Filed pursuant to Rule 424(b)(3)
Registration Statement No. 333-254987

Prospectus Supplement No. 6

(To Prospectus dated August 19, 2021)

OUSTER, INC.

 

LOGO

 

 

This prospectus supplement updates, amends and supplements the prospectus dated August 19, 2021 (the “Prospectus”), which forms a part of our Registration Statement on Form S-1 (Registration No. 333-254987). Capitalized terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the Prospectus.

This prospectus supplement is being filed to update, amend and supplement the information included in the Prospectus with information on Ouster, Inc.’s unaudited fourth quarter and full year 2021 financial results, which is set forth below.

This prospectus supplement is not complete without the Prospectus. This prospectus supplement should be read in conjunction with the Prospectus, which is to be delivered with this prospectus supplement, and is qualified by reference thereto, except to the extent that the information in this prospectus supplement updates or supersedes the information contained in the Prospectus. Please keep this prospectus supplement with your Prospectus for future reference.

Ouster, Inc.’s common stock and warrants are listed on the New York Stock Exchange under the symbols “OUST” and “OUST WS.” On February 15, 2022, the closing price of our common stock was $3.22 and the closing price of our warrants was $0.63.

 

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities 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 February 16, 2022.


OUSTER, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands)

 

     December 31  
     2021     2020  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 182,644     $ 11,362  

Restricted cash, current

     977       276  

Accounts receivable, net

     10,723       2,327  

Inventory

     7,448       4,817  

Prepaid expenses and other current assets

     5,566       2,441  
  

 

 

   

 

 

 

Total current assets

     207,358       21,223  

Property and equipment, net

     10,054       9,731  

Operating lease, right-of-use assets

     15,156       11,071  

Goodwill

     51,076       —    

Intangible assets, net

     22,652       —    

Restricted cash, non-current

     1,035       1,004  

Other non-current assets

     371       3,385  
  

 

 

   

 

 

 

Total assets

   $ 307,702     $ 46,414  
  

 

 

   

 

 

 

Liabilities, redeemable convertible preferred stock and stockholder’s deficit

    

Current liabilities:

    

Accounts payable

   $ 4,863     $ 6,894  

Accrued and other current liabilities

     14,173       4,121  

Short-term debt

     —         7,130  

Operating lease liability, current portion

     3,067       2,772  
  

 

 

   

 

 

 

Total current liabilities

     22,103       20,917  

Operating lease liability, long term portion

     16,208       11,908  

Warrant liabilities

     7,626       49,293  

Other non-current liabilities

     1,065       978  
  

 

 

   

 

 

 

Total liabilities

     47,002       83,096  
  

 

 

   

 

 

 

Commitments and contingencies

    

Redeemable convertible preferred stock

     —         39,225  
  

 

 

   

 

 

 

Stockholders’ equity (deficit):

    

Common stock

     17       —    

Additional paid-in capital

     564,045       133,468  

Accumulated deficit

     (303,356     (209,375

Accumulated other comprehensive loss

     (6     —    
  

 

 

   

 

 

 

Total stockholder’s equity (deficit)

     260,700       (75,907
  

 

 

   

 

 

 

Total liabilities, redeemable convertible preferred stock, and stockholder’s deficit

   $ 307,702     $ 46,414  
  

 

 

   

 

 

 

 

2


OUSTER, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited)

(in thousands, except share and per share data)

 

     Three Months Ended Dec 31,     Year Ended December 31,  
     2021     2020     2021     2020  

Revenue

        

Product revenue

   $ 11,852     $ 6,362     $ 33,578     $ 16,886  

Service revenue

     —         14       —         2,018  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     11,852       6,376       33,578       18,904  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue

        

Cost of product

     8,280       4,403       24,492       17,365  

Cost of services

     —         —         —         26  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     8,280       4,403       24,492       17,391  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     3,572       1,973       9,086       1,513  

Operating expenses:

        

Research and development

     15,003       4,289       34,579       23,317  

Sales and marketing

     7,481       2,693       22,258       8,998  

General and administrative

     15,782       9,104       51,959       20,960  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     38,266       16,086       108,796       53,275  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (34,694     (14,113     (99,710     (51,762

Other (expense) income:

        

Interest income

     166       —         471       24  

Interest expense

     —         (321     (504     (2,517

Other income (expense), net

     3,390       (42,351     2,968       (52,150
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense, net

     3,556       (42,672     2,935       (54,643

Loss before income taxes

     (31,138     (56,785     (96,775     (106,405

Provision for (benefit from) income taxes

     (2,794     375       (2,794     375  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (28,344     (57,160     (93,981     (106,780
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive loss

        

