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Form 424B3 Fathom Digital Manufactu

August 16, 2022 10:49 AM EDT

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Filed Pursuant to Rule 424(b)(3)

Registration No. 333-262189

PROSPECTUS SUPPLEMENT NO. 2

(to prospectus dated May 2, 2022)

FATHOM DIGITAL MANUFACTURING CORPORATION

7,000,000 Shares of Class A Common Stock

 

 

This prospectus supplement is being filed to update and supplement the information contained in the prospectus dated May 2, 2022, as supplemented by Prospectus Supplement No. 1, dated May 17, 2022 (and as may be further supplemented or amended from time to time, the “Prospectus”), with the information contained in our (i) Current Report on Form 8-K, which we filed with the Securities and Exchange Commission (“SEC”) on August 15, 2022 (the “Current Report”) and (ii) our Quarterly Report on Form 10-Q, which we filed with the SEC on August 15, 2022 (the “Quarterly Report”). Accordingly, we have attached the Current Report and the Quarterly Report to this prospectus supplement. Capitalized terms used but not defined in this prospectus supplement have the meanings given to such terms in the Prospectus.

The Prospectus and this prospectus supplement relate to the resale from time to time by the selling stockholders named in the Prospectus or their permitted transferees of up to 7,000,000 shares of Class A common stock, par value $0.0001 per share (the “Class A common stock”), of Fathom Digital Manufacturing Corporation, a Delaware corporation, which were issued in private placements immediately prior to the consummation of the Business Combination pursuant to the terms of the Subscription Agreements, as part of the consideration for the Business Combination.

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

Our Class A common stock is traded on the New York Stock Exchange under the symbol “FATH.” On August 15, 2022, the closing price of our Class A common stock was $3.80 per share.

 

 

Investing in our securities involves risks that are described in the “Risk Factors” section beginning on page 17 of the Prospectus. Neither the SEC nor any state securities commission has approved or disapproved of the securities to be issued under the Prospectus or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus supplement is August 16, 2022.

 

 

 

 

ROC

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 


 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended June 30, 2022

OR

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

For the transition period from to

Commission File Number: 001-39994

 

Fathom Digital Manufacturing Corporation

(Exact name of registrant as specified in its charter)

 

 

Delaware

98-1571400

(State or other jurisdiction of

incorporation or organization)

 

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

1050 Walnut Ridge Drive

Hartland, WI

53029

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (262) 367-8254

 

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

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A common stock, par value $0.0001 per share

 

FATH

 

New York Stock Exchange

Warrants to purchase Class A common stock

 

FATH.WS

 

New York Stock Exchange

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

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

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

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

 

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

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

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

As of August 12, 2022, there were 61,596,519 shares of the registrant's Class A common stock outstanding and 74,014,640 shares of the registrant's vote-only, non-economic Class B common stock outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

 

 

 

 

EXPLANATORY NOTE

3

 

 

 

PART I.

FINANCIAL INFORMATION

4

 

 

 

Item 1.

Financial Statements (Unaudited)

4

 

Consolidated Balance Sheets

4

 

Consolidated Statements of Comprehensive Income (Loss)

5

 

Consolidated Statement of Shareholders' Equity and Redeemable Non-Controlling Interest

6

 

Consolidated Statement of Class A Contingently Redeemable Preferred Units and Members' Equity

7

 

Consolidated Statements of Cash Flows

8

 

Notes to Unaudited Consolidated Financial Statements

9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

28

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

37

Item 4.

Controls and Procedures

37

 

 

 

PART II.

OTHER INFORMATION

38

 

 

 

Item 1.

Legal Proceedings

38

Item 1A.

Risk Factors

38

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

38

Item 3.

Defaults Upon Senior Securities

38

Item 4.

Mine Safety Disclosures

39

Item 5.

Other Information

39

Item 6.

