Radar Revolution. Delivered. Q3 2023 Financial Results v Disclaimer This presentation and any statements made at the conference call and webcast referred to in this presentation, contains "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "project," ...

Financial Data and Key Metrics - Total revenue in Q3 2023 was $0.5 million, a decrease from $1.3 million in Q3 2022, in line with longer OEM implementation timelines [11] - Gross margin for Q3 2023 was 24%, compared to 72.5% in Q3 2022, due to reduced quarterly revenue with a fixed cost portion in cost of goods sold [11] - Operating expenses in Q3 2023 were $11.7 million, slightly down from $11.8 million in Q3 2022, driven by lower R&D and G&A expenses [12] - Adjusted EBITDA loss in Q3 2023 was $7.5 million, outperforming expectations, compared to a loss of $8.4 million in Q3 2022 [13] - Net loss in Q3 2023 was $11.7 million, compared to a net loss of $9.9 million in Q3 2022 [13] - Cash and cash equivalents as of September 30, 2023, were $23.5 million, with $25.6 million in short-term bank deposits and no debt [14] Business Line Data and Key Metrics - Arbe is engaged with four top Tier 1 companies: Magna, HiRain, Weifu, and Sensrad, all of which advanced to the production of radar systems based on Arbe's chipsets in Q3 [5][6] - Preliminary chipset orders from China for 2024 and 2025 include an $11.6 million order from Weifu and a 340,000-unit order from HiRain [7] - The company is awaiting final confirmation for two prominent truck projects, which, along with passenger vehicle OEMs, represent 31% of the global passenger vehicle market [6] Market Data and Key Metrics - Arbe's technology is in the final stages of selection with prominent European, American, and Asian OEMs, representing 31% of the global passenger vehicle market [6][14] - The company expects revenue to be in the lower range of $5 million to $7 million for the year, with adjusted EBITDA loss projected between $32 million and $35 million [14] Company Strategy and Industry Competition - Arbe aims to become a leader in perception radar solutions for the automotive industry, with its imaging radar technology expected to become the standard for most passenger vehicles by the end of the decade [6] - The company is ahead of competitors in terms of production readiness, with a 1.5 to 2-year lead in imaging radar technology [25] - Arbe's imaging radar is priced competitively at around $150-$160 for a front-facing radar, making it a cost-effective alternative to LiDAR [35] Management Commentary on Operating Environment and Future Outlook - The company's operations in Israel remain unaffected by the ongoing conflict, with manufacturing and production carried out in Germany by GlobalFoundries [9] - Arbe's cash balance ensures sufficient funding until the second half of 2025, with preliminary orders from China expected to help the company reach breakeven [8] - The company anticipates revenue ramping up from the second half of 2024, mainly in 2025, 2026, and 2027, driven by final decisions from OEMs [23] Other Important Information - Arbe welcomed Professor Yonina Eldar to its Board of Directors, bringing expertise in electrical engineering and radar theory [8] - Around 20% of the team was called for military duty, primarily affecting long-term projects, but immediate client support capabilities remain intact [9] Q&A Session Summary Question: Operational challenges due to the conflict in Israel - The company has prioritized tasks, with next-generation chipset development delayed, but current customer activities remain unaffected [17][18] - Feedback from prospective customers has been supportive, and the company continues to operate with a remote and hybrid work model [17][18] Question: Conversion of preliminary orders into shipments - Finalization of contracts between Tier 1 partners and OEMs is expected by the end of 2023 or early 2024, turning preliminary orders into actual orders [20] Question: Revenue ramp in Q4 2023 - The company expects decisions from 5-6 OEMs by year-end or early next year, with revenue ramping up from the second half of 2024 [23] Question: Competitive landscape in imaging radar - Arbe is ahead of competitors like Continental and NXP, with a 1.5 to 2-year lead in production readiness [25] Question: Timeline for OEMs to integrate imaging radar data - Data collection and algorithm training typically take 6-12 months, with initial data collection already underway [29] Question: HiRain's 340,000-unit order shipment timeline - The majority of shipments are expected in 2024, with potential for some shipments by the end of 2023 [31] Question: Truck projects and market dynamics - Arbe is engaged with two prominent truck manufacturers, focusing on ADAS functionalities for trucks [33] Question: Imaging radar adoption and pricing - Imaging radar is expected to become standard on all cars by the end of the decade, with pricing competitive against LiDAR [35][37] Question: Market penetration beyond 31% of global passenger vehicles - Early adopters, particularly premium car manufacturers, are the primary focus, with broader adoption expected over time [37]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) Arbe Robotics achieved significant Q3 2023 milestones, advancing Tier 1 radar production and OEM selections, while maintaining