Cash Flows The following table sets forth our primary sources and uses of cash for the periods indicated: (Dollars in thousands) Year Ended December 31, 2021 2020 Cash provided by (used in): Operating activities $ (27,689) $ (16,854) Investing activities (5,637) 35,254 Financing activities 40,577 (555) Effect of exchange rate changes on cash, cash equivalents and restricted cash (11) (62) Net increase in cash, cash equivalents and restricted cash $ 7,240 $ 17,783 To date, our operations have been primarily financed through the proceeds from related party promissory notes, including the 2016 and 2021 Notes, the sale of components of our business, and through equity issuances, including net cash proceeds from our IPO. In June 2016, we sold 6,900,000 shares of common stock at a price of $14.00 per share, which includes 400,000 shares sold to the underwriter upon exercise of their overallotment option to purchase additional shares of our Company. We raised net proceeds of $83.6 million from our IPO, after underwriting fees, discounts and commissions of $4.9 million and other offering costs of $8.1 million. In December 2016, we issued convertible notes to a related party and others for aggregate net proceeds of $102.7 million, $9.9 million from Cambridge, and $92.8 million from others, after deducting underwriting discounts and commissions and offering costs of $4.3 million. In February 2020, we received $47.3 million in proceeds from the sale of our Connected Care Business. In April 2021, we issued convertible notes to a related party and others for aggregate net proceeds of $136.8 million, $62.2 million from Nant Capital, and $74.6 million from Highbridge, after deducting offering costs of $0.7 million. Operating Activities Our cash flows from operating activities have been driven by rate of revenue, billings, and collections, the timing and extent of spending to support product development efforts and enhancements to existing services, the timing of general and administrative expenses, and the continuing market acceptance of our solutions. In addition, our net loss in the year ended December 31, 2021 has been greater than our use of cash for operating activities due to the inclusion of noncash charges. Cash used in operating activities of $27.7 million in the year ended December 31, 2021 was a result of our continued investments in enhancements to current products, research and development, sales and marketing, and expenses incurred as a public company, including costs associated with public company reporting and corporate governance requirements. In the year ended December 31, 2021, $23.3 million, or 40%, of our net loss of $58.5 million consisted of noncash items, including $15.7 million of depreciation and amortization expense, $3.9 million in stock-based compensation expense, a $2.3 million increase in the fair value of the Bookings Commitment liability, a $0.7 million loss on Exchange and Prepayment of the 2016 Notes, and $0.6 million amortization of debt discounts and deferred financing offering costs. Changes in working capital increased cash by $7.5 million in the year ended December 31, 2021. The change in cash was primarily attributable to a $1.3 million increase in accrued and other current liabilities, a $8.1 million increase in related party payables, net, a $2.9 million increase in deferred revenues, offset by a $2.7 million increase in accounts receivable and a $1.9 million decrease in accounts payable. Cash used in operating activities of $16.9 million in the year ended December 31, 2020 was a result of our continued investments in enhancements to current products, research and development, sales and marketing, and expenses incurred as a public company, including costs associated with public company reporting and corporate governance requirements. In the year ended December 31, 2020, $37.4 million, or 66%, of our net loss of $56.4 million consisted of noncash items, including $16.8 million of depreciation and amortization expense, a $31.7 million loss from our related party equity method investment, a $11.2 million increase in the fair value of the Bookings Commitment liability, $6.5 million amortization of debt discounts and deferred financing offering costs, $2.6 million in stock-based compensation expense, and a $0.7 million impairment of intangible assets related to internal-use software, partially offset by a $32.2 million gain on sale of our Connected Care Business (see Note 4 to the accompanying Consolidated Financial Statements). - 88 -
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