Exhibits

40

 

Signatures

41

 

 


 

EXPLANATORY NOTE

 

This Quarterly Report on Form 10-Q includes information pertaining to periods prior to the closing of the Business Combination (as defined in "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Quarterly Report). Refer to Note 1 “Nature of Business” and Note 2 "Basis of Presentation" of the notes to our consolidated financial statements contained in this Quarterly Report for further information regarding the basis of presentation.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

Certain statements made in this Quarterly Report on Form 10-Q are “forward looking statements.” Statements regarding our expectations regarding the business are “forward looking statements.” In addition, words such as “estimates,” “projected,” “expects,” “estimated,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “would,” “future,” “propose,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. The forward-looking statements contained in this Quarterly Report on Form 10-Q and in our other periodic filings are not guarantees of future performance, conditions or results and are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under "Risk Factor Summary", “Item 1A. Risk Factors”, and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the "2021 Form 10-K"). Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We may face additional risks and uncertainties that are not presently known to us, or that we deem to be immaterial, which may also impair our business, financial condition or prospects. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

3


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Fathom Digital Manufacturing Corporation

Consolidated Balance Sheets

(In thousands, except share and unit amounts)

 

 

 

Period Ended

 

 

 

June 30, 2022

 

 

December 31, 2021

 

 Assets

 

(unaudited)

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

 

$

11,118

 

 

$

20,357

 

Accounts receivable, net(1)

 

 

26,402

 

 

 

25,367

 

Inventory

 

 

14,100

 

 

 

13,165

 

Prepaid expenses and other current assets

 

 

3,802

 

 

 

1,836

 

Total current assets

 

 

55,422

 

 

 

60,725

 

Property and equipment, net

 

 

46,908

 

 

 

44,527

 

Right-of-use operating lease assets, net

 

 

8,081

 

 

 

-

 

Right-of-use financing lease assets, net

 

 

2,363

 

 

 

-

 

Intangible assets, net

 

 

260,483

 

 

 

269,622

 

Goodwill

 

 

1,188,441

 

 

 

1,189,464

 

Other non-current assets

 

 

1,415

 

 

 

2,036

 

Total assets

 

$

1,563,113

 

 

$

1,566,374

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable(2)

 

$

11,468

 

 

$

9,409

 

Accrued expenses

 

 

7,254

 

 

 

5,957

 

Current operating lease liability

 

 

2,976

 

 

 

-

 

Current financing lease liability

 

 

190

 

 

 

-

 

Contingent consideration

 

 

700

 

 

 

2,748

 

Current portion of debt

 

 

31,179

 

 

 

29,697

 

Other current liabilities

 

 

3,767

 

 

 

2,058

 

Total current liabilities

 

 

57,534

 

 

 

49,869

 

Long-term debt, net

 

 

117,677

 

 

 

120,491

 

Fathom earnout shares liability

 

 

27,690

 

 

 

64,300

 

Sponsor earnout shares liability

 

 

4,090

 

 

 

9,380

 

Warrant liability

 

 

13,300

 

 

 

33,900

 

Noncurrent contingent consideration

 

 

-

 

 

 

850

 

Noncurrent operating lease liability

 

 

5,160

 

 

 

-

 

Noncurrent financing lease liability

 

 

2,227

 

 

 

-

 

Deferred tax liability

 

 

12,335

 

 

 

17,570

 

Other noncurrent liabilities

 

 

-

 

 

 

4,655

 

Payable to related parties pursuant to the tax receivable agreement (includes $4,440 and $4,600 at fair value, respectively)

 

 

9,400

 

 

 

4,600

 

Total liabilities

 

 

249,413

 

 

 

305,615

 

Commitments and Contingencies:

 

 

 

 

 

 

Redeemable non-controlling interest in Fathom OpCo

 

 

749,615

 

 

 

841,982

 

Shareholders' Equity:

 

 

 

 

 

 

Class A common stock, $0.0001 par value; 300,000,000 shares authorized; 61,596,519 issued and outstanding as of June 30, 2022 and 50,785,656 issued and outstanding as of December 31, 2021

 

 

6

 

 

 

5

 