sufficient liquidity until H2 2025 [Q3 2023 & Recent Company Highlights](index=1&type=section&id=Key%20Q3%20and%20Recent%20Company%20Highlights) Arbe Robotics advanced Tier 1 radar production, delivered 'B Samples' to OEMs, and is in final selection stages for significant automotive projects - Magna, HiRain, Weifu, and Sensrad (Arbe's Tier 1s) are progressing towards radar system production based on Arbe's chipset[1](index=1&type=chunk) - Tier 1 radar 'B Samples' (production intent systems) utilizing Arbe's chipset were delivered to car manufacturers (OEMs) for L2+ and L3 applications, a pre-selection condition[1](index=1&type=chunk) - Arbe is in the final stages of the selection process with leading European, American, and Asian OEMs, which collectively account for a **31%** share of the global passenger vehicle market[2](index=2&type=chunk) - Arbe is awaiting final confirmation on securing two prominent truck projects[2](index=2&type=chunk) - Current cash balance provides sufficient funds until the **second half of 2025**. Preliminary chipset orders from Chinese Tier 1s for **2024 and 2025**, once finalized, are expected to enable the company to reach breakeven with current cash reserves[3](index=3&type=chunk) - Prof. Yonina Eldar, a leading radar theory expert, has joined Arbe's board of directors[3](index=3&type=chunk) [Current Situation in Israel](index=2&type=section&id=Current%20Situation%20in%20Israel) Arbe's manufacturing remains unaffected by the situation in Israel, with short-term operations and client support maintained despite team call-ups - Arbe's manufacturing and production are performed in Germany by GlobalFoundries, with no expected change in product availability[3](index=3&type=chunk) - **20%** of Arbe's team was called for military duty, primarily affecting long-term projects, with no impact on short-term commercial and client support[3](index=3&type=chunk) - The company continues to monitor activities and adapt to ensure business continuity while prioritizing employee safety[4](index=4&type=chunk) [CEO Statement](index=2&type=section&id=CEO%20Statement) CEO Kobi Marenko highlighted Q3 progress, significant OEM milestones, and Arbe's strategic position in the growing Imaging Radar market - CEO Kobi Marenko is pleased with **Q3** progress, including significant milestones with leading OEMs[4](index=4&type=chunk) - Arbe is in the concluding stages of various OEM selection processes, signaling the rising significance of Imaging Radars as a backbone of the automotive sensor suite[4](index=4&type=chunk) - Arbe's cutting-edge technology is uniquely positioned to meet the demand for Imaging Radars[4](index=4&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Arbe's Q3 2023 financial performance saw decreased revenues and gross margin, leading to an increased net loss, despite improved Adjusted EBITDA loss [Q3 2023 Financial Highlights](index=2&type=section&id=Third%20Quarter%202023%20Financial%20Highlights) Q3 2023 revenues decreased to **$0.5 million**, impacting gross margin, while net loss increased to **$11.7 million** despite a lower Adjusted EBITDA loss Q3 2023 Financial Performance Summary (USD millions) | Metric | Q3 2023 (USD millions) | Q3 2022 (USD millions) | Change (YoY) | | :----- | :--------------------- | :--------------------- | :----------- | | Revenues | 0.5 | 1.3 | -61.5% | | Gross Margin | 24.0% | 72.5% | -48.5 pp | | Operating Expenses | 11.7 | 11.8 | -0.8% | | Operating Loss | (11.6) | (10.9) | +6.4% | | Net Loss | (11.7) | (9.9) | +18.2% | | Adjusted EBITDA Loss | (7.5) | (8.4) | -10.6% | - Gross margin decreased mainly due to reduced quarterly revenue with a fixed cost portion in cost of goods sold[5](index=5&type=chunk) - Operating expenses decreased by **$0.1 million** due to lower subcontractor expenses, favorable exchange rates, and reduced D&O insurance, partially offset by increased share-based compensation (**$2.3M** in **Q3 2022** to **$3.9M** in **Q3 2023**)[6](index=6&type=chunk) - Net loss in **Q3 2023** included **$0.1 million** of financial expenses, mainly related to exchange rate revaluations, compared to financial income of **$1.0 million** in **Q3 2022**[7](index=7&type=chunk) [Balance Sheet & Liquidity](index=3&type=section&id=Balance%20Sheet%20%26%20Liquidity) As of September 30, 2023, Arbe maintained a strong liquidity position with **$23.5 million** in cash and **$25.6 million** in short-term bank deposits, with no debt Balance Sheet and Liquidity Summary (USD millions) | Metric | As of Sep 30, 2023 (USD millions) | | :----- | :------------------------------ | | Cash and cash equivalents | 23.5 | | Short term Bank deposits | 25.6 | | Debt | 0.0 | [Outlook & Guidance](index=3&type=section&id=Outlook%20%26%20Guidance) Arbe anticipates full-year 2023 revenues in the lower range of **$5-7 million** and an Adjusted EBITDA loss of **$32-35 million**, while progressing OEM selections [Full Year 2023 Outlook](index=3&type=section&id=Outlook) Arbe projects full-year 2023 revenues of **$5-7 million** and an Adjusted EBITDA loss of **$32-35 million**, with ongoing OEM selection processes - Arbe is in the final selection stages with leading OEMs in Europe, the US, and Asia Pacific, accounting for **31%** of the global passenger vehicle market[10](index=10&type=chunk) Full Year 2023 Financial Outlook (USD