VIRGIN GALACTIC HOLDINGS, INC, 10-Q filed on 5/11/2021
Quarterly Report
v3.21.1
Cover Page - shares
3 Months Ended
Mar. 31, 2021
May 05, 2021
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2021  
Document Transition Report false  
Entity File Number 001-38202  
Entity Registrant Name Virgin Galactic Holdings, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 85-3608069  
Entity Address, Address Line One 166 North Roadrunner Parkway, Suite 1C  
Entity Address, City or Town Las Cruces  
Entity Address, State or Province NM  
Entity Address, Postal Zip Code 88011  
City Area Code 575  
Local Phone Number 424-2100  
Title of 12(b) Security Common stock, $0.0001 par value per share  
Trading Symbol SPCE  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   240,712,527
Amendment Flag false  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2021  
Entity Central Index Key 0001706946  
Current Fiscal Year End Date --12-31  
v3.21.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Current assets    
Cash and cash equivalents $ 616,625 $ 665,924
Restricted cash 13,031 13,031
Inventories 30,187 30,483
Prepaid expenses and other current assets 14,486 18,489
Total current assets 674,329 727,927
Property, plant, and equipment, net 50,936 53,148
Other non-current assets 22,762 22,915
Total assets 748,027 803,990
Current liabilities:    
Accounts payable 3,738 5,998
Accrued liabilities 28,351 22,982
Customer deposits 83,015 83,211
Other current liabilities 2,981 2,830
Total current liabilities 118,085 115,021
Non-current liabilities:    
Warrant liability 184,159 135,440
Other long-term liabilities 25,939 26,451
Total liabilities 328,183 276,912
Commitments and contingencies (Note 16)
Stockholders' Equity    
Preferred stock, $0.0001 par value; 10,000,000 authorized; none issued and outstanding 0 0
Common stock, $0.0001 par value; 700,000,000 shares authorized; 237,274,430 and 236,123,659 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively 23 23
Additional paid-in capital 1,320,228 1,297,794
Accumulated deficit (900,438) (770,744)
Accumulated other comprehensive income 31 5
Total stockholders' equity 419,844 527,078
Total liabilities and stockholders' equity $ 748,027 $ 803,990
v3.21.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 700,000,000 700,000,000
Common stock, shares issued (in shares) 237,274,430 236,123,659
Common stock, shares outstanding (in shares) 237,274,430 236,123,659
v3.21.1
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Statement [Abstract]    
Revenue $ 0 $ 238
Cost of revenue 0 173
Gross profit 0 65
Selling, general, and administrative expenses 44,914 26,755
Research and development expenses 36,363 34,282
Operating loss (81,277) (60,972)
Change in fair value of warrants (48,719) (316,896)
Interest income (expense), net 318 1,168
Other income (expense), net 27 (172)
Loss before income taxes (129,651) (376,872)
Income tax benefit (expense) (43) 46
Net loss (129,694) (376,826)
Other comprehensive loss:    
Foreign currency translation adjustment 27 (54)
Total comprehensive loss $ (129,667) $ (376,880)
Net loss per share:    
Basic and diluted (in dollars per share) $ (0.55) $ (1.86)
Weighted-average shares outstanding    
Basic and diluted (in shares) 234,191,636 202,409,552
v3.21.1
Condensed Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Net Parent Investment
Member's Equity
Preferred Stock
Common Stock
Additional paid-in capital
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2019 $ 343,230 $ 0 $ 0 $ 0 $ 20 $ 469,008 $ (125,857) $ 59
Beginning balance (in shares) at Dec. 31, 2019     0 0 196,001,038      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (376,826)           (376,826)  
Other comprehensive income (loss) (54)             (54)
Common stock issued related to warrants exercised (in shares)         13,239,934      
Common stock issued related to warrants exercised 341,001       $ 1 341,000    
Stock-based compensation 4,425         4,425    
Ending balance at Mar. 31, 2020 311,776 0 $ 0 $ 0 $ 21 814,433 (502,683) 5
Ending balance (in shares) at Mar. 31, 2020     0 0 209,240,972      
Beginning balance at Dec. 31, 2020 527,078 0 $ 0 $ 0 $ 23 1,297,794 (770,744) 5
Beginning balance (in shares) at Dec. 31, 2020     0 0 236,123,659      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (129,694)           (129,694)  
Other comprehensive income (loss) 26             26
Stock-based compensation $ 22,111         22,111    
Issuance of common stock pursuant to stock-based compensation, net of withholding taxes (in shares) 1,150,771              
Issuance of common stock pursuant to stock-based compensation, net of withholding taxes $ 323              
Ending balance at Mar. 31, 2021 $ 419,844 $ 0 $ 0 $ 0 $ 23 $ 1,320,228 $ (900,438) $ 31
Ending balance (in shares) at Mar. 31, 2021     0 0 237,274,430      
v3.21.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash flows from operating activities    
Net loss $ (129,694) $ (376,826)
Stock-based compensation 22,111 4,425
Depreciation and amortization 2,869 2,105
Change in fair value of warrants 48,719 316,896
Other operating activities, net 10 1
Change in assets and liabilities    
Inventories 296 (1,980)
Other current and non-current assets 3,692 2,142
Accounts payable and accrued liabilities 3,322 (2,978)
Customer deposits (196) (98)
Other current and non-current liabilities 102 0
Net cash used in operating activities (48,769) (56,313)
Cash flows from investing activity    
Capital expenditures (819) (4,036)
Cash used in investing activity (819) (4,036)
Cash flows from financing activities    
Payments of finance lease obligations (34) (23)
Proceeds from issuance of common stock pursuant to stock options exercised 10,837 0
Transaction costs 0 (697)
Withholding taxes paid on behalf of employees on net settled stock-based awards (10,514) 0
Net cash provided by (used in) financing activities 289 (720)
Net decrease in cash and cash equivalents (49,299) (61,069)
Cash, cash equivalents and restricted cash at beginning of period 678,955 492,721
Cash, cash equivalents and restricted cash at end of period 629,656 431,652
Cash, cash equivalents and restricted cash $ 629,656 $ 431,652
v3.21.1
Organization and its wholly owned subsidiaries ("VGH, Inc.")
3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and its wholly owned subsidiaries ("VGH, Inc.") Organization and its wholly owned subsidiaries ("VGH, Inc.")
Virgin Galactic Holdings, Inc. and its wholly owned subsidiaries ("VGH, Inc.") are focused on the development, manufacture and operations of spaceships and related technologies for the purpose of conducting commercial human spaceflight and flying commercial research and development payloads into space. The development and manufacturing activities are located in Mojave, California with plans to operate the commercial spaceflights out of Spaceport America located in New Mexico.

