View is a leading smart buildings platform and technology company that transforms buildings to improve human health and experience, reduce energy consumption and carbon emissions, and generate additional revenue for building owners.

•the insulating glass unit; which is either double or triple pane with a micrometer semiconductor (or electrochromic) coating.

•the network infrastructure; which is composed of the controllers, connectors, sensors, and cabling.

•the software: which includes the predictive algorithms, artificial intelligence, remote management tools, and user-facing iOS and Android apps, to control the tint of the glass.

The Smart Building Platform includes an upgraded network infrastructure and end-to-end design and deployment services, and also enables next generation Smart Building Technologies. We began offering our Smart Building Platform for the following strategic reasons:

•To elevate the window selection and purchase decision to a customer and decision maker that has a more global view of the project and is in a much better position to make an informed decision regarding all the benefits provided by View's Smart Building Platform.

•To accelerate the integration of new technologies into the fabric of the building. Today, this includes integrating environmental quality sensors and immersive, transparent, high-definition displays into smart windows. Importantly, our smart façade design enables future hardware and software upgrades into the building infrastructure.

To date, we have devoted our efforts and resources towards the development, manufacture, and sale of our product platforms, which we believe have begun to show strong market traction. We have also devoted significant resources to enable our View

Key Factors Affecting Operating Results

•View Sense. Modules that provide the ability to measure and optimize light, humidity, temperature, air quality, dust, and noise to improve occupant wellness.

We expect our research and development expenses to increase in absolute dollars over time to maintain our differentiation in the market.

•Ability to integrate multiple systems efficiently and effectively;

•Product quality, durability, and price;

•Execution track record; and

Components of Results of Operations

Selling, General and Administrative Expenses

Other expense (income), net primarily consists of penalties we expect to incur for the proposed settlement of an environmental matter in 2021, and foreign exchange gains and losses.

(Gain) Loss on Fair Value Change, Net

Loss on Extinguishment of Debt

The following table sets forth our historical operating results for the periods indicated (in thousands, except percentages):

The following table presents our revenue by major product offering (in thousands, except percentages):

The following table presents our revenue by geographic area and is based on the shipping address of the customers (in thousands, except percentages):

•a $12.2 million decrease in new contract loss accruals,

•approximately $3.0 million of lower levels of smart window product costs due to lower revenues,

•approximately $1.8 million lower materials costs due to favorable factory yields,

•a $1.0 million decrease in stock-based compensation expense.

These decreases were partially offset by:

•$5.3 million of increased subcontractor costs used for the delivery of the Smart Building Platform product,

•$3.6 million of higher levels of inventory impairments for raw materials and produced finished goods that were not sold at period end, and

•a $11.8 million decrease in new contract loss accruals,

•approximately $3.7 million of lower levels of smart window product costs due to lower revenues,

•approximately $2.8 million lower materials costs due to favorable factory yields,

•a $1.5 million decrease in stock-based compensation expense, and

•a cumulative catch-up adjustment to the previously recorded contract loss accrual of $0.9 million.

These decreases were partially offset by:

•$10.8 million of increased subcontractor costs used for the delivery of the Smart Building Platform product, and

•$9.3 million of higher levels of inventory impairments for raw materials and produced finished goods that were not sold at period end.

Interest and Other Expense, net

7 of the "Notes to the Condensed Consolidated Financial Statements" included in Part I, Item 1. "Financial Statements (Unaudited)" for further discussion of this matter.

(Gain) loss on Fair Value Change, Net

Loss on extinguishment of debt

During the six months ended June 30, 2021, the Company recorded a loss of $10.0 million on debt extinguishment related to the full repayment of the revolving debt facility at Closing.

For the three and six months ended June 30, 2022 and 2021, the Company's income tax expense was immaterial.

The following table provides a summary of cash flow data (in thousands):

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

Net cash provided by financing activities was $1.0 million for the six months ended June 30, 2022, which was related to finance lease and long-term debt payments.

purpose entities, which were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Critical Accounting Policies and Estimates

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