millions) | Metric | Full Year 2023 Outlook (USD millions) | | :----- | :---------------------------------- | | Revenues | $5 to $7 (lower range) | | Adjusted EBITDA | ($32) to ($35) | [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) This section provides an overview of Arbe's market position, conference call details, and cautionary notes regarding forward-looking statements [About Arbe](index=3&type=section&id=About%20Arbe) Arbe Robotics leads in Perception Radar Solutions, offering highly detailed technology crucial for L2+ autonomy in the growing **$11 billion** automotive radar market - Arbe is a global leader in Perception Radar Solutions, enabling safe driver-assist systems and paving the way for full autonomous driving[12](index=12&type=chunk) - Arbe's radar technology is **100 times** more detailed than other market radars and is a mandatory sensor for L2+ and higher autonomy[12](index=12&type=chunk) - The company operates in the fast-growing automotive radar market, with an estimated total addressable market of **$11 billion** in **2025**[12](index=12&type=chunk) [Conference Call & Webcast Details](index=3&type=section&id=Conference%20Call%20%26%20Webcast%20Details) Arbe hosted a **Q3 2023** conference call and webcast on **November 8, 2023**, with replay and archived access available - Arbe hosted a conference call and webcast on **November 8, 2023**, at **8:30 am ET**, with CEO Kobi Marenko and CFO Karine Pinto-Flomenboim[11](index=11&type=chunk) - A telephonic replay was available until **November 22, 2023** (Access ID: **2439734**)[11](index=11&type=chunk) - A live and archived webcast was accessible via Arbe's Investor Relations website[11](index=11&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) Forward-looking statements are subject to various risks and uncertainties, including geopolitical and market factors, and should not be unduly relied upon - Forward-looking statements are subject to risks and uncertainties, including the effect of the Israeli economy and hostilities, ability to secure binding orders, manufacturing delays, and market adoption of autonomous vehicles[14](index=14&type=chunk) - Readers are cautioned not to place undue reliance on these statements, which relate only to the date they were made[14](index=14&type=chunk) - Arbe does not undertake any obligation to update forward-looking statements except as required by law or applicable regulation[14](index=14&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Arbe's consolidated balance sheets, statements of operations, cash flows, and non-GAAP reconciliations for the reported periods [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of September 30, 2023, total assets decreased to **$53.95 million**, driven by reduced cash, while total liabilities significantly decreased to **$6.36 million** Consolidated Balance Sheets (USD millions) | --- | --- | --- | | Current Assets: | 2023 Sep 30, (Unaudited) (USD millions) | 2022 Dec 31, (Unaudited) (USD millions) | | :------------------------------------------------- | :--------------------------------------- | :-------------------------------------- | | Cash and cash equivalents | 23.527 | 54.171 | | Restricted cash | 0.115 | 0.144 | | Short term Bank deposits | 25.615 | 0.400 | | Trade receivable | 1.766 | 2.202 | | Prepaid expenses and other receivables | 1.277 | 1.839 | | Total current assets | 52.300 | 58.756 | | Non-Current Assets | | | | Operating lease right-of-use assets | 0.268 | 0.465 | | Property and equipment, net | 1.386 | 1.609 | | Total non-current assets | 1.654 | 2.074 | | Total assets | 53.954 | 60.830 | | Current liabilities: | | | | Trade payables | 0.594 | 1.244 | | Operating lease liabilities | 0.145 | 0.364 | | Employees and payroll accruals | 2.521 | 2.861 | | Deferred revenues | 0.101 | 0.351 | | Accrued expenses and other payables | 1.820 | 5.609 | | Total current liabilities | 5.181 | 10.429 | | Long term liabilities | | | | Operating lease liabilities | 0.035 | 0.017 | | Warrant liabilities | 1.141 | 1.631 | | Total long-term liabilities | 1.176 | 1.648 | | SHAREHOLDERS' EQUITY: | | | | Additional paid-in capital | 241.952 | 208.893 | | Accumulated deficit | (194.355) | (160.140) | | Total shareholders' equity | 47.597 | 48.753 | | Total liabilities and shareholders' equity | 53.954 | 60.830 | [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q3 2023 revenues decreased to **$0.48 million**, leading to an operating loss of **$11.56 million** and a net loss of **$11.70 million** Consolidated Statements of Operations (USD millions) | --- | --- | --- | --- | --- | | | 3 Months Ended September 30, 2023 (Unaudited) (USD millions) | 3 Months Ended September 30, 2022 (Unaudited) (USD millions) | 9 Months Ended September 30, 2023 (Unaudited) (USD millions) | 9 Months Ended September 30, 2022 (Unaudited) (USD millions) | | :----- | :------------------------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | | Revenues | 0.479 | 1.256 | 1.123 | 3.368 | | Cost of revenues | 0.364 | 0.345 | 0.972 | 1.066 | | Gross Profit | 0.115 | 0.911 | 0.151 | 2.302 | | Operating Expenses: | | | | | | Research and development, net | 8.421 | 8.566 | 25.636 | 25.904 | | Sales and marketing | 1.264 | 1.068 | 3.666 | 3.427 | | General and administrative | 1.993 | 2.169 | 5.637 | 6.587 | | Total operating