QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
|
||
(Address of Principal Executive Offices) |
(Zip code) |
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer |
☐ |
Accelerated filer |
☐ | |||
Non-accelerated filer |
☒ |
Smaller reporting company |
||||
Emerging growth company |
Page |
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Part I |
2 | |||||
Item 1. |
2 | |||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
6 | ||||||
7 | ||||||
Item 2. |
39 | |||||
Item 3. |
56 | |||||
Item 4. |
57 | |||||
Part II |
58 | |||||
Item 1. |
58 | |||||
Item 1A. |
58 | |||||
Item 6. |
59 |
As of March 31, 2023 |
As of December 31, 2022 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
Investments in marketable securities |
||||||||
Accounts receivable 1 |
||||||||
Aircraft support parts |
||||||||
Prepaid expenses and other current assets |
||||||||
Deferred offering costs |
— | |||||||
Total current assets |
||||||||
Property, plant and equipment, net |
||||||||
Intangible assets, net |
||||||||
Goodwill |
||||||||
Other noncurrent assets |
||||||||
Total assets |
$ | $ | ||||||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued expenses and other current liabilities |
||||||||
Operating right-of-use |
||||||||
Current portion of long-term debt, net of debt issuance costs |
||||||||
Total current liabilities |
||||||||
Long-term accrued expenses and other noncurrent liabilities |
||||||||
Operating right-of-use |
||||||||
Long-term debt, net of debt issuance costs 2 |
||||||||
Total liabilities |
$ | $ | ||||||
COMMITMENTS AND CONTINGENCIES |
||||||||
MEZZANINE EQUITY |
||||||||
Series A Preferred Stock, $ |
— |
|||||||
Legacy Bridger Series C Preferred Shares, $ |
— | |||||||
STOCKHOLDERS’ DEFICIT |
||||||||
Common Stock, $shares authorized; shares issued and outstanding at March 31, 2023; |
||||||||
Additional paid-in capital |
— | |||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Accumulated other comprehensive income |
||||||||
Total stockholders’ deficit |
( |
) | ( |
) | ||||
Total liabilities, mezzanine equity and stockholders’ deficit |
$ | $ | ||||||
1 |
Includes related party accounts receivable of $ |
2 |
Includes related party debt of $for the 2022 taxable industrial revenue bond as of March 31, 2023 and December 31, 2022, respectively. |
For the three months ended March 31, |
||||||||
2023 |
2022 |
|||||||
Revenues 1 |
$ | $ | ||||||
Cost of revenues: |
||||||||
Flight operations |
||||||||
Maintenance |
||||||||
Total cost of revenues |
||||||||
Gross loss |
( |
) | ( |
) | ||||
Selling, general and administrative expense |
||||||||
Operating loss |
( |
) | ( |
) | ||||
Interest expense 2 |
( |
) | ( |
) | ||||
Other income |
||||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Series A Preferred Stock – adjustment for deemed dividend upon Closing |
$ |
( |
) | $ |
— | |||
Series A Preferred Stock – adjustment to eliminate 50% multiplier |
$ |
$ |
— | |||||
Series A Preferred Stock – adjustment to maximum redemption value |
$ |
( |
) |
$ |
— | |||
Legacy Bridger Series A Preferred Shares – adjustment for redemption, extinguishment and accrued interest |
$ |
— | $ |
( |
) | |||
Net income (loss) attributable to Common stockholders – basic and diluted |
$ | $ | ( |
) | ||||
Net income (loss) per Common Stock – basic |
$ | $ | ( |
) | ||||
Net income (loss) per Common Stock – diluted |
$ | $ | ( |
) | ||||
Weighted average Common Stock outstanding – basic |
||||||||
Weighted average Common Stock outstanding – diluted |
1 |
Includes related party revenues of $ |
2 |
Includes related party interest of approximately $ for the 2022 taxable industrial revenue bond for the three months ended March 31, 2023. |
For the three months ended March 31, |
||||||||
2023 |
2022 |
|||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Other comprehensive (loss) income, net of tax: |
||||||||
Foreign currency translation adjustment |
( |
) | ||||||
Unrealized (loss) gain on derivative instruments |
( |
) | ||||||
Unrealized gain on investments in marketable securities |
||||||||
