About Navitas
Navitas Semiconductor Corporation (Nasdaq:NVTS and NVTSW) is the industry leader in GaN power ICs, founded in 2014. GaN power ICs integrate GaN power with drive, control and protection to enable faster charging, higher power density and greater energy savings for mobile, consumer, enterprise, eMobility and new energy markets. Over 130 Navitas patents are issued or pending, and over 30 million GaNFast power ICs have been shipped with zero reported GaN field failures. Navitas
rang the opening bell and started trading on Nasdaq on October 20th, 2021.
Contact Information
Media
Graham Robertson, CMO Grand Bridges
Graham@GrandBridges.com
Investors
Stephen Oliver, VP Corporate Marketing & Investor Relations
ir@navitassemi.com
Navitas Semiconductor and the Navitas logo are trademarks or registered trademarks of Navitas Semiconductor. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.
| NAVITAS SEMICONDUCTOR LIMITED | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) - UNAUDITED | |||||||||||||||
| (dollars in thousands, except per-share amounts) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| NET REVENUES | $ | 5,631 | $ | 3,500 | $ | 16,398 | $ | 7,196 | |||||||
| COST OF REVENUES | 3,032 | 2,184 | 8,962 | 5,027 | |||||||||||
| GROSS PROFIT | 2,599 | 1,316 | 7,436 | 2,169 | |||||||||||
| OPERATING EXPENSES: | |||||||||||||||
| Research and development | 6,304 | 3,062 | 16,825 | 8,142 | |||||||||||
| General and administrative | 5,712 | 2,241 | 25,875 | 5,624 | |||||||||||
| Total operating expenses | 12,016 | 5,303 | 42,700 | 13,766 | |||||||||||
| LOSS FROM OPERATIONS | (9,417 | ) | (3,987 | ) | (35,264 | ) | (11,597 | ) | |||||||
| INTEREST INCOME (EXPENSE), net | (75 | ) | (63 | ) | (199 | ) | (172 | ) | |||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES | (9,492 | ) | (4,050 | ) | (35,463 | ) | (11,769 | ) | |||||||
| PROVISION FOR INCOME TAXES | 13 | - | 37 | 6 | |||||||||||
| NET LOSS | $ | (9,505 | ) | $ | (4,050 | ) | $ | (35,500 | ) | $ | (11,775 | ) | |||
| NET LOSS PER SHARE: | |||||||||||||||
| Basic and diluted | $ | (0.57 | ) | $ | (0.27 | ) | $ | (1.98 | ) | $ | (0.79 | ) | |||
| SHARES USED IN PER-SHARE CALCULATION: | |||||||||||||||
| Basic and diluted | 16,726 | 14,841 | 17,949 | 14,827 | |||||||||||
| SUPPLEMENTAL INFORMATION: | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Stock-based compensation expenses included in: | |||||||||||||||
| Net revenues | $ | - | $ | - | $ | 163 | $ | - | |||||||
| Research and development | 68 | 151 | 1,698 | 175 | |||||||||||
| General and administrative | 495 | 12 | 13,266 | 46 | |||||||||||
| Total stock-based compensation expense | $ | 563 | $ | 163 | $ | 15,127 | $ | 221 | |||||||
| Research and development includes: | |||||||||||||||
| Amortization of acquisition-related intangible assets | $ | 86 | $ | 84 | $ | 274 | $ | 84 | |||||||
| Other acquisition-related expenses included in: | |||||||||||||||
| Research and development | $ | 500 | $ | - | $ | 500 | $ | - | |||||||
| General and administrative | 1,800 | - | 1,800 | - | |||||||||||
| Total other acquisition-related expenses | $ | 2,300 | $ | - | $ | 2,300 | $ | - | |||||||
| NAVITAS SEMICONDUCTOR LIMITED | |||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS | |||||||||||||||
