Quarterly report pursuant to Section 13 or 15(d)

Organization and Summary of Significant Accounting Policies

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Organization and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Summary of Significant Accounting Policies
Note 1 – Organization and Summary of Significant Accounting Policies
Company Overview
Bird Global, Inc. (“Bird Global” and, together with its subsidiaries, “Bird”, the “Company”, “our”, or “we”) was incorporated in Delaware on May 4, 2021 as a wholly owned subsidiary of Bird Rides, Inc. (“Bird Rides”). Bird Global was formed for the purpose of completing the transactions contemplated by the Business Combination Agreement, dated May 11, 2021 (as amended, the “Business Combination Agreement” and the transaction contemplated thereby, the "Business Combination"), by and among Switchback II Corporation (“Switchback”), Maverick Merger Sub Inc., a direct and wholly owned subsidiary of Switchback (“Merger Sub”), Bird Rides, and Bird Global.

Bird is a micromobility company engaged in delivering electric transportation solutions for short distances. The Company partners with cities to bring lightweight, electric vehicles to residents and visitors in an effort to replace car trips by providing an alternative sustainable transportation option. Bird’s offerings include its core vehicle-sharing business and operations (“Sharing”), and sales of Bird-designed vehicles for personal use (“Product Sales”).
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements (“condensed consolidated financial statements”) include the accounts of the Company and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting disclosure rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2021 (the "2021 Form 10-K/A"). All intercompany balances and transactions are eliminated upon consolidation.
The consolidated balance sheet as of December 31, 2021 included herein was derived from the audited annual consolidated financial statements as of that date. The condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, results of operations, comprehensive income (loss), stockholders’ deficit (equity), and cash flows for the periods presented, but are not necessarily indicative of the results of operations to be anticipated for any future annual or interim period.
There have been no material changes to the Company’s significant accounting policies as described in the audited consolidated financial statements as of December 31, 2021.
Certain amounts from prior periods have been reclassified to conform to the current period’s presentation. None of these reclassifications had a material impact on the Company's condensed consolidated financial statements.
Restatement of Condensed Consolidated Financial Statements
In connection with the preparation of the Company's condensed consolidated financial statements for the three and nine months ended September 30, 2022, the Company identified an error related to its business system configuration that impacted the recognition of revenue on certain trips completed by customers of its Sharing business ("Rides") for which collectability was not probable. Specifically, for certain customers with insufficient preloaded "wallet" balances, the Company's business systems recorded revenue for uncollectible balances following the completion of certain Rides that should not have been recorded. The error resulted in an overstatement of Sharing revenue in the condensed consolidated statements of operations for the three months ended March 31, 2022 and 2021, and an understatement of deferred revenue in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021. The Company also corrected certain other previously identified immaterial errors included in the financial statements as of and for the three months
ended March 31, 2021 and 2020, and as of and for the year ended December 31, 2020, as disclosed in the 2021 Form 10-K/A.

Impact of Restatement

See below for a reconciliation from the previously reported to the restated amounts as of March 31, 2022, and for the three months ended March 31, 2022 and 2021. The previously reported amounts were derived from the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2022 filed with the SEC on May 15, 2022 (the “Original Report”). These amounts are labeled as “As Previously Reported” in the tables below. The amounts labeled “Restatement Adjustment” represent the effects of this restatement described above. Also included in the amounts labeled “Restatement Adjustment” are the correction of certain other previously identified immaterial errors as of and for the three months ended March 31, 2021 and 2020, and as of and for the year ended December 31, 2020.