Reclassification of realized gains on investments in marketable securities to earnings |
( |
) | ||||||
|
|
|
|
|||||
Total other comprehensive (loss) income, net of tax |
( |
) | ||||||
|
|
|
|
|||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
Legacy Bridger Series A Preferred Shares |
Legacy Bridger Series B Preferred Shares |
Legacy Bridger Series C Preferred Shares / Series A Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Accumul ated Other Compreh ensive Income |
Total Stockholders’ Deficit |
|||||||||||||||||||||||||||||||||||||||||
Share |
Value |
Share |
Value |
Share |
Value |
Share |
Value |
|||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 |
|
$ |
$ |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||||||||||||||||||||||||||
Liquidation preference on Series |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||||||||
Unrealized gain on derivative instruments |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
Stock based Legacy recapitalization |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||||||||
Balance at March 31, |
$ |
$ |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||||||||||||||||||||||||||||
Balance at December 31, |
— |
— |
— |
— |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||||||||||||||||||||||||||||
Unrealized loss on derivative instruments |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
Unrealized gain on investment in marketable securities |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||
Reclassification of realized gains on investments in marketable securities to earnings |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||||||||
Effect of the Closing |
— |
— |
— |
— |
— |
( |
) |
— |
||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock adjustment to |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||||||||||
Stock based recapitalization |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||
Balance at March 31, |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||||||||||||||||||||||||
For the three months ended March 31, |
||||||||
2023 |
2022 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
||||||||
(Gain) loss on sale of fixed assets |
( |
) | ||||||
Depreciation and amortization |
||||||||
Stock based compensation expense |
||||||||
Change in fair value of the Warrants |
|
|
( |
) |
|
|
— | |
Change in fair value of freestanding derivative |
|
|
|
|
|
|
— |
|
Amortization of debt issuance costs |
||||||||
Interest accrued on Legacy Bridger Series B Preferred Shares |
— | |||||||
Change in fair value of Legacy Bridger Series C Preferred Shares |
( |
) | — | |||||
Realized gain on investments in marketable securities |
( |
) | — | |||||
Changes in operating assets and liabilities |
||||||||
Accounts receivable 1 |
( |
) | ||||||
Aircraft support parts |
||||||||
Prepaid expense and other current and noncurrent assets |
( |
) | ||||||
Accounts payable, accrued expenses and other liabilities |
( |
) | ||||||
|
|
|
|
|||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Cash Flows from Investing Activities: |
||||||||
Investments in construction in progress – buildings |
( |
) | ( |
) | ||||
Proceeds from sales and maturities of marketable securities |
— | |||||||
Sale of property, plant and equipment |
||||||||
Purchases of property, plant and equipment |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash provided by (used in) investing activities |
( |
) | ||||||
|
|
|
|
|||||
Cash Flows from Financing Activities: |
||||||||
Payment of finance lease liability |
( |
) | — | |||||
Proceeds from the Closing |
— | |||||||
Costs incurred related to the Closing |
( |
) | — | |||||
Borrowings from various First Interstate Bank vehicle loans |
— | |||||||
Repayments on debt |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash used in financing activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Effects of exchange rate changes |
( |
) | ||||||
Net change in cash, cash equivalents and restricted cash |
( |
) | ( |
) | ||||
Cash, cash equivalents and restricted cash – beginning of the period |