| (dollars in thousands, except per-share amounts) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| RECONCILIATION OF LOSS FROM OPERATIONS | |||||||||||||||
| GAAP loss from operations | $ | (9,417 | ) | $ | (3,987 | ) | $ | (35,264 | ) | $ | (11,597 | ) | |||
| GAAP operating margin | -167% | -114% | -215% | -161% | |||||||||||
| Add: Stock-based compensation expenses included in: | |||||||||||||||
| Net revenues | - | - | 163 | - | |||||||||||
| Research and development | 68 | 151 | 1,698 | 175 | |||||||||||
| General and administrative | 495 | 12 | 13,266 | 46 | |||||||||||
| Total | 563 | 163 | 15,127 | 221 | |||||||||||
| Other acquisition-related expenses | 2,300 | - | 2,300 | - | |||||||||||
| Amortization of acquisition-related intangible assets | 86 | 84 | 274 | 84 | |||||||||||
| Non-GAAP loss from operations | $ | (6,468 | ) | $ | (3,740 | ) | $ | (17,563 | ) | $ | (11,292 | ) | |||
| Non-GAAP operating margin | -115% | -107% | -107% | -157% | |||||||||||
| RECONCILIATION OF NET LOSS PER SHARE | |||||||||||||||
| GAAP net loss | $ | (9,505 | ) | $ | (4,050 | ) | $ | (35,500 | ) | $ | (11,775 | ) | |||
| Adjustments to GAAP net loss | |||||||||||||||
| Total stock-based compensation | 563 | 163 | 15,127 | 221 | |||||||||||
| Amortization of acquisition-related intangible assets | 86 | 84 | 274 | 84 | |||||||||||
| Other acquisition-related expenses | 2,300 | - | 2,300 | - | |||||||||||
| Non-GAAP net loss | $ | (6,556 | ) | $ | (3,803 | ) | $ | (17,799 | ) | $ | (11,470 | ) | |||
| Average shares outstanding for calculation of non-GAAP net loss per share (basic and diluted) | 16,726 | 14,841 | 17,949 | 14,827 | |||||||||||
| Non-GAAP net loss per share | $ | (0.39 | ) | $ | (0.26 | ) | $ | (0.99 | ) | $ | (0.77 | ) | |||
| RECONCILIATION OF GROSS PROFIT MARGIN | |||||||||||||||
| GAAP gross profit | $ | 2,599 | $ | 1,316 | $ | 7,436 | $ | 2,169 | |||||||
| GAAP gross profit margin | 46.2 % | 37.6 % | 45.3 % | 30.1 % | |||||||||||
| Stock-based compensation expense included in net revenues | - | - | 163 | - | |||||||||||
| Non-GAAP gross profit | 2,599 | 1,316 | 7,599 | 2,169 | |||||||||||
| Non-GAAP gross profit margin | 46.2 % | 37.6 % | 45.9 % | 30.1 % | |||||||||||
| NAVITAS SEMICONDUCTOR LIMITED | |||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| September 30, 2021 | December 31, 2020 | ||||||||||||||
| ASSETS | |||||||||||||||
| CURRENT ASSETS: | |||||||||||||||
| Cash and cash equivalents | $ | 11,075 | $ | 38,869 | |||||||||||
| Accounts receivable, net | 5,570 | 4,152 | |||||||||||||
| Inventories | 11,719 | 3,404 | |||||||||||||
| Prepaid expenses and other current assets | 4,737 | 522 | |||||||||||||
| Total current assets | 33,101 | 46,947 | |||||||||||||
| PROPERTY AND EQUIPMENT, net | 1,616 | 722 | |||||||||||||
| INTANGIBLE ASSETS, net | 258 | 515 | |||||||||||||
| OTHER ASSETS | 450 | 323 | |||||||||||||
| Total assets | $ | 35,425 | $ | 48,507 | |||||||||||
| LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||||||
| CURRENT LIABILITIES: | |||||||||||||||
| Accounts payable and other accrued expenses | $ | 6,118 | $ | 3,698 | |||||||||||
| Accrued compensation expenses | 4,506 | 1,668 | |||||||||||||
| Current portion of long-term debt | 3,200 | 1,000 | |||||||||||||
| Other liabilities | 59 | - | |||||||||||||