The correction of this misstatement resulted in a decrease in Sharing revenue of $2.6 million and $1.4 million in the condensed consolidated statements of operations for the three months ended March 31, 2022 and 2021, respectively, and an increase in deferred revenue of $21.7 million and $19.1 million in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively. The following presents a reconciliation of the impacted financial statement line items as previously reported to the restated amounts as of March 31, 2022 and December 31, 2021, and for the three months ended March 31, 2022 and 2021:

March 31, 2022 December 31, 2021
Condensed Consolidated Balance Sheets As Previously Reported Restatement Adjustment As Restated As Previously Reported Restatement Adjustment As Restated
Deferred revenue 42,757  21,697  64,454  43,345  19,094  62,439 
Total current liabilities 160,107  21,697  181,804  133,958  19,094  153,052 
Total liabilities 193,376  21,697  215,073  276,436  19,094  295,530 
Accumulated deficit (1,151,689) (21,697) (1,173,386) (1,162,040) (19,094) (1,181,134)
Total stockholders' equity 373,673  (21,697) 351,976  320,825  (19,094) 301,731 

Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Condensed Consolidated Statements of Operations As Previously Reported Restatement Adjustment Restated As Previously Reported Restatement Adjustment Restated
Revenues:
Sharing 33,577  (2,603) 30,974  21,649  (1,423) 20,226 
Total revenues 37,978  (2,603) 35,375  25,670  (1,423) 24,247 
Total gross margin 3,423  (2,603) 820  2,040  (1,423) 617 
General and administrative 84,650  —  84,650  30,190  (811) 29,379 
Total operating expenses 100,214  —  100,214  40,996  (811) 40,185 
Loss from operations (96,791) (2,603) (99,394) (38,956) (612) (39,568)
Income (loss) before income taxes 10,388  (2,603) 7,785  (76,180) (612) (76,792)
Net income (loss) 10,351  (2,603) 7,748  (76,200) (612) (76,812)
Earnings (loss) per share attributable to common stockholders, basic and diluted 0.04  (0.01) 0.03  (1.69) (0.01) (1.70)

Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Consolidated Statements of Comprehensive Loss As Previously Reported Restatement Adjustment Restated As Previously Reported Restatement Adjustment Restated
Net income (loss) 10,351  (2,603) 7,748  (76,200) (612) (76,812)
Total comprehensive loss, net of tax 5,878  (2,603) 3,275  (78,525) (612) (79,137)
Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit As Previously Reported Restatement Adjustment Restated As Previously Reported Restatement Adjustment Restated
Net income (loss) 10,351  (2,603) 7,748  (76,200) (612) (76,812)
Accumulated other comprehensive income 3,065  —  3,065  10,680  (3,312) 7,368 
Accumulated deficit (1,151,689) (21,697) (1,173,386) (1,041,907) (1,115) (1,043,022)
Total stockholders' equity 373,673  (21,697) 351,976  (938,683) (4,427) (943,110)

Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Condensed Consolidated Statements of Cash Flow As Previously Reported Restatement Adjustment Restated As Previously Reported Restatement Adjustment Restated
Net income (loss) 10,351  (2,603) 7,748  (76,200) (612) (76,812)
Changes in assets and liabilities:
Deferred revenue (474) 2,603  2,129  1,378  1,423  2,801 
Accrued expenses and other current liabilities 3,952  —  3,952  (1,459) (811) (2,270)
Net cash used in operating activities (42,565) —  (42,565) (36,337) —  (36,337)

The remainder of the notes to the Company’s condensed consolidated financial statements have been updated and restated, as applicable, to reflect the impacts of the restatement described above.

Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, the reported amounts of revenues and expenses during the reporting period, and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. On an ongoing basis, management evaluates estimates, which are subject to significant judgment, including, but not limited to, those related to useful lives associated with vehicles, impairment of other long-lived assets, impairment of goodwill, assumptions utilized in the valuation of derivative liabilities and certain equity awards, and loss contingencies. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements Not Yet Adopted
In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02—Leases (Topic 842), which introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard. The FASB also subsequently issued guidance amending and clarifying various aspects of the new leases guidance. The new leasing standard represents a wholesale change to lease accounting for lessees and requires additional disclosures regarding leasing arrangements. This update is effective for annual periods beginning January 1, 2022, and interim periods beginning January 1, 2023, with early adoption permitted. While the Company is continuing to assess the potential impacts of ASU 2016-02, it does not expect it to have a material effect on its consolidated financial statements.
The Company does not believe there are any other recently issued and effective or not yet effective pronouncements that would have or are expected to have any significant effect on the Company’s financial position, cash flows or results of operations.