VGH, Inc. was originally formed as a Cayman Islands exempted company on May 5, 2017 under the name Social Capital Hedosophia Holdings Corp. (“SCH”). SCH was a public investment vehicle incorporated as a blank check company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. On October 25, 2019, VGH, Inc. domesticated as a Delaware corporation and consummated the merger transactions contemplated by the Agreement and Plan of Merger, dated as of July 29, 2019, as amended on October 2, 2019, by and among VGH, Inc., Vieco USA, Inc. (“Vieco US”), Vieco 10 Limited (“Vieco 10”), TSC Vehicle Holdings, Inc., (“TSCV”), Virgin Galactic Vehicle Holdings, Inc., (“VGVH”), Virgin Galactic Holdings, LLC (“VGH LLC” and, collectively with TSCV and VGVH, the “VG Companies”), and the other parties thereto (the “Virgin Galactic Business Combination”). The closing of the Virgin Galactic Business Combination occurred on October 25, 2019 and, in connection with the closing, SCH re-domiciled as a Delaware corporation under the name Virgin Galactic Holdings, Inc. Upon closing, the entities comprising the VG Companies became wholly owned subsidiaries of VGH, Inc. and in exchange the VGH, Inc. common stock due to Vieco 10 as consideration was received and directly held by Vieco US.

Throughout the notes to the condensed consolidated financial statements, unless otherwise noted, “we,” “us,” “our,” the "Company" and similar terms refer to the VG Companies prior to the consummation of the Virgin Galactic Business Combination, and VGH, Inc. and its subsidiaries after the Virgin Galactic Business Combination. Prior to the Virgin Galactic Business Combination and prior to the series of Vieco 10 reorganizational steps, Galactic Ventures, LLC ("GV"), a wholly-owned subsidiary of Vieco 10, was the direct parent of VG Companies.

Global Pandemic
On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic and recommended containment and mitigation measures. Since then, extraordinary actions have been taken by international, federal, state, and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions throughout the world. These actions include travel bans, quarantines, “stay-at-home” orders, and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations.

Consistent with the actions taken by governmental authorities, including California, New Mexico and the United Kingdom, where most of our workforce is located, we have taken appropriately cautious steps to protect our workforce and support community efforts. As part of these efforts, and in accordance with applicable government directives, we initially reduced and then temporarily suspended on-site operations at our facilities in Mojave, California and Spaceport America, New Mexico in late March 2020. Starting late March 2020, approximately two-thirds of our employees and contractors were able to complete their duties from home, which enabled much critical work to continue, including engineering analysis and drawing releases for VSS Unity, VMS Eve and the second SpaceShipTwo vehicle, process documentation updates, as well as workforce training and education. The remaining one-third of our workforce was unable to perform their normal duties from home. In April 2020, in accordance with our classification within the critical infrastructure designation, we resumed limited operations under revised operational and manufacturing plans that conform to the latest COVID-19 health precautions. This includes universal facial covering requirements, rearranging facilities to follow social distancing protocols, conducting active daily temperature checks and undertaking regular and thorough disinfecting of surfaces and tools. We are also testing employees and contractors for COVID-19 on a regular basis. However, the COVID-19 pandemic and the continued precautionary actions taken related to COVID-19 have adversely impacted, and are expected to continue to adversely
impact, our operations, including the completion of the development of our spaceflight systems and our scheduled spaceflight test programs.

As of the date of this quarterly report on Form 10-Q, all our employees whose work requires them to be in our facilities are now back on-site, but we have experienced, and expect to continue to experience, reductions in operational efficiency due to illness from COVID-19 and precautionary actions taken related to COVID-19. For the time being, we are encouraging those employees who are able to work from home to continue doing so.

The COVID-19 pandemic and the protocols and procedures we have implemented in response to the pandemic have caused some delays in operational and maintenance activities, including delays in our test flight program. The full impact of the COVID-19 pandemic on our business and results of operations subsequent to March 31, 2021 will depend on future developments, such as the ultimate duration and scope of the outbreak and its impact on our operations necessary to complete the development of our spaceflight systems, our scheduled spaceflight test programs and commencement of our commercial flights. In addition to existing travel restrictions, countries may continue to maintain or reimpose closed borders, impose prolonged quarantines, or further restrict travel. We believe our cash and cash equivalents on hand at March 31, 2021 and management's operating plan, will provide sufficient liquidity to fund our operations for at least the next twelve months from the issuance of these financial statements.

Restatement of Previously Issued Financial Statements

As previously disclosed in Amendment No. 2 to our Annual Report on Form 10-K/A for the year ended December 31, 2020, the Company has restated its financial statements as of December 31, 2020 and 2019, for the years ended December 31, 2020 and 2019, as well as the unaudited condensed financial statements for the three month period ended March 31, 2020, to correct misstatements in those prior periods related to the accounting for warrants, under the guidance of Accounting Standards Codification (“ASC”) 815-40, Contracts in Entity’s Own Equity. The following tables represent the estimated fair value of the Company’s public and private warrant liabilities recorded on our balance sheet along with changes in fair value which are recorded as other income and expense on our statement of operations and the fair value of common stock issued on the date of exercise, which were recorded as additional paid in capital.

Public Warrants Private Placement WarrantsTotal
(In thousands)
Warrant Liability at December 31, 2019$77,050 $47,280 $124,330 
Redemption/Exercises of Warrants(341,001)— (341,001)
Change in Fair Value283,296 33,600 316,896 
Total liability at fair value as of March 31, 2020$19,345 $80,880 $100,225 

Public Warrants Private Placement WarrantsTotal
(In thousands)
Warrant Liability at December 31, 2020$— $135,440 $135,440 
Change in Fair Value— 48,719 48,719 
Total liability at fair value as of March 31, 2021$— $184,159 $184,159 
v3.21.1
Summary of Significant Accounting Policies
3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting PoliciesBasis of PresentationThese condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All intercompany transactions and balances between the various legal entities comprising the Company have been eliminated in consolidation. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.Use of EstimatesOther Summary of Significant Accounting PoliciesThere have been no significant changes from the significant accounting policies disclosed in Note 2 of the “Notes to Consolidated Financial Statements” included in the Company's Amendment No. 2 to its Annual Report on Form 10-K/A.The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Amendment No. 2 to its Annual Report on Form 10-K/A for the year ended December 31, 2020. Interim results are not necessarily indicative of the results for a full year.
v3.21.1
Recent Accounting Pronouncements
3 Months Ended
Mar. 31, 2021
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements
Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”).