| Total current liabilities | 13,883 | 6,366 | |||||||||||||
| LONG-TERM LIABILITIES: | |||||||||||||||
| LONG-TERM DEBT | 4,513 | 4,971 | |||||||||||||
| OTHER LIABILITIES | 75 | 88 | |||||||||||||
| Total liabilities | 18,471 | 11,425 | |||||||||||||
| REDEEMABLE CONVERTIBLE PREFERRED STOCK | 109,506 | 109,506 | |||||||||||||
| STOCKHOLDERS' EQUITY (DEFICIT): | |||||||||||||||
| Common stock | 3 | 2 | |||||||||||||
| Additional paid-in capital | 18,929 | 3,557 | |||||||||||||
| Accumulated other comprehensive loss | (2 | ) | (1 | ) | |||||||||||
| Accumulated deficit | (111,482 | ) | (75,982 | ) | |||||||||||
| Total stockholders’ equity (deficit) | (92,552 | ) | (72,424 | ) | |||||||||||
| Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ | 35,425 | $ | 48,507 | |||||||||||
| NAVITAS SEMICONDUCTOR LIMITED | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| Nine Months Ended | |||||||||||||||
| September 30, | |||||||||||||||
| 2021 | 2020 | ||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||
| Net loss | $ | (35,500 | ) | $ | (11,775 | ) | |||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
| Depreciation | 278 | 276 | |||||||||||||
| Amortization of intangibles | 253 | - | |||||||||||||
| Other non-cash (income) expenses | 50 | (1 | ) | ||||||||||||
| Amortization of deferred rent | (35 | ) | 14 | ||||||||||||
| Stock-based compensation expense | 15,127 | 221 | |||||||||||||
| Amortization of debt discount and issuance costs | 9 | 4 | |||||||||||||
| Change in operating assets and liabilities: | |||||||||||||||
| Accounts receivable | (1,418 | ) | (1,611 | ) | |||||||||||
| Inventory | (8,315 | ) | (1,547 | ) | |||||||||||
| Prepaid expenses and other current assets | (3,581 | ) | (79 | ) | |||||||||||
| Other assets | (138 | ) | - | ||||||||||||
| Accounts payable, accrued compensation and other expenses | 5,916 | 1,929 | |||||||||||||
| Deferred revenue | 59 | (216 | ) | ||||||||||||
| Net cash used in operating activities | (27,295 | ) | (12,785 | ) | |||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||
| Asset acquisition | (680 | ) | - | ||||||||||||
| Investment purchases | (634 | ) | |||||||||||||
| Purchases of property and equipment | (1,213 | ) | (223 | ) | |||||||||||
| Repayment of notes receivable | 2 | - | |||||||||||||
| Net cash used in investing activities | (2,525 | ) | (223 | ) | |||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||
| Proceeds from issuance of preferred stock | - | 53,085 | |||||||||||||
| Payment of preferred stock issuance costs | - | (300 | ) | ||||||||||||
| Proceeds from issuance of common stock in connection with stock options exercised | 294 | 26 | |||||||||||||
| Proceeds from issuance of long-term debt | 2,000 | 6,000 | |||||||||||||
| Principal payments on long-term debt | (267 | ) | (4,800 | ) | |||||||||||
| Payment of debt issuance costs | - | (20 | ) | ||||||||||||
| Net cash provided by financing activities | 2,027 | 53,991 | |||||||||||||
| Effect of exchange rate changes on cash | (1 | ) | - | ||||||||||||
| NET INCREASE (DECREASE) IN CASH, CASH-EQUIVALENTS AND RESTRICTED CASH | (27,794 | ) | 40,983 | ||||||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 38,869 | 6,118 | |||||||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ | 11,075 | $ | 47,101 | |||||||||||
