QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
TABLE OF CONTENTS
2
June 30, |
December 31, |
|||||||
2023 |
2022 |
|||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Investment securities, available-for-sale |
||||||||
Restricted cash, current |
||||||||
Accounts receivable, net |
||||||||
Inventory |
||||||||
Advance to Ibeo |
||||||||
Deferred tax current |
||||||||
Other current assets |
||||||||
Total current assets |
||||||||
Property and equipment, net |
||||||||
Operating lease right-of-use |
||||||||
Restricted cash |
||||||||
Intangible assets, net |
||||||||
Non-current deferred tax assets |
||||||||
Other assets |
||||||||
Total assets |
$ | $ | ||||||
Liabilities and shareholders’ equity |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued liabilities |
||||||||
Accrued liability for Ibeo business combination |
||||||||
Contract liabilities |
||||||||
Current portion of operating lease liability |
||||||||
Current portion of finance lease obligations |
||||||||
Other current liabilities |
||||||||
Total current liabilities |
||||||||
Operating lease liability, net of current portion |
||||||||
Other long-term liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies (Note 10) |
||||||||
Shareholders’ equity |
||||||||
Preferred stock, par value $ |
||||||||
Common stock, par value $ |
||||||||
Additional paid-in capital |
||||||||
Subscriptions receivable |
( |
) | — | |||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Accumulated deficit |
( |
) | ( |
) | ||||
Total shareholders’ equity |
||||||||
Total liabilities and shareholders’ equity |
$ | $ | ||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Revenue |
$ | $ | $ | $ | ||||||||||||
Cost of Revenue |
||||||||||||||||
Gross profit |
( |
) | ( |
) | ||||||||||||
Research and development expense |
||||||||||||||||
Sales, marketing, general and administrative expense |
||||||||||||||||
Gain on disposal of fixed assets |
( |
) | ( |
) | ||||||||||||
Total operating expenses |
||||||||||||||||
Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Bargain purchase gain, net of tax |
||||||||||||||||
Other income |
||||||||||||||||
Net loss before taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income tax expense |
( |
) | ( |
) | ||||||||||||
Net loss |
$ |
( |
) | $ |
( |
) | $ |
( |
) | $ | ( |
) | ||||
Net loss per share - basic and diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Weighted-average shares outstanding - basic and diluted |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Other comprehensive loss: |
||||||||||||||||
Unrealized loss on investment securities, available-for-sale |
( |
) | ( |
) | ||||||||||||
Foreign currency translation adjustments |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive income (loss) |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
|
|
Accumulated |
||||||||||||||||||||||||||||
Common Stock |
Additional |
other |
Total |
|||||||||||||||||||||||||
Par |
paid-in |
Subscriptions |
comprehensive |
Accumulated |
shareholders’ |
|||||||||||||||||||||||
Shares |
value |
capital |
receivable |
loss |
deficit |
equity |
||||||||||||||||||||||
Balance at March 31, 2023 |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||||||
Share-based compensation expense |
||||||||||||||||||||||||||||
Exercise of options |
||||||||||||||||||||||||||||
Sales of common stock, net |
( |
) | ||||||||||||||||||||||||||
Net loss |
— | ( |
) | ( |
) | |||||||||||||||||||||||
Other comprehensive loss |
— | ( |
) | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at June 30, 2023 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at January 1, 2023 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-based compensation expense |
||||||||||||||||||||||||||||
Exercise of options |
||||||||||||||||||||||||||||
Sales of common stock, net |
( |
) | ||||||||||||||||||||||||||
Net loss |
— | ( |
) | ( |
) | |||||||||||||||||||||||
Other comprehensive income |
— | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at June 30, 2023 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at March 31, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-based compensation expense |
||||||||||||||||||||||||||||
Exercise of options |
||||||||||||||||||||||||||||
Net loss |
— | ( |
) | ( |
) | |||||||||||||||||||||||
Other comprehensive loss |
— | ( |
) | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at June 30, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at January 1, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Share-based compensation expense |
||||||||||||||||||||||||||||
Exercise of options |
||||||||||||||||||||||||||||
Net loss |
— | ( |
) | ( |
) | |||||||||||||||||||||||
Other comprehensive loss |
— | ( |
) | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at June 30, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||||||
June 30, |
||||||||
2023 |
2022 |
|||||||
Cash flows from operating activities |
||||||||
Net loss |
$ |
( |
) | $ |
( |
) | ||
Adjustments to reconcile net loss to net cash used in operations: |
||||||||
Depreciation and amortization |
||||||||
Bargain purchase gain, net of tax |
( |
) |
||||||
Gain on disposal of fixed assets |
( |
) |
||||||
Impairment of property and equipment |
||||||||
Inventory write-downs |
||||||||
Share-based compensation expense |
||||||||
Non-cash interest expense |
||||||||
Net accretion of premium on short-term investments |
( |
) |
||||||
Change in: |
||||||||
Accounts receivable |
( |
) |
||||||
Inventory |
( |
) | ||||||
Other current and non-current assets |
( |
) |
||||||
Accounts payable |
( |
) | ||||||
Accrued liabilities |
||||||||
Contract liabilities and other current liabilities |
( |
) |
( |
) | ||||
Operating lease liabilities |
( |
) |
( |
) | ||||
Other long-term liabilities |
||||||||
Net cash used in operating activities |
( |
) |
( |
) | ||||
Cash flows from investing activities |
||||||||
Sales of investment securities |
||||||||
Purchases of investment securities |
( |
) |
( |
) | ||||
Cash paid for Ibeo business combination |
( |
) |
||||||
Purchases of property and equipment |
( |
) |
( |
) | ||||
Net cash provided by (used in) investing activities |
( |
) | ||||||
Cash flows from financing activities |
||||||||
Principal payments under finance leases |
( |
) |
( |
) | ||||
Principal payments under long-term debt |
( |
) | ||||||
Proceeds from stock option exercises |
||||||||
Net proceeds from issuance of common stock |
||||||||
Net cash provided by financing activities |
||||||||
Change in cash, cash equivalents, and restricted cash |
( |
) | ||||||
Cash, cash equivalents, and restricted cash at beginning of period |
||||||||
Cash, cash equivalents, and restricted cash at end of period |
$ |
$ |
||||||
Supplemental schedule of non-cash investing and financing activities |
||||||||
Non-cash additions to property and equipment |
$ |
$ |
||||||
Amounts issued to escrow for acquisition consideration |
$ |
$ |
||||||
Accrued financing fees |
$ |
$ |
||||||
Issuance of common stock for subscription receivable |
$ |
$ |
||||||
Foreign currency translation adjustments |
$ |
$ |
||||||
Unrealized gain (loss) in investment securities, available-for-sale |
$ |
$ |
||||||
June 30, |
December 31, |
|||||||
2023 |
2022 |
|||||||
Cash and cash equivalents |
$ |
$ |
||||||
Restricted cash, current |
||||||||
Restricted cash |
||||||||
Cash, cash equivalents and restricted cash |
$ |
$ |
||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Numerator: |
||||||||||||||||
Net loss available for common shareholders - basic and diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
|
|
|||||||||
Denominator: |
||||||||||||||||
Weighted-average common shares outstanding - basic and diluted |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss per share - basic and diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
|
|
Amount |
Weighted Average Useful Life (in years) |
|||||||
