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Table of Contents`
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 10-Q
___________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission file number 001-39907
___________________________________
Sonder Holdings Inc.
___________________________________
(Exact name of registrant as specified in its charter)
Delaware
85-2097088
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
101 15th Street
San Francisco, California
94103
(Address of principal executive offices)
(Zip Code)
(617) 300-0956
(Registrant’s telephone number, including area code)
___________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.0001 per shareSOND
The Nasdaq Stock Exchange LLC
Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per shareSONDW
The Nasdaq Stock Exchange LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  No 

The registrant had 217,458,738 shares of common stock outstanding as of August 9, 2022.


Table of Contents`
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risk and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:
•    our plans to achieve positive quarterly Free Cash Flow within 2023 without additional fundraising and to target “capital light” lease signings, as part of our Cash Flow Positive Plan announced on June 9, 2022;
•    our financial, operating and growth forecasts and projections;
•    expectations for our business, revenue, expenses, operating results, and financial condition;
•    our ability to achieve or maintain profitability in the future;
•    trends in the travel and hospitality industries, including the anticipated timing and nature of any travel recovery;
•    our pricing and revenue management strategies, pricing and occupancy forecasts and anticipated trends, and expectations about demand elasticity;
•    our expectations concerning future transaction structures and the anticipated rent, rent abatement, capital expenditure provisions, and other terms of our future leases;
•    potential ancillary revenue opportunities and our ability to improve our revenue management capabilities;
•    anticipated capital expenditure obligations, including expectations for real estate owners’ funding of capital expenditures and other pre-opening costs at our leased properties;
•    the expected adequacy of our capital resources, and the anticipated use of proceeds from any financings;
•    trends in corporate travel and the potential for additional group and corporate travel revenue;
•    anticipated occupancy rates;
•    our expectations about extended stay bookings and our guests’ average length of stay (LOS);
•    our ability to anticipate and satisfy guest demands, including through the introduction of new features, amenities or services;
•    expectations about our geographic market mix and product mix between hotels and apartments, and their impact on our financial results;
•    our plans to roll out additional features, amenities and technologies, and our beliefs about the positive impact of our technology investments on our brand and financial results;
•    our future competitive advantages and anticipated differentiation in cost structure and guest experience compared to other accommodation providers;
•    expectations for increased cost efficiencies and technological improvements;
•    expectations and plans for expanding in existing and new markets and accommodation categories;
•    the anticipated growth in our portfolio of Live Units and Contracted Units, including the anticipated scope and timing of any removals of units from our portfolio;
•    expectations about our relationships with third-party distribution channels and indirect channels, and the percentage of future revenue attributable to bookings through indirect channels;
•    anticipated seasonality and other variations in our results of operations from period-to-period, including statements about anticipated RevPARs in specified quarters;
•    the anticipated effects of the COVID-19 pandemic or other public health crises on our business, operating results and financial condition;
•    our ability to continue meeting the listing standards of Nasdaq;
•    our assessments and beliefs regarding the timing and outcome of pending legal proceedings and any liability that we may incur as a result of those proceedings;
•    our assessments and estimates that determine our effective tax rate and regarding any tax-related audits or other tax proceedings; and
•    other expectations, beliefs, plans, strategies, anticipated developments, and other matters that are not historical facts.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.
You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, operating results, financial condition and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q.
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Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Moreover, the forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. You should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
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SUMMARY OF RISK FACTORS

Below is a summary of the principal factors that could materially harm our business, operating results and/or financial condition, impair our future prospects or cause the price of our publicly traded securities to decline. This summary does not address all of the risks that we face. Additional discussion of the risks summarized in this risk factor summary, and other risks that we face, can be found below under the heading “Risk Factors” and should be carefully considered, together with other information in this Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”) before making an investment decision regarding our securities.