Class B common stock, $0.0001 par value; 180,000,000 shares authorized; 74,014,640 shares issued and outstanding as of June 30, 2022 and 84,294,971 shares issued and outstanding as of December 31, 2021

 

 

7

 

 

 

8

 

Class C common stock, $.0001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2022 and December 31, 2021

 

 

-

 

 

 

-

 

Preferred Stock, $.0001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2022 and December 31, 2021

 

 

-

 

 

 

-

 

Treasury stock, at cost; 301,302 and 0 shares as of June 30, 2022 and December 31, 2021, respectively

 

 

(2,258

)

 

 

-

 

Additional paid-in-capital

 

 

556,417

 

 

 

466,345

 

Accumulated other comprehensive loss

 

 

 

 

 

-

 

Retained earnings (Accumulated deficit)

 

 

9,913

 

 

 

(47,581

)

Shareholders’ equity attributable to Fathom Digital Manufacturing Corporation

 

 

564,085

 

 

 

418,777

 

Total Liabilities, Shareholders’ Equity, and Redeemable Non-Controlling Interest

 

$

1,563,113

 

 

$

1,566,374

 

(1) Inclusive of allowance for doubtful accounts of $1,208 and $1,150 as of June 30, 2022 and December 31, 2021, respectively

(2) Inclusive of accounts payable to related parties of $443 and $1,246 as of June 30, 2022 and December 31, 2021, respectively

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

4


 

Fathom Digital Manufacturing Corporation

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(In thousands, except units, shares, per unit, and per share amounts)

 

 

 

Three Months ended

 

 

Six Months ended

 

 

 

June 30, 2022 (Successor)

 

 

 

June 30, 2021 (Predecessor)

 

 

June 30, 2022 (Successor)

 

 

 

June 30, 2021 (Predecessor)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

41,985

 

 

 

$

35,872

 

 

$

82,526

 

 

 

$

66,406

 

Cost of revenue (1) (2) (3)

 

 

26,437

 

 

 

 

22,376

 

 

 

54,981

 

 

 

 

39,499

 

Gross profit

 

 

15,548

 

 

 

 

13,496

 

 

 

27,545

 

 

 

 

26,907

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative (4)

 

 

11,617

 

 

 

 

8,760

 

 

 

26,381

 

 

 

 

16,430

 

Depreciation and amortization

 

 

4,452

 

 

 

 

2,535

 

 

 

8,968

 

 

 

 

5,207

 

Total operating expenses

 

 

16,069

 

 

 

 

11,295

 

 

 

35,349

 

 

 

 

21,637

 

Operating (loss) income

 

 

(521

)

 

 

 

2,201

 

 

 

(7,804

)

 

 

 

5,270

 

Interest expense and other (income) expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,858

 

 

 

 

2,310

 

 

 

3,332

 

 

 

 

4,424

 

Other expense

 

 

129

 

 

 

 

7,110

 

 

 

195

 

 

 

 

8,650

 

Other income

 

 

(36,108

)

 

 

 

(3,206

)

 

 

(63,223

)

 

 

 

(3,300

)

Total interest expense and other (income) expense, net

 

 

(34,121

)

 

 

 

6,214

 

 

 

(59,696

)

 

 

 

9,774

 

Net income (loss) before income tax

 

$

33,601

 

 

 

$

(4,013

)

 

$

51,892

 

 

 

$

(4,504

)

Income tax (benefit) expense

 

 

(378

)

 

 

 

69

 

 

 

79

 

 

 

 

78

 

Net income (loss)

 

$

33,979

 

 

 

$

(4,082

)

 

$

51,813

 

 

 

$

(4,582

)

Net loss attributable to Fathom OpCo non-controlling interest (Note 14)

 

 

(442

)

 

 

 

-

 

 

 

(5,702

)

 

 

 

-

 

Net income attributable to controlling interest

 

 

34,421

 

 

 

 

(4,082

)

 

 

57,515

 

 

 

 

(4,582

)

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from foreign currency translation adjustments

 

 

-

 

 

 

 

2

 

 

 