||||||||
|
|
|
|
|||||
Cash, cash equivalents and restricted cash – end of the period |
$ | $ | ||||||
|
|
|
|
|||||
Less: Restricted cash – end of the period |
||||||||
|
|
|
|
|||||
Cash and cash equivalents – end of the period |
$ | $ | ||||||
|
|
|
|
|||||
Supplemental disclosure of non-cash operating and financing activities |
||||||||
Assumption of Jack Creek liabilities |
$ |
$ |
— | |||||
Recognition of warrant liabilities |
$ |
$ |
— | |||||
Recognition of Deferred underwriting fee |
$ |
$ |
— | |||||
Supplemental cash flow information |
||||||||
Interest paid 2 |
$ | $ | ||||||
Fixed assets in accounts payable |
$ | $ | ||||||
Conversion of Promissory Note to Common Stock |
|
$ |
|
|
|
$ |
— |
|
Series A Preferred Stock – adjustment for deemed dividend upon Closing |
$ |
$ |
— | |||||
Series A Preferred Stock – adjustment to eliminate 50% multiplier |
$ |
$ |
— | |||||
Series A Preferred Stock - adjustment to maximum redemption value |
$ |
$ |
— | |||||
Legacy Bridger Series A Preferred Shares – adjustment for redemption, extinguishment and accrued interest |
|
$ |
— | |
|
$ |
|
|
1 |
Includes related party accounts receivable of $ |
2 |
Includes related party interest paid of approximately $ for the 2022 taxable industrial revenue bond for the three months ended March 31, 2023. |
• | the surrender and exchange of all Legacy Bridger incentive units (“Incentive Units”) into shares of Bridger’s common stock, par value $ C ommon S tock consideration of approximately |
• | the direct or indirect surrender and exchange of the remaining C ommon S tock at a deemed value of $ |
• | the surrender and exchange of all issued and outstanding Series C preferred shares of Legacy Bridger (the “Legacy Bridger Series C Preferred Shares”), which were surrendered and exchanged on a one-to-one basis in connection with the Reverse Recapitalization into shares of preferred stock of Bridger that have the rights, powers, designations, preferences, and qualifications, limitations and restrictions set forth in Section 4.5 of the Amended and Restated Certificate of Incorporation (the “Series A Preferred Stock”). The Series A Preferred Stock are convertible at the election of the holders into shares of Common Stock, without the payment of additional consideration by the holders into such number of shares of Common Stock as determined by dividing the original issue price, plus accrued interest by a conversion price equal to $ |
• | the filing and effectiveness of the Amended and Restated Certificate of Incorporation of Bridger and the effectiveness of the Amended and Restated Bylaws of Bridger, each of which occurred immediately prior to the Closing; |
• | the adoption and assumption of the 2023 Omnibus Incentive Plan and any grants or awards issued thereunder and adoption of the 2023 Employee Stock Purchase Plan upon the Closing to grant equity awards to Bridger employees; and |
• | during the period from the Closing until five years following the Closing, JCIC subjected |
• | shares of Common Stock; |
• | shares of Bridger Series A Preferred Stock; |
• | private placement warrants (“Private Placement Warrants”) to purchase shares of Common Stock at an exercise price of ; |
• | public warrants (“Public Warrants”) to purchase shares of Common Stock at an exercise price of $ ; nd |
• | restricted stock units issued to the executives and senior management of the Company. |
• | Legacy Bridger equity holders have a relative majority of the voting power of Bridger; |
• |
Bridger’s board of directors (the “Board”) has nine (9) members, and representatives or designees of the Legacy Bridger equity holders comprise the majority of the members of the Board; |
• | Legacy Bridger’s senior management comprise the senior management roles and be responsible for the day-to-day |
• | Bridger assumed Legacy Bridger’s name of business; |
• | The strategy and operations of Bridger continue Legacy Bridger’s former strategy and operations; and |
• | The Reverse Recapitalization created an operating public company, with management continuing to use Legacy Bridger operations to grow the business. |