The Company considers the applicability and impact of all ASUs and continues to monitor new accounting pronouncements issued by the FASB. We do not believe any accounting pronouncements issued through the date of this report will have a material impact to the Company's condensed consolidated financial statements.
v3.21.1
Related Party Transactions
3 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]  
Related Party Transactions Related Party TransactionsThe Company licenses its brand name from certain entities affiliated with Virgin Enterprises Limited (“VEL”), a company incorporated in England. VEL is an affiliate of the Company. Under the trademark license, the Company has the exclusive right to operate under the brand name “Virgin Galactic” worldwide. Royalty payables, excluding sponsorship royalties, for the use of license are the greater of 1% of revenue or $0.04 million per quarter, prior to the commercial launch date. Sponsorship royalties payable are 25% of sponsorship revenue. We paid license and royalty fees of $0.04 million and $0.06 million for the three months ended March 31, 2021 and 2020, respectively. The Company has a Transition Services Agreement ("TSA") with Virgin Orbit, LLC ("VO") based on an allocation methodology that considers our headcount, unless directly attributable to the business. The Company is allocated operating expense from VO Holdings, Inc. and its subsidiaries (“VOH”), a majority owned company of GV for operations-related functions based on an allocation methodology that considers our headcount, unless directly attributable to the business. Operating expense allocations include use of machinery and equipment, pilot services, and other general administrative expenses. We were allocated $0.04 million and $0.14 million of operating expenses, net, from VOH for the three months ended March 31, 2021 and 2020, respectively. The Company has a receivable (payable) to VOH of $— million and $(0.8) million as of March 31, 2021 and December 31, 2020, respectively.
v3.21.1
Inventory
3 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]  
Inventory Inventory
As of March 31, 2021 and December 31, 2020, inventory is comprised of the following:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Raw Materials$22,514 $22,963 
Spare parts7,673 7,520 
Total inventory
$30,187 $30,483 
For the three months ended March 31, 2021 and March 31, 2020, we wrote off $0.1 million and $1.1 million of inventory due to excess and obsolescence, respectively.
v3.21.1
Property, Plant, and Equipment, net
3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, net Property, Plant, and Equipment, net
As of March 31, 2021 and December 31, 2020, property, plant, and equipment, net consists of the following:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Buildings$9,118 $9,142 
Leasehold improvements28,808 28,744 
Aircraft195 195 
Machinery and equipment35,287 34,330 
IT software and equipment22,446 22,042 
Construction in progress977 1,780 
96,831 96,233 
Less accumulated depreciation and amortization
(45,895)(43,085)
Property, plant, and equipment, net
$50,936 $53,148 
Total depreciation and amortization for the three months ended March 31, 2021 and 2020 was $2.9 million and $2.1 million, respectively, of which $1.3 million and $0.9 million was recorded in research and development expense, respectively.
v3.21.1
Leases
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases Leases
The Company's leases are more fully described in Note 8 of the "Notes to Consolidated Financial Statements" to its Annual Report on Form 10-K/A Amendment No. 2.

The components of lease expense related to leases for the periods presented below are as follows:

Three Months Ended
March 31,
20212020
(Unaudited and in thousands)
Lease Cost:
Operating lease expense $1,260 $1,152 
Short-term lease expense12 97 
Finance Lease Cost:
Amortization of right-of-use assets
34 27 
Interest on lease liabilities
Total finance lease cost41 36 
Variable lease cost1,338 348 
Total lease cost$2,651 $1,633 
The components of supplemental cash flow information related to leases for the period are as follows:
Three Months Ended March 31,
20212020
(In thousands, except term and rate data)
Cash flow information:
Operating cash flows for operating leases$1,310 $1,312 
Operating cash flows for finance leases$$
Financing cash flows for finance leases
$34 $23 
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations
Operating leases$180 $1,658 
Finance Leases$— $23 
Other Information:
Weighted average remaining lease term:
Operating leases (in years)12.5312.75
Finance leases (in years)2.663.71
Weighted average discount rates:
Operating leases11.68 %11.65 %
Finance leases8.40 %9.11 %
The supplemental balance sheet information related to leases for the period is as follows:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Operating leases
Long-term right-of-use assets$19,240 $19,555 
    Short-term operating lease liabilities$2,461 $2,384 
    Long-term operating lease liabilities23,713 24,148 
Total operating lease liabilities$26,174 $26,532 

Commitments
The Company has certain non-cancelable operating leases primarily for its premises. These leases generally contain renewal options for periods ranging from 3 to 20 years and require the Company to pay all executory costs, such as maintenance and insurance. Certain lease arrangements have rent free periods or escalating payment provisions, and we recognize rent expense of such arrangements on a straight line basis.
Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum finance lease payments as of March 31, 2021 are as follows:
Operating LeasesFinance
Leases
(In thousands)
2021 (for the remaining period)$5,331 $157 
20223,880 121 
20233,836 91 
20243,833 
20253,833 — 
Thereafter29,894 — 
Total lease payments$50,607 $376 
Less:
Imputed interest/present value discount(24,434)$(37)
Present value of lease liabilities$26,173 $339 
Leases Leases
The Company's leases are more fully described in Note 8 of the "Notes to Consolidated Financial Statements" to its Annual Report on Form 10-K/A Amendment No. 2.

The components of lease expense related to leases for the periods presented below are as follows:

Three Months Ended
March 31,
20212020
(Unaudited and in thousands)
Lease Cost:
Operating lease expense $1,260 $1,152 
Short-term lease expense12 97 
Finance Lease Cost:
Amortization of right-of-use assets
34 27 
Interest on lease liabilities
Total finance lease cost41 36 
Variable lease cost1,338 348 
Total lease cost$2,651 $1,633 
The components of supplemental cash flow information related to leases for the period are as follows:
Three Months Ended March 31,
20212020
(In thousands, except term and rate data)
Cash flow information:
Operating cash flows for operating leases$1,310 $1,312 
Operating cash flows for finance leases$$
Financing cash flows for finance leases
$34 $23 
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations
Operating leases$180 $1,658 
Finance Leases$— $23 
Other Information:
Weighted average remaining lease term:
Operating leases (in years)12.5312.75
Finance leases (in years)2.663.71
Weighted average discount rates:
Operating leases11.68 %11.65 %
Finance leases8.40 %9.11 %
The supplemental balance sheet information related to leases for the period is as follows:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Operating leases
Long-term right-of-use assets$19,240 $19,555 
    Short-term operating lease liabilities$2,461 $2,384 
    Long-term operating lease liabilities23,713 24,148 
Total operating lease liabilities$26,174 $26,532 

Commitments
The Company has certain non-cancelable operating leases primarily for its premises. These leases generally contain renewal options for periods ranging from 3 to 20 years and require the Company to pay all executory costs, such as maintenance and insurance. Certain lease arrangements have rent free periods or escalating payment provisions, and we recognize rent expense of such arrangements on a straight line basis.
Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum finance lease payments as of March 31, 2021 are as follows:
Operating LeasesFinance
Leases
(In thousands)
2021 (for the remaining period)$5,331 $157 
20223,880 121 
20233,836 91 
20243,833 
20253,833 — 
Thereafter29,894 — 
Total lease payments$50,607 $376 
Less:
Imputed interest/present value discount(24,434)$(37)
Present value of lease liabilities$26,173 $339 
v3.21.1
Other Current and Non-Current Assets
3 Months Ended
Mar. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Current and Non-Current Assets Other Current and Non-current AssetsA summary of the components of other assets are as follows:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Prepaid expense $13,657 $17,949 
Accounts receivable829 470 
Other current assets— 70 
    Total other current assets$14,486 $18,489 
Right-of-use assets$19,565 $19,914 
Other non-current assets3,197 3,001 
    Total other non-current assets $22,762 $22,915 
v3.21.1
Accrued Expenses
3 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]  
Accrued Expenses Accrued ExpensesA summary of the components of accrued liabilities are as follows:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Accrued payroll$7,082 $4,060 
Accrued vacation5,000 4,624 
Accrued bonus9,646 6,892 
Accrued inventory436 950 
Other accrued expenses6,187 6,456 
Total accrued expenses$28,351 $22,982 
v3.21.1
Long-term Debt
3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Long-term Debt Long-term Debt
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Commercial loan$620 $620 
620 620 
     Less: Current portion(310)(310)
Non-current portion$310 $310 

Aggregate maturities of long-term debt as of March 31, 2021 are as follows:
(In thousands)
2021 (for the remaining period)310 
2022310 
$620 

On June 18, 2020, we financed the purchase of software licenses through a loan totaling approximately $0.9 million. The loan amortized in three equal annual installment of approximately $0.3 million with the final payment due on October 1, 2022 with 0% interest rate. The loan is secured by a standby letter of credit issued from our financial institution and restricted cash has been recorded for the corresponding outstanding balance.

