Navitas Semiconductor (US:NVTS)2024-03-06 22:24Financial Performance - Net revenues for the year ended December 31, 2023, were $79.5 million, an increase of $41.6 million or 109% compared to $37.9 million in 2022, primarily driven by the acquisition of GeneSiC[209]. - The company reported a net loss of $145.9 million for the year ended December 31, 2023, compared to a net income of $72.9 million in 2022, reflecting a decrease of $218.8 million or 300%[208]. - Total operating expenses for the year ended December 31, 2023, were $149.2 million, an increase of $13.6 million or 10% compared to $135.6 million in 2022[208]. - Basic net loss per share attributable to common stockholders was $(0.86) for 2023, down from a net income of $0.55 per share in 2022[272]. - The accumulated deficit grew to $300.187 million in 2023, compared to $154.754 million in 2022[270]. Revenue and Expenses - Cost of revenues for the year ended December 31, 2023, was $48.4 million, an increase of $22.4 million or 86% compared to $25.996 million in 2022, attributed to revenue growth and the GeneSiC acquisition[210]. - Research and development expenses for the year ended December 31, 2023, were $68.8 million, an increase of $18.5 million or 37% compared to $50.3 million in 2022, driven by increased headcount and stock-based compensation[211]. - Selling, general and administrative expenses for the twelve months ended December 31, 2023, were $61.6 million, a decrease of $16.8 million or 21% compared to the previous year[212]. - Amortization of definite-lived intangible assets increased to $18.8 million for the twelve months ended December 31, 2023, reflecting an increase of $11.9 million or 172% due to business acquisitions[213]. Cash Flow and Liquidity - As of December 31, 2023, the company had cash and cash equivalents of $152.8 million, an increase of $42.5 million or 39% compared to the previous year[221]. - Net cash used in operating activities for the year ended December 31, 2023, was $40.1 million, reflecting a net loss of $146.0 million adjusted for non-cash items[222]. - Net cash provided by financing activities for the year ended December 31, 2023, was $88.4 million, mainly from proceeds of $86.5 million from a public offering[225]. - The company reported a net increase in cash and cash equivalents of $42,502 thousand, reversing a decrease of $157,915 thousand in 2022[278]. Acquisitions and Investments - The acquisition of GeneSiC Semiconductor in August 2022 totaled $244.0 million, including $146.3 million in equity and $97.1 million in cash[196]. - The company acquired the remaining minority interest in its silicon control IC joint venture for approximately $22.4 million in Navitas stock, completed on February 13, 2023[195]. - The company recognized a gain of $33,788 thousand from changes in the fair value of earnout liability in 2023, compared to a loss of $121,709 thousand in 2022[278]. Inventory and Assets - The Company's inventory balance was $23.2 million as of December 31, 2023, valued at the lower of cost or market, with periodic reviews for potential obsolescence[260]. - Total current assets rose to $208.482 million, a 47% increase from $142.148 million in 2022[270]. - The total property and equipment, net, increased to $9.154 million in 2023 from $6.532 million in 2022, marking a growth of 40.0%[337]. Stock and Compensation - The total stock-based compensation expense for 2023 was $54,028 thousand, a decrease from $63,288 thousand in 2022, with research and development expenses at $26,806 thousand and selling, general and administrative expenses at $27,222 thousand[360]. - The Company awarded a total of 6,500,000 performance stock options under the 2021 LTIP, with an exercise price of $15.51 per share and an average fair value of $8.13 on the grant date[364]. - The Company recognized $31.5 million in stock-based compensation expense for RSUs in 2023, with an unrecognized compensation cost of $71.2 million related to unvested RSUs[370]. Earnout Liability - The company has an Earnout Liability of up to 10,000,000 Earnout Shares, contingent on meeting specific Earnout Milestones[383]. - Each Earnout Milestone allows for up to 3,333,333 Earnout Shares to be earned if the stock price meets thresholds of $12.50, $17.00, or $20.00 for 20 trading days within a 30-day period[383]. - The earnout liability is initially measured at fair value at the closing of the Business Combination and remeasured at each reporting period[384].