Foreign currency translation adjustments

     (6     —         (6     —    

Total comprehensive loss

     (28,350     (57,160     (93,987     (106,780

Net loss per common share, basic

   $ (0.17   $ (2.37   $ (0.70   $ (5.98

Weighted-average common shares outstanding, basic

     165,853,915       24,130,953       133,917,571       17,858,976  

 

3


OUSTER, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

     For The Years Ended December 31,  
     2021     2020  

CASH FLOWS FROM OPERATING ACTIVITIES

    

Net loss

   $ (93,981   $ (106,780

Adjustments to reconcile net loss to net cash used in operating activities:

    

Depreciation and amortization

     5,477       3,718  

Stock-based compensation

     25,363       12,057  

Deferred income taxes

     (2,477     —    

Change in right-of-use asset

     2,180       1,887  

Interest expense on notes and convertible debt

     36       1,030  

Amortization of debt issuance costs and debt discount

     250       258  

Change in fair value of warrant liabilities

     (2,947     48,440  

Change in fair value of derivative liability

     —         5,308  

Gain on extinguishment of tranche right liability

     —         (1,610

Provision for doubtful accounts

     379       67  

Inventory write down

     808       797  

Changes in operating assets and liabilities:

    

Accounts receivable

     (8,007     (1,457

Inventory

     (3,440     (3,146

Prepaid expenses and other assets

     854       (1,442

Accounts payable

     (2,442     144  

Accrued and other liabilities

     9,060       (417

Operating lease liability

     (1,670     (971
  

 

 

   

 

 

 

Net cash used in operating activities

     (70,557     (42,117
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

    

Purchases of property and equipment

     (4,283     (3,509

Acquisition, net of cash acquired

     (10,946     —    
  

 

 

   

 

 

 

Net cash used in investing activities

     (15,229     (3,509
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

    

Proceeds from the merger and private offering

     291,442       —    

Payment of offering costs

     (27,124     —    

Repayment of debt

     (7,000     (3,000

Proceeds from issuance of promissory notes to related parties

     5,000       —    

Repayment of promissory notes to related parties

     (5,000     —    

Repurchase of common stock

     (45     —    

Proceeds from exercise of stock options

     526       1,337  

Proceeds from exercise of warrants

     1       —    

Proceeds from issuance of redeemable convertible preferred stock, net off issuance cost of $265

     —         41,526  
  

 

 

   

 

 

 

Net cash provided by financing activities

     257,800       39,863  
  

 

 

   

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

     172,014       (5,763

Cash, cash equivalents and restricted cash at beginning of period

     12,642       18,405  
  

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

   $ 184,656     $ 12,642  
  

 

 

   

 

 

 

 

4


OUSTER, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(unaudited)

(in thousands)

 

     Three Months Ended December 31,     Year Ended December 31,  
     2021     2020     2021     2020  

GAAP net loss

   $ (28,344   $ (57,160   $ (93,981   $ (106,780

Interest expense (income), net

     (166     321       33       2,493  

Other expense (income), net

     (3,390     42,351       (2,968     52,150  

Stock-based compensation(1)

     6,805       4,166       25,363       12,057  

Income taxes

     (2,794     375       (2,794     375  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating loss

     (27,889     (9,947     (74,347     (39,705

Depreciation and amortization expense

     2,049       1,013       5,477       3,718  

Non-recurring acquisition expense

     1,535       —         1,535       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (24,306   $ (8,934   $ (67,336   $ (35,987
  

 

 

   

 

 

   

 

 

   

 

 

 

(1) Stock-based compensation for the three months ended December 31, 2021, in cost of revenue, research and development, sales and marketing and general administrative expenses were $0.2 million, $2.9 million, $1.1 million and $2.6 million, respectively, and $0.1 million, $0.9 million, $0.2 million and $3 million, respectively, for the same period in the prior year. Stock-based compensation for the year ended December 31, 2021, in cost of revenue, research and development, sales and marketing and general administrative expenses were $0.7 million, $7.3 million, $3.8 million and $13.6 million, respectively, and $0.7 million, $6 million, $0.7 million and $4.7 million, respectively, for the same period in the prior year.

Non-GAAP Financial Measures

In addition to its results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), Ouster believes the non-GAAP measure of Adjusted EBITDA is useful in evaluating its operating performance. Ouster calculates Adjusted EBITDA as net loss excluding interest expense (income), net, other expense (income), net, stock-based compensation expense, depreciation and amortization and non-recurring acquisition related expenses. Ouster believes that Adjusted EBITDA may be helpful to investors because it provides consistency and comparability with past financial performance and may be helpful in comparison with other companies, some of which use similar non-GAAP information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

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