For the three months ended March 31, |
||||||||
2023 |
2022 |
|||||||
Fire suppression |
$ | $ | ||||||
Aerial surveillance |
||||||||
Other services |
||||||||
Total revenues |
$ | $ | ||||||
For the three months ended, March 31 |
||||||||
2023 |
2022 |
|||||||
Flight revenue |
$ | $ | ||||||
Standby revenue |
||||||||
Other revenue |
||||||||
Total revenues |
$ | $ | ||||||
As of March 31, 2023 |
As of December 31, 2022 |
|||||||
Carrying Value |
||||||||
Cash equivalents |
||||||||
Commercial paper |
$ | — | $ | |||||
Money market fund |
||||||||
Total cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
Money market fund |
$ | $ |
As of March 31, 2023 |
||||||||||||||||
Purchase Price |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
Investment in marketable securities |
||||||||||||||||
Commercial paper |
$ | $ | $ | — | $ | |||||||||||
Corporate bonds and notes |
— | |||||||||||||||
Government securities |
— | |||||||||||||||
Total marketable securities |
$ | $ | $ | — | $ | |||||||||||
As of December 31, 2022 |
||||||||||||||||
Purchase Price |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
Investment in marketable securities |
||||||||||||||||
Commercial paper |
$ | $ | $ | — | $ | |||||||||||
Corporate bonds and notes |
— | |||||||||||||||
Government securities |
— | ( |
) | |||||||||||||
Total marketable securities |
$ | $ | $ | ( |
) | $ | ||||||||||
As of March 31, 2023 |
As of December 31, 2022 |
|||||||
Repairables and expendables |
$ | $ | ||||||
Other support parts |
— | |||||||
Total aircraft support parts |
$ | $ | ||||||
As of March 31, 2023 |
As of December 31, 2022 |
|||||||
Prepaid insurance |
$ | $ | ||||||
Prepaid subscriptions |
||||||||
Other current assets |
||||||||
Total prepaid expenses and other current assets |
$ | $ | ||||||
As of March 31, 2023 |
As of December 31, 2022 |
|||||||
Aircraft |
$ | $ | ||||||
Less: accumulated depreciation |
( |
) | ( |
) | ||||
Aircraft, net |
||||||||
Construction-in-progress—Aircraft |
— | |||||||
Buildings |
||||||||
Vehicles and equipment |
||||||||
Construction-in-progress |
||||||||
Finance lease right-of-use-asset |
||||||||
Licenses |
||||||||
Less: accumulated depreciation |
( |
) | ( |
) | ||||
Buildings and equipment, net |
||||||||
Total property, plant and equipment, net |
$ | $ | ||||||
As of March 31, 2023 |
||||||||||||||||
Estimated Life (Years) |
Gross Carrying amount |
Accumulated Amortization |
Net Carrying Amount |
|||||||||||||
Licenses |
$ | $ | ( |
) | $ | |||||||||||
Internal-use software |
( |
) | ||||||||||||||
Total intangible assets |
$ | $ | ( |
) | $ | |||||||||||
As of December 31, 2022 |
||||||||||||||||
Estimated Life (Years) |
Gross Carrying amount |
Accumulated Amortization |
Net Carrying Amount |
|||||||||||||
Licenses |
$ | $ | ( |
) | $ | |||||||||||
Internal-use software |
( |
) | ||||||||||||||
Total intangible assets |
$ | $ | ( |
) | $ | |||||||||||
As of March 31, 2023 |
As of December 31, 2022 |
|||||||
Investment in Overwatch |
$ | $ | ||||||
Operating lease right-of-use |
||||||||
Interest rate swap |
||||||||
Prepaid subscriptions |
||||||||
Other assets |
||||||||
Total other noncurrent assets |
$ | $ | ||||||
As of March 31, 2023 |
As of December 31, 2022 |
|||||||
Accrued salaries, wages, and bonuses |
$ | $ | ||||||
Finance right-of-use |
||||||||
Accrued professional fees |
||||||||
Embedded derivative of Legacy Bridger Series C Preferred Shares |
— | |||||||
Embedded derivative of Series A Preferred Stock |
— | |||||||
Warrant liabilities |
— | |||||||
Deferred underwriting fee payable |
— | |||||||
Freestanding derivative on Legacy Bridger Series C Preferred Shares |
— | |||||||
Excess hold fee payable on Series A Preferred Stock |
— | |||||||
Accrued interest expense and other accrued liabilities |
||||||||
Total accrued expenses and other liabilities |
||||||||
Less: Current accrued expenses and other current liabilities |
( |
) | ( |
) | ||||
Total long-term accrued expenses and other noncurrent liabilities |
$ | $ | ||||||