Tailwind Two Acquisition Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Organization and Summary of Significant Accounting Policies (Tables)

Organization and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of the dates presented:


(in thousands)	September 30, 2022		December 31, 2021
Deferred debt commitment costs	$	76	$	46,632
Deferred equity issuance costs		-		6,085
Deferred cost of sales		1,158		2,950
Other current assets		7,441		1,972
Prepaid expenses and other current assets	$	8,675	$	57,639

As of December 31, 2021, d

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of the dates presented:


(in thousands)	September 30, 2022		December 31, 2021
Deferred debt commitment costs	$	76	$	46,632
Deferred equity issuance costs		-		6,085
Deferred cost of sales		1,158		2,950
Other current assets		7,441		1,972
Prepaid expenses and other current assets	$	8,675	$	57,639

As of December 31, 2021, deferred debt commitment costs related to warrants and other consideration transferred in association with a financing arrangement entered into in anticipation of the Tailwind Two Merger. The deferred debt commitment costs related to the Tailwind Two Merger were reclassified to discount on debt and deferred issuance costs in connection with the issuance of the associated debt in March 2022. As of September 30, 2022, deferred debt commitment costs related to third-party issuance costs for a financing transaction executed during the fourth quarter of 2022. Refer to Note 5 “Debt” and Note 6 “Warrants and Derivatives” for further discussion.

Deferred equity issuance costs relate to direct and incremental legal, accounting, and other transaction costs incurred in connection with the Tailwind Two Merger. Upon closing of the Tailwind Two Merger, the deferred equity issuance costs were reclassified as a reduction to additional paid-in capital. Payments associated with deferred equity issuance costs are reflected in payment of issuance costs in the condensed consolidated statements of cash flows.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of the dates presented:



(in thousands)	September 30, 2022		December 31, 2021
Current warrant and derivative liabilities(1)	$	-	$	68,518
Payroll-related accruals		5,346		5,771
Current operating lease liabilities		1,253		-
Accrued interest		2,105		-
Other current liabilities		5,349		1,847
Accrued expenses and other current liabilities	$	14,053	$	76,136

(1) Refer to Note 6 “Warrants and Derivatives” for further discussion.

Summary of Individual Customers

The table below presents individual customers who accounted for more than 10% of the Company’s revenue for the periods presented:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
Customer A	77%	62%	75%	47%
Customer B	4%	15%	3%	7%
Total	81%	77%	78%	54%

The table below presents individual customers who accounted for more than 10% of the Company’s combined accounts receivable, net of allowance for credit losses, and contract assets, net of allowance for credit losses, as of the dates presented:


	September 30, 2022	December 31, 2021
Customer A	64%	19%
Customer B	14%	11%
Customer C	9%	22%
Customer D	2%	12%
Customer E	2%	20%
Total	91%	84%

ASU 2016-02 (Topic 842)

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Schedule of Net Impact of Adoption in Condensed Consolidated Balance Sheet

The net impact of the adoption to the condensed consolidated balance sheet was as follows:


(in thousands)	December 31, 2021		Lease Standard Adoption Adjustment		January 1, 2022
Assets
Other assets	$	639	$	6,550	$	7,189

Liabilities
Accrued expenses and other current liabilities		76,136		166		76,302
Other liabilities		2,028		6,384		8,412