Summary Consolidated Financial Data
SUMMARY CONSOLIDATED FINANCIAL DATA
The following tables summarize the consolidated financial and operating data for the periods indicated. This summary consolidated financial data should be read together with our consolidated financial statements and related notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" appearing elsewhere in this prospectus. The consolidated statements of operations data for the years ended December 31, 2010, 2011 and 2012 are derived from our consolidated financial statements appearing elsewhere in this prospectus. The consolidated statements of operations data for the six months ended June 30, 2012 and 2013 and the consolidated balance sheet data as of June 30, 2013 have been derived from our unaudited consolidated financial statements included elsewhere in this prospectus. Our historical results are not necessarily indicative of our future results. You should read the summary financial data presented below in conjunction with our consolidated financial statements and related notes and the sections of this prospectus titled "Selected Consolidated Financial Data" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." COMMAND=ADD_TABLEWIDTH,"110%" User-specified TAGGED TABLE end of user-specified TAGGED TABLE COMMAND=ADD_TABLEWIDTH,"110%" User-specified TAGGED TABLE end of user-specified TAGGED TABLE COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="23%" ALIGN="LEFT"
- (1)
- These expenses include stock-based compensation expense. Stock-based compensation expense is accounted for at fair value, using the Black-Scholes option-pricing model. Stock-based compensation expense is recognized over the vesting period of the stock options and was included in cost of goods sold and operating expenses as follows:
- (2)
- The
pro forma basic and diluted net loss per share attributable to our common stockholders calculations assume the conversion of all outstanding shares of
preferred stock into shares of common stock using the as-if-converted method as though the conversion had occurred at the beginning of the period presented and the resulting
reclassification of the preferred stock warrant liability to additional paid-in capital.
- (3)
- We prepare Adjusted EBITDA and our other non-GAAP measures to eliminate the impact of items that we do not consider indicative of our overall operating performance. To arrive at our non-GAAP gross profit, we exclude stock-based compensation expense from our GAAP gross profit. To arrive at our non-GAAP income (loss) from operations, we exclude all amortization of intangible assets, stock-based compensation expense and non-recurring consulting fees, if any, from our GAAP net income (loss) from operations. To arrive at Adjusted EBITDA, we exclude these same items and, additionally, exclude asset impairment charges, loss (gain) from disposal of idle assets, unrealized exchange loss (gain), interest (income) expense, on a net basis, provision for (benefit from) income taxes and depreciation expense, from our GAAP net income (loss).
We believe that our non-GAAP measures are useful to investors in evaluating our operating performance for the following reasons:
- •
- We believe that elimination of items such as stock-based compensation expense, depreciation and amortization, income tax
expense and other income, net, is appropriate because treatment of these items may vary for reasons unrelated to our overall operating performance;
- •
- We use non-GAAP measures in conjunction with our GAAP financial measures for planning purposes, including the
preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our
financial performance;
- •
- We believe that non-GAAP measures provide better comparability with our past financial performance,
facilitates better period-to-period comparisons of operational results and also facilitates comparisons with our peer companies, many of which also use similar
non-GAAP financial measures to supplement their GAAP reporting; and
- •
- We anticipate that, after consummating this offering, our investor presentations and those of securities analyst will include non-GAAP measures to evaluate our overall operating performance.
Adjusted EBITDA and other non-GAAP measures should not be considered as an alternative to gross profit, income (loss) from operations, net income (loss) or any other measure of financial performance calculated and presented in accordance with GAAP. Our Adjusted EBITDA and other non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate Adjusted EBITDA or such other non-GAAP measures in the same manner. You are encouraged to evaluate these adjustments and the reason we consider them appropriate.
The following table reflects the reconciliation of U.S. GAAP financial measures to non-GAAP financial measures:
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- (1)
- Total
cash is defined as cash, cash equivalents and restricted cash.
- (2)
- Working
capital is defined as total current assets less total current liabilities.
- (3)
- Total
debt is defined as short-term loans, notes payable and total long-term debt.
- (4)
- On
a pro forma basis to give effect to the automatic conversion of all of our outstanding shares of preferred stock into 261,286,610 shares of common
stock using the as-if-converted method as though the conversion had occurred at the beginning of the period presented and the resulting reclassification of the preferred stock warrant liability to
additional paid-in capital.
- (5)
- On a pro forma as adjusted basis to reflect the pro forma adjustments described in note 4 above and the sale by us of shares of common stock in this offering, at an assumed initial public offering price of $ per share, the midpoint of the price range on the front cover of this prospectus, after deducting underwriting discounts and commissions and estimated offering expenses.
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