See Posts Record Revenue of $74 Million, Despite Financial Struggles
Although facing financial problems that cast “substantial doubt” on its ability to continue, View Inc. reported positive financial results this week. In the smart manufacturing and building technologies company’s 2021 results, CEO Rao Mulpuri reported 125% growth over 2020 revenue as the company capitalizes on opportunities in the sector.
Mulpuri noted that with revenue growth comes View’s “industry transformation journey,” which includes developing products, building operations and driving technological change. While he says the real estate sector has seen minimal productivity gains over the past four decades, Mulpuri also noted that these conditions provide multiple opportunities for the business.
“While many saw this as a problem, we saw an opportunity to innovate and drive positive change,” he says.
The financial report follows View’s announcement in May that there is “substantial doubt about the company’s ability to continue as a going concern, as the company does not currently have adequate financial resources to fund its operating costs. operations and meet its obligations for at least 12 months from the expected publication date of its 2021 financial statements…”
Mulpuri adds: “We believe that our company’s capital needs in the future are only a fraction of what has already been invested to date. Over the past 13 years, significant capital has been invested in the business, which has created all this value and prepared us for this unique position, and we have a healthy balance sheet with no substantial debt. Although we did not seek to raise additional capital during the restatement period, we intend to begin this process after the restatement is complete.
According to the financial report, NASDAQ has given View until June 30, 2022 to file its delinquent 10-K and 10-Q filings. View expects to file with the SEC on or before that date.
As in its previous announcement, and as noted previously, financial reports indicate that “the company will disclose in its upcoming SEC filings substantial doubt about [its] ability to continue as a going concern, as the company does not currently have sufficient financial resources to fund its expected operating costs and meet its obligations for at least twelve months from the expected release date of its 2021 Annual Report on Form 10 -K. The company plans to address this issue by raising additional capital and reducing cash burn through business growth and optimizing fixed costs against higher revenues. Although the company did not seek to raise additional capital during the period of the restatement, we intend to raise additional capital following the conclusion of the restatement.
Mulpuri and Chief Financial Officer Amy Reeves also discussed the company’s accounting restatement. According to Mulpuri, in 2019 View discovered a high failure rate in some insulating glass units in the field. An investigation traced the problem to a component supplied by a supplier. The issue has been mitigated and customers have received replacements.
However, it was determined that the costs incurred by View to go “beyond” should have been included in the warranty reserve and not in the period costs. No additional material misstatements were found by View’s accounting team.
“Every challenge brings an opportunity,” says Mulpuri. “I am convinced that we have learned from this experience and that we will emerge from it a stronger company, built for the long term.”
Looking to the future, Mulpuri says View is ready for the years to come.
“We expect growth for 2022 with revenue in the range of $100 million to $110 million,” he says.