Cepton, Inc. Reports Third Quarter 2024 Results

Actual results, performance or achievements may, and are likely to, differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements were based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond Cepton’s control.

Non-GAAP Financial Measures

Some of the financial information and data contained in this press release, such as Non-GAAP net loss and adjusted EBITDA, have not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Non-GAAP net loss is defined as GAAP net loss excluding stock-based compensation, gain from project cancellation cost recovery, contingent loss, non-recurring transaction expenses, gain on sales of property and equipment, gain or loss on changes in fair value of earnout liability and warrants, foreign currency transaction loss, net, and loss on extinguishment of debt. As a result of the cancellation of the GM series production award in December 2023, Cepton submitted a project investment cost recovery claim and realized a gain from project cancellation cost recovery in the nine months ended September 30, 2024. In the three and nine months ended September 30, 2024, Cepton also incurred a contingent loss from the project loss claims from our contract manufacturers affected by the GM series production award cancellation. Both the gain from project cancellation loss recovery and the contingent loss from project loss claims are excluded from the calculation of Non-GAAP net loss. Adjusted EBITDA is defined as non-GAAP net loss before interest income or expense, provision for income taxes, and depreciation and amortization.

Cepton believes these non-GAAP financial measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Cepton’s financial condition and results of operations. Cepton believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating actual and projected operating results and trends in comparing Cepton’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Cepton also believes that adjusted EBITDA is useful to investors and analysts in assessing our operating performance during the periods these charges were incurred on a consistent basis with the periods during which these charges were not incurred. Our presentation of adjusted EBITDA should not be considered as an inference that our future results and financial position will be unaffected by unusual items. Cepton does not consider these non-GAAP financial measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and other amounts that are required by GAAP to be recorded in Cepton’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and other amounts are excluded or included in determining these non-GAAP financial measures.

CEPTON, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and Non-GAAP Adjusted EBITDA

(In thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net loss

$

(10,642

)

 

$

(11,294

)

 

$

(17,294

)

 

$

(40,226

)

Stock-based compensation

 

1,269

 

 

 

2,335

 

 

 

3,693

 

 

 

6,989

 

Gain from project cancellation cost recovery

 

 

 

 

 

 

 

(4,000

)

 

 

 

Contingent loss

 

349

 

 

 

 

 

 

349

 

 

 

 

Non-recurring transaction expenses

 

1,563

 

 

 

 

 

 

3,185

 

 

 

 

Loss (gain) on sales of property and equipment

 

1

 

 

 

 

 

 

(59

)

 

 

 

Gain on change in fair value of earnout liability

 

 

 

 

(91

)

 

 

(59

)

 

 

(827

)

Loss (gain) on change in fair value of warrant liability

 

5

 

 

 

(169

)

 

 

23

 

 

 

(299

)

Foreign currency transaction loss, net

 

 

 

 

7

 

 

 

 

 

 

757

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

1,123

 

Non-GAAP net loss

$

(7,455

)

 

$

(9,212

)

 

$

(14,162

)

 

$

(32,483

)

Interest income, net

 

(622

)

 

 

(799

)

 

 

(1,889

)

 

 

(2,015

)

(Benefit) provision for income taxes

 

 

 

 

 

 

 

(14

)

 

 

3

 

Depreciation and amortization

 

98

 

 

 

135

 

 

 

302

 

 

 

370

 

Adjusted EBITDA

$

(7,979

)

 

$

(9,876

)

 

$

(15,763

)

 

$

(34,125

)

 

 

 

 

 

 

 

 

Net loss

$

(10,642

)

 

$

(11,294

)

 

$

(17,294

)

 

$

(40,226

)

Less: cumulative preferred stock dividends

 

(1,130

)

 

 

(1,083

)

 

 

(3,353

)

 

 

(2,992

)

Net loss attributable to common stockholders

$

(11,772

)

 

$

(12,377

)

 

$

(20,647

)

 

$

(43,218

)

 

 

 

 

 

 

 

 

Non-GAAP net loss

$

(7,455

)

 

$

(9,212

)

 

$

(14,162

)

 

$

(32,483

)

Less: cumulative preferred stock dividends

 

(1,130

)

 

 

(1,083

)

 

 

(3,353

)

 

 

(2,992

)

Non-GAAP net loss attributable to common stockholders

$

(8,585

)

 

$

(10,295

)

 

$

(17,515

)

 

$

(35,475

)

 

 

 

