Tailwind Two Acquisition Corp. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Organization and Summary of Significant Accounting Policies (Tables)

Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 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:


	December 31,
(in thousands)	2022		2021
Deferred debt commitment costs	$	-	$	46,632
Deferred equity issuance costs		-		6,085
Deferred cost of sales		2,482		2,950
Other current assets		7,228		1,972
Prepaid expenses and other current assets	$	9,710	$	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 and were reclassified to discount on debt and deferred issuance costs upon the issuance of the associated debt in March 2022. Refer to Note 5 “Debt” and Note 6 “Warrants and Derivatives” for further discussion.

Accrued Expenses and Other Current Liabilities

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


	December 31,
(in thousands)	2022		2021
Current warrant and derivative liabilities(1)	$	-	$	68,518
Payroll-related accruals		5,671		5,771
Current operating lease liabilities		971		-
Accrued interest		2,107		-
Other current liabilities		2,972		1,847
Accrued expenses and other current liabilities	$	11,721	$	76,136

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

Summary of Individual Customers

There were no other individual customers who accounted for more than 10% of the Company’s revenue in 2022 or 2021.

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:


	December 31,
	2022	2021
Customer A	42%	19%
Customer B	12%	0%
Customer C	11%	11%
Customer D	9%	20%
Customer E	6%	22%
Customer F	3%	12%
Total	83%	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 consolidated balance sheet was as follows:


(in thousands)	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