•    Our actual results may differ materially from our forecasts and projections.
•    Our plan to reach positive quarterly Free Cash Flow within 2023 without additional fundraising may be unsuccessful, and restructuring initiatives may not provide the expected benefits and could adversely affect us.
•    Our results could be negatively affected by changes in travel, hospitality, real estate and vacation markets.
•    We may be unable to negotiate satisfactory leases or other arrangements to operate new properties, onboard new properties in a timely manner, or renew or replace existing properties on satisfactory terms or at all.
•    Delays in real estate development and construction projects could adversely affect our ability to generate revenue from the related leased buildings.
•    Newly leased properties may generate revenue later than we estimated, and may be more difficult or expensive to integrate into our operations than expected.
•    Our limited operating history and evolving business make it difficult to evaluate our future prospects and challenges.
•    We may be unable to effectively manage our growth.
•    Costs relating to the opening, operation and maintenance of our leased properties could be higher than expected.
•    We depend on landlords to deliver properties in a suitable condition and to manage and maintain them.
•    Our long-term and fixed-cost leases limit our flexibility.
•    Under certain circumstances, our leases may be subject to termination prior to the scheduled expiration of the term, which can be disruptive and costly.
•    The COVID-19 pandemic and efforts to reduce its spread have had, and will likely continue to have, a negative impact on us.
•    We may be unable to attract new guests or generate repeat bookings.
•    We may be unable to introduce upgraded amenities, services or features for our guests in a timely and cost-efficient manner.
•    We operate in the highly competitive hospitality market.
•    We use third-party distribution channels to market our units, which have historically accounted for a substantial percentage of our bookings.
•    Our results of operations vary from period-to-period, and historical performance may not be indicative of future performance.
•    Our long-term success depends, in part, on our ability to expand internationally, and our business is susceptible to risks associated with international operations.
•    Our business depends on our reputation and the strength of our brand, and any deterioration could adversely impact our market share, revenues, business, financial condition, or results of operations.
•    Claims, lawsuits, and other proceedings could adversely affect our business and financial condition.
•    We may be subject to liability or reputational damage for guests’ activities or other incidents at our properties.
•    We are subject to claims and liabilities associated with potential health and safety issues and hazardous substances at properties.
•    We must attract and retain sufficient, highly skilled personnel and are subject to risks associated with the employment of hospitality personnel, including unionized labor.
•    We have identified and may in the future identify material weaknesses in our internal control over financial reporting or otherwise fail to maintain an effective system of internal controls, which may result in material misstatements of our consolidated financial statements.
•    We rely on third parties for important services and technologies, and their availability and performance are uncertain.
•    Our processing, storage, use and disclosure of personal data expose us to risks of internal or external security breaches and could give rise to liabilities and/or damage to reputation.
•    Failure to comply with privacy, data protection, consumer protection, marketing and advertising laws could adversely affect us.
We face risks related to our intellectual property.
•    Our business is highly regulated across multiple jurisdictions, including evolving and sometimes uncertain short-term rental regulations and tax laws, which may limit our growth or otherwise negatively affect us.
•    We may require additional capital, which might not be available in a timely manner or on favorable terms.