 

 

 

 

 

GAAP net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

$

(0.73

)

 

$

(0.78

)

 

$

(1.29

)

 

$

(2.74

)

Diluted

$

(0.73

)

 

$

(0.78

)

 

$

(1.29

)

 

$

(2.74

)

Non-GAAP net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

$

(0.53

)

 

$

(0.65

)

 

$

(1.10

)

 

$

(2.25

)

Diluted

$

(0.53

)

 

$

(0.65

)

 

$

(1.10

)

 

$

(2.25

)

Shares used in computing GAAP net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

 

16,047,213

 

 

 

15,834,152

 

 

 

15,971,448

 

 

 

15,750,586

 

Diluted

 

16,047,213

 

 

 

15,834,152

 

 

 

15,971,448

 

 

 

15,750,586

 

Shares used in computing Non-GAAP net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

 

16,047,213

 

 

 

15,834,152

 

 

 

15,971,448

 

 

 

15,750,586

 

Diluted

 

16,047,213

 

 

 

15,834,152

 

 

 

15,971,448

 

 

 

15,750,586

 

CEPTON, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(unaudited)

 

 

September 30,
2024

 

December 31,
2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

47,651

 

 

$

50,406

 

Short-term investments

 

 

 

 

5,969

 

Accounts receivable, net of allowance for credit losses of $0 and $0

 

556

 

 

 

3,625

 

Inventories

 

1,048

 

 

 

2,396

 

Prepaid expenses and other current assets

 

3,060

 

 

 

1,253

 

Total current assets

 

52,315

 

 

 

63,649

 

Property and equipment, net

 

1,150

 

 

 

1,450

 

Restricted cash

 

1,283

 

 

 

1,283

 

Other assets

 

8,703

 

 

 

10,067

 

Total assets

$

63,451

 

 

$

76,449

 

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,416

 

 

$

1,128

 

Operating lease liabilities, current

 

2,141

 

 

 

1,875

 

Accrued expenses and other current liabilities

 

4,914

 

 

 

4,066

 

Total current liabilities

 

9,471

 

 

 

7,069

 

Warrant liability

 

66

 

 

 

43

 

Earnout liability

 

34

 

 

 

93

 

Operating lease liabilities, non-current

 

7,063

 

 

 

8,720

 

Total liabilities

 

16,634

 

 

 

15,925

 

Commitments and contingencies (Note 17)

 

 

 

Convertible preferred stock with a related party:

 

 

 

Convertible preferred stock – Par value $0.00001 per share – 5,000,000 shares authorized; 100,000 shares issued and outstanding (aggregate liquidation preference of $107.4 million and $104.1 million)

 

98,891

 

 

 

98,891

 

Stockholders’ equity (deficit):

 

 

 

Common stock – Par value $0.00001 per share – 35,000,000 shares authorized; 16,051,981 and 15,861,494 shares issued and outstanding

 

 

 

 

 

Additional paid-in capital

 

100,177

 

 

 

96,583

 

Accumulated other comprehensive loss

 

(352

)

 

 

(345

)

Accumulated deficit

 

(151,899

)

 

 

(134,605

)

Total stockholders’ equity (deficit)

 

(52,074

)

 

 

(38,367

)

Total liabilities, convertible preferred stock and stockholders’ equity (deficit)

$

63,451

 

 

$

76,449

 

CEPTON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Lidar sensor and prototype revenue

$

466

 

 

$

3,802

 

 

$

1,981

 

 

$

7,813

 

Development revenue

 

81

 

 

 

31

 

 

 

10,940

 

 

 

292

 

Total revenue

 

547

 

 

 

3,833

 

 

 

12,921

 

 

 

8,105

 

 

 

 

 

 

 

 

 

Lidar sensor and prototype cost of revenue

 

600

 

 

 

3,339

 

 

 

2,788

 

 

 

7,135

 

Development cost of revenue

 

29

 

 

 

 

 

 

3,438

 

 

 

116

 

Total cost of revenue

 

629

 

 

 

3,339

 

 

 

6,226

 

 

 

7,251

 

Gross (loss) profit

 

(82

)

 

 

494

 

 

 

6,695

 

 

 

854

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

5,524

 

 

 

6,706

 

 

 

14,412

 

 

 

23,309

 

Selling, general and administrative

 

5,332

 

 

 

6,136

 

 

 

15,305

 

 

 

19,052

 

Total operating expenses

 

10,856

 

 

 

