                  (433.1) %         (264,323)                  (579.9) %
Provision (benefit) for
income taxes                              23                      0.1  %            (425)                    (2.3) %                    77                      0.1  %             (416)                    (0.9) %
Net and comprehensive loss   $       (82,065)                  (345.4) %       $ (94,152)                  (498.6) %       $      (247,323)                  (433.2) %       $ (263,907)                  (579.0) %



Revenue

The following table presents our revenue by major product offering (in thousands, except percentages):


                                                          Three Months Ended September 30,                                                         

Nine Months Ended September 30,

                                     2022                     2021             Change ($)             Change (%)                2022                2021             Change ($)             Change (%)
Smart Building Platform         $    11,317                $  9,876          $     1,441                     14.6  %       $    29,578           $ 15,012          $    14,566                     97.0  %
Percentage of total revenue            47.6   %                52.3  %                                                            51.8   %           32.9  %
Smart Glass                          10,320                   8,410                1,910                     22.7  %            19,809             28,205               (8,396)                   (29.8) %
Percentage of total revenue            43.4   %                44.5  %                                                            34.7   %           61.9  %
Smart Building Technologies           2,125                     598                1,527                    255.4  %             7,703              2,362                5,341                    226.1  %
Percentage of total revenue             8.9   %                 3.2  %                                                            13.5   %            5.2  %
Total                           $    23,762                $ 18,884          $     4,878                     25.8  %       $    57,090           $ 45,579          $    11,511                     25.3  %


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The following table presents our revenue by geographic area and is based on the shipping address of the customers (in thousands, except percentages):


                                                       Three Months Ended September 30,                                                        Nine 

Months Ended September 30,

                                   2022                     2021             Change ($)            Change (%)                2022                2021             Change ($)            Change (%)
United States                 $    21,743                $ 15,682          $     6,061                    38.6  %       $    52,852           $ 37,400          $    15,452                    41.3  %
Percentage of total revenue          91.5   %                83.0  %                                                           92.6   %           82.1  %
Canada                              2,009                   2,968                 (959)                  (32.3) %             4,170              7,475               (3,305)                  (44.2) %
Percentage of total revenue           8.5   %                15.7  %                                                            7.3   %           16.4  %
Other                                  10                     234                 (224)                  (95.7) %                68                704                 (636)                  (90.3) %
Percentage of total revenue             -   %                 1.2  %                                                            0.1   %            1.5  %
Total                         $    23,762                $ 18,884          $     4,878                    25.8  %       $    57,090           $ 45,579          $    11,511                    25.3  %


Our revenue totaled $23.8 million during the three months ended September 30,
2022, a 25.8% increase from $18.9 million during the three months ended
September 30, 2021. The increase during the three months ended September 30,
2022 compared to the same period in the prior year was primarily due to an
increase in Smart Glass revenues driven by work completed in the third quarter
of the current year associated with several larger projects, an increase in
Smart Building Platform revenues driven by a shift to this new offering
introduced in the second quarter of 2021, and an increase in Smart Building
Technologies revenues primarily driven by the WorxWell products acquired in
November 2021.

Our revenue totaled $57.1 million during the nine months ended September 30,
2022, a 25.3% increase from $45.6 million in the nine months ended September 30,
2021. The increase in the nine months ended September 30, 2022 compared to the
same period in the prior year was primarily driven by a shift to the new View
Smart Building Platform offering introduced in the second quarter of 2021 and
new Smart Building Technologies products, including the products acquired in the
second half of 2021. The decline in Smart Glass revenues in the first nine
months of 2022 is attributable to our customer's decisions to select the newly
offered Smart Building Platform offering rather than Smart Glass offering, as
well as the timing of new Smart Glass projects.