•    We may fail to continue to meet Nasdaq’s listing standards.
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Our indebtedness and credit facilities contain financial covenants and other restrictions that may limit our operational and financial flexibility or otherwise adversely affect us.
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Part I - Financial Information
Item 1. Financial Statements
SONDER HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for number of shares and par value information)
(unaudited)
June 30,
2022
December 31,
2021
Assets
Current assets
Cash$359,500 $69,726 
Restricted cash1,244 215 
Accounts receivable, net of allowance of $255 and $4,127 at June 30, 2022 and December 31, 2021 respectively
7,307 4,638 
Prepaid rent2,316 2,957 
Prepaid expenses9,854 5,029 
Other current assets18,996 16,416 
Total current assets399,217 98,981 
Property and equipment, net35,605 27,461 
Operating lease right-of-use assets1,109,208 — 
Other non-current assets15,384 22,037 
Total assets$1,559,414 $148,479 
Liabilities, mezzanine equity and stockholders’ equity (deficit)
Current liabilities
Accounts payable$15,423 $19,096 
Accrued liabilities25,780 19,557 
Sales tax payable12,533 8,412 
Deferred revenue37,749 18,811 
Current portion of long-term debt 13,116 
Convertible notes 184,636 
Current operating lease liabilities152,064 — 
Total current liabilities243,549 263,628 
Non-current operating lease liabilities1,050,285  
Deferred rent 66,132 
Long-term debt, net161,285 10,736 
Other non-current liabilities2,033 3,906 
Total liabilities1,457,152 344,402 
Commitments and contingencies (Note 8)
Mezzanine equity:
Redeemable convertible preferred stock 518,750 
Exchangeable preferred stock 49,733 
Total mezzanine equity 568,483 
Stockholders’ equity (deficit):
Common stock20 1 
Additional paid-in capital924,054 43,106 
Cumulative translation adjustment14,383 7,299 
Accumulated deficit(836,195)(814,812)
Total stockholders’ equity (deficit)102,262 (764,406)
Total liabilities, mezzanine equity and stockholders’ equity (deficit)$1,559,414 $148,479 
See Notes to Condensed Consolidated Financial Statements.
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SONDER HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except number of shares and per share information)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenue$121,322 $47,269 $201,788 $78,827 
Cost of revenue (excluding depreciation and amortization)79,187 43,745 153,083 82,950 
Operations and support54,003 34,889 102,270 60,312 
General and administrative31,277 24,615 68,258 56,764 
Research and development8,088 4,066 15,713 7,385 
Sales and marketing12,414 4,888 21,875 7,399 
Restructuring and other charges4,033  4,033  
Total costs and expenses189,002 112,203 365,232 214,810 
Loss from operations(67,680)(64,934)(163,444)(135,983)
Interest expense, net and other expense (income), net:
Interest expense, net4,382 12,522 12,584 16,349 
Change in fair value of SPAC Warrants(11,310) (37,634) 
Change in fair value of Earn Out liability(23,345) (96,522) 
Change in fair value of share-settled redemption feature and gain on conversion of Convertible Notes  (29,512) 
Other expense (income), net6,251 (3,577)8,875 65 
Total interest expense, net and other expense (income), net(24,022)8,945 (142,209)16,414 
Loss before income taxes(43,658)(73,879)(21,235)(152,397)
Provision for income taxes117 70 148 93 
Net loss$(43,775)$(73,949)$(21,383)$(152,490)
Less: Net loss attributable to convertible preferred stock and exchangeable preferred stockholders  1,180  
Net loss attributable to common stockholders$(43,775)$(73,949)$(20,203)$(152,490)
Net loss per share, basic and diluted$(0.20)$(6.41)$(0.10)$(13.74)
Weighted average shares outstanding of common stock, basic and diluted215,085,516 11,538,790 197,658,542 11,099,760 
Other comprehensive loss:
Net loss$(43,775)$(73,949)$(21,383)$(152,490)
Change in foreign currency translation adjustment5,085 1,689 7,084 2,834 
Comprehensive loss $(38,690)$(72,260)$(14,299)$(149,656)
See Notes to Condensed Consolidated Financial Statements.
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SONDER HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND
STOCKHOLDERS’ EQUITY (DEFICIT)
(In thousands, except number of shares and par amount information)
(unaudited)