The imputed interest of this loan was immaterial.
v3.21.1
Income Taxes
3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesIncome tax expense (benefit) was $(0.04) million and 0.05 million for the three months ended March 31, 2021 and 2020, respectively. The effective income tax rate was nil for three months ended March 31, 2021 and 2020. Our effective tax rate differs from the U.S. statutory rate primarily due to a substantially full valuation allowance against our net deferred tax assets where it is more likely than not that some or all of the deferred tax assets will not be realized.
v3.21.1
Stockholders' Equity
3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
There have been no significant changes from the Stockholders' Equity disclosed in Note 11 of the “Stockholders Equity” included in the Amendment No. 2 to our Annual Report on Form 10-K/A other than the issuance of common stock and redemption of warrants as noted below.

Issuance of Common Stock

In August 2020, the Company sold 23,600,000 shares of common stock at a public offering price of $19.50 per share for gross proceeds, before deducting underwriting discounts and commissions and other expenses payable by the Company, of $460.2 million. The Company incurred $20.9 million of transaction costs, including underwriting discounts and commissions.

Stockholders' Agreement

In connection with the closing of the Virgin Galactic Business Combination, the Company entered into a stockholders’ agreement with certain of the Company’s investors. Pursuant to the terms of the Stockholders’ Agreement, as long as Virgin Investments Limited (VIL) is entitled to designate two directors to the Company’s Board of Directors, the Company must obtain VIL’s prior written consent to engage in certain corporate transactions and management functions such as business combinations, disposals, acquisitions, incurring indebtedness, and engagement of professional advisors, among others.

Warrants and Warrant Redemption
Public warrants were initially issued as part of SCH's initial public offering in 2017 and assumed upon the consummation of the Business Combination. As of March 31, 2021, and December 31, 2020, there were no public warrants outstanding. As of both March 31, 2021 and December 31, 2020, there were 8,000,000 warrants outstanding that were issued in a private placement simultaneously with the Company’s initial public offering (the “private placement warrants”).

Under the terms of the warrant agreement (the “Warrant Agreement”) between us and Continental Stock     Transfer & Trust Company, as warrant agent, the public warrants became exercisable on a cashless basis on January 27, 2020, based on the exchange ratio as calculated under the Warrant Agreement at the time of the exercise. On March 13, 2020 and pursuant to the terms of the Warrant Agreement, we announced that all public warrants that remained unexercised immediately after 5:00 p.m. New York City time on April 13, 2020 (the “Redemption Date”) would be redeemed for $0.01 per warrant. Warrant holders could exercise their public warrants at any time from March 13, 2020 and prior to the Redemption Date on a cashless basis, and receive 0.5073 shares of common stock per public warrant surrendered for exercise. Immediately after the Redemption Date, 295,305 public warrants remained unexercised and were redeemed at a redemption price of $0.01 per public warrant in accordance with the terms of the Warrant Agreement. The private placement warrants were not subject to the redemption and remain outstanding as of March 31, 2021.

The Company determined that both the public warrants and the private placement warrants (the "Warrants") should be classified as a liability in accordance with ASC 480. The Company remeasures the fair value of the Warrants at each reporting date with changes recorded in earnings. In connection with the Company's remeasurement of the Warrants to fair value, the Company recorded income (expense) of approximately $(48.7) million and (316.9) million
for the three months ended March 31, 2021 and 2020, respectively. The fair value of the warrant liability is approximately $184.2 million and $135.4 million as of March 31, 2021 and December 31, 2020, respectively. The private placement warrants are classified as Level 3 financial instruments. See Note 15. Fair Value Measurements.
v3.21.1
Earnings Per Share
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Share Earnings per Share
The following table presents net loss per share and related information:
Three Months Ended March 31,
20212020
(As Restated)
(In thousands, except for share and per share data)
Basic and diluted:
     Net loss$(129,694)$(376,826)
     Weighted average shares of common stock outstanding234,191,636 202,409,552 
     Basic and diluted net loss per share$(0.55)$(1.86)
As of March 31, 2021 and March 31, 2020, the Company has excluded the potential effect of warrants to purchase shares of common stock totaling 8,000,000 and 10,419,699, respectively, shares and the dilutive effect of outstanding stock options and unvested restricted stock units, as described in Note 12 of the “Notes to Consolidated Financial Statements” included in the 2020 Amendment No. 2 to our Annual Report on Form 10-K/A, in the calculation of diluted loss per share, as the effect would be anti-dilutive due to losses incurred.
v3.21.1
Stock-Based Compensation
3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based CompensationThe Company's 2019 Incentive Award Plan ("2019 Plan") is more fully described in Note 13 of the "Notes to Consolidated Financial Statements" in the 2019 Annual Report on Form 10-K. Under the 2019 Plan, the Company has the ability to grant incentive stock options, non-qualified stock options and RSUs to employees, directors and other service providers. Twenty five percent of such stock options cliff vest at the grant dates first anniversary and will ratably vest monthly over the next three years, subject to continued employment on each vesting date. Vested options will be exercisable at any time until ten years from the grant date, subject to earlier expiration under certain terminations of service and other conditions. The stock options granted have an exercise price equal to the closing stock price of our common stock on the grant date.
The following table sets forth the summary of options activity under the 2019 Plan (dollars in thousands except per share data):
Number of SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Life (in years)
Aggregate Intrinsic Value(1)
Options outstanding at December 31, 20206,796,045 $13.59 8.6468,888 
Granted— — 
Exercised(832,880)13.01 
Forfeited options(532,866)13.93 
Options outstanding at March 31, 20215,430,299 $13.65 8.8892,212 
Options exercisable at March 31, 20211,811,328 $13.47 7.4131,082 
__________________
(1) Aggregate intrinsic value is calculated based on the difference between our closing stock price at period end and the     exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised all their options on the period end date.


Restricted Stock Units
The RSUs vest over four years with 25% cliff vest at the first year anniversary of the grant date and ratably over the next three years.