Costs and Expenses

Cost of Revenue
                                                  Three Months Ended September 30,                                                       Nine Months Ended September 30,
                                 2022               2021             Change ($)            Change (%)                  2022                  2021             Change ($)            Change (%)
Cost of revenue             $    49,126          $ 51,828          $    (2,702)                   (5.2) %       $    129,219             $ 137,617          $    (8,398)                   (6.1) %


Cost of revenue totaled $49.1 million, or 206.7% of net sales during the three
months ended September 30, 2022, compared to $51.8 million, or 274.5% of net
sales during the three months ended September 30, 2021. Cost of revenue totaled
$129.2 million, or 226.3% of net sales, in the nine months ended September 30,
2022, compared to $137.6 million, or 301.9% of net sales, in the nine months
ended September 30, 2021. The cost of revenue decreases as a percentage of
revenues during these periods reflect the benefit of leveraging the minimum
operating costs in the factory over higher revenues, favorable product mix
across the three product offerings and lower levels of contract loss accruals.

The $2.7 million decrease in cost of revenue in absolute dollars during the three months ended September 30, 2022 compared to the same period in the prior year was primarily driven by:

•a $8.8 million decrease in new contract loss accruals,

•$1.4 million of lower levels of inventory impairments for raw materials, and

•a $0.9 million decrease in stock-based compensation expense.

These decreases were partially offset by:

•$5.7 million of increased subcontractor costs used for the delivery of the Smart Building Platform product,

•$1.0 million of increased smart window product costs associated with the higher revenues.


Factory operating costs were relatively flat for the third quarter of 2022 as
compared to the third quarter of 2021, as favorable costs resulting from cost
savings initiatives were mostly offset by higher production requirements.

The $8.4 million decrease in the cost of revenue in absolute dollars during the
nine months ended September 30, 2022 compared to the same period in the prior
year was primarily driven by:

•a $20.5 million decrease in new contract loss accruals,

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Table of Conte n t s


•an increase of $4.8 million for the usage of previously recorded contract loss
accruals for actual costs incurred in excess of the revenue recognized, which
offsets actual costs incurred in the production and delivery of the Smart
Building Platform product for the amount incurred in excess of revenues
recognized,

•a $5.1 million reduction in post-installation customer support costs, primarily
due to a $4.8 million charge recorded in the first half of 2021 in connection
with specific performance obligations promised to customers in connection with
IGU failures associated with the previously discussed quality issue,

•approximately $2.6 million of lower levels of smart window product costs due to lower revenues,

•approximately $2.8 million lower materials costs due to favorable factory yields,

•a $2.3 million decrease in stock-based compensation expense, and

•cumulative catch-up adjustments to reduce previously recorded contract loss accruals of $1.4 million.

These decreases were partially offset by:


•$7.5 million of increased factory operating costs as we scaled our factory
capacity in the second half of 2021 resulting in higher costs in the first half
of 2022 as compared to the first half of 2021,

•$16.4 million of increased subcontractor costs used for the delivery of the Smart Building Platform product due to higher volumes in the current year, and

•$7.9 million of higher levels of inventory impairments for raw materials and produced finished goods that were not sold at period end.


Cost of revenue for the three months ended September 30, 2022 and 2021 included
$0.4 million and $1.3 million of stock-based compensation expense, respectively.
Cost of revenue for the nine months ended September 30, 2022 and 2021 included
$1.1 million and $3.5 million of stock-based compensation expense, respectively.

Research and Development
                                                          Three Months Ended September 30,                                                       

Nine Months Ended September 30,

                                         2022                  2021            Change ($)            Change (%)                  2022                 2021            Change ($)            Change (%)
Research and development          $    15,554               $ 36,314          $  (20,760)                  (57.2) %       $    56,157              $ 73,924          $  (17,767)                  (24.0) %


Research and development expenses decreased $20.8 million during the three
months ended September 30, 2022 compared to the same period in the prior year,
primarily related to a $15.1 million reduction in depreciation expense primarily
due to certain assets that were abandoned and written off in the third quarter
of 2021. The remaining decrease related to $2.8 million reduction in costs for
existing projects related to our IGU product and manufacturing processes which
were completed prior to the third quarter of 2022 and $2.3 million reduction in
costs for Smart Building Technology development and enhancement projects that
have not been commercialized as part of planned cost reductions for cash
conservation.