expenses | 11.678 | 11.803 | 34.939 | 35.918 | | Operating loss | (11.563) | (10.892) | (34.788) | (33.616) | | Financial expenses (income), net | 0.134 | (0.959) | (0.573) | (4.233) | | Net loss | (11.697) | (9.933) | (34.215) | (29.383) | | Basic net loss per ordinary share | (0.15) | (0.16) | (0.49) | (0.46) | | Weighted-average number of shares used in computing basic net loss per ordinary share | 77,474,326 | 63,623,063 | 69,975,104 | 63,341,817 | | Diluted net loss per ordinary share | (0.18) | (0.16) | (0.56) | (0.46) | | Weighted-average number of shares used in computing diluted net loss per ordinary share | 67,286,305 | 63,623,063 | 61,452,569 | 63,341,817 | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q3 2023 saw **$8.09 million** net cash used in operating activities, with significant cash used in investing and provided by financing for the nine-month period Consolidated Statements of Cash Flows (USD millions) | --- | --- | --- | --- | --- | | Cash flows from operating activities: | 3 Months Ended September 30, 2023 (Unaudited) (USD millions) | 3 Months Ended September 30, 2022 (Unaudited) (USD millions) | 9 Months Ended September 30, 2023 (Unaudited) (USD millions) | 9 Months Ended September 30, 2022 (Unaudited) (USD millions) | | :------------------------------------ | :------------------------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | | Net Loss | (11.697) | (9.933) | (34.215) | (29.383) | | Net cash used in operating activities | (8.089) | (8.079) | (28.467) | (31.651) | | Cash flows from investing activities: | | | | | | Change in bank deposits | (0.013) | - | (25.215) | (0.400) | | Purchase of property and equipment | (0.071) | (0.051) | (0.190) | (0.576) | | Net cash provided by investing activities | (0.084) | (0.051) | (25.405) | (0.976) | | Cash flows from financing activities: | | | | | | Proceeds from issuance of ordinary shares, net of issuance costs | - | - | 22.496 | - | | Proceeds from exercise of options | 0.097 | 0.049 | 0.703 | 0.264 | | Net cash provided (used in) by financing activities | 0.097 | 0.049 | 23.199 | (4.954) | | Effect of exchange rate fluctuations on cash and cash equivalent | (0.655) | - | (0.721) | - | | decrease (Increase) in cash, cash equivalents and restricted cash | (7.420) | (8.081) | (29.952) | (37.581) | | Cash, cash equivalents and restricted cash at the beginning of period | 31.718 | 71.436 | 54.315 | 100.936 | | Cash, cash equivalents and restricted cash at the end of period | 23.642 | 63.355 | 23.642 | 63.355 | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20LOSS%20TO%20NON-GAAP%20NET%20LOSS) Arbe reconciled **Q3 2023** GAAP net loss of **$11.70 million** to a non-GAAP net loss of **$8.06 million**, with Adjusted EBITDA loss improving to **$7.54 million** Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (USD millions) | --- | --- | --- | --- | --- | | | 3 Months Ended September 30, 2023 (USD millions) | 3 Months Ended September 30, 2022 (USD millions) | 9 Months Ended September 30, 2023 (USD millions) | 9 Months Ended September 30, 2022 (USD millions) | | :----- | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | GAAP net loss attributable to ordinary shareholders | (11.697) | (9.933) | (34.215) | (29.383) | | Add: | | | | | | Stock-based compensation | 3.707 | 2.240 | 9.428 | 6.377 | | Warrants to service providers | 0.178 | 0.106 | 0.432 | 0.272 | | Revaluation of warrants and accretion | (0.252) | 0.387 | (0.490) | (4.761) | | Non-recurring expenses | - | - | 0.214 | 0.130 | | Non-GAAP net loss | (8.064) | (7.200) | (24.631) | (27.365) | | Basic Non-GAAP net loss per ordinary share | (0.10) | (0.11) | (0.35) | (0.43) | | Weighted-average number of shares used in computing basic Non-GAAP net loss per ordinary share | 77,474,326 | 63,623,063 | 69,975,104 | 63,341,817 | | Diluted Non-GAAP net loss per ordinary share | (0.12) | (0.11) | (0.56) | (0.46) | | Weighted-average number of shares used in computing diluted Non-GAAP net loss per ordinary share | 67,286,305 | 63,623,063 | 61,452,569 | 63,341,817 | Reconciliation of GAAP Net Loss to Adjusted EBITDA (USD millions) | --- | --- | --- | --- | --- | | | 2023 (USD millions) | 2022 (USD millions) | 2023 (USD millions) | 2022 (USD millions) | | :----- | :---------------- | :---------------- | :---------------- | :---------------- | | GAAP net loss attributable to ordinary shareholders | (11.697) | (9.933) | (34.215) | (29.383) | | Add: | | | | | | Financial expenses (income), net | 0.134 | (0.959) | (0.573) | (4.233) | | Depreciation | 0.139 | 0.132 | 0.415 | 0.349 | | Stock-based compensation | 3.707 | 2.240 | 9.428 | 6.377 | | Warrants to service providers | 0.178 | 0.106 | 0.432 | 0.272 | | Non-recurring expenses | - | - | 0.214 | 0.130 | | Adjusted EBITDA | (7.539) | (8.414) | (24.299) | (26.488) |

Arbe Robotics Ltd. (NASDAQ:ARBE) Q2 2023 Results Conference Call August 9, 2023 8:30 AM ET Company Participants Miri Segal - Chief Executive Officer of MS-IR Kobi Marenko - Co-Founder and Chief Executive Officer Karine Pinto-Flomenboim - Chief Financial Officer Conference Call Participants Gary Mobley - Wells Fargo Jaime Perez - RF Lafferty Matthew Galinko - Maxim Group Suji Desilva - ROTH Capital Operator Good day, and welcome to the Arbe Robotics Second Quarter 2023 Earnings Results Conference Call. [Oper ...