RSU activity during the year ended December 31, 2020 was as follows:

The following table sets forth the summary of RSUs activity under the 2019 Plan (dollars in thousands except per share data):
SharesWeighted Average Fair Value
Outstanding at December 31, 20204,760,784 $19.63 
Granted567,255 41.74 
Vested(570,936)16.72 
Forfeited(598,982)16.42 
Outstanding at March 31, 20214,158,121 $23.51 

Stock options and RSUs expenses are included in selling, general and administrative and research and development expense in the condensed consolidated statements of operations and comprehensive loss, related to stock
options and RSUs is as follows:
Three Months Ended March 31,
20212020
Stock option expense
   Selling, General & Administrative8,986 2,064 
   Research & Development843 1,040 
      Total stock option expense9,829 3,104 
RSU expense
   Selling, General & Administrative9,052 806 
   Research & Development3,230 515 
      Total RSU expense12,282 1,321 
      Total stock-based compensation expense$22,111 $4,425 

As of March 31, 2021, the unrecognized stock-based compensation related to these options was $32.0 million and is expected to be recognized over a weighted-average period of 3.1 years. At March 31, 2021, the unrecognized stock-based compensation related to RSUs was $106.6 million and is expected to be recognized over a weighted-average period of 3.3 years.
v3.21.1
Fair Value Measurements
3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We estimate fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which is categorized in one of the following levels:
Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the
reporting entity at the measurement date;
Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

The fair value of the warrant liability was determined using the Black-Scholes valuation methodology and the quoted price of the Company’s common stock in an active market, a Level 3 measurement. Volatility was based on the actual market activity of the Company’s peer group as well as the Company's historical volatility since the Virgin Galactic Business Combination. The expected life was based on the remaining contractual term of the warrants, and the risk free interest rate was based on the implied yield available on U.S. Treasury Securities with a maturity equivalent to the warrants’ expected life.

The Company calculated the estimated fair value of warrants using the following assumptions:
As of
March 31, 2021
Risk-free interest rate
0.51%
Contractual term3.58 years
Expected volatility80%

As of
December 31, 2020
Risk-free interest rate
0.25%
Contractual term3.82 years
Expected volatility80%

The carrying amounts included in the condensed consolidated balance sheets under current assets and current liabilities approximate fair value because of the short maturity of these instruments. The following tables summarize the fair value of assets that are recorded in the Company’s condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 at fair value on a recurring basis:
Fair Value Measurements as of March 31, 2021
Level 1Level 2Level 3
(In thousands)
Assets:
Money Market$306,704 $ $ 
Certificate of Deposit91,838   
Cash Equivalents200,364   
Total assets at fair value$598,906 $— $— 
Liabilities:
Warrant Liability$— $— $184,159 
Total Liabilities$— $— $184,159 
Fair Value Measurements as of December 31, 2020
Level 1Level 2Level 3
(In thousands)
Assets
Money Market$357,463 $— $— 
Certificate of Deposit93,802 — — 
Cash Equivalents200,364 — — 
Total asset at fair value$651,629 $— $— 
Liabilities:
Warrant Liability$— $— $135,440 
Total Liabilities$— $— $135,440 
v3.21.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Proceedings
From time to time, the Company is a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. The Company applies accounting for contingencies to determine when and how much to accrue for and disclose related to legal and other contingencies. Accordingly, the Company discloses contingencies deemed to be reasonably possible and accrues loss contingencies when, in consultation with legal advisors, it is concluded that a loss is probable and reasonably estimable. Although the ultimate aggregate amount of monetary liability or financial impact with respect to these matters is subject to many uncertainties and is therefore not predictable with assurance, management believes that any monetary liability or financial impact to the Company from these matters, individually and in the aggregate, beyond that provided at March 31, 2021, would not be material to the Company’s financial position, results of operations or cash flows. However, there can be no assurance with respect to such result, and monetary liability or financial impact to the Company from legal proceedings, lawsuits and other claims could differ materially from those projected.
In September 2018, a former contractor employed through a third party staffing agency, alleged on behalf of himself and other aggrieved employees that the Company and the staffing agency, purportedly violated California state wage and hour laws. In March 2020, the Company agreed to settle this matter for $1.9 million. As of March 31, 2021, the Company has an outstanding $1.9 million payable pending final court motions that has been delayed due to COVID-19.
v3.21.1
Employee Benefit Plan
3 Months Ended
Mar. 31, 2021
Retirement Benefits [Abstract]  
Employee Benefit Plan Employee Benefit PlanThe Company has defined contribution plans, under which the Company pays fixed contributions into a separate entity, and additional contributions to the plans are based upon a percentage of the employees’ elected contributions. The Company will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognized within selling, general, and administrative expenses and research and development in the condensed consolidated statements of operations and comprehensive loss, as incurred. Defined contributions were $1.1 million and $1.0 million for the three months ended March 31, 2021 and 2020, respectively.
v3.21.1
Supplemental Cash Flow Information
3 Months Ended
Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information Supplemental Cash Flow Information
Three Months Ended
March 30,
20212020
(As Restated)
(in thousands)
Supplemental disclosure
Cash payments for:
Income tax paid$(52)$(46)
$(52)$(46)
Schedule for noncash investing activities
Unpaid property, plant, and equipment received$186 $1,091 
$186 $1,091 
Schedule for noncash financing activities
Issuance of common stock through "cashless" warrants exercised$— $341,001 
Issuance of common stock through restricted stock units vested22,825 — 
$22,825 $341,001 
v3.21.1
Summary of Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Restatement of Previously Issued Financial Statements Restatement of Previously Issued Financial StatementsAs previously disclosed in Amendment No. 2 to our Annual Report on Form 10-K/A for the year ended December 31, 2020, the Company has restated its financial statements as of December 31, 2020 and 2019, for the years ended December 31, 2020 and 2019, as well as the unaudited condensed financial statements for the three month period ended March 31, 2020, to correct misstatements in those prior periods related to the accounting for warrants, under the guidance of Accounting Standards Codification (“ASC”) 815-40, Contracts in Entity’s Own Equity.
Basis of Presentation Basis of PresentationThese condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All intercompany transactions and balances between the various legal entities comprising the Company have been eliminated in consolidation. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.
Use of Estimates Use of Estimates
Recent Accounting Pronouncements Recent Accounting Pronouncements
Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”).

The Company considers the applicability and impact of all ASUs and continues to monitor new accounting pronouncements issued by the FASB. We do not believe any accounting pronouncements issued through the date of this report will have a material impact to the Company's condensed consolidated financial statements.
v3.21.1
Organization and its wholly owned subsidiaries ("VGH, Inc.") (Tables)
3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Fair Value The following tables represent the estimated fair value of the Company’s public and private warrant liabilities recorded on our balance sheet along with changes in fair value which are recorded as other income and expense on our statement of operations and the fair value of common stock issued on the date of exercise, which were recorded as additional paid in capital.
Public Warrants Private Placement WarrantsTotal
(In thousands)
Warrant Liability at December 31, 2019$77,050 $47,280 $124,330 
Redemption/Exercises of Warrants(341,001)— (341,001)
Change in Fair Value283,296 33,600 316,896 
Total liability at fair value as of March 31, 2020$19,345 $80,880 $100,225 

Public Warrants Private Placement WarrantsTotal
(In thousands)
Warrant Liability at December 31, 2020$— $135,440 $135,440 
Change in Fair Value— 48,719 48,719 
Total liability at fair value as of March 31, 2021$— $184,159 $184,159 
v3.21.1
Inventory (Tables)
3 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]  
Schedule of Inventory
As of March 31, 2021 and December 31, 2020, inventory is comprised of the following:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Raw Materials$22,514 $22,963 
Spare parts7,673 7,520 
Total inventory
$30,187 $30,483 
v3.21.1
Property, Plant, and Equipment, net (Tables)
3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant, and Equipment
As of March 31, 2021 and December 31, 2020, property, plant, and equipment, net consists of the following:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Buildings$9,118 $9,142 
Leasehold improvements28,808 28,744 
Aircraft195 195 
Machinery and equipment35,287 34,330 
IT software and equipment22,446 22,042 
Construction in progress977 1,780 
96,831 96,233 
Less accumulated depreciation and amortization
(45,895)(43,085)
Property, plant, and equipment, net
$50,936 $53,148 
v3.21.1
Leases (Tables)
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Summary of Lease Expense and Cash Flow Information
The components of lease expense related to leases for the periods presented below are as follows:

Three Months Ended
March 31,
20212020
(Unaudited and in thousands)
Lease Cost:
Operating lease expense $1,260 $1,152 
Short-term lease expense12 97 
Finance Lease Cost:
Amortization of right-of-use assets
34 27 
Interest on lease liabilities
Total finance lease cost41 36 
Variable lease cost1,338 348 
Total lease cost$2,651 $1,633 
The components of supplemental cash flow information related to leases for the period are as follows:
Three Months Ended March 31,
20212020
(In thousands, except term and rate data)
Cash flow information:
Operating cash flows for operating leases$1,310 $1,312 
Operating cash flows for finance leases$$
Financing cash flows for finance leases
$34 $23 
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations
Operating leases$180 $1,658 
Finance Leases$— $23 
Other Information:
Weighted average remaining lease term:
Operating leases (in years)12.5312.75
Finance leases (in years)2.663.71
Weighted average discount rates:
Operating leases11.68 %11.65 %
Finance leases8.40 %9.11 %
Summary of Balance Sheet Information The supplemental balance sheet information related to leases for the period is as follows:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Operating leases
Long-term right-of-use assets$19,240 $19,555 
    Short-term operating lease liabilities$2,461 $2,384 
    Long-term operating lease liabilities23,713 24,148 
Total operating lease liabilities$26,174 $26,532 
Summary of Operating Lease Maturities Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum finance lease payments as of March 31, 2021 are as follows:
Operating LeasesFinance
Leases
(In thousands)
2021 (for the remaining period)$5,331 $157 
20223,880 121 
20233,836 91 
20243,833 
20253,833 — 
Thereafter29,894 — 
Total lease payments$50,607 $376 
Less:
Imputed interest/present value discount(24,434)$(37)
Present value of lease liabilities$26,173 $339 
Summary of Finance Lease Maturities Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum finance lease payments as of March 31, 2021 are as follows:
Operating LeasesFinance
Leases
(In thousands)
2021 (for the remaining period)$5,331 $157 
20223,880 121 
20233,836 91 
20243,833 
20253,833 — 
Thereafter29,894 — 
Total lease payments$50,607 $376 
Less:
Imputed interest/present value discount(24,434)$(37)
Present value of lease liabilities$26,173 $339 
v3.21.1
Other Current and Non-Current Assets (Tables)
3 Months Ended
Mar. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Current and Non-Current Assets A summary of the components of other assets are as follows:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Prepaid expense $13,657 $17,949 
Accounts receivable829 470 
Other current assets— 70 
    Total other current assets$14,486 $18,489 
Right-of-use assets$19,565 $19,914 
Other non-current assets3,197 3,001 
    Total other non-current assets $22,762 $22,915 
v3.21.1
Accrued Expenses (Tables)
3 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses A summary of the components of accrued liabilities are as follows:
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Accrued payroll$7,082 $4,060 
Accrued vacation5,000 4,624 
Accrued bonus9,646 6,892 
Accrued inventory436 950 
Other accrued expenses6,187 6,456 
Total accrued expenses$28,351 $22,982 
v3.21.1
Long-term Debt (Tables)
3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
As of
March 31, 2021December 31, 2020
(Unaudited)
(In thousands)
Commercial loan$620 $620 
620 620 
     Less: Current portion(310)(310)
Non-current portion$310 $310 
Schedule of Maturities of Long-term Debt
Aggregate maturities of long-term debt as of March 31, 2021 are as follows:
(In thousands)
2021 (for the remaining period)310 
2022310 
$620 
v3.21.1
Earnings Per Share (Tables)
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share The following table presents net loss per share and related information:
Three Months Ended March 31,
20212020
(As Restated)
(In thousands, except for share and per share data)
Basic and diluted:
     Net loss$(129,694)$(376,826)
     Weighted average shares of common stock outstanding234,191,636 202,409,552 
     Basic and diluted net loss per share$(0.55)$(1.86)
v3.21.1
Stock-Based Compensation (Tables)
3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Options Outstanding
The following table sets forth the summary of options activity under the 2019 Plan (dollars in thousands except per share data):
Number of SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Life (in years)
Aggregate Intrinsic Value(1)
Options outstanding at December 31, 20206,796,045 $13.59 8.6468,888 
Granted— — 
Exercised(832,880)13.01 
Forfeited options(532,866)13.93 
Options outstanding at March 31, 20215,430,299 $13.65 8.8892,212 
Options exercisable at March 31, 20211,811,328 $13.47 7.4131,082 
__________________
(1) Aggregate intrinsic value is calculated based on the difference between our closing stock price at period end and the     exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised all their options on the period end date.
Schedule of Restricted Stock Units Activity The following table sets forth the summary of RSUs activity under the 2019 Plan (dollars in thousands except per share data):
SharesWeighted Average Fair Value
Outstanding at December 31, 20204,760,784 $19.63 
Granted567,255 41.74 
Vested(570,936)16.72 
Forfeited(598,982)16.42 
Outstanding at March 31, 20214,158,121 $23.51 
Summary of Stock Option and RSU Expense Stock options and RSUs expenses are included in selling, general and administrative and research and development expense in the condensed consolidated statements of operations and comprehensive loss, related to stock options and RSUs is as follows:
Three Months Ended March 31,
20212020
Stock option expense
   Selling, General & Administrative8,986 2,064 
   Research & Development843 1,040 
      Total stock option expense9,829 3,104 
RSU expense
   Selling, General & Administrative9,052 806 
   Research & Development3,230 515 
      Total RSU expense12,282 1,321 
      Total stock-based compensation expense$22,111 $4,425 
v3.21.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Valuation Assumptions The Company calculated the estimated fair value of warrants using the following assumptions:
As of
March 31, 2021
Risk-free interest rate
0.51%
Contractual term3.58 years
Expected volatility80%