Purchase consideration: |
||||||||
Cash paid at closing (1) |
$ | |||||||
Cash in escrow (2) |
||||||||
Holdback amount (3) |
||||||||
Advances to Ibeo (4) |
||||||||
|
|
|||||||
Total purchase consideration |
$ | |
||||||
|
|
|||||||
Inventory |
$ | |||||||
Other current assets |
||||||||
Operating lease right-of-use |
||||||||
Property and equipment, net |
||||||||
Intangible assets: |
||||||||
Acquired technology |
||||||||
Order backlog |
||||||||
Contract liabilities |
( |
) | ||||||
Operating lease liabilities |
( |
) | ||||||
Deferred tax liabilities |
( |
) | ||||||
|
|
|||||||
Total identifiable net assets |
$ | |||||||
|
|
|||||||
Bargain purchase gain (1) |
( |
) |
(1) | Represents $ |
(2) | Recorded as restricted cash and accrued liability to Ibeo in our condensed consolidated balance sheet. |
(3) | Recorded in accrued liability to Ibeo in our condensed consolidated balance sheet. |
(4) | Represents $ |
(5) | The bargain purchase gain represents the excess of the fair value of the underlying net assets acquired and liabilities assumed over the purchase consideration and is included in bargain pu rchase gain in the Condensed Consolidated Statement of Operations. The bargain purchase gain was attributable to the negotiation process with Ibeo during its insolvency proceedings resulting in cash consideration paid being less than the fair value of the net assets. |
• | Recognition of the bargain purchase gain as if incurred in the first quarter of 2022; |
• | Acquisition-related costs of $ |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Total revenue |
$ | |||||||||||||||
Net loss |
( |
) | ( |
) | ( |
) | ( |
) |
Three Months Ended June 30, 2023 |
||||||||||||||||
Product revenue |
License and royalty revenue |
Contract revenue |
Total |
|||||||||||||
|
||||||||||||||||
Products transferred at a point in time |
$ |
$ |
$ |
$ |
||||||||||||
Product and services transferred over time |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 |
||||||||||||||||
Product revenue |
License and royalty revenue |
Contract revenue |
Total |
|||||||||||||
|
||||||||||||||||
Products transferred at a point in time |
$ |
$ |
$ |
$ |
||||||||||||
Product and services transferred over time |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2022 |
||||||||||||||||
Product revenue |
License and royalty revenue |
Contract revenue |
Total |
|||||||||||||
|
||||||||||||||||
Products transferred at a point in time |
$ |
$ |
$ |
$ |
||||||||||||
Product and services transferred over time |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2022 |
||||||||||||||||
Product revenue |
License and royalty revenue |
Contract revenue |
Total |
|||||||||||||
|
||||||||||||||||
Products transferred at a point in time |
$ |
$ |
$ |
$ |
||||||||||||
Product and services transferred over time |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
June 30, 2023 |
December 31, 2022 |
$Change |
% Change |
|||||||||||||
Contract assets |
$ | $ |
$ | |||||||||||||
Contract liabilities |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Net contract assets (liabilities) |
$ | $ | $ | |||||||||||||
|
|
|
|
|
|
Remainder of 2023 |
2024 |
|||||||
Revenue |
$ | $ |
As of June 30, 2023 |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
Assets |
||||||||||||||||
Corporate debt securities |
$ |
$ |
$ |
$ |
||||||||||||
U.S. Treasury securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
$ |
$ |
$ |
|||||||||||||
|
|
|
|
|
|
|
|
As of December 31, 2022 |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
Assets |
||||||||||||||||
Corporate debt securities |
$ |
$ |
$ |
$ |
||||||||||||
U.S. Treasury securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
$ |
$ |
$ |
|||||||||||||
|
|
|
|
|
|
|
|
Investment |
||||||||||||||||
Cost/ |
Gross |
Gross |
Securities, |
|||||||||||||
Amortized |
Unrealized |
Unrealized |
Available- |
|||||||||||||
Cost |
Gains |
Losses |
For-Sale |
|||||||||||||
As of June 30, 2023 |