[Arbe Q2 2023 Financial Results](index=1&type=section&id=Arbe%20Announces%20Q2%202023%20Financial%20Results) [Key Q2 and Recent Company Highlights](index=1&type=section&id=Key%20Q2%20and%20Recent%20Company%20Highlights) The company secured a major preliminary order, advanced in OEM selection processes, and raised capital for growth - Weifu High-Technology Group placed an **$11.6 million preliminary order** for radar chipsets for 2024 and a **$1 million order** for professional services[2](index=2&type=chunk) - Arbe's chipset is in the final selection stages with **11 premium leading OEMs** across Europe and China for level 2++ / level 3 programs[2](index=2&type=chunk) - Successfully raised **$23 million** from investors to enhance market penetration, R&D, and strengthen the balance sheet[3](index=3&type=chunk)[4](index=4&type=chunk) - The company remains on track to achieve **four customer design wins** by the end of 2023[3](index=3&type=chunk) [Q2 2023 Financial Performance](index=1&type=section&id=Second%20Quarter%202023%20Financial%20Highlights) Q2 2023 saw lower revenue and a net loss, though Adjusted EBITDA loss improved and liquidity remains strong Q2 2023 vs Q2 2022 Financial Summary (in millions USD) | Financial Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Revenues | $0.3M | $1.2M | -77.4% | | Gross Margin | -1.0% | 72.7% | Decrease | | Operating Loss | ($12.6M) | ($12.1M) | Increased Loss | | Net Loss | ($12.6M) | ($11.6M) | Increased Loss | | Adjusted EBITDA | ($8.4M) | ($9.5M) | Reduced Loss | Operating Expenses (in millions USD) | Expense Category | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Research and Development | $9.1 | $9.5 | | Sales and Marketing | $1.5 | $1.2 | | General and Administrative | $2.0 | $2.3 | | **Total Operating Expenses** | **$12.6** | **$13.0** | - As of June 30, 2023, Arbe had **$31.6 million in cash and cash equivalents** and **$25.6 million in short-term bank deposits** with no debt[8](index=8&type=chunk) [Full Year 2023 Outlook](index=2&type=section&id=Outlook) The company reiterates its full-year 2023 guidance, targeting four design-ins and projecting revenues of $5-7 million - The primary goal for 2023 is to achieve **4 design-ins** with automakers[9](index=9&type=chunk) Full Year 2023 Guidance | Metric | Outlook Range | | :--- | :--- | | Revenues | $5M - $7M | | Adjusted EBITDA | ($32M) - ($35M) | - Revenues are expected to be heavily weighted towards the end of the year, coinciding with the start of production chip shipments[9](index=9&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets and shareholders' equity increased as of June 30, 2023, while total liabilities decreased significantly Consolidated Balance Sheet Summary (U.S. dollars in thousands) | Account | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$62,540** | **$60,830** | | Cash and cash equivalents | $31,586 | $54,171 | | Short term Bank deposits | $25,602 | $400 | | **Total Liabilities** | **$7,228** | **$12,077** | | **Total Shareholders' Equity** | **$55,312** | **$48,753** | [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company reported a sharp revenue decline and a wider net loss for the three months ended June 30, 2023 Statement of Operations Summary (U.S. dollars in thousands) | Metric | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | | :--- | :--- | :--- | | Revenues | $289 | $1,236 | | Gross Profit (Loss) | ($3) | $899 | | Operating Loss | ($12,586) | ($12,085) | | Net Loss | ($12,611) | ($11,593) | | Basic Net Loss per Share | ($0.19) | ($0.18) | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the first six months of 2023, cash from financing activities offset cash used in operations and investments Statement of Cash Flows Summary - 6 Months Ended June 30 (U.S. dollars in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($20,379) | ($23,572) | | Net cash used in investing activities | ($25,321) | ($926) | | Net cash provided by financing activities | $23,102 | ($5,002) | | **Decrease in cash** | **($22,532)** | **($27,978)** | | **Cash at end of period** | **$31,717** | **$71,436** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=7&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20LOSS%20TO%20NON-GAAP%20NET%20LOSS) Adjustments for non-cash items show an improved Non-GAAP Net Loss and Adjusted EBITDA loss compared to the prior year GAAP to Non-GAAP Reconciliation - Q2 2023 vs Q2 2022 (U.S. dollars in thousands) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | **GAAP Net Loss** | **($12,611)** | **($11,593)** | | Stock-based compensation | $3,713 | $2,348 | | Revaluation of warrants | ($369) | ($2,014) | | **Non-GAAP Net Loss** | **($8,896)** | **($11,163)** | | **Adjusted EBITDA** | **($8,363)** | **($9,530)** |

Arbe Robotics Ltd. (NASDAQ:ARBE) Q1 2023 Earnings Conference Call May 17, 2023 8:30 AM ET Company Participants Miri Segal - Chief Executive Officer of MS-IR Kobi Marenko - Co-Founder and Chief Executive Officer Karine Pinto-Flomenboim - Chief Financial Officer Conference Call Participants Gary Mobley - Wells Fargo Securities Joshua Buchalter - TD Cowen Suji Desilva - ROTH MKM Jaime Perez - RFL Matthew Galinko - Maxim Group Operator Good day, and welcome to the Arbe Robotics First Quarter 2023 Conference Cal ...