Research and development expenses decreased $17.8 million during the nine months
ended September 30, 2022 compared to the same period in the prior year,
primarily related to a $17.5 million reduction in depreciation expense for
certain assets abandoned and written off in the second and third quarters of
2021 and a $2.6 million decrease in stock-based compensation expense, partially
offset by a $2.5 million increase due to higher spending on the enhancement of
existing products and development and enhancement of Smart Building Technology
products.

Research and development expenses for the three months ended September 30, 2022
and 2021 included $2.0 million and $2.7 million of stock-based compensation
expense, respectively. Research and development expenses for the nine months
ended September 30, 2022 and 2021 included $3.6 million and $6.2 million of
stock-based compensation expense, respectively.

Selling, General, and Administrative

                                                    Three Months Ended September 30,                                                         Nine 

Months Ended September 30,

                                  2022                2021             Change ($)             Change (%)                  2022                  2021             Change ($)             Change (%)
Selling, general and
administrative               $     41,174          $ 38,210          $     2,964                      7.8  %       $    124,888              $ 94,543          $    30,345                     32.1  %


Selling, general, and administrative expenses increased $3.0 million during the
three months ended September 30, 2022 compared to the same period in the prior
year, primarily due to $6.9 million of stock-based compensation expense recorded
for the modification of Officer RSUs, offset by a $4.6 million decrease of
stock-based compensation expense due to higher levels of amortization recognized
in the prior year due to the required use of an accelerated amortization method,
while other spending was held relatively flat.
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Selling, general, and administrative expenses increased $30.3 million during the
nine months ended September 30, 2022 compared to the same period in the prior
year, primarily due to an increase of approximately $13.4 million of legal,
consulting and accounting expenses during 2022 to assist in the restatement of
the financial statements included in our recently filed Form 10-K and Form
10-Q/A, and other related work, a $8.6 million increase in stock-based
compensation resulting from the CEO Option Awards, Officer RSUs and Officer
Options granted as part of the Merger, and a $4.7 million increase in the first
half of 2022 for employee compensation and benefits associated with an increase
in headcount, particularly as it relates to sales support for our growing
business and additional finance resources necessary as a result of operating as
a public company.

Selling, general, and administrative expenses for the three months ended
September 30, 2022 and 2021 included $20.8 million and $18.5 million of
stock-based compensation expense, respectively. Selling, general, and
administrative expenses for the nine months ended September 30, 2022 and 2021
included $54.1 million and $45.5 million of stock-based compensation expense,
respectively.

Interest and Other Expense, net

                                                            Three Months Ended September 30,                                                  Nine 

Months Ended September 30,

                                         2022               2021             Change ($)             Change (%)              2022              2021            Change ($)             Change (%)
Interest expense, net                 $     58          $     287          $      (229)                   (79.8) %       $    324          $  5,906          $   (5,582)                   (94.5) %
Other expense (income), net                118               (100)                 218                   (218.0) %            259             6,320              (6,061)                   (95.9) %
Gain on fair value change, net            (226)           (13,078)              12,852                    (98.3) %         (6,511)          (18,426)             11,915                    (64.7) %
Loss on extinguishment of debt        $      -          $       -          $         -                  *                $      -          $ 10,018          $  (10,018)                 *




*not meaningful

Interest Expense, Net

Interest expense, net decreased $0.2 million and $5.6 million during the three
and nine months ended September 30, 2022, respectively, compared to the same
periods in the prior year primarily due to the full repayment of the revolving
debt facility at Closing during the first quarter of 2021, resulting in lower
interest expense.

Other Expense (Income), Net

Other expense (income), net did not fluctuate materially during the three months
ended September 30, 2022 compared to the same period the prior year. Other
expense, net decreased by $6.1 million during the nine months ended September
30, 2022 compared to the same period in the prior year primarily due to
$5.0 million of penalties incurred during the nine months ended September 30,
2021 in conjunction with the proposed settlement between View and the United
States government to resolve claims and charges against View relating to our
discharges of water into publicly owned treatment works without first obtaining
a pretreatment permit. See   Note 7   of the "Notes to Condensed Consolidated
Financial Statements" included in Part I, Item 1. "Financial Statements
(Unaudited)" for further discussion of this matter.