||||||||||||||||
Assets |
||||||||||||||||
Corporate debt securities |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
U.S. Treasury securities |
( |
) |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
$ |
$ |
( |
) |
$ |
|||||||||||
|
|
|
|
|
|
|
|
Investment |
||||||||||||||||
Cost/ |
Gross |
Gross |
Securities, |
|||||||||||||
Amortized |
Unrealized |
Unrealized |
Available- |
|||||||||||||
Cost |
Gains |
Losses |
For-Sale |
|||||||||||||
As of December 31, 2022 |
||||||||||||||||
Assets |
||||||||||||||||
Corporate debt securities |
$ | $ | $ | ( |
) | $ | ||||||||||
U.S. Treasury securities |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|
|
Gross |
Gross |
|||||||||||||||
Amortized |
Unrealized |
Unrealized |
Estimated |
|||||||||||||
Cost |
Gains |
Losses |
Fair Value |
|||||||||||||
As of June 30, 2023 |
||||||||||||||||
Maturity date |
||||||||||||||||
Less than one year |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
|
|
|
|
|||||||||||||
$ |
$ |
|||||||||||||||
|
|
|
|
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
|||||||||||||
As of December 31, 2022 |
||||||||||||||||
Maturity date |
||||||||||||||||
Less than one year |
$ | $ | $ | ( |
) | $ | ||||||||||
|
|
|
|
|||||||||||||
$ | $ | |||||||||||||||
|
|
|
|
Less than Twelve Months |
Twelve Months or Greater |
Total |
||||||||||||||||||||||
Gross |
Gross |
Gross |
||||||||||||||||||||||
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
Value |
Losses |
Value |
Losses |
Value |
Losses |
|||||||||||||||||||
As of June 30, 2023 |
||||||||||||||||||||||||
Corporate debt securities |
$ | $ | ( |
) | $ | |
$ | |
$ | $ | ( |
) | ||||||||||||
U.S. Treasury securities |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Less than Twelve Months |
Twelve Months or Greater |
Total |
||||||||||||||||||||||
Gross |
Gross |
Gross |
||||||||||||||||||||||
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
Value |
Losses |
Value |
Losses |
Value |
Losses |
|||||||||||||||||||
As of December 31, 2022 |
||||||||||||||||||||||||
Corporate debt securities |
$ | $ | ( |
) | $ | |
$ | |
$ | $ | ( |
) | ||||||||||||
U.S. Treasury securities |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
June 30, 2023 |
December 31, 2022 |
||||||
Raw materials |
$ | $ | ||||||
Work in process |
— | |||||||
Finished goods |
||||||||
|
|
|
|
|||||
$ | |
$ | ||||||
|
|
|
|
(in thousands) |
June 30, 2023 |
December 31, 2022 |
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Production equipment |
$ | $ | ||||||
Leasehold improvements |
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Computer hardware and software/lab equipment |
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Office furniture and equipment |
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|
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|
|
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Less: Accumulated depreciation |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
As of June 30, 2023 |
Gross |
Net |
Weighted |
|||||||||||||
Carrying |
Accumulated |
Carrying |
Average Remaining |
|||||||||||||
(in thousands) |
Amount |
Amortization |
Amount |
Period (Years) |
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Acquired technology |
$ | $ | $ | |||||||||||||
Backlog |
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|
|
|
|
|
|
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$ | $ | |||||||||||||||
|
|
|
|
|
|
As of December 31, 2022 |
Gross |
Net |
Weighted |
|||||||||||||
Carrying |
Accumulated |
Carrying |
Average Remaining |
|||||||||||||
(in thousands) |
Amount |
Amortization |
Amount |
Period (Years) |
||||||||||||
Acquired technology |
$ | $ | $ | |||||||||||||
|
|
|
|
|
|
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$ | $ | $ | ||||||||||||||
|
|
|
|
|
|
Research and |
||||||||||||
Cost of |
Development |
|||||||||||
Years Ended December 31, |
Revenue |
Expense |
Total |
|||||||||
2023 |
$ | $ | $ | |||||||||
2024 |