Though facing financial concerns that cast “substantial doubt” about its ability to continue, View Inc. reported positive financials this week. In the manufacturing and smart building technologies company’s 2021 results, CEO Rao Mulpuri reported 125% growth over 2020 revenues as the company capitalizes on opportunities in the industry.
Mulpuri noted the revenue growth comes with View’s “journey of industry transformation” that includes developing products, building operations and driving technology change. While he says the real estate industry has seen minimal productivity gains in the past four decades, Mulpuri also noted that those conditions provide multiple windows of opportunity for the company.
“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’s “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 forecasted operating costs and meet its obligations for at least 12 months from the expected issuance date of its 2021 financial statements …”
Mulpuri adds, “We believe the capital needs of our business going forward are a fraction of what has already been invested to date. Over the last 13 years, significant capital has been invested in the business, which has created all this value and set us up for this unique position, and we have a clean balance sheet with no substantial debt. While we have not pursued raising additional capital during the restatement period, we intend to begin that process after the conclusion of the restatement.”
According to the financial report, NASDAQ granted View until June 30, 2022, to file its delinquent 10-K and 10-Q filings. View expects to file with the SEC on or prior to that date.
As in its previous announcement, and as previously disclosed, the financial reports notes that “the company will be disclosing in its upcoming SEC filings substantial doubt about [its] ability to continue as a going concern, as the company does not currently have adequate financial resources to fund its forecasted operating costs and meet its obligations for at least twelve months from the expected issuance date of its 2021 Annual Report on Form 10-K. The company plans to address this by raising additional capital and driving reduction in cash burn through business growth and leveraging fixed costs over higher revenues. While the company has not pursued raising additional capital during the restatement period, we intend to raise additional capital after the conclusion of the restatement.”
Mulpuri and CFO Amy Reeves also addressed the company’s accounting restatement. According to Mulpuri, in 2019, View discovered an elevated failure rate in certain insulated glass units in the field. An investigation traced the issue back to a component part provided by a supplier. The issue was mitigated and customers were provided with replacements.
However, it was determined that costs incurred by View in going “above and beyond” should have been included in the warranty reserve and not period costs. No additional material misstatements were found by View’s accounting team.
“Every challenge brings opportunity,” Mulpuri says. “I’m confident we have learned from this experience and will emerge a stronger company built for the long-term.”
Looking to the future, Mulpuri says View is prepared for the years ahead.
“We are forecasting growth for 2022 with revenues in the range of $100-$110 million,” he says.