(107

)

 

 

 

(105

)

Comprehensive income (loss), net of tax

 

$

34,421

 

 

 

$

(4,080

)

 

$

57,408

 

 

 

$

(4,687

)

Earnings per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per unit attributable to Class A and Class B common unit holders (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

 

 

 

 

$

(1.55

)

 

 

 

 

 

$

(1.90

)

Weighted average Class A and Class B units outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

 

 

 

 

 

7,723,592

 

 

 

 

 

 

 

7,723,592

 

Net income per share attributable to shares of Class A common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.66

 

 

 

 

 

 

$

1.12

 

 

 

 

 

Diluted

 

$

0.25

 

 

 

 

 

 

$

0.43

 

 

 

 

 

Weighted average Class A common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

52,259,885

 

 

 

 

 

 

 

51,530,961

 

 

 

 

 

Diluted

 

 

135,524,773

 

 

 

 

 

 

 

135,305,168

 

 

 

 

 

 

(1)
Inclusive of $1,541 and $695 of depreciation and amortization for the three months ended June 30, 2022 and June 30, 2021, respectively; and of $3,236 and $1,549 for the six months ended June 30, 2022 and June 30, 2021, respectively;
(2)
Inclusive of $443 and $3,854 of cost of revenue related to inventory purchases from a related party for the three months ended June 30, 2022 and June 30, 2021, respectively; and $1,552 and $4,434 for the six months ended June 30, 2022 and June 30, 2021, respectively;
(3)
Inclusive of $0 and $0 of inventory step-up amortization for the three months ended June 30, 2022 and June 30, 2021, respectively; and $3,241 and $277 for the six months ended June 30, 2022 and June 30, 2021, respectively;
(4)
Inclusive of $11 and $482 of management fees incurred to a related party for the three months ended June 30, 2022 and June 30, 2021, respectively; and $82 and $835 for the six months ended June 30, 2022 and June 30, 2021, respectively; and
(5)
Basic and diluted net loss per unit amounts are the same for both Class A common units and Class B common units. See Note 13.

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

 

5


 

Fathom Digital Manufacturing Corporation

Consolidated Statement of Shareholders' Equity and Redeemable Non-Controlling Interest (Successor)

(Unaudited)

(In thousands, except share amounts)

 

 

 

Class A Common Shares

 

 

Class B Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor:

 

Number of Shares

 

 

Par Value ($0.0001 per share)

 

 

Number of Shares

 

 

Par Value ($0.0001 per share)

 

 

Treasury stock

 

 

Additional Paid-in Capital

 

 

Accumulated Deficit

 

 

Total Equity Attributable to Fathom

 

 

 

Redeemable Non-controlling Interest

 

Balance at December 31, 2021

 

 

50,785,656

 

 

$

5

 

 

 

84,294,971

 

 

$

8

 

 

$

-

 

 

$

466,345

 

 

$

(47,581

)

 

$

418,777

 

 

 

$

841,982

 

Equity based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,130

 

 

 

-

 

 

 

2,130

 

 

 

 

-

 

Adoption of ASC 842

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

82

 

 

 

82

 

 

 

 

-

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

22,991

 

 

 

22,991

 

 

 

 

(5,259

)

Balance at March 31, 2022

 

 

50,785,656

 

 

 

5

 

 

 

84,294,971

 

 

 

8

 

 

 

-

 

 

 

468,475

 

 

 

(24,508

)

 

 

443,980

 

 

 

 

836,723

 

Equity based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,795

 

 

 

-

 

 

 

1,795

 

 

 

 

-

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34,421

 

 

 

34,421

 

 

 

 

(442

)

Vesting of restricted shares, net of tax witholding

 

 

530,532

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,258

)

 

 

-

 

 

 

-

 

 

 

(2,258

)

 

 

 

-

 

Exchange of Class B common stock and Fathom Opco units

 

 

10,280,331

 

 

 

1

 

 

 

(10,280,331

)

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

Non-controlling interest remeasurement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

86,666

 

 

 