Gain on Fair Value Change, Net


The gain on fair value change, net during the three months ended September 30,
2022 and 2021, as well as the nine months ended September 30, 2022 was primarily
related to changes in the fair value of our Sponsor Earn-Out liability. The gain
on fair value change, net during the nine months ended September 30, 2021 also
included the changes in the fair value of our redeemable convertible preferred
stock warrants prior to their conversion in the first quarter of 2021.

Loss on extinguishment of debt

During the nine months ended September 30, 2021, we recorded a loss of $10.0 million on debt extinguishment related to the full repayment of the revolving debt facility at Closing.

Provision for Income Taxes

For the three and nine months ended September 30, 2022 and 2021, our income tax expense was immaterial.

Liquidity and Capital Resources


As of September 30, 2022, we had $51.3 million in cash and cash equivalents and
$38.5 million in working capital. Our accumulated deficit totaled $2,504.7
million as of September 30, 2022. For the nine months ended September 30, 2022,
we had a net loss of approximately $247.3 million and negative cash flows from
operations of approximately $204.2 million. In addition, for the nine months
ended September 30, 2021, we had a net loss of approximately $263.9 million and
negative cash flows from operations of approximately $188.7 million. As
discussed further in   Note 14  , we entered into an agreement on October 25,
2022 resulting in the sale of $200.0 million aggregate principal amount of
Notes. In addition, we implemented
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Table of Conte n t s


plans to reduce cash spend and increase cash collections during the third
quarter of 2022, which resulted in a decrease of net cash outflow of
$29.3 million, from $89.3 million for the three months ended June 30, 2022 to
$60.0 million for the three months ended September 30, 2022. As of October 31,
2022, our cash and cash equivalents totaled approximately $228 million.

We have historically financed our operations through the issuance and sale of
redeemable convertible preferred stock, the issuance of debt financing, the
gross proceeds associated with the Merger and revenue generation from product
sales. Our principal uses of cash in recent periods have been funding operations
and investing in capital expenditures. Our future capital requirements will
depend on many factors, including revenue growth rate, achieving profitability
on our revenue contracts, the timing and the amount of cash received from
customers, the expansion of sales and marketing activities, the timing and
extent of spending to support research and development efforts, capital
expenditures associated with our capacity expansion, the introduction of new
products and the continuing market adoption of our products. Our business will
require significant amounts of capital to sustain operations and we will need to
make the investments we need to execute our long-term business plans.

Our total current liabilities as of September 30, 2022 are $89.1 million,
including $10.4 million accrued as estimated loss on our Smart Building Platform
contracts. Our long-term liabilities as of September 30, 2022 that will come due
during the next 12 months from the date of the filing of this Quarterly Report
on Form 10-Q include $1.0 million in operating and finance lease payments and
$1.8 million in estimated settlements of warranty liabilities. In addition, as
disclosed in   Note 8   of the "Notes to Condensed Consolidated Financial
Statements" included in Part I, Item 1, we have an agreement with one customer
that could result in up to $4.8 million additional issuance of cash under a
promissory note over the next 12 months.

Due to the historical rate of cash outflows, we are not currently able to
conclude that our existing cash and cash equivalents balance as of the date of
this filing will be adequate to fund our forecasted operating costs and meet our
obligations; we have therefore determined that there is substantial doubt about
our ability to continue as a going concern. While we plan to continue to reduce
cash outflow when compared to prior periods, our ability to fund our operating
costs and meet our obligations beyond twelve months from the date of this filing
is dependent upon our ability to attain and maintain profitable operations by
entering into profitable sales contracts and generating sufficient operating
cash flow. We are evaluating the impact of the ITC available to our customers
under the IRA passed by Congress and signed into law on August 16, 2022, which
management expects to bring the cost of our products to cost parity with
conventional windows. Management further expects a resulting increase in demand
for our products, allowing us to leverage our minimum operating costs in the
factory even further over higher revenues and make further progress towards our
objective of profitable operations.

