Post-effective amendment to a registration statement that is not immediately effective upon filing

Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit)

v3.22.1
Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit)
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit)
Note 9. Convertible Preferred Stock, Common Stock and Stockholders’ Equity (Deficit)
Immediately prior to the closing of the Merger, the convertible preferred stock was converted into Legacy Markforged common stock and recapitalized into Common Stock. There was no convertible preferred stock outstanding as of December 31, 2021. The following table summarizes details of convertible preferred stock authorized, issued and outstanding as of December 31, 2020. The Company has retroactively adjusted the shares issued and outstanding prior to July 14, 2021 to give effect to the Exchange Ratio to determine the number of shares of common stock into which they were converted:
 
    
December 31, 2020
  
(in thousands, except for share counts)
   
Shares
Authorized
     
Shares Issued
and
Outstanding
     
Issuance
Price Per
Share
     
Net
Carrying
Value
     
Liquidation
Preference
  
Series Seed
      18,233,848        17,062,642      $ 0.0649      $ 1,107      $ 1,107  
Series A
      28,725,920        27,354,298        0.3107        8,437        8,500  
Series B
      34,391,480        32,749,335        0.4635        15,096        15,180  
Series C
      14,468,290        13,777,449        2.1775        29,881        30,000  
Series D
      17,599,646        16,649,077        4.9906        82,976        83,089  
    
 
 
     
 
 
              
 
 
     
 
 
  
Total convertible preferred stock
      113,419,184        107,592,801               $ 137,497      $ 137,876  
    
 
 
     
 
 
              
 
 
     
 
 
  
Repurchases
During the year ended December 31, 2021, immediately prior to the effective time of the Merger, the Company repurchased 4,499,998 shares of Legacy Markforged common stock from three employees for $10.00 per share. The value of the repurchase was recorded as a reduction of additional
paid-in
capital.
 
During the year ended December 31, 2020, the Company repurchased common stock from an employee. Concurrent to the repurchase, the Company was contractually obligated to repurchase an additional 250,471 shares of common stock from this employee for $4.52 per share in 2021, subject to certain conditions. This obligation was waived by the parties in April 2021.
Management determined the fair value of Legacy Markforged common stock prior to the merger using the methodology described in the Summary of Significant Accounting Policies, adjusting for changes in inputs based on material information known at the time of a repurchase transaction such as estimated timing to exit events and respective probabilities of such events occurring.
Common Stock Reserved for Future Issuance
The Company has reserved the following shares of common stock for future issuance:
 
    
December 31,
2021
     
December 31,
2020
  
Common stock options outstanding and unvested RSU
      20,267,035        18,493,013  
Shares available for issuance under the 2021 plan
      21,502,768        —    
Shares available for issuance under the 2013 plan
      —          4,427,323  
Convertible preferred stock outstanding
      —          107,592,801  
Warrants to purchase Series D convertible preferred stock
      —          110,211  
Common stock warrants outstanding
      8,525,000        180,928  
Shares available for issuance as Earnout RSU
      1,400,000        —    
Employee stock purchase plan
      4,700,000        —    
    
 
 
     
 
 
  
Total shares of authorized common stock reserved for future issuance
      56,394,803        130,804,276