Three Months Ended June 30, 2022
Common StockPost-Combination Exchangeable Common SharesAdditional
Paid-in
Capital
Accumulated
Translation
Adjustment
Accumulated
Deficit
Total
Stockholders’
Equity
SharesPar
Amount
SharesAmount
Balances as of March 31, 2022184,678,577 $20 32,296,539 $— $918,369 $9,298 $(792,420)$135,267 
Exercise of common stock options375.891— — — 574— — 574
Vesting of restricted stock units29,742 — — — 57— — 57
Conversion of Exchangeable stock4,259,343 — (4,259,343)— — — — — 
Stock-based compensation— — — — 5,054 — — 5,054 
Components of comprehensive loss:
Net Loss— — — — — — — (43,775)(43,775)
Change in Cumulative Translation Adjustment— — — — — — 5,085 — 5,085 
Balances as of June 30, 2022189,343,553 $20 28,037,196 $— $924,054 $14,383 $(836,195)$102,262 
Note: Amounts may not recalculate due to rounding
See Notes to Condensed Consolidated Financial Statements.
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SONDER HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND
STOCKHOLDERS’ EQUITY (DEFICIT)
(In thousands, except number of shares and par amount information)
(unaudited)

Three Months Ended June 30, 2021
Redeemable
Convertible Preferred
Stock
Exchangeable
Preferred Stock
Common StockExchangeable
AA Stock
Post-Combination Exchangeable Common SharesAdditional
Paid-in
Capital
Accumulated
Other
Comprehensive
Income
Accumulated
Deficit
Total
Stockholders’
Equity (Deficit)
SharesAmountSharesAmountSharesPar
Amount
SharesAmountSharesAmount
Balances as of March 31, 2021111,257,435 518,750 18,474,628 49,733 10,908,802 1 13,859,669 — — — 28,797 6,811 (598,966)(563,357)
Issuance of common stock upon exercise of stock options— — — — 938,128 — — — — — 1,377 — — 1,377 
Issuance of common stock upon exercise of common stock warrants— — — — 82,352 — — — — — 120 — — 120 
Stock-based compensation— — — — — — — — — — 2,448 — — 2,448 
Net loss— — — — — — — — — — — (73,949)(73,949)
Other comprehensive income— — — — — — — — — — — 1,689 — 1,689 
Balances as of June 30, 2021111,257,435 $518,750 18,474,628 $49,733 11,929,282 $1 13,859,669 $— — $— $32,742 $8,500 $(672,915)$(631,672)
Note: Amounts may not recalculate due to rounding
See Notes to Condensed Consolidated Financial Statements.



















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SONDER HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND
STOCKHOLDERS’ EQUITY (DEFICIT)
(In thousands, except number of shares and par amount information)
(unaudited)

Six Months Ended June 30, 2022
Redeemable
Convertible Preferred
Stock
Exchangeable
Preferred Stock
Common StockExchangeable
AA Stock
Post-Combination Exchangeable Common SharesAdditional
Paid-in
Capital
Accumulated
Translation
Adjustment
Accumulated
Deficit
Total
Stockholders’
Equity (Deficit)
SharesAmountSharesAmountSharesPar
Amount
SharesAmountSharesAmount
Balances as of December 31, 2021
75,767,082 $518,750 12,570,228 $49,733 8,684,246 $1 9,421,190 $— — $— $43,106 $7,299 $(814,812)$(764,406)
Retroactive adjustment to reflect the exchange ratio due to Business Combination35,504,342 — 5,890,381 — 4,067,416 — 4,414,740 — — — — — — — 
Balances as of December 31, 2021, as converted
111,271,424 518,750 18,460,609 49,733 12,751,662 1 13,835,930 —  — 43,106 7,299 (814,812)(764,406)
Exercise of common stock options— — — — 738,834 — — — — — 1,447 — — 1,447 
Vesting of restricted stock units29,742 57 57 
Conversion of Sonder Legacy Warrants from liabilities to equity— — — — — — — — — — 2,111 — — 2,111 
CEO promissory note settlement— — — — (2,725,631)— — — — — — — — — 
Conversion of Sonder Legacy Warrants— — — — 155,239 — — — — — 1,243 — — 1,243 
Conversion of Convertible Note— — — — 19,017,105 1 — — — — 159,172 — — 159,173 
Conversion of Preferred stock(111,271,424)(518,750)— — 111,271,424 11 — — — — 518,750 — — 518,761 
Conversion of Exchangeable stock— — (18,460,609)(49,733)4,259,343 — (13,835,930)— 28,037,196 — 49,733 — — 49,733 
Issuance of common stock in connection with Business Combination and PIPE offering— — — — 43,845,835 7 — — — — 267,355 — — 267,362 
Assumption of SPAC Warrants upon Business Combination(38,135)(38,135)
Earn Out liability recognized upon consummation of the merger— — — — — — — — — — (98,117)— — (98,117)
Issuance of Delayed Draw Warrants— — — — — — — — — — 5,598 — — 5,598 
Stock-based compensation— — — — — — — — — — 11,734 — — 11,734 
Components of comprehensive loss:
Net Loss— — — — — — — — — — — — (21,383)(21,383)
Change in Cumulative Translation Adjustment— — — — — — — — — — — 7,084 — 7,084 
Balances as of June 30, 2022    189,343,553 20  — 28,037,196 — 924,054 14,383 (836,195)102,262 
Note: Amounts may not recalculate due to rounding
See Notes to Condensed Consolidated Financial Statements.
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SONDER HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND
STOCKHOLDERS’ EQUITY (DEFICIT), continued
(In thousands, except number of shares and par amount information)
(unaudited)