As of
December 31, 2020
Risk-free interest rate
0.25%
Contractual term3.82 years
Expected volatility80%
Schedule of Fair Value of Assets Measured on Recurring Basis The following tables summarize the fair value of assets that are recorded in the Company’s condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 at fair value on a recurring basis:
Fair Value Measurements as of March 31, 2021
Level 1Level 2Level 3
(In thousands)
Assets:
Money Market$306,704 $ $ 
Certificate of Deposit91,838   
Cash Equivalents200,364   
Total assets at fair value$598,906 $— $— 
Liabilities:
Warrant Liability$— $— $184,159 
Total Liabilities$— $— $184,159 
Fair Value Measurements as of December 31, 2020
Level 1Level 2Level 3
(In thousands)
Assets
Money Market$357,463 $— $— 
Certificate of Deposit93,802 — — 
Cash Equivalents200,364 — — 
Total asset at fair value$651,629 $— $— 
Liabilities:
Warrant Liability$— $— $135,440 
Total Liabilities$— $— $135,440 
v3.21.1
Supplemental Cash Flow Information (Tables)
3 Months Ended
Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]  
Schedule of Supplemental Cash Flow Information
Three Months Ended
March 30,
20212020
(As Restated)
(in thousands)
Supplemental disclosure
Cash payments for:
Income tax paid$(52)$(46)
$(52)$(46)
Schedule for noncash investing activities
Unpaid property, plant, and equipment received$186 $1,091 
$186 $1,091 
Schedule for noncash financing activities
Issuance of common stock through "cashless" warrants exercised$— $341,001 
Issuance of common stock through restricted stock units vested22,825 — 
$22,825 $341,001 
v3.21.1
Organization and its wholly owned subsidiaries ("VGH, Inc.") (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Warrant Liability [Roll Forward]    
Beginning balance $ 135,440 $ 124,330
Redemption/Exercises of Warrants   (341,001)
Change in fair value of warrants 48,719 316,896
Ending balance 184,159 100,225
Public Warrant    
Warrant Liability [Roll Forward]    
Beginning balance 0 77,050
Redemption/Exercises of Warrants   (341,001)
Change in fair value of warrants 0 283,296
Ending balance 0 19,345
Private Placement Warrant    
Warrant Liability [Roll Forward]    
Beginning balance 135,440 47,280
Redemption/Exercises of Warrants   0
Change in fair value of warrants 48,719 33,600
Ending balance $ 184,159 $ 80,880
v3.21.1
Related Party Transactions (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Related Party Transaction [Line Items]      
Royalty payable, as a percentage of revenue 1.00%    
Royalty payable, quarterly amount $ 40    
Sponsorship royalties payable, as a percentage of revenue 25.00%    
Affiliated Entity | License and royalty fees      
Related Party Transaction [Line Items]      
Expenses from related party $ 40 $ 60  
Subsidiary of Common Parent      
Related Party Transaction [Line Items]      
Related party (payable) receivable 0   $ (800)
Subsidiary of Common Parent | Allocation of corporate expenses      
Related Party Transaction [Line Items]      
Transaction amounts from related party $ 40 $ 140  
v3.21.1
Inventory (Schedule of Inventory) (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]    
Raw Materials $ 22,514 $ 22,963
Spare parts 7,673 7,520
Total inventory $ 30,187 $ 30,483
v3.21.1
Inventory (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Inventory Disclosure [Abstract]    
Inventory write-down $ 0.1 $ 1.1
v3.21.1
Property, Plant, and Equipment, net (Schedule of Property, Plant, and Equipment) (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment $ 96,831 $ 96,233
Less accumulated depreciation and amortization (45,895) (43,085)
Property, plant, and equipment, net 50,936 53,148
Buildings    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment 9,118 9,142
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment 28,808 28,744
Aircraft    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment 195 195
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment 35,287 34,330
IT software and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment 22,446 22,042
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment $ 977 $ 1,780
v3.21.1
Property, Plant, and Equipment, net (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Property, Plant and Equipment [Line Items]    
Depreciation and amortization $ 2,869 $ 2,105
Research & Development    
Property, Plant and Equipment [Line Items]    
Depreciation and amortization $ 1,300 $ 900
v3.21.1
Leases (Lease Cost) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Leases [Abstract]    
Operating lease expense $ 1,260 $ 1,152
Short-term lease expense 12 97
Finance Lease Cost:    
Amortization of right-of-use assets 34 27
Interest on lease liabilities 7 9
Total finance lease cost 41 36
Variable lease cost 1,338 348
Total lease cost $ 2,651 $ 1,633
v3.21.1
Leases (Cash Flow Information) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash Flow, Operating Activities, Lessee [Abstract]    
Operating cash flows for operating leases $ 1,310 $ 1,312
Operating cash flows for finance leases 7 9
Financing cash flows for finance leases 34 23
Right-of-use assets obtained in exchange for lease obligations    
Operating leases 180 1,658
Finance Leases $ 0 $ 23
Weighted average remaining lease term:    
Operating leases (in years) 12 years 6 months 10 days 12 years 9 months
Finance leases (in years) 2 years 7 months 28 days 3 years 8 months 15 days
Weighted average discount rates:    
Operating leases 11.68% 11.65%
Finance leases 8.40% 9.11%
v3.21.1
Leases (Supplemental Balance Sheet) (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Long-term right-of-use assets $ 19,240 $ 19,555
Short-term operating lease liabilities 2,461 2,384
Long-term operating lease liabilities 23,713 24,148
Total operating lease liabilities $ 26,174 $ 26,532
v3.21.1
Leases (Narrative) (Details)
Mar. 31, 2021
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease, renewal term 3 years
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease, renewal term 20 years
v3.21.1
Leases (Lease Maturities) (Details)
$ in Thousands
Mar. 31, 2021
USD ($)
Operating Leases  
2021 (for the remaining period) $ 5,331
2022 3,880
2023 3,836
2024 3,833
2025 3,833
Thereafter 29,894
Total lease payments 50,607
Imputed interest/present value discount (24,434)
Present value of lease liabilities 26,173
Finance Leases  
2021 (for the remaining period) 157
2022 121
2023 91
2024 7
2025 0
Thereafter 0
Total lease payments 376
Imputed interest/present value discount (37)
Present value of lease liabilities $ 339
v3.21.1
Other Current and Non-Current Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expense $ 13,657 $ 17,949
Accounts receivable 829 470
Other current assets 0 70
Total other current assets 14,486 18,489
Right-of-use assets 19,565 19,914
Other non-current assets 3,197 3,001
Total other non-current assets $ 22,762 $ 22,915
v3.21.1
Accrued Expenses (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Payables and Accruals [Abstract]    
Accrued payroll $ 7,082 $ 4,060
Accrued vacation 5,000 4,624
Accrued bonus 9,646 6,892
Accrued inventory 436 950
Other accrued expenses 6,187 6,456
Total accrued expenses $ 28,351 $ 22,982
v3.21.1
Long-term Debt (Schedule of Debt) (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Total debt $ 620 $ 620
Less: Current portion (310) (310)
Non-current portion 310 310
Commercial loan | Commercial loan    
Debt Instrument [Line Items]    
Total debt $ 620 $ 620
v3.21.1
Long-term Debt (Schedule of Maturities) (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Debt Disclosure [Abstract]    
2021 (for the remaining period) $ 310  
2022 310  
Total debt $ 620 $ 620
v3.21.1
Long-term Debt (Narrative) (Details) - Commercial loan - Commercial loan
$ in Millions
27 Months Ended
Oct. 01, 2022
USD ($)
Jun. 18, 2020
USD ($)
installment
Debt Instrument [Line Items]    
Loans payable   $ 0.9
Number of installments | installment   3
Interest rate   0.00%
Forecast    
Debt Instrument [Line Items]    
Annual payment $ 0.3  
v3.21.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Tax Disclosure [Abstract]    
Income tax benefit (expense) $ 43 $ (46)
Effective income tax rate 0.00% 0.00%
v3.21.1
Stockholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended 6 Months Ended
Mar. 13, 2020
Aug. 31, 2020
Mar. 31, 2021
Mar. 31, 2020
Sep. 30, 2020
Dec. 31, 2020
Dec. 31, 2019
Class of Warrant or Right [Line Items]              
