Desktop Metal, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
Jun. 30, 2022
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	21. RELATED PARTY TRANSACTIONS As a result of the acquisition of Dental Arts Labs, the Company assumed certain lease agreements with a related party for facilities in Peoria, Illinois used for research and development and administrative purposes. As of June 30, 2022, the Company recorded $3.4 million of right of use asset and lease liability. During the three and six months ended June 30, 2022, the Company paid lease expense of $0.1 million and $0.3 million, respectively, to the related party. The Company’s annual commitment related to these lease agreements is $0.5 million. As a result of the acquisition of Brewer Dental, the Company assumed a lease agreement with a related party for a laboratory facility in Tulsa, Oklahoma. As of June 30, 2022, the Company recorded $0.6 million of right of use asset and lease liability. During the three and six months ended June 30, 2022, the Company paid immaterial lease expense and lease expense of $0.1 million, respectively, to the related party. The Company’s annual commitment related to this lease agreement is $0.1 million. As a result of the acquisition of May Dental, the Company assumed certain lease agreements with a related party for laboratory facilities in Fenton, Missouri. As of June 30, 2022, the Company recorded $1.2 million of right of use asset and lease liability. During the three and six months ended June 30, 2022, the Company paid immaterial lease expense and lease expense of $0.1 million, respectively, to the related party. The Company’s annual commitment related to this lease agreement is $0.2 million. The Company sells products to Lightforce Orthodontics which is affiliated with a member of the Company’s Board of Directors. Management believes the sales were conducted on terms equivalent to those prevailing in an arm’s-length transaction. During the three and six months ended June 30, 2022, the Company recognized $0.2 million and $0.6 million of revenue, respectively. As of June 30, 2022, the Company has an account receivable balance of $0.2 million with Lightforce Orthodontics.

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2022

21. RELATED PARTY TRANSACTIONS

As a result of the acquisition of Dental Arts Labs, the Company assumed certain lease agreements with a related party for facilities in Peoria, Illinois used for research and development and administrative purposes. As of June 30, 2022, the Company recorded $3.4 million of right of use asset and lease liability. During the three and six months ended June 30, 2022, the Company paid lease expense of $0.1 million and $0.3 million, respectively, to the related party. The Company’s annual commitment related to these lease agreements is $0.5 million.

As a result of the acquisition of Brewer Dental, the Company assumed a lease agreement with a related party for a laboratory facility in Tulsa, Oklahoma. As of June 30, 2022, the Company recorded $0.6 million of right of use asset and lease liability. During the three and six months ended June 30, 2022, the Company paid immaterial lease expense and lease expense of $0.1 million, respectively, to the related party. The Company’s annual commitment related to this lease agreement is $0.1 million.

As a result of the acquisition of May Dental, the Company assumed certain lease agreements with a related party for laboratory facilities in Fenton, Missouri. As of June 30, 2022, the Company recorded $1.2 million of right of use asset and lease liability. During the three and six months ended June 30, 2022, the Company paid immaterial lease expense and lease expense of $0.1 million, respectively, to the related party. The Company’s annual commitment related to this lease agreement is $0.2 million.

The Company sells products to Lightforce Orthodontics which is affiliated with a member of the Company’s Board of Directors. Management believes the sales were conducted on terms equivalent to those prevailing in an arm’s-length transaction. During the three and six months ended June 30, 2022, the Company recognized $0.2 million and $0.6 million of revenue, respectively. As of June 30, 2022, the Company has an account receivable balance of $0.2 million with Lightforce Orthodontics.