Six Months Ended June 30, 2021
Convertible
Preferred Stock
Exchangeable
Preferred Stock
Common StockExchangeable
AA Stock
Post-Combination Exchangeable Common SharesAdditional
Paid-in
Capital
Accumulated
Translation
Adjustment
Accumulated
Deficit
Total
Stockholders’
Deficit
SharesAmountSharesAmountSharesPar
Amount
SharesAmountSharesAmount
Balances as of December 31, 2020
75,664,679 $517,730 12,579,755 $49,733 7,169,758 $1 9,437,358 $— — $— $13,898 $5,666 $(520,425)$(500,860)
Retroactive adjustment to reflect the exchange ratio due to Business Combination35,456,366 — 5,894,873 — 3,359,582 — 4,422,311 — — — — — — — 
Balances as of December 31, 2020, as converted
111,121,045 517,730 18,474,628 49,733 10,529,340 1 13,859,669 — — — 13,898 5,666 (520,425)(500,860)
Issuance of Series E Convertible Preferred Stock, net of issuance costs136,390 1,020 — — — — — — — — — — — — 
Issuance of common stock upon exercise of stock options— — — — 1,317,590 — — — — — 2,123 — — 2,123 
Issuance of common stock upon exercise of common stock warrants— — — — 82,352 — — — — — 120 — — 120 
Stock-based compensation— — — — — — — — — — 16,601 — — 16,601 
Components of comprehensive loss:
Net loss— — — — — — — — — — — — (152,490)(152,490)
Other comprehensive income— — — — — — — — — — — 2,834 — 2,834 
Balances as of June 30, 2021111,257,435 518,750 18,474,628 49,733 11,929,282 1 13,859,669 — — — 32,742 8,500 (672,915)(631,672)
Note: Amounts may not recalculate due to rounding


See Notes to Condensed Consolidated Financial Statements.

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SONDER HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Six Months Ended June 30,
20222021
Cash flows from operating activities
Net loss $(21,383)$(152,490)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization11,626 8,332 
Share-based compensation11,734 16,601 
Bad debt expense191 88 
Write-off of capital assets373 658 
Amortization of operating lease right-of-use assets70,228 — 
Write-off of debt issuance costs362  
Straight-line rent 6,199 
Unrealized loss on foreign currency transactions6,458 2,921 
Amortization of debt issuance costs9,040 1,012 
Amortization of debt discounts(2,640)11,977 
Change in fair value of share-settled redemption feature and gain on conversion of Convertible Notes(29,512) 
Change in fair value of derivative instruments (4,100)
Change in fair value of warrants 1,286 
Change in fair value of SPAC Warrants(37,634) 
Change in fair value of Earn Out liability(96,522) 
Other adjustments to net loss249  
Changes in operating assets and liabilities:
Accounts receivable(2,941)(164)
Prepaid rent598 (852)
Prepaid expenses(4,877)(945)
Other current assets(2,948)(701)
Other non-current assets6,265 (6,988)
Accounts payable(22,382)(856)
Accrued liabilities11,148 6,801 
Sales tax payable4,251 1,982 
Deferred revenue19,089 12,722 
Operating lease assets and operating lease liabilities, net(24,862)— 
Other current liabilities1,212 13 
Other non-current liabilities1,262 251 
Net cash used in operating activities(91,615)(96,253)

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SONDER HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued
(In thousands)
(unaudited)
Six Months Ended June 30,
20222021
Cash flows from investing activities
Purchase of property and equipment(16,145)(4,476)
Capitalization of internal-use software(2,236)(2,424)
Net cash used in investing activities(18,381)(6,900)
Cash flows from financing activities
Proceeds from Delayed Draw Notes, net of issuance costs of $5,775
159,225  
Repayment of debt(24,680)(6,900)
Debt extinguishment costs(3,065) 
Proceeds from Business Combination and PIPE offering325,928 162,366 
Issuance costs of common stock(58,555) 
Proceeds from exercise of stock options1,447 2,123 
Proceeds from exercise of common stock warrants 120 
Issuance of redeemable convertible preferred stock 1,020 
Net cash provided by financing activities400,300 158,729 
Effects of foreign exchange on cash499 (258)
Net change in cash and restricted cash290,803 55,318 
Cash and restricted cash at the beginning of period69,941 123,108 
Cash and restricted cash at end of period
$360,744 $178,426 

Six Months Ended June 30,
20222021
Supplemental disclosures of cash flow information:
Cash paid for income taxes during the period