Radar Revolution. Delivered. Q1 2023 Financial Results Disclaimer v v v This presentation and any statements made at the conference call and webcast referred to in this presentation, contains "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "proje ...

Exhibit 99.1 Arbe Announces Q1 2023 Financial Results TEL AVIV, Israel, May 17, 2023 /PRNewswire/ -- Arbe Robotics Ltd. (NASDAQ: ARBE) ("Arbe"), a global leader in perception radar solutions, today announced financial results for its first quarter, which ended March 31, 2023. Key Q1 and Recent Company Highlights: This quarter, significant steps have been taken towards production and revenue growth through collaboration with Tier 1s and leading car manufacturers aiming to adopt Arbe's technology for enhancin ...

Debt and Warrants - The company took down a term loan of $5.0 million in February 2019 and $2.0 million in November 2019, with warrants issued for the purchase of 227,959 ordinary shares at an aggregate exercise price of $550,000[181] - Warrants liability amounted to $0.42 million as of December 31, 2022, compared to $1.62 million as of December 31, 2021[181] - The company utilizes the Black-Scholes valuation model to estimate the fair value of warrant liabilities, with significant assumptions including volatility[185] Share-Based Compensation - The company elected to recognize share-based compensation costs on a straight-line method, with the fair value of each option award estimated using the Black-Scholes option pricing model[183] - Share-based compensation expense for Senior Management and directors in 2022 was $2.24 million, compared to $387,000 in 2021[209] - Outstanding equity incentives as of December 31, 2022 include 2,314,127 options and 204,907 restricted stock units at a weighted-average exercise price of $5.66 per share[209] - Equity-based compensation for Senior Management vests over four years, while directors' compensation vests over three years[209] Emerging Growth Company Status - The company is classified as an "emerging growth company" and expects to continue taking advantage of the extended transition period for new or revised financial accounting standards[187] - The company's Post-Combination Company will remain an emerging growth company until the earliest of specific conditions, including achieving total annual gross revenue of $1.07 billion or more[187] Leadership and Compensation - The company's directors and senior management include key figures such as Yair Shamir, Chairman of the Board, and Kobi Marenko, Chief Executive Officer and Director (co-founder)[187][188] - The company's directors have extensive backgrounds in technology, finance, and venture capital, with notable achievements in various industries[187][189][190][191][192][193][195] - Aggregate compensation for directors and Senior Management in 2022 was $4.53 million, including $411,000 for pension, severance, and retirement benefits[209] - CEO Kobi Marenko's total compensation for the year is $513,987, including a base salary of $312,211, a bonus of $11,367, equity-based compensation of $166,965, and other compensation of $23,444[210] - CTO Noam Arkind's total compensation is $564,261, with a base salary of $370,005, a bonus of $11,367, equity-based compensation of $166,877, and other compensation of $16,012[210] - CBO Ram Machness receives the highest total compensation at $667,626, including a base salary of $274,319, a bonus of $60,000, equity-based compensation of $321,307, and other compensation of $12,000[210] - CFO Karine Pinto-Flomenboim's total compensation is $549,637, with a base salary of $228,478, a bonus of $14,209, equity-based compensation of $303,824, and other compensation of $3,126[210] - Chief Radar Officer Gonen Barkan's total compensation is $470,138, including a base salary of $204,253, a bonus of $16,198, equity-based compensation of $236,263, and other compensation of $13,424[210] - Non-employee directors receive an annual compensation of $100,000 plus VAT, with equity-based compensation vesting over three years[213] - The company's Compensation Policy caps variable compensation components (annual bonus and equity-based compensation) at 85% of an executive officer's total compensation package[216] Corporate Governance - The company complies with Nasdaq Rule 5605(b)(1), requiring a majority of independent directors on the board[204] - The company has opted out of certain Israeli Companies Law requirements, including external director appointments, due to Nasdaq listing[204] - The quorum for shareholder meetings requires at least two shareholders holding 25% of voting power[204] - The company may use foreign private issuer exemptions for certain Nasdaq corporate governance rules, disclosing any exceptions and relevant Israeli law provisions[204] - The board of directors is classified into three classes with terms expiring in 2025, 2023, and 2024 respectively[226] - The Audit Committee oversees financial reporting, internal controls, and compliance with legal and regulatory requirements, and is composed of independent directors[229] - The Compensation Committee reviews and approves executive compensation, employment agreements, and oversees employee benefits plans[230] - The Nominating and Governance Committee recommends director nominees and establishes corporate governance policies[231] - Nasdaq rules require the company to have at least two diverse directors by December 31, 2026, or provide an explanation for non-compliance[232] - The internal auditor, appointed by the board, ensures compliance with applicable laws and business procedures[234] - The board has determined that seven directors are independent as defined by Nasdaq[235] Workforce and Operations - The company's global workforce increased by 23 employees from December 31, 2021, to December 31, 2022, primarily due to growth in the research and development department, with 114 employees in R&D as of December 31, 2022[238][239] - As of March 1, 2023, the company's global workforce decreased to 127 employees as part of efforts to streamline operations and focus on productization and customer support[238] - The research and development department accounted for 114 employees as of December 31, 2022, compared to 97 employees in 2021, reflecting a significant increase in R&D focus[239] - The company's workforce is primarily based in Israel, with 137 employees located there as of December 31, 2022[238] - The company