If we are not able to achieve profitability prior to the depletion of our
current cash and cash equivalents, we would be required to raise additional
capital. While we have successfully raised additional capital during the current
fiscal year, there can be no assurance that future financing will be available
on terms acceptable to us, or at all. If we raise funds in the future by issuing
equity securities, dilution to stockholders may result. Any equity securities
issued may also provide for rights, preferences, or privileges senior to those
of holders of common stock. If we raise funds in the future by issuing
additional debt securities, these debt securities could have rights,
preferences, and privileges senior to those of preferred and common
stockholders. The terms of any additional debt securities or borrowings could
impose significant restrictions on our operations. The capital markets have
experienced in the past, and may experience in the future, periods of upheaval
that could impact the availability and cost of equity and debt financing. In
addition, recent and anticipated future increases in federal fund rates set by
the Federal Reserve, which serve as a benchmark for rates on borrowing, will
continue to impact the cost of debt financing.

If we are unable to obtain adequate capital resources to fund operations, either
through attaining and maintaining profitable operations or raising additional
capital, we would not be able to continue to operate our business pursuant to
our current business plan, which would require us to modify our operations to
reduce spending to a sustainable level by, among other things, delaying, scaling
back or eliminating some or all of our ongoing or planned investments in
corporate infrastructure, business development, sales and marketing, research
and development and other activities, which would have a material impact on our
operations and our ability to increase revenues, or we may be forced to
discontinue our operations entirely.

Debt

Term Loan


As of September 30, 2022, we had $14.7 million outstanding under our term loan
debt arrangement. On October 22, 2020, we entered into an amended and restated
debt arrangement with the lender, which temporarily suspended the payments until
June 30, 2022. Starting June 30, 2022, we are required to make semi-annual
payments of $0.7 million through June 30, 2032. As of September 30, 2022, $1.5
million of the outstanding amount under this arrangement has been classified as
a current liability, and the remaining $13.2 million has been classified as a
long-term liability.

The debt arrangement required us to invest certain amounts in land, building and
equipment and create a certain number of jobs. As of September 30, 2022, we had
met the requirements. The debt arrangement, as amended, has customary
affirmative and negative covenants. As of September 30, 2022, we were in
compliance with all covenants.
                                       46

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Table of Conte n t s

Cash Flows

The following table provides a summary of cash flow data (in thousands):

                                                                      Nine 

Months Ended September 30,

                                                                         2022                   2021
Net cash used in operating activities                             $       (204,201)         $ (188,744)
Net cash used in investing activities                                      (19,556)            (20,357)
Net cash provided by (used in) financing activities               $         

(4,211) $ 515,958

Cash Flows from Operating Activities


Net cash used in operating activities was $204.2 million for the nine months
ended September 30, 2022. The most significant component of our cash used during
this period was a net loss of $247.3 million adjusted for non-cash charges of
$58.8 million related to stock-based compensation and $17.8 million related to
depreciation and amortization, partially offset by the $6.5 million non-cash
gain related to change in fair value of our Sponsor Earn-Out liability and other
derivative liabilities. This cash outflow was increased further by $28.0 million
from changes in operating assets and liabilities, primarily due to a $12.1
million decrease in accrued compensation, expenses and other liabilities,
including a $9.7 million reduction to loss accruals for work performed during
fiscal year 2022 and a $3.9 million reduction in warranty accruals primarily
related to settlements during fiscal year 2022, a $8.5 million increase in
prepaid and other operating assets as a result of increases in deposits paid to
our materials suppliers and increases in contract assets with customers, a $2.8
million decrease in accounts payable due to timing of payments to our suppliers,
a $7.6 million increase in inventory as a result of increased demand and timing
of shipments, and a $3.8 million decrease in deferred revenue due to timing of
satisfaction of our performance obligations relating to our revenue generating
contracts with customers. These changes were offset by a $6.7 million decrease
in accounts receivable as a result of timing of collections.