12,842

 

 

 

29,717

 

 

 

42,361

 

Operating loss

 

(10,938

)

 

 

(12,348

)

 

 

(23,022

)

 

 

(41,507

)

Other income (expense):

 

 

 

 

 

 

 

Gain on change in fair value of earnout liability

 

 

 

 

91

 

 

 

59

 

 

 

827

 

(Loss) gain on change in fair value of warrant liability

 

(5

)

 

 

169

 

 

 

(23

)

 

 

299

 

Other (expense) income, net

 

(321

)

 

 

2

 

 

 

3,789

 

 

 

23

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

(1,123

)

Foreign currency transaction loss, net

 

 

 

 

(7

)

 

 

 

 

 

(757

)

Interest income, net

 

622

 

 

 

799

 

 

 

1,889

 

 

 

2,015

 

Loss before income taxes

 

(10,642

)

 

 

(11,294

)

 

 

(17,308

)

 

 

(40,223

)

Benefit (provision) for income taxes

 

 

 

 

 

 

 

14

 

 

 

(3

)

 

 

 

 

 

 

 

 

Net loss

$

(10,642

)

 

$

(11,294

)

 

$

(17,294

)

 

$

(40,226

)

Less: cumulative preferred stock dividends

 

(1,130

)

 

 

(1,083

)

 

 

(3,353

)

 

 

(2,992

)

Net loss attributable to common stockholders

$

(11,772

)

 

$

(12,377

)

 

$

(20,647

)

 

$

(43,218

)

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders, basic

$

(0.73

)

 

$

(0.78

)

 

$

(1.29

)

 

$

(2.74

)

Net loss per share attributable to common stockholders, diluted

$

(0.73

)

 

$

(0.78

)

 

$

(1.29

)

 

$

(2.74

)

Weighted-average common shares, basic

 

16,047,213

 

 

 

15,834,152

 

 

 

15,971,448

 

 

 

15,750,586

 

Weighted-average common shares, diluted

 

16,047,213

 

 

 

15,834,152

 

 

 

15,971,448

 

 

 

15,750,586

 

CEPTON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net loss

$

(17,294

)

 

$

(40,226

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

302

 

 

 

370

 

Stock-based compensation

 

3,693

 

 

 

6,989

 

Amortization of right-of-use asset

 

1,253

 

 

 

1,177

 

Gain on sales of property and equipment

 

(59

)

 

 

 

Accretion, other

 

(25

)

 

 

(682

)

Gain on change in fair value of earnout liability

 

(59

)

 

 

(827

)

Loss (gain) on change in fair value of warrant liability

 

23

 

 

 

(299

)

Foreign currency transaction loss, net

 

 

 

 

757

 

Loss from extinguishment of debt

 

 

 

 

1,123

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

3,068

 

 

 

(802

)

Inventories

 

1,348

 

 

 

(941

)

Prepaid expenses and other current assets

 

(1,806

)

 

 

2,974

 

Other long-term assets

 

111

 

 

 

202

 

Accounts payable

 

1,288

 

 

 

(805

)

Accrued expenses and other current liabilities

 

848

 

 

 

1,144

 

Operating lease liabilities

 

(1,391

)

 

 

(680

)

Net cash used in operating activities

 

(8,700

)

 

 

(30,526

)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Purchases of property and equipment

 

(3

)

 

 

(1,292

)

Purchases of short-term investments

 

 

 

 

(37,806

)

Proceeds from sales of property and equipment

 

60

 

 

 

 

Proceeds from maturities of short-term investments

 

6,000

 

 

 

25,200

 

Net cash provided by (used in) investing activities

 

6,057

 

 

 

(13,898

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Proceeds from convertible preferred stock with a related party, net of transaction costs

 

 

 

 

99,884

 

Repayment of secured term loan from a related party

 

 

 

 

(45,220

)

Proceeds from issuance of common stock options

 

4

 

 

 

22

 

Payments of employee taxes related to vested restricted stock units

 

(103

)

 

 

(63

)

Net cash (used in) provided by financing activities

 

(99

)

 

 

54,623

 

 

 

 

 

Effect of exchange rate changes on cash

 

(13

)

 

 

426

 

 

 

 

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

(2,755

)

 

 

10,625

 

Cash, cash equivalents and restricted cash, beginning of period

 

51,689

 

 

 

34,518

 

Cash, cash equivalents and restricted cash, end of period

$

48,934

 

 

$

45,143

 


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