anticipates expanding its staff as it progresses towards full production and ramp-up, aiming to stay lean while supporting customers and maintaining growth[238] - The company's sales and marketing department grew from 7 employees in 2021 to 13 employees in 2022, indicating increased focus on market expansion[239] - The company's general and administrative staff remained stable at 14 employees from 2021 to 2022[239] Shareholder and Equity Information - The company had 64,848,021 ordinary shares outstanding as of March 1, 2023, with the largest beneficial owner holding 13.93% of the shares[240][250] - The company's authorized share capital consists of 130,000,000 ordinary shares, with 64,848,021 shares outstanding as of March 1, 2022[250] - The company's largest shareholder group, including senior management and directors, collectively owns 46.14% of the outstanding ordinary shares as of March 1, 2023[240] - As of December 31, 2022, there were 3,168,981 ordinary shares subject to options under the 2016 Incentive Share Option Plan and 255,209 ordinary shares reserved and available for issuance[220] - As of December 31, 2022, there were 5,488,273 ordinary shares subject to options under the 2021 Equity Incentive Plan and 1,168,414 ordinary shares reserved and available for issuance[223] - Following the enlargement of the reserved and available option pool on January 1, 2023, there were a total of 3,223,623 ordinary shares reserved and available for issuance under the 2021 Plan[223] - The 2021 Plan allows for an annual increase in the number of shares available for issuance, up to 5% of the total number of ordinary shares outstanding on December 31 of the preceding year[223] - Options granted under the 2016 Plan expire no later than seven years from the date of grant, unless a shorter term is designated[220] - In the event of termination of employment, vested options may be exercised within 60 days for non-cause termination or retirement, and within 12 months for death or disability[222] - The 2021 Plan provides for granting awards under various tax regimes, including Section 102 of the Israeli Income Tax Ordinance for favorable tax treatment[223] - The 2021 Plan administrator has the authority to amend, accelerate, or terminate the plan, and to adjust terms of awards, including exercise price and vesting schedules[223] - In the event of a corporate transaction, unexercised options may be assumed or substituted by the successor company, or accelerated and vested[222] - The 2021 Plan allows for the issuance of awards that may constitute deferred compensation, subject to Section 409A of the U.S. Internal Revenue Code[223] - The 2021 Plan includes grants of stock options, ordinary shares, restricted shares, restricted share units, and other share-based awards[225] - Awards under the 2021 Plan can be exercised within three months after termination of employment, except in cases of death, permanent disability, or retirement, where the period extends to twelve months[225] - In the event of a merger, sale, or change of control, the administrator may adjust the terms of outstanding awards, including acceleration of vesting or cancellation with cash or share payments[225] Shareholder Rights and Meetings - Dividends can be declared by the board of directors without shareholder approval, provided there are sufficient retained earnings or profits, otherwise requiring court approval[254] - Shareholder meetings require a quorum of at least two shareholders holding 25% of the voting power, with adjourned meetings requiring only one shareholder to constitute a quorum[256] - Shareholder resolutions generally require a simple majority vote, with specific amendments to the classified board requiring 60% of the total voting power[258] - Removal of a director requires a majority vote of the votes cast at a general meeting, provided a quorum is present[259] - Extraordinary transactions with controlling shareholders require special disinterested majority approval, with a controlling shareholder defined as holding 25% or more of the voting rights[260] - Shareholders have the right to access corporate records, including minutes of meetings, financial statements, and documents related to related party transactions[261] Indemnification and Insurance - The company provides up to $10 million in insurance coverage for its Office Holders, including directors and executive officers[219] - Indemnification agreements with Office Holders limit the maximum indemnification amount to the greater of 25% of shareholders' equity or $25 million[219] - The company provides maximum indemnity to its directors and Office Holders as permitted by the Israeli Companies Law, covering financial liabilities, litigation expenses, and reasonable attorney fees[263] - The company has entered into indemnification, insurance, and exculpation agreements with its directors and certain executive officers, ensuring coverage to the fullest extent permitted by law[263] - The company's Restated Articles allow it to exempt, indemnify, and insure Office Holders to the extent permitted by law, with current coverage under a directors and officers' liability insurance policy[263] Mergers and Acquisitions - Under Israeli law, a full tender offer is required if an acquirer aims to hold over 90% of the company's voting rights or share capital, with specific conditions for transfer and appraisal rights[268] - A special tender offer is mandatory under Israeli law if an acquisition would result in the purchaser holding 25% or more of the voting rights, or over 45% if no other shareholder holds more than 45%[269] - The company's board of directors must express an opinion on the advisability of a special tender offer or abstain with reasons, and Office Holders may face personal liability for actions impairing such offers[269] - Mergers under Israeli law require approval by the boards of directors and a majority of shareholders, with additional safeguards for creditors and specific timelines for completion[272] - The company may issue preferred shares with different rights, which could potentially frustrate takeovers or prevent shareholders from realizing a premium over market value[273] Taxation - Israeli corporate tax rate reduced from 25% to 24% effective January 1, 2017, and to 23% effective January 1, 2018[278] - Preferred Companies under the 2011 Amendment enjoy reduced corporate tax rates: 15% in 2011-2012, 12.5% in 