Net cash used in operating activities was $188.7 million for the nine months
ended September 30, 2021. The most significant component of our cash used during
this period was a net loss of $263.9 million adjusted for non-cash charges of
$55.2 million related to stock-based compensation, $35.2 million related to
depreciation and amortization, and a loss on extinguishment of debt of $10.0
million, partially offset by $18.4 million non-cash gain related to change in
fair value of our Sponsor Earn-Out liability and other derivative liabilities.
This cash outflow was increased further by $8.4 million from changes in
operating assets and liabilities, primarily due to a $7.7 million increase in
prepaid and other operating assets as a result of increases in contract assets
with customers for the new View Smart Building Platform offering, an increase of
$6.7 million in accounts receivable as a result of increased revenue and timing
of collections, a $3.3 million increase in inventory and a $2.2 million decrease
in accounts payable due to timing of payments to our suppliers. These increases
to cash outflows were offset by a $10.6 million increase in accrued
compensation, expenses and other liabilities as a result of an increase in
accruals for expenses also consistent with the growth of operations and a $1.0
million increase in deferred revenue due to timing of satisfaction of our
performance obligations relating to our revenue generating contracts with
customers.

Cash Flows from Investing Activities


Net cash used in investing activities was $19.6 million and $20.4 million for
the nine months ended September 30, 2022 and 2021, respectively, which was
primarily due to purchases of property, plant and equipment primarily related to
the expansion of our manufacturing facilities. In addition, net cash used in
investing activities for the nine months ended September 30, 2022 included $5.2
million cash disbursement under a note receivable and net cash used in investing
activities for the nine months ended September 30, 2021 included $4.9 million
cash paid for acquisitions.

Cash Flows from Financing Activities


Net cash provided by financing activities was $4.2 million for the nine months
ended September 30, 2022, which was primarily related to the $3.1 million
payment of tax withholdings paid on behalf of employees for net share settlement
of equity awards, as well as finance lease and long-term debt payments.

Net cash used in financing activities was $516.0 million for the nine months
ended September 30, 2021, which was primarily due to proceeds related to the
reverse recapitalization and PIPE offering of $773.5 million, net of transaction
costs, partially offset by repayment in full of our revolving debt facility of
$257.5 million.

Off-Balance Sheet Arrangements


During the periods presented, we did not have any material off-balance sheet
financing arrangements or any relationships with unconsolidated entities or
financial partnerships, including entities sometimes referred to as structured
finance or special purpose entities, which were established for the purpose of
facilitating off-balance sheet arrangements or other contractually narrow or
limited purposes.
                                       47

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Table of Conte n t s


During the course of business, our bank issues standby letters of credit on
behalf of us to certain vendors and other third parties. As of September 30,
2022 and December 31, 2021, the total value of the letters of credit issued by
the bank is $17.0 million and $16.5 million, respectively. No amounts have been
drawn under the standby letters of credit.

Critical Accounting Policies and Estimates


The preparation of financial statements and related disclosures in conformity
with generally accepted accounting principles in the United States of America
("U.S. GAAP") requires us to make judgments, assumptions, and estimates that
affect the amounts reported in our condensed consolidated financial statements
and accompanying notes. Note 1 of Notes to Consolidated Financial Statements in
Company's 2021 Annual Report on Form 10-K filed on June 15, 2022 describes the
significant accounting policies and methods used in the preparation of these
financial statements. The accounting policies described therein are
significantly affected by critical accounting estimates and include the
accounting for revenue recognition, product warranties, impairment of long-lived
assets, stock compensation, and the Sponsor Earn-out liability. Such accounting
policies require significant judgments, assumptions, and estimates used in the
preparation of the condensed consolidated financial statements, and actual
results could differ materially from the amounts reported based on these
policies. We have not made any changes in these critical accounting policies
during the first nine months of 2022.

Recent Accounting Pronouncements


For a description of recent accounting pronouncements, including the expected
dates of adoption and estimated effects, if any, on our condensed consolidated
financial statements, see Part I, Item 1,   Note 1  , "Organization and Summary
of Significant Accounting Policies," in our "Notes to Condensed Consolidated
Financial Statements" in this Quarterly Report on Form 10-Q.

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2022View, Inc. : Submission of Matters to a Vote of Security Holders (form 8-K)
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