-

 

 

 

86,666

 

 

 

 

(86,666

)

TRA liability on capital transactions

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,000

)

 

 

-

 

 

 

(5,000

)

 

 

 

-

 

Tax impact of exchange of Class B common stock and Fathom Opco units

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,481

 

 

 

-

 

 

 

4,481

 

 

 

 

-

 

Balance at June 30, 2022

 

 

61,596,519

 

 

$

6

 

 

 

74,014,640

 

 

$

7

 

 

$

(2,258

)

 

$

556,417

 

 

$

9,913

 

 

$

564,085

 

 

 

$

749,615

 

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

 

6


 

Fathom Digital Manufacturing Corporation

Consolidated Statement of Class A Contingently Redeemable Preferred Units and Members' Equity (Predecessor) (Unaudited)

(In thousands, except unit amounts)

 

 

 

Class A Contingently Redeemable Preferred Equity

 

 

Class A Common Units

 

 

Class B Common Units

 

 

 

 

 

 

 

 

 

Number of Units

 

 

Amount

 

 

Number of Units

 

 

Amount

 

 

Number of Units

 

 

Amount

 

 

Accumulated
Deficit

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Total

 

Balance at December 31, 2020

 

 

1,167,418

 

 

$

54,105

 

 

 

5,480,611

 

 

$

35,869

 

 

 

2,242,981

 

 

$

14,450

 

 

$

(14,232

)

 

$

(68

)

 

$

36,019

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(500

)

 

 

-

 

 

 

(500

)

Foreign currency translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(107

)

 

 

(107

)

Balance at March 31, 2021

 

 

1,167,418

 

 

$

54,105

 

 

 

5,480,611

 

 

$

35,869

 

 

 

2,242,981

 

 

$

14,450

 

 

$

(14,732

)

 

$

(175

)

 

$

35,412

 

Share based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

31

 

 

 

-

 

 

 

-

 

 

 

31

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,082

)

 

 

-

 

 

 

(4,082

)

Foreign currency translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2

 

 

 

2

 

Balance at June 30, 2021

 

 

1,167,418

 

 

$

54,105

 

 

 

5,480,611

 

 

$

35,869

 

 

 

2,242,981

 

 

$

14,481

 

 

$

(18,814

)

 

$

(173

)

 

$

31,363

 

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

7


 

Fathom Digital Manufacturing Corporation

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

 

Six Months ended

 

 

 

June 30, 2022 (Successor)

 

 

 

June 30, 2021 (Predecessor)

 

Cash Flows from Operating Activities

 

 

 

 

 

 

 

Net income (loss)

 

$

57,515

 

 

 

$

(4,582

)

Adjustments to reconcile net income (loss) to net cash from operating activities:

 

 

 

 

 

 

 

Depreciation

 

 

274

 

 

 

 

1,521

 

Depreciation and amortization included in cost of revenue

 

 

3,236

 

 

 

 

1,549

 

Amortization of intangible assets

 

 

8,694

 

 

 

 

4,555

 

Amortization of inventory step-up

 

 

3,241

 

 

 

 

-

 

(Gain) loss on disposal of property and equipment

 

 

(164

)

 

 

 

79

 

Foreign currency translation adjustment

 

 

(107

)

 

 

 

(105

)

Gain on PPP forgiveness

 

 

-

 

 

 

 

(1,624

)

Share-based compensation

 

 

3,925

 

 

 

 

31

 

Non cash lease expense, net

 

 

266

 

 

 

 

-

 

Deferred taxes

 

 

(734

)

 

 

 

-

 

Bad debt expense

 

 

-

 

 

 

 

91

 

Non-controlling interest share of Fathom OpCo net loss

 

 

(5,701

)

 

 

 

-

 

Change in fair value of Fathom earnout shares liability

 

 

(36,610

)

 

 

 

-

 

Change in fair value of Sponsor earnout shares liability

 

 

(5,290

)

 

 

 

-

 

Change in fair value of TRA

 

 

(200

)

 

 

 

-