2013, 16% in 2014-2016, and 16% in 2017 and thereafter[283] - Special Preferred Enterprises under the 2011 Amendment enjoy further reduced tax rates of 8% or 5% if located in a development zone[283] - Preferred Technological Enterprises under the 2017 Amendment enjoy a reduced corporate tax rate of 12%, or 7.5% if located in Development Zone A[284] - Special Preferred Technological Enterprises under the 2017 Amendment enjoy a reduced corporate tax rate of 6% regardless of location[284] - Dividends from Preferred Technological Income are generally subject to a 20% tax rate, or lower under applicable tax treaties[284] - Withholding tax rate for dividends to non-Israeli residents is 25%, or 30% for substantial shareholders[284] - Capital gains tax on sales of ordinary shares by non-Israeli residents may be exempt if shares were not held through a permanent establishment in Israel[286] - Inflationary surplus portion of capital gains is not subject to tax in Israel[285] - Research and development expenses may be deductible in the year incurred or over a three-year period, depending on approval[280] - Non-Israeli residents selling securities may be exempt from Israeli capital gains tax under applicable tax treaties, with specific conditions such as holding less than 10% voting power or not being present in Israel for 183 days or more[288] - Israeli resident corporations are subject to a 23% corporate tax rate on capital gains from the sale of shares in Israeli companies listed outside Israel[288] - Israeli resident individuals are subject to a 25% capital gains tax rate, which can increase to 30% for substantial shareholders or those claiming interest deductions[288] - Dividends received by Israeli resident individuals are taxed at 25% plus a 3% surtax, with a 30% rate plus surtax for substantial shareholders[289] - Non-Israeli residents receiving dividends are subject to a 25% withholding tax, which can be reduced to 12.5% for U.S. corporations holding 10% or more voting rights under the U.S.-Israel Tax Treaty[290] - Israeli institutions such as exempt trust funds and pension funds may be exempt from capital gains tax on the sale of shares[288] - Dividends distributed by Preferred Technology Enterprises or Special Preferred Technology Enterprises are subject to beneficial withholding tax rates[289][290] - Individuals subject to Israeli tax are also subject to a 3% surtax on annual income exceeding NIS 663,240 for 2022[291] - Israeli law does not impose estate or gift tax[292] - The company may be treated as a U.S. corporation for U.S. federal income tax purposes under Section 7874 of the Code if certain conditions are met[295] - Distributions on ordinary shares will be treated as dividends to the extent of current and accumulated earnings and profits, with any excess treated as a tax-free return of capital or gain from the sale of shares[298] - Dividends received by non-corporate U.S. Holders may qualify for lower capital gains tax rates if certain conditions are met, including holding period requirements and market tradability[298] - The company may not qualify for benefits under the U.S.-Israel income tax treaty, and ordinary shares may not be considered "readily tradable" on U.S. securities markets[298] - Dividends paid in foreign currency will be calculated in U.S. dollars based on the exchange rate at the time of receipt, potentially resulting in foreign currency gain or loss[298] - A U.S. Holder may recognize capital gain or loss on the sale, exchange, or redemption of ordinary shares or warrants, with long-term capital gains eligible for reduced tax rates[300] - The tax consequences of a cashless exercise of warrants are uncertain under current U.S. tax law, potentially resulting in tax-deferred treatment or taxable gain recognition[301] - The company may be classified as a Passive Foreign Investment Company (PFIC) for U.S. federal income tax purposes, which could result in adverse tax consequences for U.S. Holders[302] - If classified as a PFIC, U.S. Holders may be subject to excess distribution rules, with gains allocated over the holding period and taxed at the highest applicable rates[303] - The company's PFIC status is determined annually based on income and asset composition, with no assurance provided for 2022 or future taxable years[302] - U.S. Holders are urged to consult tax advisors regarding the application of PFIC rules and potential tax implications for their investments[303] - U.S. Holders may avoid taxation under excess distribution rules by making a timely and valid QEF election, but this requires the company to provide specific financial information annually[304] - If a U.S. Holder makes a QEF election, they must include their pro rata share of the company's ordinary earnings and net capital gains in their income, taxed as ordinary income and long-term capital gains respectively[304] - A U.S. Holder that does not make a QEF election or mark-to-market election will remain subject to the excess distribution rules[306] - A mark-to-market election allows U.S. Holders to include the excess of the fair market value of ordinary shares over their adjusted basis in income, with deductions allowed for the opposite scenario[306] - The mark-to-market election is only available for "marketable stock," which includes shares listed on Nasdaq, but there is no assurance that ordinary shares will qualify as "regularly traded"[306] - U.S. Holders of warrants cannot make a QEF or mark-to-market election, and any gain from selling warrants may be treated as an excess distribution[304] - A U.S. Holder that makes a QEF election for newly acquired ordinary shares after exercising warrants will have the QEF election apply to those shares, but excess distribution rules may still apply[304] - The QEF election is made on a shareholder-by-shareholder basis and can only be revoked with IRS consent[304] - U.S. Holders may be required to file IRS Form 8621 annually and provide additional information, with failure to do so extending the statute of limitations[306] - The PFIC rules, including QEF and mark-to-market elections, are complex and U.S. Holders are strongly encouraged to consult tax advisors[306]

Radar Revolution. Delivered. Business Update Kobi Marenko Co-Founder and CEO, Arbe Investor Presentation 1 Disclaimer v This press release and the earnings call contain "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "project," "potential" and si ...