Stock sold (in shares)   23,600,000          
Stock sold, price per share (in dollars per share)   $ 19.50          
Gross proceeds from sale of stock   $ 460,200          
Stock issuance costs   $ 20,900          
Redemption price per warrant (in dollars per share) $ 0.01       $ 0.01    
Number of shares acquired by each warrant (in shares) 0.5073            
Warrants redeemed (in shares)         295,305    
Change in fair value of warrants     $ (48,719) $ (316,896)      
Warrant liability     $ 184,159 100,225   $ 135,440 $ 124,330
Public Warrant              
Class of Warrant or Right [Line Items]              
Outstanding warrants (in shares)     0     0  
Change in fair value of warrants     $ 0 (283,296)      
Warrant liability     $ 0 $ 19,345   $ 0 $ 77,050
Private Placement              
Class of Warrant or Right [Line Items]              
Outstanding warrants (in shares)     8,000,000     8,000,000  
v3.21.1
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Basic and diluted:    
Net loss $ (129,694) $ (376,826)
Weighted average shares of common stock outstanding (in shares) 234,191,636 202,409,552
Basic and diluted net loss per share (in dollars per share) $ (0.55) $ (1.86)
v3.21.1
Earnings Per Share (Narrative) (Details) - shares
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Warrants    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential effect of warrants to purchase stock 8,000,000 10,419,699
v3.21.1
Stock-Based Compensation (Narrative) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2021
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized stock-based compensation expense $ 32.0
Unrecognized stock-based compensation expense, excluding options $ 106.6
Stock option  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 25.00%
Unrecognized compensation cost, period for recognition 3 years 1 month 6 days
Stock option | 2019 Stock Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
Expiration period 10 years
Restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 4 years
Unrecognized compensation cost, period for recognition 3 years 3 months 18 days
Restricted stock units | Tranche one  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 25.00%
Restricted stock units | Tranche two  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 25.00%
Restricted stock units | Tranche three  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 25.00%
Restricted stock units | Tranche four  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 25.00%
v3.21.1
Stock-Based Compensation (2019 Stock Plan Activity) (Details) - 2019 Stock Plan - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Number of Shares    
Beginning balance (in shares) 6,796,045  
Granted (in shares) 0  
Exercised (in shares) (832,880)  
Forfeited options (in shares) (532,866)  
Ending balance (in shares) 5,430,299 6,796,045
Options exercisable at September 30, 2020 (in shares) 1,811,328  
Weighted Average Exercise Price    
Weighted-average exercise price, beginning (in dollars per share) $ 13.59  
Granted (in dollars per share) 0  
Exercised (in dollars per share) 13.01  
Forfeited options (in dollars per share) 13.93  
Weighted-average exercise price, ending (in dollars per share) 13.65 $ 13.59
Options exercisable at September 30, 2020 (in dollars per share) $ 13.47  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]    
Options outstanding, weighted average contractual term 8 years 10 months 17 days 8 years 7 months 20 days
Options exercisable, weighted average contractual term 7 years 4 months 28 days  
Options outstanding, aggregate intrinsic value $ 92,212 $ 68,888
Options exercisable, aggregate intrinsic value $ 31,082  
v3.21.1
Stock-Based Compensation (RSU Activity) (Details)
3 Months Ended
Mar. 31, 2021
$ / shares
shares
Shares  
Outstanding, beginning balance (in shares) | shares 4,760,784
Granted (in shares) | shares 567,255
Vested (in shares) | shares (570,936)
Forfeited (in shares) | shares (598,982)
Outstanding, ending balance (in shares) | shares 4,158,121
Weighted Average Fair Value  
Outstanding, beginning balance (in dollars per share) | $ / shares $ 19.63
Granted (in dollars per share) | $ / shares 41.74
Vested (in dollars per share) | $ / shares 16.72
Forfeited (in dollars per share) | $ / shares 16.42
Outstanding, ending balance (in dollars per share) | $ / shares $ 23.51
v3.21.1
Stock-Based Compensation (Compensation Expense) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense $ 22,111 $ 4,425
Stock option    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 9,829 3,104
Stock option | Selling, General & Administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 8,986 2,064
Stock option | Research & Development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 843 1,040
Restricted stock units    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 12,282 1,321
Restricted stock units | Selling, General & Administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 9,052 806
Restricted stock units | Research & Development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense $ 3,230 $ 515
v3.21.1
Fair Value Measurements (Assumptions) (Details) - Level 3
Mar. 31, 2021
employee
Dec. 31, 2020
employee
Risk-free interest rate    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Measurement inputs 0.0051 0.0025
Contractual term    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Contractual term 3 years 6 months 29 days 3 years 9 months 25 days
Expected volatility    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Measurement inputs 0.80 0.80
v3.21.1
Fair Value Measurements (Fair Values) (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Warrant liability $ 184,159 $ 135,440 $ 100,225 $ 124,330
Fair Value, Recurring | Level 1        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Total assets at fair value 598,906 651,629    
Warrant liability 0 0    
Total Liabilities 0 0    
Fair Value, Recurring | Level 2        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Total assets at fair value 0 0    
Warrant liability 0 0    
Total Liabilities 0 0    
Fair Value, Recurring | Level 3        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Total assets at fair value 0 0    
Warrant liability 184,159 135,440    
Total Liabilities 184,159 135,440    
Fair Value, Recurring | Money Market | Level 1        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Assets: 306,704 357,463    
Fair Value, Recurring | Money Market | Level 2        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Assets: 0 0    
Fair Value, Recurring | Money Market | Level 3        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Assets: 0 0    
Fair Value, Recurring | Certificate of Deposit | Level 1        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Assets: 91,838 93,802    
Fair Value, Recurring | Certificate of Deposit | Level 2        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Assets: 0 0    
Fair Value, Recurring | Certificate of Deposit | Level 3        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Assets: 0 0    
Fair Value, Recurring | Cash Equivalents | Level 1        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Assets: 200,364 200,364    
Fair Value, Recurring | Cash Equivalents | Level 2        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Assets: 0 0    
Fair Value, Recurring | Cash Equivalents | Level 3        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Assets: $ 0 $ 0    
v3.21.1
Commitments and Contingencies (Narrative) (Details) - USD ($)
$ in Millions
1 Months Ended
Mar. 31, 2020
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]    
Settlement amount awarded to other party $ 1.9  
Loss contingency payable   $ 1.9
v3.21.1
Employee Benefit Plan (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Retirement Benefits [Abstract]    
Defined contributions $ 1.1 $ 1.0
v3.21.1
Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash payments for:    
Income tax paid $ (52) $ (46)
Schedule for noncash investing activities    
Unpaid property, plant, and equipment received 186 1,091
Schedule for noncash financing activities    
Issuance of common stock through "cashless" warrants exercised 0 341,001
Issuance of common stock through restricted stock units vested 22,825 0
Noncash financing activities $ 22,825 $ 341,001